How close are you to your goals?

[BlackSpider]

My calculations show you need approx 8 as a minimum. Should aim @buying 10. Selling the ones that have had the highest CG to pay down outstanding debt and begin consolidating. Time period: 15 - 20 years

Just curious about how the figure of 8-10 properties is calculated.
Personally, I'd be happy with just 4-5 quality properties, worth maybe 6 mil in todays values.
Would then semi-retire when they are generating maybe 100k net.
Hoping to do this in the next few years years.

 

[kissfan]

My calculations show you need approx 8 as a minimum. Should aim @buying 10. Selling the ones that have had the highest CG to pay down outstanding debt and begin consolidating. Time period: 15 - 20 years

That would be a good achievement, but it also depends each IP is earning for you. I.e, is it 8-10 IP's earning 200 p/w or 8-10 IP's earning 600 p/w.

Once again, as discussed at length in many different threads, everyones numbers will be different to suit their individual needs.

Regards
Marty

 

[Intrinsic_Value]

$5million net assets, or $500k a year of passive income.

Still progressing towards this target.
But i really dont know what i will do when i get there.
I dont really care about stuff (trinkets, toys, whatever you want to call it).

I guess i set this target when i was younger (the bar keeps rising but basically its 10 times average income or 100 times average income expressed as net assets).

The next stage in my journey in life will occur once i have achieved this goal (my ride into the sunset)

 

[wish-ga]

Neet a sat nav and full tank o' petrol

I am waaaay off. I over estimated my abilities. It has been a lot harder than I thought to start a portfolio. And for the other areas of my life too.

When I was a teen I was on a boat and two of us gals had rowed into shore. When it was time for us to row out to the big boat we would get close then it would move. Again, we would get close and it would move. We thought the people on the big boat were having a joke with us. But the wind had come up and we just didn't have the strength.

I feel like that. It is the strangest feeling.

Just like in the row boat I look like I'm standing still and everything in the world moves. Or maybe I am moving too but just not covering much ground in relation to my destination.

 

[luckyone]

I'm a long way off too. Hubby and I bought our first IP at 23, ended up having to sell it a few years due to huge medical bills incurred due to illness (and loss of income etc). Only just now starting to get back on track. Have made a good dent on the mortgage now and about to settle on IP number 1 (nearly 10 years later). Hopefully will still achieve my goal of being able to at least go part time by the time I'm 40. Was hoping to retire by then, but that's looking a long way out of reach.

 

[wylie]

$5million net assets, or $500k a year of passive income.

Still progressing towards this target.
But i really dont know what i will do when i get there.
I dont really care about stuff (trinkets, toys, whatever you want to call it).

I don't understand your need to have this much when you don't really care about trinkets and toys?

How far towards $500K of year of passive income are you? Why pick this type of target if you will never need it?

 

[BlackSpider]

$5million net assets, or $500k a year of passive income.

Still progressing towards this target.
But i really dont know what i will do when i get there.
I dont really care about stuff (trinkets, toys, whatever you want to call it).

I guess i set this target when i was younger (the bar keeps rising but basically its 10 times average income or 100 times average income expressed as net assets).

The next stage in my journey in life will occur once i have achieved this goal (my ride into the sunset)

I'm not an experienced investor, but would think that the 5 mil net assets would come well before 500k passive income.
I'd be very happy right now to generate 10% of net worth in passive income.

 

[Intrinsic_Value]

I don't understand your need to have this much when you don't really care about trinkets and toys?

How far towards $500K of year of passive income are you? Why pick this type of target if you will never need it?

Your right i dont need it, not at this point anyway.
But what about the future? what about if future family is factored into the equation? who knows?

Why pick this type of target?
why pick any target, my target is 10 times average australian income. My thoughts being at 10 times average income, you are rich enough to be truely financially free.

However this amount is not needed to sustain a conservative lifestyle.
If a conservative lifestyle is 1x average australian income, then the net assets (independent of the family home) would be around $1million (5% income return is very achievable, with future growth in the income to match increases in wages)


Without restructing the assets i'm only 20 something % of the way there, with restructing i would be nearly 40% of the way there. (income basis, not asset basis). Probably a bit less once tax effect from CGT if factored in.

Still lots of work to do

 

[Intrinsic_Value]

I'm not an experienced investor, but would think that the 5 mil net assets would come well before 500k passive income.
I'd be very happy right now to generate 10% of net worth in passive income.

Yes i would say you are generally correct.

If you want a true 'set and forget' approach to passive income i think the return would probably be something closer to 5%.

But there is passive income and then there is passive income.
With a bit of work (but then this is not truely passive) on the investments its relatively easier to increase the income return.

Also consider that as the assets increase ones range of investable assets increase as well. Eg regional shopping centres rather than individual retail shops if one was looking at retail commercial property, industrial property that might not be suitable in a smaller asset portfolio can make sense (with low risk) in a larger portfolio.

Consider also that the relationship between net assets and income is not set in stone but fluctuates over time.
For example someone who invested in march09 in the stock market could have very easily achieved a yld of 15-20% gross. In 2007, that same yld would have been lucky to been 7-8%.

look at the fluctuation in ylds in regional residential property from say the late 1990's to now.

 

[evand]

Whats a goal?

 

[kissfan]

Whats a goal?

Something the Socceroos couldn't get this morning

Regards
Marty

 

[VYBerlinaV8]

I am pretty happy where I am in terms of properties as I have no desire to be filthy rich! Just want to set up a secure future as dont trust goverments in the future re superanuation. Like to have my own options.

