is 1 million in 10 years really feasible ?
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Hi all,
I put in my real figures. The amount of growth i expect, what i already have *cough*, etc. It come out with 7XX,000 equity in 10 years, a figure that im fairly comfortable with. What amazed me tho, is that this figure then became roughly 40million EQUITY in 20 years...
That's quite a figure in anyones eyes i'd say. I'd also say the financing of it is also possible, there's always investors that might want a few units in your unit trust, or no-doc loans to be used.
Where theres a will theres a way
-Regards
Dave
I put in my real figures. The amount of growth i expect, what i already have *cough*, etc. It come out with 7XX,000 equity in 10 years, a figure that im fairly comfortable with. What amazed me tho, is that this figure then became roughly 40million EQUITY in 20 years...
That's quite a figure in anyones eyes i'd say. I'd also say the financing of it is also possible, there's always investors that might want a few units in your unit trust, or no-doc loans to be used.
Where theres a will theres a way
-Regards
Dave
I think it's quite optimistic and would have to be lots of lifestyle sacrifices in there to keep going at a high LVR.
You would miss out on holidays, bringing up children ($250k each they cost these days according to studies), and would be a slave to your portfolio until you achieved that.
Dependent upon if double income, and the amount of employment income as well. Someone with a well earning business that is accepted by the banks should have more success in the cashflow part though I guess. But then you may have less time to devote to investing.
Dan
You would miss out on holidays, bringing up children ($250k each they cost these days according to studies), and would be a slave to your portfolio until you achieved that.
Dependent upon if double income, and the amount of employment income as well. Someone with a well earning business that is accepted by the banks should have more success in the cashflow part though I guess. But then you may have less time to devote to investing.
Dan
Hi Dan,
Wouldnt miss out on too much once ya got started. A deposit would never be needed again since it'd always come from equity in the other properties, so no need to live frugally for that reason.
A high-dual-income-no-kids pair have a lot better chance of doing it, although high income earning usually equates to high hours spending, so they mightn't get the time. I guess he who best juggles ones available time is the master, since thats the only thing that everyone gets, but in equal amounts hehe.
-Regards
Dave
Wouldnt miss out on too much once ya got started. A deposit would never be needed again since it'd always come from equity in the other properties, so no need to live frugally for that reason.
A high-dual-income-no-kids pair have a lot better chance of doing it, although high income earning usually equates to high hours spending, so they mightn't get the time. I guess he who best juggles ones available time is the master, since thats the only thing that everyone gets, but in equal amounts hehe.
-Regards
Dave
Originally posted by dtraeger2k
Indeed, its actually $38,732,967.00. (After 20 years). Still not bad
Hi Dave,
Compounding is the 8th wonder of the world!
Question: Why wait for 20 years???
Perhaps with an efficient structure the time period could be halved . . . less?
I look forward to using your situation as an example (if you are happy to be a 'good example') at the Perth Course.
Regards,
Steve
PS: No you won't have to give up your lifestyle
Hi Dave,
My concern was the income to keep servicing it although there are ways to use the equity for that it seems. The other concern was paying the stamp duty every time and that spreadsheet doesn't account for that.
High hours spending is the way these days isn't it! especially including commute to and from work. Employers like you to stay back and work after hours without overtime too as if we have nothing better to do.
Steve - Do you run courses twice a year or how often? If it's not often I may organise a trip to Brisbane.
Thanks
Dan
My concern was the income to keep servicing it although there are ways to use the equity for that it seems. The other concern was paying the stamp duty every time and that spreadsheet doesn't account for that.
High hours spending is the way these days isn't it! especially including commute to and from work. Employers like you to stay back and work after hours without overtime too as if we have nothing better to do.
Steve - Do you run courses twice a year or how often? If it's not often I may organise a trip to Brisbane.
Thanks
Dan
Hehe!! Steve (and Einstein) said it good !!
A little bit like a puzzle I heard of a few years back - it went something like this:-
"If a pond is growing a weed that doubles in volume every year, and has been growing for 20 years, how long will it take to occupy the WHOLE of the pond once it occupies 25% of the pond?"
The answer is TWO years !!! In essence, it DOESN'T matter how many years it took to get to 25% - if it doubles every year, TWO years is all it needs to completely occupy the whole of the pond!!
In other words, don't be too concerned if YOUR path seems to be taking "a long time" to get moving !!! If you've done it right, hang in there!!! Once it really gets "rocking and rolling", NOTHING will hold it back !!!!
Regards,
Starting by buying as much as possible is far more efficient than "taking things slowly". In the end, it is an Exponential thing - as indicated by earlier posts!!!
