How I got from just a PPOR to multi millionaire retiree in 5 years using only OPM.
- Thread starter keithj
- Start date
Hiya,
Margin LVR is 0% - I currently have cash available.
And property is ~80% depending on current valuations.
Cheers Keith
Thanks for taking the time to respond Keithj...
You always provide great insight and a wealth of knowledge.
You always provide great insight and a wealth of knowledge.
It does work
Wow, it is great to see how it works in a practical sense. So many books talk about the theory that to see it broken down makes sense. The other thing I liked was the idea of different asset classes. So many books/ people go for one (be it shares or property) & denigrate the other. Reading this post was refreshing to see that two asset classes can co exist and give great results. To me it is like asking someone who their favour Doctor Who is... there is no right answer as we all have our favourites...
Wow, it is great to see how it works in a practical sense. So many books talk about the theory that to see it broken down makes sense. The other thing I liked was the idea of different asset classes. So many books/ people go for one (be it shares or property) & denigrate the other. Reading this post was refreshing to see that two asset classes can co exist and give great results. To me it is like asking someone who their favour Doctor Who is... there is no right answer as we all have our favourites...
Some defensive, some financial, some LPTs, some infrastructure, some LICs. They all pay reasonable to good yields based on current forecasts - everything is still v. cash flow positive.
I don't think the short/medium term future is forecastable with any reasonable degree of certainty at the moment, so I've kept the quality (boring?) blue-chip, dividend paying stocks, with quality management that are v. likely to survive the short/medium term.
Only Australian, but obviously many of them have O/S exposure.
Maybe.... the risk of course is a bounce - maybe caused by Obama pulling out of Iraq or printing even more US$ or China perking up or some other left field event (that some obscure 'expert' has been forecasting for decades
).Keith
I noticed you said LPTs, is that covered off by you having some SLF shares? And with ARG, is that a LIC?
We did the reverse of you, in 2002/03 (and last year) we borrowed to buy shares and are now looking for IP's. Am in the midst of doing my DD, what do you think would be better- direct IP or LPTs via SLF?
Like you, we are very happy with how things have gone... the last few months have been interesting but have been keeping a long term view.
I noticed you said LPTs, is that covered off by you having some SLF shares? And with ARG, is that a LIC?
We did the reverse of you, in 2002/03 (and last year) we borrowed to buy shares and are now looking for IP's. Am in the midst of doing my DD, what do you think would be better- direct IP or LPTs via SLF?
Like you, we are very happy with how things have gone... the last few months have been interesting but have been keeping a long term view.
I have both SLF & other LPTs. ATM I prefer AFI to ARG (which has high exposure to MaqBank), although I hold both. Direct IP & LPTs/SLF are completely different types of investment - you need to work out what's best for you
- I continue to hold both for the long term.Hi Keith,
Great to see everything is holding up nicely.
In relation to LPTs it continues to amaze me just how low the index (and SLF) has gotten to. I have purchased SLF in the SMSF over time and despite being down capital wise I'm very happy with the yield. However I would be happier if the index wasn't so lopsided with Westfield making up around half of it. Of course SLF can be treated as the core and direct LPTs added to meet ones objective. Outside of Super Stockland has been a recent LPT purchase. Trying my best to focus on quality.
In regards to international exposure I have recently grabbed more of Platinum Capital (PMC) with an eye to the future. It's the only direct international exposure I have. Fees on the high side but it is rare to get this beast below NTA so I have been taking advantage of this when the opportunity presents itself. I do like Kerr Neilson's value oriented approach. And performance hurdles are sufficiently high unlike a lot of the newer LICs that have listed in recent years.
Cheers - Gordon
Great to see everything is holding up nicely.
In relation to LPTs it continues to amaze me just how low the index (and SLF) has gotten to. I have purchased SLF in the SMSF over time and despite being down capital wise I'm very happy with the yield. However I would be happier if the index wasn't so lopsided with Westfield making up around half of it. Of course SLF can be treated as the core and direct LPTs added to meet ones objective. Outside of Super Stockland has been a recent LPT purchase. Trying my best to focus on quality.
In regards to international exposure I have recently grabbed more of Platinum Capital (PMC) with an eye to the future. It's the only direct international exposure I have. Fees on the high side but it is rare to get this beast below NTA so I have been taking advantage of this when the opportunity presents itself. I do like Kerr Neilson's value oriented approach. And performance hurdles are sufficiently high unlike a lot of the newer LICs that have listed in recent years.
Cheers - Gordon
Hi Kieth, thanks for your story , great to read and inspire .
I'm wondering the same thing as Andrew about the new property market to come ?
And also wondering how you handled the stock market dump, what did you do , did it cost you and where are you at now with it ?
Cheers
I'm wondering the same thing as Andrew about the new property market to come ?
And also wondering how you handled the stock market dump, what did you do , did it cost you and where are you at now with it ?
Cheers
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Hi Andrew,
From a personal POV, we're taking the kids out of school & around Australia for 3-6 months, so the short term strategy is mostly set & forget. I'm pretty happy with the current income streams. I expect to be checking the markets less frequently. IPs have always been set & forget - I have no worries there.
My feeling is that there's a lot of $$$ on the sidelines for both shares & property. The increasing population still needs somewhere to live & when the global economy is seen to be firmly in recovery mode, people will be happy to commit to both. So from a market timing POV, I expect to have v. little in cash by the end of Q1 2010.
Not much has changed since post #177 above. I had sufficient reserves to participate in most of the equity raisings close to the bottom of the market - without exception they've done v. well.
Where am I now ? Dividends have fallen by roughly 20% since 2008, rents are steady or up, I've dipped into equity to maintain lifestyle. The margin loan is currently at a v. low LVR.
Where do I expect to be by end of 2010 ? dividends to rise by 5%+?, rents by 3-5%, maybe another IP, maybe build a granny flat to improve c/f , maybe start a business (retirement lacks challenges
), buy lots of c/f +ve stocks to get margin loan up to ~30% (and put some stop losses in place this time ).Cheers Keith
Hi Keith,
As always thanks for keeping us updated with your plans and how you strategy has held up during the GFC. Enjoy traveling around Australia with your family!
Regards,
Grimey
As always thanks for keeping us updated with your plans and how you strategy has held up during the GFC. Enjoy traveling around Australia with your family!
Regards,
Grimey
Great stuff , thanks Keith .
Enjoy the trip that's what's it's about at the end of the day I say or what's the point !
We've lived it reverse, over 13 yrs traveling, living all over so tables have turned for and it's time for me to create and do what you've already done , new challenges .
I cursed myself as I realized later of course I could have set up and just rented out coming back to it all and with a boom behind it as icing on the cake, bugger ! Still , we did need to pay for the 13 yrs and since so maybe not .
Cheers
Enjoy the trip that's what's it's about at the end of the day I say or what's the point !
We've lived it reverse, over 13 yrs traveling, living all over so tables have turned for and it's time for me to create and do what you've already done , new challenges .
I cursed myself as I realized later of course I could have set up and just rented out coming back to it all and with a boom behind it as icing on the cake, bugger ! Still , we did need to pay for the 13 yrs and since so maybe not .
Cheers
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