Yeah good idea, Do you want to organise it ? (with a poll attached)
Yeah i agree below $60 K I think would be better.Why not gross? ... as in gross payg salary. Wouldn't that be easier ?
Can you organise it Alex because you know what to put in it.
Lower Income investing
- Thread starter BayView
- Start date
Can you organise it Alex because you know what to put in it.
This is a sign that not enough folk here on SS are living out in the wider population where the lower income folk are....of which there are waaay more than the higher income brigade.
There are many families - many families - earning less than 100k combined incomes.
Of course; the stats will show the average wage is more than $60k, but it only takes one $100k+ earner to completely sway the average up when combined with two $40k income earners.
Chuck in a couple of $300k+ plus earners or more and it's so out of whack it's not even close.
Your present income can also be relevant to your age and experience. I sense a resentment in your post Bayview against the higher income brigade and that SS members are out of touch.
I was once a low income earner. I have low SES working class heritage. I believe some other folk here may have had modest beginnings also. Not all of us forget the period in our lives nor the sacrifices we made to increase our incomes. We live in a country where we have choice and opportunity.
I have to agree that there are still plenty of people out there that earn less than 50k and this thread would be quite inspiring for them. For example, in community services where I come from, some receptionists, factory workers, cleaners, nurses and one parent families.
Happy it's been bumped up! Would love to hear updates from those that posted in 2008 and 2009
Happy it's been bumped up! Would love to hear updates from those that posted in 2008 and 2009
I've been trying to find some good threads about people who are on lower than average incomes and the success they have had with the strategies they have employed.
I'm finding it tough to find these threads.
In the search box i type the words low income investing, lower income investing. Any ideas for me? Does anyone have any good links?
thanks
I'm finding it tough to find these threads.
In the search box i type the words low income investing, lower income investing. Any ideas for me? Does anyone have any good links?
thanks
No, and yes.
I don't have a resentment against high income earners. I know several. I have been myself for brief periods.
I have had to deal with all levels of income earners in my work and general life for my whole life, and generally I prefer folks who are earning better dough; usually doers and prepared to do the hard yards, and have earned their stripes.
Only those who are out of touch, and who were never in touch with the average folk (and lower than average) or what constitutes the average - are the ones that get my goat.
It is my belief that there are a lot of highly scholastic high income earners who are this description here on SS these days.
The percentage of those who've come from nothing, had no easy path and no money or terrific job, but still done well and have the story to tell from it are becoming rarer and rarer here.
There's not much of a story behind the person who has started on the big bucks, then swans into a punnet of IP's....shooting fish in a barrel is what that is.
Or, worse still; the big buck dude who has a poultice of cash and is angsting here on SS about "How am I going to spend the 3/4 of a mill on my first IP....can someone please help me? Where should I look?"...give us a break.
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I think you're right in that some people do seem out of touch at times.
And some have loads of cash and still feel helpless and seem clueless.
But many don't just start off with a load of cash, unless they inherit it.
I'm sure there is a back story behind most of those people earning a high income that is worth hearing about and I'm sure it wasn't all given to them on a platter.
And some have loads of cash and still feel helpless and seem clueless.
But many don't just start off with a load of cash, unless they inherit it.
I'm sure there is a back story behind most of those people earning a high income that is worth hearing about and I'm sure it wasn't all given to them on a platter.
As I said; most high income earners are hard working and have sacrificed much to get to their level..they are doers in the world compared to many, and should be admired for their effort. The 5% among the 95%.
That's not really news worthy on a property investing forum as such - unless you would like to know their life background.
But to be the proud owner of multiple IP's having started/starting investing from scratch as a high income earner - that's not a story - for me as an investor and on this forum - that's a given.
To be fair; even high income earners start investing with much fear and reservation, etc and ask for advice and so on...but seriously; for that level of income... it's truly a doddle, and I guess I lose patience with them for the handwringing stuff when I know they have nothing to worry about.
First world probs, and so on.
I'd like to hear more input from folks who are starting with nothing and/or are coming from nothing and are doing the do, living on the limit to get ahead and have gotten ahead..
These are the folks I like to help, and in my view have a valid reason for handwringing, because their fallback position (job) ain't gunna get them to cushy-land in their whole life.
