If you are going to start all over again, what will you do?

[Telejazzer]

Here's the scenario. You lost everything you have and starting back from scratch. You are working in a job with $75k (or whatever figure you want) pay pa. You probably have around $25k in savings. You are renting, no other assets.


How would you start? What are you going to do first?


What have you learned in the past that you would do again, wouldn't do again?


Have you experienced a down (bear) market before? Did you make mistakes? Did you make money? What were the conditions at the time? What lessons have you learned?



Have you experienced a up (bull) market before? Did you make mistakes? Did you make money? What were the conditions at the time? What lessons have you learned?


From your experience in the last 5 years, what lessons have you learned? What would you do different in the next 5 years?


Feel free to add to theses questions.


Cheers

 

[danel]

I would Panic!

 

[Xenia]

Great question

I would start younger and buy more.
I would spend more time learning
I would begin self development earlier - success is all about mindset
I would cut off negative people from my life at the first sign of alarm bells ringing instead of waiting for them to become positive or thinking that I can teach them something. - I will allow NO ONE to waste my time.
I will seek out successful people and ask specific questions right from the beginning
I would create an awesome mastermind team
I would surround myself with protective friends and people who love what I do and what I stand for - much earlier

We are right into the information age and seeing the very beginning of the age of wisdom - in a way we are all starting over because everything we know will become infective into the next age. Leaders and visionaries will prevail and succeed. Mindset and personal development will be a cornerstone to success. There are some major changes and shifts ahead and a greater division between those who can create wealth and those who just want to. Exciting to those who are prepared.

 

[Belbo]

Let's see. The $75K income and $25K savings is a good scenario starting point. Assume also just a couple with no kids for argument's sake.

I'd happily keep renting rather than buy a PPOR (as I did), simply to accelerate savings.

I'd work harder (paid overtime, or to earn a promotion) and smarter (part-time study in - practical skills like accounting, as opposed to political philosophy - to improve the CV, work 6 days a week instead of 5, invest savings in a high interest savings account to build a deposit quicker, or buy shares for the same purpose but at higher risk, etc, all of which I did do ). Other more entrepreneurial types might start a small home-based business, or find an investment partner, etc.

When I'd built up a deposit (sufficient to avoid LMI at this early point), I'd buy a small apartment near where I lived with renovation potential and give it my annual holidays to spruce up as cheaply as possible; get it revalued and self-manage rent it. (I didn't take this path myself, but I do think it's a clever strategy, starting over, in particular.)

Repeat and re-build on growing equity, avoiding neg cash flow IPs (unlike me ), and get a damned good mortgage broker on your side asap (just achieved this myself ).

In a nutshell: Get back on your horse, work like crazy to improve your lot, and stick with IPs as the smartest leveraged investment option available to common grunts like us.

 

[jaycee]

Great question

I would start younger and buy more.
I would spend more time learning
I would begin self development earlier - success is all about mindset
I would cut off negative people from my life at the first sign of alarm bells ringing instead of waiting for them to become positive or thinking that I can teach them something. - I will allow NO ONE to waste my time.
I will seek out successful people and ask specific questions right from the beginning
I would create an awesome mastermind team
I would surround myself with protective friends and people who love what I do and what I stand for - much earlier

We are right into the information age and seeing the very beginning of the age of wisdom - in a way we are all starting over because everything we know will become infective into the next age. Leaders and visionaries will prevail and succeed. Mindset and personal development will be a cornerstone to success. There are some major changes and shifts ahead and a greater division between those who can create wealth and those who just want to. Exciting to those who are prepared.

Time travel wasn't an option

The scenario is if you lost everything now, what would you do

 

[Xenia]

Oh, yes just read it again. sorry.

If I lost everything I would still have the ability to re-create it. No one can take away your knowledge. I would focus on building businesses first then purchase properties.

things would happen quicker the second time.

 

[grossreal]

hi all
not been here for a while but here's my view
1.I will take it that I have a bit of age leway so I am 18
2. I am a high income and have a high iq so i know how to make money just not how to at this stage
3.i have not lost everything yet but may have
so lets start
first off 1
don't look at one income
a river is made up of multi streams
the same with any form
so if you wish to make money you need to have alot of fingures in alot of pies
2 don't think you have to be the best in the business you invest in just get the best for that business they don't have to learn you do
3 look at something any thing and can it make money now if it can they how do you make your money if you cant drop it and move on
4 don't take a loss as a fault take it as a correction just try to make the gains higher then the losses.
5.u are 18 ( or so I am working on) so use you age you can make lots of losses but the gains will be higher so take the risk go into stuff you are happy with if its seems to you a problem walk away what ever the loss
a loss is not a loss if your gain is larger then the loss
business is made up of business people and they understand how to correct you need to learn this quick put me back 45 years and that would be a great world.
don't look at what has been done look at whats going to be done and catch that wave yes it can dunk you but it also can run a great wave
would I invest in re
no
I would invest in business
yes re is a business for alot of people
put the money is in business
today the money is in ag
re gives a steady income
at 18 you don't what the driving miss daisey
you want the lets go for the sky
remeber life is not a trail and error you live you life the way you live it
for me
if I was 18 with what I know now
I would have been worse then I am now and thats bad enough.
for me at 75k no debt, no kids, living at home.
thats one coe for a 2mil company that would take it to a 20mil in 5 years
now thats scary
or is it
for me no
if you lost every thing now does that mean you use your current age
a loss at 18 is not the same as say 20 or 25 or 30 or 40 or 50 or 60

 

[Deltaberry]

Punt like there's no tmorrow.

