is 1 million in 10 years really feasible ?
- Thread starter imgunn
- Start date
Yes, it's feasible.
How possible depends on a whole lot of things. Like, how your situation is now- if you have good equity in your own home, you've got a head start. It depends on your own desire and drive. It depends on the market, and what you buy, and how the cycle goes. And a whole lot of other things.
Steve Navra makes claim to being able to make anyone financially independent in 10 years. That means having enough passive income to pay off all your ongoing expenses, without having to go to work. Check out http://www.navra.com.au - or do a search on the forum (just about every single time I've done a search in this forum, someone has done a recent search on "Navra"). Also check out his courses (you don't have a location so I don't know if you're close to a venue).
We started in investment property in 1997- but that was a one off. It was only in 2000 that we realised the value of property- just before being hit with a massive tax bill. That's been paid off now- and we're about halfway to the $1M net worth. There's a good element of luck there- but the harder you work, the luckier you get.
Good luck on the obstacle course!
How possible depends on a whole lot of things. Like, how your situation is now- if you have good equity in your own home, you've got a head start. It depends on your own desire and drive. It depends on the market, and what you buy, and how the cycle goes. And a whole lot of other things.
Steve Navra makes claim to being able to make anyone financially independent in 10 years. That means having enough passive income to pay off all your ongoing expenses, without having to go to work. Check out http://www.navra.com.au - or do a search on the forum (just about every single time I've done a search in this forum, someone has done a recent search on "Navra"). Also check out his courses (you don't have a location so I don't know if you're close to a venue).
We started in investment property in 1997- but that was a one off. It was only in 2000 that we realised the value of property- just before being hit with a massive tax bill. That's been paid off now- and we're about halfway to the $1M net worth. There's a good element of luck there- but the harder you work, the luckier you get.
Good luck on the obstacle course!
I also think it's feasible.
I also like someone on this very forums definition of luck, although I can't remember who has it in their signature
"Luck - When Opportunity Meets Preparation"
So GeoffW I don't reckon you are "Lucky" in the lotto sense of the word. You've done the hard yards and as a result can recognise good opportunities when they arise!!
Just my $0.02
BYE
I also like someone on this very forums definition of luck, although I can't remember who has it in their signature
"Luck - When Opportunity Meets Preparation"
So GeoffW I don't reckon you are "Lucky" in the lotto sense of the word. You've done the hard yards and as a result can recognise good opportunities when they arise!!
Just my $0.02
BYE
It’s most definitely feasible. How you calculate it is really up to you. If you take gross portfolio value the 1M is achievable much faster than 10 years, if you take net worth it is certainly more challenging but still achievable. I calculate net worth by taking portfolio value and subtract any outstanding loans.
G'day Imgunn,
I have a "conservative"plan to reach $1m in Nett Worth within 10 years. What blew me away (just about 4 years ago) was that this was still possible for me.
Probably the main learning curve for me has been that (using this same "conservative" goal) it seems to take 3 years to double your Nett Worth.
So, working backwards, if I am to make $1m in 10 years, then I'll reach $0.5m in 7 years, $0.25m in 4 years, and that's starting from around $100k in year dot.
Now, it so happens, I'm ahead of this goal
but it IS conservative. So, depending on just WHERE you are starting from, I would have to say that it is certainly achievable in most circumstances.
But, then, I am not a 20year old just starting an apprenticeship (so my wage is above the poverty line...).
But, also, I don't "push" myself as much as I could either (when you're over 50, being first loses some gloss ) But, if you are an average wage-earner with some assets starting out, I'd be tempted to say that $1m is quite achievable for most who desire it.
Regards,
I have a "conservative"plan to reach $1m in Nett Worth within 10 years. What blew me away (just about 4 years ago) was that this was still possible for me.
Probably the main learning curve for me has been that (using this same "conservative" goal) it seems to take 3 years to double your Nett Worth.
So, working backwards, if I am to make $1m in 10 years, then I'll reach $0.5m in 7 years, $0.25m in 4 years, and that's starting from around $100k in year dot.
Now, it so happens, I'm ahead of this goal
but it IS conservative. So, depending on just WHERE you are starting from, I would have to say that it is certainly achievable in most circumstances. But, then, I am not a 20year old just starting an apprenticeship (so my wage is above the poverty line...).
But, also, I don't "push" myself as much as I could either (when you're over 50, being first loses some gloss
) But, if you are an average wage-earner with some assets starting out, I'd be tempted to say that $1m is quite achievable for most who desire it.Regards,
G'day Addicted,
Yeah, if you're in Sydney (I note you are in NSW...), and own property, you may well have ACCELERATED past the "double in 3 years" plan.
Sydney has seen AMAZING growth in the last 5 years. Wish I'd have bought ANYTHING when I came here 4 years back (but didn't know the area, and it was all so damned expensive - even back then ) but kinda wish I had......
