Can it be done?

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From: Sandy C


It seems to me that to make it to the property investment millionaire status - one has to own or at least have set up a company after acquiring more than say two ip's. Can a non business person (say a blue collar worker) make it to the dizzy heights of a millionaire by continuing to work for a salary and continue to buy houses just like monopoly????
 
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Reply: 1
From: Jeremy Laws


Of course! Just keep buying, companies, no companies, doesn't matter, just buy, buy, buy.
 
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Reply: 2
From: Gee Cee Cee


I have done it.

It certainly isn't rocket science.

Just keep learning, never believe everything you hear, don't follow crowds.

Above all post here for anything. Most people here will not treat you like a idiot even if it is a silly question.

You never learn from doing nothing.

It should actually be easier nowdays. Back in 1979 there were no chat rooms or forums.

Gee Cee
 
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Reply: 2.1
From: Kristine .


Dear Gee Cee

Remember Vendor Terms? In 1979 I was working for Robert Moreland Real Estate and we sold enormous subdivisions on vendor terms, as the banks wouldn't lend on vacant land.

Remember "Nobody Can Like Kappel Can"? One of the few builders who would lend to people who didn't qualify for finance from the banks.

Remember qualifying periods? I remember going to the State Savings Bank of Victoria and applying for a loan. The SSB a) would not lend to single women b) required a guarantor (a mortgage wasn't enough security) c) required a 4:1 lending ratio based on my savings pattern over the preceeding 3 years.

"But - but" I said "This lovely 2 storey 2 bedroom nearly completed Townhouse in Ivanhoe, Melbourne, is available now for $33,500" "Come back in three years" they said. but instead, I went to the Eastern Suburbs Permanent Building Society (The Three Bears) who lent me 95% of valuation, and the builder accepted my offer of $31,500, and I had sheets on the windows and ate at my mothers for the first three years.

When we (married by then) sold in 1980 for $65,000, we had experienced the dizzying heights of interest rates at 12.75%.

Moral of the Story:

Nostalgia is a wonderful past-time.

There has never been a better time than now to get started.

Don't let your internal bank manager tell you to come back in three years time!

... and besides, you can always eat at your mothers!

Go get it

Kristine
 
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Reply: 2.1.1
From: Gee Cee Cee




Hi Ya Kristine

I can remember first venture and about the next three.

At 17 or 18 went along to the bank (Shaking)

The manager was like the school principal.

OK when you have proved your savings pattern for 12 mths and can come up with 30% of the deposit come back.


Right, SURE

Fortunately where I worked had a Credit Union

I had a interview with the board and they approved the loan.

They also approved the next loan.

Even though money is now a lot easier to get I still do some financing with them.

I can also remember sitting at Tech 3 nights a week counting the cars going past on the freeway and thinking. "I hate this"

Gee Cee
 
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Reply: 2.1.2
From: Rasputin .


Hardest thing to do is to make the start, too many people will knock you and tell you it wont work.

But the owning a million dollars of property is not the end, only the beginning, you nee the lifestyle to go with it, never having to work for some one else again, maintaining a passive income , and hopefully not handing too much debt to our kids....

Would love to see how much debt Kerry Packer has!!
 
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Reply: 3
From: Michael Yardney


Yes it can be done. You need time and patience and let the power of compounding work for you. Who would not like to buy their parent's house for the price they paid for it. I turned $2,500 into a $5,000,000 property portfolio over a 15 year period in my spare time whilst working and putting my 4 kids through school. Then I got smart and went into property full time and the results skyrocketed. I bought my first IP for $18,000 - still own it now - worth $300K and I am building 2 x townhouses on the site. It's even easier to make money in property today, because finance is so readily available. Go for it!!
Michael Yardney - Metropole Properties
 
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Reply: 3.1
From: Rasputin .


gee you did real well with that $2500 wish i could do that today :)
 
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Reply: 1.1
From: Rasputin .


Will we ever run out of tenants ????
 
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Reply: 4
From: Rolf Latham


Yes Yes Yes

For my clients I can offer the following observations.

Investment Property does not care whether you have white, brown, yellow, or whatever skin colour.

Equally, I have found that investment property does not care wether you vote Liberal, Labor, Greens, democrtas etc.

And finally investment property does not care whether you are white collar, blue collar, T-shirt or singlet.

Property will increase and rent at the same rate regardless of who owns it.

Go for it and do your research and you will do well.

Regards Rolf
 
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Reply: 4.1
From: Splinter Wood


So if you'd run out and bought a place in Sydney in March 2001 $300,000 (when this thread started), it would probably be worth $340,000 to $380,000 now !

First place I bought was at the start of a long flat period, the bank gave me prequalification to buy at my price and would lend $200,000K , which was a major stretch at the time for me, and very scary. Purchase price was $215,000.

I signed the property, THEN the f ^%%# bank reneged and said they wanted an additional $10,000 cash ! (A.Holes !!! Thanks Westpac - from whom I have since removed all business from + associated trusts from associates and partners business turnover in a large RE firm. They have lost about $60,000,000 turnover a year - EAT ME !)

Anyway I digress, so I had to scramble for the $$ but ended up switching to NAB who took me on.

I could have easily thrown in the towel at several stages when I hit what seemed like insurmountable hurdles.

Find a way over the hurdles as they will always be there, they just get easier and maybe fun to overcome. All part of the game.

So what will we read here in a years time ??

SW
 
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Reply: 5
From: Michael Yardney


Can it be done?
DEFINATELY YES!
I did it in the 70's and 80's(and kept it) while having a job and 4 kids who's mission in life was to recycle my money through the private school system.
Lot's of our clients have done it.
It takes time (10 -15 years) and patience to allow the magic of compounding to work and in the meantime you need a real job (not your property investing job) to give you the cashflow that you require.
I don't want to get in the positive vs negative cashflow argument here, but if you are wrapping for example, it's hard to become a millionaire because the purchasers of your properties get the capital gains that could make YOU a millionaire.
If you get great returns but poor capital growth it's really hard to get the deposit for your next property.
If you buy in areas of high capital growth you may be able to refinance in 2 - 3 years time and get the deposit for your next property. Do this 3 or 4 times over a 10 to 15 year period and you will own a multimillion dollar property portfolio.
Michael Yardney
Metropole Properties
 
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