Early retirement

Thanks piaatcaso,

I really appreciate the spam email too!
It took you 19 years to retire? I think you're confused by the phrase "early retirement"

Regards

Locko, Do you have a plan that will see you retire from resi real estaete investment in less than 19 years ?

20 + 19 = 39 yyrs of age as an example - is retiring at 39 not "early" enough ?:confused:
 
Was not intended to be Spam

sorry about that to all readers. Hard to say in one thread. what I should have said is that I had invested like most people for about 17 years ( really only bought about 3 properties and paid them off which you could in those days ,Prices were alot cheaper and it was simply easier to do) Back then you didnt have the amount educators you do now .Like anyone you start slowly and was more of a work hard at my job and just own property as more of security mindset.In the last 8 years,particularly in 2003/2004 I really started to begin my education as an investor.Because I owned 3 properties outright it only took 2 years to learn all the other strategies I really needed whilst I was still at my current job.(I didnt attempt subdivision at that stage either because I didnt know it well enough at the time and thought it was too risky for the money I had to outlay for what I knew.Thats not to say that there aren't great sub dividsion/developers investors.I know there are successful investors that subdivide but again it just didnt appeal to me, like other stategies don't appeal to other people.)I didnt waste any time putting these strategies into practice because like yourself I wanted to retire earlier.
Ask yourself this - if you have enough or substantial equity why havent you retired yet?I had plenty of equity at the time. If thats the case than all you have done is maybe seyt yourself up with a comfortable retirement for later on down the track.Do you think you can live off equity forever,particularly at a young age.Dont get caught in all the hype out there.Establish different streams of income and cashflow should be one of the first. I know alot of average people who had average jobs just like me retire quicker by establishing cashflow
I dont think I am confused by the phrase early retirement- its no good retiring in a couple of years then finding yourself having to go back to work like I have seen other investors do because they do not have the cashflow to support their investing and standard of living when markets change.You need to know more than one strategy if you really want to survive as a full timer. As said when I learnt more than one strategy and was able to apply it correctly then that put me in a position to retire and be full time.That happened in the last six years.When you build up cashflow and have it coming in regularly then you have an income to support youself regardless of what the market is doing.The equity naturally comes anyway when you have the cashflow to support it.You can look for different opportnities when different markets arise by having cashflow to support yourself.(whether they be soley for equity etc)
Please understand to retire early I just cant write it all down on a couple of threads.Its more than that.There are players in the game that influence the market beyond our control e.g. goverment local state and federal by changing laws,Banks changing lending criteria(especially recently)the media that influences mum and dad investors builders and developers and there availabilty to get funds to supply a market etc etc etc
Lockie I am just trying say in my post that cashflow supports yourself in any market.Increase your knowledge about the different strategies you can use in different cycles.Like i wrote earlier I leant them in 2 years and it has let me become full time investor for the last 6.This has worked for me and i know it has worked well for many other full time investors aswell.The more knowledge you have of strategies the more you can adapt when markets change.Again theres alot more to it than most people think
Lets be honest are you still going to work or can your strategy/ies alone let you retire.
e.g the old saying its one thing to get to the top.Its another to stay there
Its one thing to retire early but another to stay retired and be a full time investor.
To Retire Quickly build up your cashflow
You do what you want
Goodluck
 
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Was not intended to be Spam

sorry about that to all readers. what I should have said is that I had invested like most people for about 17 years ( really only bought about 3 properties and paid them off which you could in those days ,Prices were alot cheaper and it was simply easier to do) Back then you didnt have the amount educators you d now .Like anyone you start slowly and was more of a work hard at my job and just own property as more of security mindset.In the last 8 years,particularly in 2003/2004 I really stated to begin my education as an investor.Because I owned 3 properties outright it only took 2 years to learn all the other strategies I really needed whilst I was still at my current job.(I didnt attempt subdivision at that stage either because I didnt know it well enough at the time and thought it was too risky for the money I had to outlay for what I knew.Thats not to say that there aren't great sub dividsion/developers investors.I know there are successful investors that subdivide but again it just didnt appeal to me, like other stategies don't appeal to other people.)I didnt waste any time putting these strategies into practice because like yourself I wanted to retire earlier.
Ask yourself this - if you have enough or substantial equity why havent you retired yet?I had plenty of equity at the time.Do you think you can live off equity forever,particularly at a young age.Dont get caught in all the hype out there.Establish different streams of income and cashflow should be one of the first. I know alot of average people who had average jobs just like me retire quicker by establishing cashflow
I dont think I am confused by the phrase early retirement- its no good retiring in a couple of years then finding yourself having to go back to work like I have seen other investors do because they do not have the cashflow to support their investing and standard of living when markets change.You need to know more than one strategy if you really want to survive as a full timer. As said when I learnt more than one strategy and was able to apply it correctly then that put me in a position to retire and be full time.That happened in the last six years.When you build up cashflow and have it coming in regularly then you have an income to support youself regardless of what the market is doing.The equity naturally comes anyway when you have the cashflow to support.
Pleaes understand to retire early i just cant write it all down
 
Locko, Do you have a plan that will see you retire from resi real estaete investment in less than 19 years ?

