Early retirement without a fortune

If it was all that simple, we would all be property tycoons. We just need to take out more mortgages.

Some of us are. Honestly. How do you think we can afford mutiple properties?

Case in point: friend I advise just exchanged on IP 11 and 12. He is single on above average income but pays low tax.

Regards Peter
 
Agreed. The last 20 years have been good for aussie property prices. I am not sure that average income folk with a mortgage's net worth rose 100 times but I can believe 10 times. However, I am not sure that we can say the same for the past nine years.

9 years so that is 2003. Anyone in WA want to show China what prices have done there since 2003. Lots!!!!

And professional property investors dont just buy local, they buy all other Aus as opportunities arise. Some overseas. Some commercial. Some retail.

Regards Peter 14.7
 
Agreed. The last 20 years have been good for aussie property prices. I am not sure that average income folk with a mortgage's net worth rose 100 times but I can believe 10 times. However, I am not sure that we can say the same for the past nine years.

I will rephrase

Take the average income retiree that has retired over the last ~ 20 years, ie from say 89 to today.

Those that have had some form of mortgage are likely to have 10 to 100 times the net worth of those that have not held a mortgage.

Would make for an interesting PHD, there is certainly much anecdotal evidence to support that idea

ta
rolf
 
Some of us are. Honestly. How do you think we can afford mutiple properties?

Case in point: friend I advise just exchanged on IP 11 and 12. He is single on above average income but pays low tax.

Regards Peter

Only 0.5% of property investors own more than 5 properties.

8% own more than 3.

http://www.propertyinvesting.com/strategies/negativegearing

The majority just have one IP. Just like I have a portfolio of shares but only a small percentage of share investors can earn sufficient passive income to support their living expenses.
 
9 years so that is 2003. Anyone in WA want to show China what prices have done there since 2003. Lots!!!!

And professional property investors dont just buy local, they buy all other Aus as opportunities arise. Some overseas. Some commercial. Some retail.

Regards Peter 14.7

Again, this is a very specialised group of property owners. The average person with a PPOR in western Sydney, rural NSW has not seen their house price double over the past nine years let alone rise 10 ten times.
 
Only 0.5% of property investors own more than 5 properties.

8% own more than 3.

http://www.propertyinvesting.com/strategies/negativegearing

The majority just have one IP. Just like I have a portfolio of shares but only a small percentage of share investors can earn sufficient passive income to support their living expenses.

I think these stats are flawed. I know for us we own property in three entities, individual names and a few trusts with different trustees, stats would show any owner holds fewer that our total. Many others in same boat.
 
My feeling is that the participants of this forum are a representation of some of the best and most involved property investors in Australia. I suspect that many property investors just buy one IP and hope for the best.
 
My feeling is that the participants of this forum are a representation of some of the best and most involved property investors in Australia. I suspect that many property investors just buy one IP and hope for the best.

Not sure i agree. Lots of people out there who dont frequent forums and are involved in all sorts of activities including property investing. I know lots of people with many properties who would never have heard of SS.

Some very inspirational folks on here too eg Dazz, Keith etc but also plenty of one IP types here as well. Plus SS does attract the low earners who compete on how much they can be frugal and see this as a badge of honour. Definitely wouldnt portray SS as the pinnacle of the populace by any means. Still a great forum and one of my top 5 forums to check.
 
My feeling is that the participants of this forum are a representation of some of the best and most involved property investors in Australia. I suspect that many property investors just buy one IP and hope for the best.
Based on myself I wouldn't agree with that comment :rolleyes:

I agree there are few 'most involved property investors' but I think majority is here to learn what ever they can.

I have met few owners of whole unit blocks or villas who can't even use a computer properly!
 
Again, this is a very specialised group of property owners. The average person with a PPOR in western Sydney, rural NSW has not seen their house price double over the past nine years let alone rise 10 ten times.

I think it's basic accounting. If you bought ppor 10-20 yrs ago your asset column goes up, your expenses column goes down as you pay more principal off thus leaving income to go up. Vs someone who never purchased - assets=0 and expenses increase with rent.

It may be benficial to read up on the power of leveraging too. Business' use it all the time, does that mean they are extended beyond their means? I wonder what the world would be like if everything was paid for by CASH only?
 
Agreed. The last 20 years have been good for aussie property prices. I am not sure that average income folk with a mortgage's net worth rose 100 times but I can believe 10 times. However, I am not sure that we can say the same for the past nine years.

Stick with medicine. Trust me. Making $$ is not for you.
 
Only 0.5% of property investors own more than 5 properties.

8% own more than 3.

http://www.propertyinvesting.com/strategies/negativegearing

The majority just have one IP. Just like I have a portfolio of shares but only a small percentage of share investors can earn sufficient passive income to support their living expenses.



If you don't have enough shares to generate a passive income to support living expenses, then obviously you haven't achieved very much.

Not long ago you could be buying TLS at 10% franked dividends. For only $1.0m you can get almost $100k net income, equivalent to say a $150k salary.

And so from that I can infer that you don't even have $1.0m, which is quite funny for someone who criticises various investment strategies.
 
My feeling is that the participants of this forum are a representation of some of the best and most involved property investors in Australia. I suspect that many property investors just buy one IP and hope for the best.

I agree. This forum may not contain the 'best' investors but certainly better than the average.
 




Not long ago you could be buying TLS at 10% franked dividends. For only $1.0m you can get almost $100k net income, equivalent to say a $150k salary.

A.

Most share investors, even those with 1m unemcumbered worth of shares will find it hard to generate 100k net income for any sustained period of time. Certainly not enough for early permanent retirement at age 40. It would be unusual for the 1 mil to be held entirely in one share and it would be pure luck if you managed to place the entire 1 mil into a share that paid 10% franked dividend.
 
Advocated TLS to many people at those prices at the time who were risk averse. But even if I were to accept your argument, you can find 6-7% franked in many companies and the same argument would hold for $1.5m.

In all honesty if you don't have 1.5m investable equity by 40 you're in big trouble anyway.
 
Advocated TLS to many people at those prices at the time who were risk averse. But even if I were to accept your argument, you can find 6-7% franked in many companies and the same argument would hold for $1.5m.

In all honesty if you don't have 1.5m investable equity by 40 you're in big trouble anyway.

According to one of the previous posts in this thread, only 0.8% of the australian population have 1m or more of investable assets. So are the rest in trouble? From reading this thread, I have the impression that 1.5m is considered a fortune and unachievable for the average person. Personally, I agree with you. I aim for 2-3 mil.
 
9 years so that is 2003. Anyone in WA want to show China what prices have done there since 2003

I'm too busy to go into details so check reiwa.com

Wife and I currently up in Broome sunning ourselves with our three kids in the lap of luxury at "The Club" watching a tropical storm roll in. I might give some thought to a better answer after my second or third piña colada. :D

Life is good being redundant. :cool:
 
I have the impression that 1.5m is considered a fortune and unachievable for the average person.
I don't believe anyone has claimed it is unachievable, only that it would be considered at the very least a small fortune and not the bare necessity on which to retire.
 
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