Way more exciting and inspiring for the average folk who dream of getting rich from property.
Because money makes money.
If you are on 50k a year you still have eat and put a roof over your head while someone who is on 150k could live just like you but put away the bulk of their income. If you do that for even 5 years you are going to see a result.
Another thing to take note of, property isn't actually a great way to make money.
One more time...
Property isn't a great way to make money.
and again.
Property isn't a great way to make money.
It's an excellent store of wealth but to see real results from it you have to hold for long periods of time or get active with it and develop. On a low income your options with property are fairly limited with regards to what you can purchase to develop. The way to make money is to either have a high income or a good business. Once you have that you are leaping ahead of inflation. You dump the money in assets and over time that will compound. Even if you are buying positive cash properties it is going to take a long time to see results if all you are doing is to continually leverage without reigning in the debt and to do that you need either a good income or a solid business.
You need to understand though people have different goals. Some people are in the camp of making money through developments, reno's etc whilst others are happy/content to buy and hold and grow rich slowly! I plan to retire at 60 and when i'm in my 60's I might be keen to have a try at a reno or small development as I'll have some equity behind me by then. Goal is $75,000 pa gross income for when I retire. I may semi retire or go part time when I hit 60 to help fund a deve project.
I think you are getting confused. You are talking about making fast money!
I'm not on a high payg income or have a business but I know I will make money, I'll just make the money slower "grow rich slowly as they say" and thats fine with me as I enjoy my lifestyle. I have a great work/life balance with low stress. I couldn't be happier.
Actually after I buy my next ip which will be very soon. I plan to do a certificate in fitness and work with overweight people to inspire and motivate them to get fit and lose weight. So I'll have a 2nd income stream which will be handy, but the income isnt the only reason why i'll have this 2nd job. I'd do it for free i'm that passionate about it. (i wouldn't obviously, but just to get my point across how much it means to me) So I'll pick up a couple of shifts a week.
Have to disagree.
Outside of my income - which has mostly ever been average with a few periods of decent coin, the wealth I have created has been from property.
Until a couple of years ago, we had a decent crop of IP's and a very nice house. Still have the house and one IP, but haven't had to get rid of the ones we got rid of because of an average wage income.
And - as I've said on numerous occasions here - I'm pretty hopeless at the caper - made good money virtually by accident in a few cases.
A few have been deliberate transactions that were/are winners, but definitely not all. A few have been ordinary results.
Had I only relied on solely my income up until now, I'd still be wallowing around in lower-middle class or worse financial health like so many others scuffling around our Country..folks I definitely do not ever want to be similar to.
You could argue that you might make more money from shares, or a business, and that might be true. But you can only work with what you know.
I am proof that you can make money from property, even if you are not real good at it.
My wage is still pathetic, but our wealth - through property - is above the average wage earner.
This year, I will earn about $50k in income from my business as a wage. That is pathetic for what I have to do on a weekly basis.
But, a 5% increase in property will make me about double that over the two properties we still have left. Not bad for being a dud. Of course; it's not spendable money, but it's a real measure of wealth - just ask the Bank.
In summer next year, we are renting our house out to holiday folks for 3 weeks. That will chuck about another $15k nett into the income coffer...I will not make that extra money from my business this year.
.
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Well, I belong to that wider population. My wages are just 38.5k net. And I know lots and lots who are like me. During the last couple of years my wife earns around that as well and we live on one income and invest the other. But I don't see many like us here at SS. So a poll asking for members earning less than 50k won't get much response here.
Dont use the somersoft search. Search on google for something like:
Site:somersoft.com lower income investing
Ah ok, thanks for the tip
Bayview, still doesnt change the fact that it isnt a great way to make money. Fluking some capital gains is good but can you replicate it over and over? The only way to reliably make money in re (even then not gaurantee) is to develop it. If you dont want to develop it then you either need to wait for it to go up or turbo charge the result with cash from the outside. Hence money makes money.
If what i am saying is bs where are all the low income earners who retired off their portfolios within a cycle or two?
If what i am saying is bs where are all the low income earners who retired off their portfolios within a cycle or two?