20 + 19 = 39 yyrs of age as an example - is retiring at 39 not "early" enough ?:confused:

I certainly hope so Jaycee. In the original post i described 'retirement' as working when i want/for myself. I do not mean sleeping 'till 12 every day, then dawdling around the garden before putting my teeth back in the jar at 6pm and watching my 'stories' for the rest of the evening.
Time will tell, but i'd be very disappointed if i couldn't focus soley on investing within 5 years!

Ask yourself this - if you have enough or substantial equity why havent you retired yet?

What makes you think i have anywhere near enough equity? If i did, i would not be working for someone else! Simple.

If you decide to start a thread, piaatcaso, and do have something usefull to share, without asking me to call you (or for money - which you have not done yet), then i will apologise for labelling you as a spruiker!

Cheers
 
I dont want or need your money.

In your reply
What makes you think i have anywhere near enough equity? If i did, i would not be working for someone else! Simple.
That was a general question not to be taken personally
Heres a thing about equity- Banks know your exposure in the market.what I mean, that is They know what you have bought for.They know what your increase in value is .They know that If something happens and you need to sell then you have a tax liability.Thats one reason why investors with plenty of equity hit stumbling blocks with banks Something I got from a banker not a broker
Locko
Its great to specialise in one strategy if you can but most people who retire early from property investment do a few.Thats all Im saying.
Banks are a major player and can change there lending position on anyone at anytime.
At 20yrs of age your on the right track.Anyone who has retired early from property investing will probably tell you that it does take some time.You can do it in your time frame but you will need to learn alot.

Dont worry I wont reply to this thread anymore as it was FREE advice that i am guessing you may notdeem as useful anyway.The only reason I gave you my ph no was that it will probably take adleast half an hour or more to tell you on how you can get there quicker rather than nearly write a book about it

Good luck mate
 
I would have called.

I think it's very silly to brush off those who are in the position you want to be in and it sounds to me as though you may be looking for a quick retirement fix? Lemme tell you this then: There is none, and you will have to change your mindset before you can begin to even get close to where you want to be.
 
Heres a thing about equity- Banks know your exposure in the market.what I mean, that is They know what you have bought for.They know what your increase in value is .They know that If something happens and you need to sell then you have a tax liability.Thats one reason why investors with plenty of equity hit stumbling blocks with banks Something I got from a banker not a broker

Hi piaatcaso,

This is a very good point you mention about the tax liability once an investor has been in the market for a while. Certainly a key reason for thinking through one's own strategy before realizing too late that selling down involves realizing gains - and triggering capital gains tax.

Regards Jason.
 
Heres a thing about equity- Banks know your exposure in the market.what I mean, that is They know what you have bought for.They know what your increase in value is .They know that If something happens and you need to sell then you have a tax liability.Thats one reason why investors with plenty of equity hit stumbling blocks with banks Something I got from a banker not a broker

I don't know about the rest of you but when I refinance I've never been asked what I purchased the property for.
 
I would have called.

I think it's very silly to brush off those who are in the position you want to be in and it sounds to me as though you may be looking for a quick retirement fix? Lemme tell you this then: There is none, and you will have to change your mindset before you can begin to even get close to where you want to be.

Why would i call if there is no such thing? Why are you on this site if you are happy to retire at 65? Is the reason there is no way to retire within 5 years because you don't know of one? Should we discuss it with Nathan Birch, or possibly Steve McKnight?

There is a degree of risk people are willing to take. Spending all my spare cash on lottery tickets is one end of the spectrum, putting my spare cash into a bank account with just enough interest to cover inflation is the other end (or perhaps burying cash in the backyard). I have weighed up the risk v return and am very happy with what i plan to do.
 
You dont seem to have factored in the exponential rental incomes into the equations?

You seem to be stuck on bad debt..yes the interest payments on lifestyle are not tax deductible..what would happen if you funded your lifestyle costs from rental component and capitalised portfolio expensive to the equivalent amount?

Would that ease your feeling towards the non deductibility issue?