A little bit like a puzzle I heard of a few years back - it went something like this:-
"If a pond is growing a weed that doubles in volume every year, and has been growing for 20 years, how long will it take to occupy the WHOLE of the pond once it occupies 25% of the pond?"
The answer is TWO years !!! In essence, it DOESN'T matter how many years it took to get to 25% - if it doubles every year, TWO years is all it needs to completely occupy the whole of the pond!!
In other words, don't be too concerned if YOUR path seems to be taking "a long time" to get moving !!! If you've done it right, hang in there!!! Once it really gets "rocking and rolling", NOTHING will hold it back !!!!
Regards,
I've just been thinking.
Is it feasible?
That's been answered I think.
But perhaps that's the wrong question.
"Is it feasible?" implies that maybe you won't be able to do it.
Maybe better questions would be-
"How can I achieve that- and a lot more? And how can I get started- NOW?"
Seminar presenter, Peter Spann, went from Woolies checkout chick to $20M net worth in 10 years. Diane has done fantastically. I know several people who are very comfortable as a result of property.
I just went to a Peter Spann presentation- "Millionaire Maker". A pity I had to give back the name tag. I wanted to keep the "GeoffW- Millionaire" name tag.
But that's cool. I've just done one for myself.
"GeoffW- Property Multimillionaire". To put up on my fridge- to keep the vision.
Once again my experience:
Around 1991 I purchased a parcel of land way down south for $160k. No income, council water and that damned interest.
About 1998 was rezoned and doubled it's value to a total of approx $400K. Great, but all the bloody fees went up and still that interest bill every month oh well...
Few days ago I got news it's goin to be developed, and talking to surveyors & engineers they gave me an estimate income of $2mil gross and around $1.2mil after expenses.
Now the loan is paid off and I'm happy to pay council fees. A great investment after much blood sweat & tears.
Around 1991 I purchased a parcel of land way down south for $160k. No income, council water and that damned interest.
About 1998 was rezoned and doubled it's value to a total of approx $400K. Great, but all the bloody fees went up and still that interest bill every month oh well...
Few days ago I got news it's goin to be developed, and talking to surveyors & engineers they gave me an estimate income of $2mil gross and around $1.2mil after expenses.
Now the loan is paid off and I'm happy to pay council fees. A great investment after much blood sweat & tears.
Bill,
I'm not even a millionaire. Yet. (halfway). I'm working on it. And the target has just been raised.
But if I believe I can be a multi millionaire, I've got a much better chance than if I don't.
Now that I've had the TV and the magazine bit- it's raised my own expectations of myself. I did not think of myself as anything above the ordinary before. But if other people think then I've done OK, then that reinforces my own belief in myself. And that is now motivating me.
Dammit, why did I need someone else to tell me I was doing OK? I should have realised that by myself.
How many people reading this have done better than I have (or even approaching)- and who don't realise how well they are doing?
It's not just me- even MrsW has a vision of the future which has changed.
I'm aiming for gold.
I'm not even a millionaire. Yet. (halfway). I'm working on it. And the target has just been raised.
But if I believe I can be a multi millionaire, I've got a much better chance than if I don't.
Now that I've had the TV and the magazine bit- it's raised my own expectations of myself. I did not think of myself as anything above the ordinary before. But if other people think then I've done OK, then that reinforces my own belief in myself. And that is now motivating me.
Dammit, why did I need someone else to tell me I was doing OK? I should have realised that by myself.
How many people reading this have done better than I have (or even approaching)- and who don't realise how well they are doing?
It's not just me- even MrsW has a vision of the future which has changed.
I'm aiming for gold.
There are so many people that go and read the books and go to the seminars and then do nothing about it. They should read the forum and hear the stories of the people who HAVE done something to reinforce that it can and has been done.
It's good to see on this forum people like Geoff who are actually out there applying the principles of property investment and really getting on their way to their $$$ goal.
I particularly like Brenda's story too.
Dan
It's good to see on this forum people like Geoff who are actually out there applying the principles of property investment and really getting on their way to their $$$ goal.
I particularly like Brenda's story too.
Dan
If you change the borrow cell to 110% that should factor in stamp duty shouldn't it? It makes a huge difference to the final figures.
Nat
Nat
In the early years you could pay stamp duty out of your salary, but once you start buying $1m property in a year it's difficult to pay stamp duty for that without borrowing it! So yes the 110% figure is more realistic.
Steve Navra's comment about how it could be even faster is interesting though, will look forward to finding out how when I go to his course
Steve Navra's comment about how it could be even faster is interesting though, will look forward to finding out how when I go to his course
