Direction confusion!

[JennD]

Hi Somersofters ....

Been a while since I've last posted, but thought I'd share some of my recent thoughts. Having moved to Melbourne (and watching the fairly crap market here) I've been really considering my future plans and focusing on what will keep me financially stable and happy (rather than wealthy!).

A couple of years ago the goal was to own a property portfolio, etc. Now I'm looking more into a number of other considerations that, while perhaps you might not think are as financially worthwhile, would likely make me happier...

1) Buying the land/property to retire on. Always wanted to build my own dream home to retire on, and think now is a good time to buy it and slowly build/get it to where I want it to be. If at the end of 40-something years I no longer want it, then I can sell it and deal with the outcome.

2) Start a sideline business with the savings - but the businesses I am interested in (I would still work full time as I love my job) are in dying industries - publishing/books/etc - so would have to be fairly creative.



Has anyone else got to a point where they suddenly want to use their money differently? Is this a usual process? I think it's a bit of a "Melbourne thing" where everyone has a project that's a 'love' project rather than a financial project. Now I'm in my early twenties I feel like I have the capacity to go and fulfill these wants and attempt to make it work and if it all comes crashing down then... there's still time to start again .

Anyway, good to be back posting. Let me know your thoughts on Property Observer lately as well, always keen for the feedback - [email protected]

Jennie

 

[jingo]

Hi Jen,

Some thoughts below,

A couple of years ago the goal was to own a property portfolio, etc.

That is a great goal to have.

Now I'm looking more into a number of other considerations that, while perhaps you might not think are as financially worthwhile, would likely make me happier...

Sounds good - I'm sure you can achieve all of your goals.

1) Buying the land/property to retire on. Always wanted to build my own dream home to retire on, and think now is a good time to buy it and slowly build/get it to where I want it to be. If at the end of 40-something years I no longer want it, then I can sell it and deal with the outcome.

Could you buy the block with an old house on it and rent it out in the mean time? Then when the property has increased, use the equity to buy another property. After you have a couple of investment properties under your belt you could build the dream home??

2) Start a sideline business with the savings - but the businesses I am interested in (I would still work full time as I love my job) are in dying industries - publishing/books/etc - so would have to be fairly creative.

I'm guessing you also write articles for magazines etc? Would it be possible to look at establishing an online business in the area of your interest?

Has anyone else got to a point where they suddenly want to use their money differently? Is this a usual process?

Yes and yes! Stick with your original goal though and think multiple investments.....

Now I'm in my early twenties I feel like I have the capacity to go and fulfill these wants and attempt to make it work and if it all comes crashing down then... there's still time to start again .
Jennie

The problem nowdays is that we live in an age of instant gratification. This makes it difficult to stay the course and think long term.

Kind regards,

Jason.

 

[JennD]

Thank you so much for this! Nice to have your thoughts looked at from someone else at a distance - a lot of advice people get is so often wrapped up in the plans they have for/with you too.

Yes - I freelance for magazines quite a bit when not running PO (and usually write about very old womanly things, such as Jane Austen etc).

Have to keep remembering it is possible and will get easier (?). Agreed, and it's just so easy to spend instantly as well - the amount of regretsy is shocking .

 

[jingo]

Have to keep remembering it is possible and will get easier (?). Agreed, and it's just so easy to spend instantly as well - the amount of regretsy is shocking .

I was thinking of instant gratification in the context of wanting to build wealth very quickly.

There is so much information around regarding investing that it becomes confusing and there is the temptation to change course. Even on this forum, there will be a million different possibilities and everybody has their own opinion. It can become confusing and you can begin to question your own strategy.

If it helps, re-read Jan Somer's books on building wealth through residential property. Her strategy is more or less buy and hold. Sure, you can turbo charge the wealth building process with all kinds of other strategies which you can read of on here. I guess the most difficult part is knowing how to get started.

Perhaps work out your investment goals and work backwards. Eg if you aim to build a passive income of X amount, how many properties will you need to achieve this. Can you then fast track the process by looking for areas that are growing in value. Eventually you may then use the equity in the properties to invest in shares, commercial property, or to sell some to pay others off etc, thereby securing your income stream. The choices are endless!

Hope this helps a little and doesn't confuse you more!

Kind regards,

Jason.