My Strategy -The next 20 years

How old are you? Go aggressive and take risks when young.


Agree, especially since the OP is living at home and doesn't have a mortgage to support as well (can change your perspective on things).

One thing I learnt from Nathan Birch when I spoke with him in 2008 was at that point he didn't have a PPoR to draw equity out of for deposits etc. He said he was comfortable with this as it made the investments do their job and increase in value so he could keep pulling the equity out of them to recycle and go again.
 
has the strategy inc life events? eg wedding + ring that's 40k gone (deposit on 1 property) kids going to school, wife on mat leave...etc

company like b-invested generally promote the number of property (eg 5 properties in 2 years)

but you also need to consider how much those properties are? those may b 200k each so 5 properties only worth 1mil. (assuming they pull in 4%)

or you have 2 properties which are 500k each alsoworth 1mil and pull in 4%

(lower vacancy rate) due to 2 vs 5 properties. rates, land tax...

you may better off only having 2 than 5?

not sure if you read that post 'you only need 1mil to retire' ? you may not need as much as you think to have a good lifestyle, oh well at least it has changed my thinking...

start with small portfolio then decide where you want to go afterwards?
 
Never quite got what having "x" number of properties has to do with financial freedom.

You could have:
10 x $400k properties at 75% LVR at 5% net yield (after vacancies, repairs etc)
= $1m equity
= $65 passive income

Or
1 x $4m property at 75% LVR yielding 7% (after vacancies, repairs etc)
= $1m equity
= $145k passive income

Five $200k properties pulling in 4% is about the worst investment I could think of.
 
I turn 24 in July so a 20 year strategy for me puts me in my mid-40?s.

When you say ?be aggressive and take risks? what do you mean exactly? Any examples? I?m definitely not risk adverse by nature and would love some ideas as to what?s considered an ?aggressive strategy.?

Although this strategy is pretty specific I will only be using it as a guide. More generally, I will aim to buy as many high-CG properties as I can in my early years, learn as much as I can about property development and then see where that takes me.

Thanks for the note on number vs quality of properties. I will need be makre sure my DD is done on each purpose and is in line with my overall strategy.
 
Year 1 ? 15: Buy as many high growth properties as possible. Aiming for around 7-10 in capital cities. Never cross-collateralize & Fund negative equity shortfall by LOC to maximize tax advantage.


What is your plan to implement this part of the strategy ?
 
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