I understand what you are saying - and you contradicted yourself a bit there - development is a form of moneymaking from property.
But with low income earners; all they need to do is start by buying something cheap, and start building from there.
Obviously it won't be a fast way to make money with that strategy, but it is a relatively sure and safe way to become financially comfortable after a decade or so.
Someone who has a plan from day one - which I never did - could smash it in a much smaller timeframe, and build up to a level of buying development sites etc much sooner.
The problem with the low income earner is most of them don't have a financial mindset anyway, and most of them throw their hands up and say things like "I'll never be rich", or "I'm hopeless with numbers", etc, and then there are those who don't care and live day to day. This is why so many of them never get ahead.
My 12 year old son earns nothing from any job. He is as low income as you can get. But, he does get pocket money, and has done since about 6 years old. He gets $1 for every year of life. He is up to $12 per week now.
Every single week we give him that money, and take back 20% of it, which we put into an ING account. He also earns more money around the house for extra chores such as hanging up/taking in the washing, etc.
He knows that this money is only ever to be spent on investing, and he already has more that $1,500 in his account (we have added a few dollars per week along the way).
I don't know of many low income earners who have that sort of money in any Bank, and certainly not a higher-interest account like ING, or Bankwest, etc.
He is now showing interest in all the shows we watch such as Grand Designs, GD Australia, My Dream Home (USA show) - my level of all the above started well into my 30's, and that is n't too late- even with mistakes.
Imagine what sort of wealth he can create with his foundation - even if he only ever stays on a paltry wage.
I only know one person who became financially independant on a low income through property. Last I spoke to him 7 or 8 years ago he was living of rents and would be in a better position now even he purchased nothing further.
He was a panel beater, started buying in the mid 80's around western sydney liverpool/fairfield. ended up with 5 properties by the mid 90's and was basically just paying down the debt. Last I spoke to him he had paid everything off and was going to retire, he was mid 40's around then. He did all this though at a time when you could buy properties like these around 100k and they were cash positive from day 1. Can't do that anymore in metro Sydney. Probably took him the best part of 20 years to do. Not married and not kids lived with him mum...
Low income earner now with a family is going to find that impossible to do. Those properties would all be over 400k it would take an eternity to pay down that debt.
He was a panel beater, started buying in the mid 80's around western sydney liverpool/fairfield. ended up with 5 properties by the mid 90's and was basically just paying down the debt. Last I spoke to him he had paid everything off and was going to retire, he was mid 40's around then. He did all this though at a time when you could buy properties like these around 100k and they were cash positive from day 1. Can't do that anymore in metro Sydney. Probably took him the best part of 20 years to do. Not married and not kids lived with him mum...
Low income earner now with a family is going to find that impossible to do. Those properties would all be over 400k it would take an eternity to pay down that debt.
HI Bayview.
Our unemployed son is taking lots of interest in what we do too. Based on his forecasts, if he can start work when he graduates (as a school teacher posting to the country), he expects to be able to save enough for his first deposit about when he turns 30. He agrees that he doesn't need a McMansion or a trendy city apartment to live in, so not your typical Gen Y consumer.
Alex, my husband and I earn $85K combined and we raised two special needs kids, hence I was unable to work for a lot of of the past 28 years. Being way over 50, my chances of getting full time work now are minimal, we have been in no position to increase our incomes. Our investment goal is to replace our incomes as soon as possible so we can travel before we get too old and decrepit. All of the houses we bought have dropped in value, so we have not made any money as yet. We are hanging out to see what happens now that Brisbane is set to improve. The SE Qld properties have all rebounded to their previous values in three years, but the Gladdy one has dropped with no sign of improvement on the horizon.
Have we lost money? Yes. I don't recall reading about anyone on Somersoft losing as much as we have. We lost a fortune on a business when we were very young, we have always seemed to be coming from behind the eight ball. In December I calculated that we had finally reached neutral cashflow position, but alas all three tenancies breaking their leases at once and what I believe to be incompetent maintenance orders from PMs has made short change of that.
We are forever optimistic that one day we will get to live that dream.
We have a few regrets about the Gladstone purchase, but the biggest is that it is just too far away for us to do all the management and maintenance ourselves.
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