How much debt do you have?

[travelbug]

I actually believe its the opposite in this case.
Lots of action, applied in the right direction, will get you there much, much faster.

Each to their own.

As you say, each to their own. Some people (younguns) have time.

At 50 I was looking at retiring on the pension so it's been a pretty hectic 6 years for me. No time to wait around for cycles. Have to admit this Sydney one has been kind to me though. But even without it I'd still be in a good CF+ position. It was nice to get my LVR down to an awesome level though (plus sold one IP at a nice price).

 

[virgo]

Time?

Well done Travelbug

I had an epiphany a while ago while reading this:

http://www.mrmoneymustache.com/2012/05/14/first-retire-then-get-rich/


I used to think i have to invest TILL retirement but now my mindset is invest THROUGH retirement

 

[LeoT]

slow and steady wins the race !

Depends on the goals.

Slow and steady for some ppl will not get them to their goals. Not by a long shot.

Leo

 

[LeoT]

I actually believe its the opposite in this case.
Lots of action, applied in the right direction, will get you there much, much faster.

Each to their own.

Ace I agree with you 100%.

Even for people who have modest goals, I believe it still needs lots of action and more importantly as you pointed out "applied in the right direction". That point you made is the key of all keys! If your looking for a sunset and your running north, you aint gonna get it. This is why the statistics show its a very, very small percentage of 'investors' who build a portfolio of more than 3-4 properties. They have gone in the wrong direction from the beginning which has significant ramifications later on, hence their portfolio is halted, and their goals/dreams become modified greatly.

Leo

 

[D.T.]

Yes cashflow is very good. It has taken me 12 years to get to this point as I came from a low, single income base. I have been through a couple of investment cycles which increases the equity dramatically. Now retired.

Story story story story story

 

[LeoT]

1.5 mill debt. 20% loan to value across 9 properties. The latest under renovation.

Charlotte you are amazing and an inspiration to us all! Well done to you! Would love to hear your story?

Leo

 

[The Fence]

An interview with Charlotte30 please.

 

[Ace in the Hole]

Ace I agree with you 100%.

Even for people who have modest goals, I believe it still needs lots of action and more importantly as you pointed out "applied in the right direction". That point you made is the key of all keys! If your looking for a sunset and your running north, you aint gonna get it. This is why the statistics show its a very, very small percentage of 'investors' who build a portfolio of more than 3-4 properties. They have gone in the wrong direction from the beginning which has significant ramifications later on, hence their portfolio is halted, and their goals/dreams become modified greatly.

Leo

Hi Leo,

I had to mention direction because even a snail can beat the tortoise and the hare if they both don't go in the right direction. I don't believe it's a good example to use when discussing optimising investment success.
Do a Usain Bolt towards the target and even if you have to continually adjust direction as you veer slightly of course now and then, you will leave others well behind, as he certainly does.

 

[Television]

Why

Contingency? Risk mitigation?

 

[MTR]

Hi Charlotte
good work, just had a quick look at some of your posts, great to hear your story, see you are from NZ, do you also buy in Australia??

Hope you don't mind me cutting/pasting this for those asking for more info, I like your strategy


Living off Rent
Charlotte30

For those of you who have reached this goal would you mind sharing your story with us? Some questions:

1: How long from start to finish (in years) did it take you to achieve?
8 years
2: How many properties did it take to do it?
7 properties, mix of townhouses and apartments. This was starting with bare land or building behind old houses.

3: Did you grind away and pay down the whole debt or did you acquire a lot of properties and then sell some off to reach the goal?

Paid down most of the debt with rents and salary contributions

4: Further to the above, did you start living off rent while you still had a sizable debt behind you?

No prefer to use wages for living ($40,000pa) Not living off rent until the end of 2014

How did/or do you manage the risk with interest rates going up?
Made sure that I had tenants even if it meant dropping the rent. Future rates rises will not have much of an impact on my current situation.

5: What has a passive income done for your life?[/QUOTE]
Financial freedom ie Work as an option. Opened my eyes to larger projects.[/COLOR]

The first few years were tough financially. Rent increases and low interest rates have made a big dent on the debt.[/B]

 

[LeoT]

Do a Usain Bolt towards the target and even if you have to continually adjust direction as you veer slightly of course now and then, you will leave others well behind, .

Thumbs up to that!

Leo

 

[WattleIdo]

An interview with Charlotte30 please.

I second that please The Y-man

 

[Joeyv]

Hi Charlotte
good work, just had a quick look at some of your posts, great to hear your story, see you are from NZ, do you also buy in Australia??

Hope you don't mind me cutting/pasting this for those asking for more info, I like your strategy


Living off Rent
Charlotte30

For those of you who have reached this goal would you mind sharing your story with us? Some questions:

1: How long from start to finish (in years) did it take you to achieve?
8 years
2: How many properties did it take to do it?
7 properties, mix of townhouses and apartments. This was starting with bare land or building behind old houses.

3: Did you grind away and pay down the whole debt or did you acquire a lot of properties and then sell some off to reach the goal?

Paid down most of the debt with rents and salary contributions

4: Further to the above, did you start living off rent while you still had a sizable debt behind you?

No prefer to use wages for living ($40,000pa) Not living off rent until the end of 2014

How did/or do you manage the risk with interest rates going up?
Made sure that I had tenants even if it meant dropping the rent. Future rates rises will not have much of an impact on my current situation.

5: What has a passive income done for your life?

Financial freedom ie Work as an option. Opened my eyes to larger projects.[/COLOR]

The first few years were tough financially. Rent increases and low interest rates have made a big dent on the debt.[/B][/QUOTE]

Did all that in 8 years? Must have a huge salary ! Are you a movie star? Lol

 

[Charlotte30]

Timeline of my progress

Detailed below is my property progress to date. I had the view that Capital growth was important and that properties be positively geared due to my income.
A rising market, capital growth and good rents early on enabled my portfolio to grow. All of my properties are in Christchurch. I project managed all the builds to minimise costs.

TIMELINE
Sold a house in 2002
2003 - Built PPR, behind an old house -bought investment prop 1
Apr 2005 Purchased IP2 ? demolished house, built 2 apartments
Nov 06 purchased IP 4
2007 Demolished IP 1 and built 2 apartments
2008/09 tax year portfolio became cashflow positive
2010 Built PPR behind IP 4 kept 1st PPR as a rental
2012 Purchased IP7, renovated within 3 months - has enough land to build another house behind
Total of 7 Ips 1 PPR at 2012
Current - 2014 bought IP8, an old house in 4 1 bedroom flats and have started renovating. There is a better return on renovation rather than new build currently. Better for cashflow not so good for capital growth.

I hope this post makes sense. I have tried to keep it simple.

Cheers
Charlotte30

 

[property_girl]

Charlotte, that's amazing. Good on you. I'd like to see an interview too.