 

[Telejazzer]

We are right into the information age and seeing the very beginning of the age of wisdom - in a way we are all starting over because everything we know will become infective into the next age. Leaders and visionaries will prevail and succeed. Mindset and personal development will be a cornerstone to success. There are some major changes and shifts ahead and a greater division between those who can create wealth and those who just want to. Exciting to those who are prepared.

Totally agree. I do learn from people with experience but with what I've experienced in the last 5 years, you have to put those experiences into context. Most people who doesn't grow with the times will be in danger of losing it all.... and not recovering. Those who grew up with handshake deals will realise that it's not enough anymore yet building good relationships are still important.

 

[Telejazzer]

Punt like there's no tmorrow.

Maybe, but I'll make sure it's play money I'm punting, not seed money.

 

[Deltaberry]

Well yes... my play money is everything I own.

 

[RumpledElf]

75k income and 25k deposit eh ... that's a better situation than we are in now so I'd go off and buy a house, do it up, save up a bit more, and do whatever, in a shorter timeframe this time

Not a particularly good scenario there to put to the low-income no-savings people

 

[Telejazzer]

75k income and 25k deposit eh ... that's a better situation than we are in now so I'd go off and buy a house, do it up, save up a bit more, and do whatever, in a shorter timeframe this time

Not a particularly good scenario there to put to the low-income no-savings people

Figures are adjustable as I mentioned initially. It just seems to be the norm specially with 2 incomes. My question is generally aimed at people that already started and gained significant experience from the journey where finding a cashflow of around $75k pa wouldn't be difficult and that's the full context of the questions. I just thought some people might benefit from the insights of some of the seasoned investors in this forum by sharing their experiences and probably most importantly the mistakes that they made on a down or up market conditions. My apologies if I wasn't clear.

You can adjust to any income you want with no savings, however it sounds like it's going to be really tough to start from there but definitely not impossible.

 

[RumpledElf]

Hardly ... I'd probably do much what we just did. Buy something at around the $50-80k mark that can be renovated and subdivided into two, sell one half for $200k, build and sell the other half for $300k, rinse, repeat with larger figures. The hard part is finding that cheap subdivisible one to start with, but they're around. Last one I saw sold pretty fast though, probably because there was a massive stone house with a lot of potential as the 'renovate' part and it was a very, very large corner block - and the agent had 'development potential' stamped all over the ad.

Nathan's story is a good nothing-to-lots kind of saga. The lad is an inspiration.

 

[Aaron Sice]

1) rent.
2) buy commercial.
3) pay down mortgage on CP1 plus plough in extra from yield.
4) pay off CP1 entirely within 3-5 years.
5) use this clear title as 50/50 leverage up into a bigger commercial property.
6) pay same amount, plus CP1 extra plus CP2 extra.
7) pay off CP1 and 2 entirely within 3-5 years.
8) repeat ad nauseum.

 

[oracle]

First thing I would make sure I do is never to repeat the same mistake that caused me to lose everything. (Greed/excessive leverage/ failed due diligence etc.)

Secondly, since now I have got some investing experience I would know my circle of competence. What worked for me and what didn't in the past. I would make sure I stick to my circle of competence (shares, property, precious metals etc.). Basically, with investing you need to identify your edge when investing in a particular asset class. Trying to keep chopping and changing strategies rarely works in the long run. It's much better to stick to one to two asset class at most.

Once you have identified that it doesn't matter whether you earn 60K, 75K or 250K. If you are good at investing you will make way more money in the long term (Power of compounding is your friend) than someone who has big income but is not a good investor.

Cheers,
Oracle.

 

[Telejazzer]

Hardly ... I'd probably do much what we just did. Buy something at around the $50-80k mark that can be renovated and subdivided into two, sell one half for $200k, build and sell the other half for $300k, rinse, repeat with larger figures. The hard part is finding that cheap subdivisible one to start with, but they're around. Last one I saw sold pretty fast though, probably because there was a massive stone house with a lot of potential as the 'renovate' part and it was a very, very large corner block - and the agent had 'development potential' stamped all over the ad.

Nathan's story is a good nothing-to-lots kind of saga. The lad is an inspiration.

Yeh, as soon as they put 'development potential' or 'STCA' price goes way up and mostly snatched up by eager 'rookie' developers. So there's still $50k to $80 around your area? You'd be lucky to find anything under $600k around here.

 

[BuildingBlocks]

1) rent.
2) buy commercial.
3) pay down mortgage on CP1 plus plough in extra from yield.
4) pay off CP1 entirely within 3-5 years.
5) use this clear title as 50/50 leverage up into a bigger commercial property.
6) pay same amount, plus CP1 extra plus CP2 extra.
7) pay off CP1 and 2 entirely within 3-5 years.
8) repeat ad nauseum.

On a $25k deposit and an income of $75k?

Or will you save your salary up first and aim for a particular CP entry point? Eg: Save $100k (maybe 3-5 years?) to get you into a $300k CP to start with?

 

[Aaron Sice]

i've seen offices going for $100k - assuming a 70-75% lend here.

so no, just starting with what you can afford.

 

[BuildingBlocks]

i've seen offices going for $100k - assuming a 70-75% lend here.

All makes sense

My readings in the CP forum in a general sense tend to be along the lines of "$1mil and above or nothing".

Glad to see that there is a different opinion and may open some eyes up as to the entry levels for CP.