Anyway, good luck to you,
Regards,
Yeah, if you're in Sydney (I note you are in NSW...), and own property, you may well have ACCELERATED past the "double in 3 years" plan.
Sydney has seen AMAZING growth in the last 5 years. Wish I'd have bought ANYTHING when I came here 4 years back (but didn't know the area, and it was all so damned expensive - even back then
) but kinda wish I had...... Anyway, good luck to you,
Regards,
yes i bought my ppor 20 years ago for 66k ,now its worth 550k
but with my ips 2.5 years ago just got vals on them
bought 120k now 230k
" 108k now 220k
" 121know 200k
they are the houses i bought i also bought 3 blocks of land which have down well ,in a year only
i think i have had ,great luck with timing
hope my luck dont run out he he
but with my ips 2.5 years ago just got vals on them
bought 120k now 230k
" 108k now 220k
" 121know 200k
they are the houses i bought i also bought 3 blocks of land which have down well ,in a year only
i think i have had ,great luck with timing
hope my luck dont run out he he
Hi there, I think it is within anybody's reach to achieve $1,000,000 (looks good like that, doesn't it) within a ten year time frame. A lot of research (this site really helps out), a bit of discipline and being able to say no helps, and a genuine desire to do it will put you on your way. I started investing 5 yrs ago and I think my net worth would be over $500,000 and getting better by the month as some of my loans are P&I. My only thought on the "magic 1 million dollar figure" is that in 5-10 years time, it will not have the same ring to it, we'll all have to aim at the billion dollar mark. Oh well, keep on investing.
All the best
All the best
B
brains
Guest
If you get say 5 or more IPs together in the next 5 -10 years (say one per year conservativley) by the time the next property price boom comes around you should be well over the million mark.
I reckon most people who own multiple IPs net worth has gone through the roof in the last 3 years.
By the way, i dont think a PPOR is included in peoples net worth calculations. But it probabaly should be if its owned outright.
I reckon most people who own multiple IPs net worth has gone through the roof in the last 3 years.
By the way, i dont think a PPOR is included in peoples net worth calculations. But it probabaly should be if its owned outright.
I too believe that $1million equity in 10 years is feasible.
But, is $1million enough? At 5% pa income, that is only $50,000 pa. Not only that, with inflation, your equity of $1million will be worth less each day. Have a guess what your $1milion will be worth 20 years after you retire (so we talking about the year 2033!!!). NOT AS MUCH AS YOU WOULD HOPE!!!
I was reading an article the other day (I can't remember the source, sorry) that stated it was not sufficient to live off the interest/income of your capital. You should be aiming to live off the income of "the income of your capital". So for $50,000 pa income, you don't need $1million - YOU NEED $33MILLION (from memory).
I am aiming for as close to the $33million as I can.
But, is $1million enough? At 5% pa income, that is only $50,000 pa. Not only that, with inflation, your equity of $1million will be worth less each day. Have a guess what your $1milion will be worth 20 years after you retire (so we talking about the year 2033!!!). NOT AS MUCH AS YOU WOULD HOPE!!!
I was reading an article the other day (I can't remember the source, sorry) that stated it was not sufficient to live off the interest/income of your capital. You should be aiming to live off the income of "the income of your capital". So for $50,000 pa income, you don't need $1million - YOU NEED $33MILLION (from memory).
I am aiming for as close to the $33million as I can.
$33m sounds a bit greedy!
But assume you had $1m returning 6% after tax. Also assume inflation was 3%. Then you'd only get $30k pa out of $1m. And you've just given yourself a static living standard for ever more.
So more people may be now aiming towards $2-3m in the future, not including the PPOR which will be worth $1m+ if they live in Sydney!
Peter
But assume you had $1m returning 6% after tax. Also assume inflation was 3%. Then you'd only get $30k pa out of $1m. And you've just given yourself a static living standard for ever more.
So more people may be now aiming towards $2-3m in the future, not including the PPOR which will be worth $1m+ if they live in Sydney!
Peter
Kieran,
You seem to have forgotten that the $1m in net equity is largely tied up in property.
It is increasing at the rate the property is appreciating, which historically is greater than the inflaton rate.
Therefore your $50K in real terms should easily be maintained ad infinitum.
Alternatively, if you have $1 million of cash in your pocket, you can either buy assets with income streams or invest it in a way which allows you to receive at least that $50K per annum, again indexed for inflation ad infinitum.
Cheers,
Aceyducey
Where can I get 6% after tax today?? I think you are a bit optimistic!!
I don't think that $30K will buy you a lot in 30 years time. I was on a good salary 25 years ago and it was $9K. My daughter today get $12K a year as a full time Uni student working part-time.
$2-3m is better than $1m but I don't feel it will be enough for me. I will tell you in 30 years time.
KieranK