You and me both. Well said.

 

[Luv2Travel]

I have no desire to give up my prime years to be filthy rich when I'm old, so I have a fairly modest goal of 4-5 houses including my home. I am looking to purchase house number 3 at the moment at age 32. I think rental income from 3-4 houses with a bit of super and maybe some shares will see me get what I want.

 

[Crystalleez]

This reminds me, I need to set a financial target to keep in my sights..

The motivation behind my choice to get into property was because I never wanted to feel trapped or helpless because of a lack of money. I heard many stories from my mum growing up how not having access to money at certain crucial times of her life meant falling victim to less then ideal circumstances. Having the family home sold out from under her when her parents died and having to live in a car etc. Then there were friends I've met along the way who had a horrible home life but didn't have somewhere to go, so again, trapped.

My goal has always been to be in a financial position to make a change. The way I see it, there are only 24 hours in a day. To devote your life to helping others face to face is one thing, and a glorious thing. But what all these charities need? Money, funds to prosper and continue making changes.

So I'm a far distince away from my overall goal, but headed in the right direction.

On a personal note, I've always wanted to have to option of not going to work my the time my kids are born/brought home to see them grow up and spend as much time with them as possible. And to travel, for as long as I want with my family. Doesn't need to be 5star, just comfortable. A comfortable life, without the burden on money.

I'm 24 now, own 1 IP with development potantial in the future and my first PPOR will settle next month. Plan on buying another IP before the end of 2011. After that I'm considering going to university to work on my self instead of my portfolio for a while. That of course will bring the property investing to a holt for 3 years until 2015. (hard to swollow)

So not on track to retire at 30.. Have a lot of work to do in the 5 years after university if Im going to be able to spend time with family.

 

[kissfan]

I think rental income from 3-4 houses with a bit of super and maybe some shares will see me get what I want.

Once again, not trying to be a wet blanket here, but lets look at 4 houses owned outright. You will still have to pay tax on returns, pay rates, pay insurances, pm fees, maintenance. Will 3-4 be enough. I'm not being pessimistic either, because this is something I think about myself.

I generally think in terms of 'how much cash required' rather that 'how many IP's required'. Makes it easier for me to work out the end goal/s.

I notice you did mention super and shares as well, so perhaps you are basing your own figures on that.

Regards
Marty

 

[Luv2Travel]

Once again, not trying to be a wet blanket here, but lets look at 4 houses owned outright. You will still have to pay tax on returns, pay rates, pay insurances, pm fees, maintenance. Will 3-4 be enough. I'm not being pessimistic either, because this is something I think about myself.

I generally think in terms of 'how much cash required' rather that 'how many IP's required'. Makes it easier for me to work out the end goal/s.

I notice you did mention super and shares as well, so perhaps you are basing your own figures on that.

Regards
Marty

I'm aiming for a taxable income of about $60K-$65K for retirement, less some tax, should bring it roughly to about $1,000 a week net which I'd be happy with. I think 3 houses all paid off bringing in $300/week (in todays dollars), plus some super and some shares I can accomplish that. I still have a long way to retirement so have room to change all that, but at this stage, that is my goal (and based on one person, if a Mr. Biggles came into the picture, all that would be doubled and I'd expect him to bring to the table the same amount I have ).

 

[kissfan]

I'm aiming for a taxable income of about $60K-$65K for retirement, less some tax, should bring it roughly to about $1,000 a week net which I'd be happy with. I think 3 houses all paid off bringing in $300/week (in todays dollars), plus some super and some shares I can accomplish that.

Sounds reasonable and very achievable.

Good luck Biggs

Regards
Marty

 

[RumpledElf]

We just want a passive income high enough to live off, which isn't actually much money. Technically we'd have the assets to do that once we work out how to get a loan for our new build.

But it would be a lot easier if we could sell our current or previous house and really reduce our debts. Selling our current house would leave us with debt of about $30k on assets of about $400k, but no income from those assets to speak of as my previous house isn't rented out for much.

Building new houses in good regionals looks like one of the best ways to turn either a very large profit on selling or a very high rental yield, and once we've built our new house we'd like to do it again once we have the funds, maybe once every couple of years. I like the process of creating something to pass on to someone else, ie, building or renovating and then landscaping - I'm a compulsive gardener - with the aim of selling, more so than sitting back and renting a house out.

Not being able to sell is holding us back though. Previous house is tying up $50k and would almost pay off our current house if we sold it. Current house is tying up $100k and would almost pay off our next house if we sold it. Next house will have $200k in it which could be used to build TWO new houses. Unfortunately on a low income, selling is the only thing that releases that money.

 

[morg]

I'm sort of nearly there as far as property goes.
Doesn't sound too convincing, does it ?
Thing is, once you get there, you need something else to strive for.
Be it, one more IP or a couple more years reducing debt etc.
This is when you really need to decide on how much is enough
Plenty of threads on here about that, but I figure why stop now.
I think the next 10 years will be a very interesting time accross all asset classes, so it's best I hedge my bets and just keep on doing what I do.

One thing I'm pretty sure on is when it does come time to pull the pin, I won't be relying on residential tennants to fund my lifestyle.
I'd rather take the CGT hit and shift to a higher yielding asset class without the hassle that comes with being a landlord.

 

[D.T.]

Wouldn't that erode a large portion of your wealth?

Why not have both the properties and the "higher yielding assets" you describe?