At the end of the day as long as you meet DSR and your LVR is reducing due to portfolio growth outstripping loan redraws, then whats tax deductible and whats not deductible becomes irrelevant.

You are already funding your lifestyle living costs without the need for tax relief - deductions become a bonus.

Its a complete paradigm shift in thinking away from the conventional way the masses are brought up accustomed to.

The poor/middle class paradigm think cash flow for income, whilst the rich/wealthy class think capital.

The rich/waelthy control appreciating assets to fund their incomes whilst others are paying the holding costs along the way.

I hope this helps.

It absolutely does. Something to think long and hard about .... and love the learning along the way.

Thanks
 
Hi Locko!

I could possibly 'retire' right now, 4 years into investing. But I would not want to do that. In my experience, we find that we just keep looking at more and more, we want a really nice house, not just a mediocre one. Why stop working when you could retire with much more thn you currently have at 30 years of age? I can take what I call 'mini retirements' but thats just optional, I have continued to work because I'd like a much better life for my Family. Not just a mediocre one.

To recap: It's only natural to reach a point in time when you just keep wanting more. I think most investors feel the same. And until you personlly reach the point where you are able to 'retire', you just might find you don't want to just yet. I did.

Who's to say the other guy was in the sme position I am currently in 20 years ago? I would have called :) My advice would be; Take advice from those who are in a position you wish to arrive at. They have experience you do not yet possess.

Why would i call if there is no such thing? Why are you on this site if you are happy to retire at 65? Is the reason there is no way to retire within 5 years because you don't know of one? Should we discuss it with Nathan Birch, or possibly Steve McKnight?

There is a degree of risk people are willing to take. Spending all my spare cash on lottery tickets is one end of the spectrum, putting my spare cash into a bank account with just enough interest to cover inflation is the other end (or perhaps burying cash in the backyard). I have weighed up the risk v return and am very happy with what i plan to do.
 
Hi Locko!

I could possibly 'retire' right now, 4 years into investing. But I would not want to do that. In my experience, we find that we just keep looking at more and more, we want a really nice house, not just a mediocre one. Why stop working when you could retire with much more thn you currently have at 30 years of age? I can take what I call 'mini retirements' but thats just optional, I have continued to work because I'd like a much better life for my Family. Not just a mediocre one.

To recap: It's only natural to reach a point in time when you just keep wanting more. I think most investors feel the same. And until you personlly reach the point where you are able to 'retire', you just might find you don't want to just yet. I did.

Who's to say the other guy was in the sme position I am currently in 20 years ago? I would have called :) My advice would be; Take advice from those who are in a position you wish to arrive at. They have experience you do not yet possess.

Sounds like you've done well! I'd certainly be interested in hearing you share your strategy.
What concerned me was the way the previous guy approached me. Email, PM, and posting the same thing. Has he posted any more since?

I enjoy investing, and want to be at the point where i can continue to grow my portfolio without having to work for a boss. The sooner i can get to that point the better.
 
'Retiring' temporarily is one thing. Retiring 'forever', quite another.

It's not just the financial side, which is hard enough if you're relatively young (the money has to last 50, 60 years and keep beating inflation). It actually takes a lot of effort to fill your day if you don't have the structure of a job or business.
 
'Retiring' temporarily is one thing. Retiring 'forever', quite another.

It's not just the financial side, which is hard enough if you're relatively young (the money has to last 50, 60 years and keep beating inflation). It actually takes a lot of effort to fill your day if you don't have the structure of a job or business.

We are totally lost without NEEDING to be slaves - great :confused:
 
It actually takes a lot of effort to fill your day if you don't have the structure of a job or business.

We're all different. Whats easy for one person maybe hard for another and vice versa. Personally I dont have any problems filling in my 225 days (7.5 months) a year not working. :)
 
We are totally lost without NEEDING to be slaves - great :confused:

I didn't say that. It's just something you have to work on. Developing interests, creating your own schedule, that sort of thing. It's easy to say I don't like my job and I just want to retire, but 'not doing what I do now' is not the same as 'what do I do if I didn't have to go to work'.
 
I didn't say that. It's just something you have to work on. Developing interests, creating your own schedule, that sort of thing. It's easy to say I don't like my job and I just want to retire, but 'not doing what I do now' is not the same as 'what do I do if I didn't have to go to work'.


Of course I agree, it is a change, and chane takes effort... that's obvious

But if it takes A LOT OF EFFORT to fill your life & days without needing to turn up to work out of financial need, tells me we are a bunch of lifeless beings

- what else does it suggest to you ?
 
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