Nixba's Journey Update & 2015

Hi guys,

I hope you are all well and that you all had a wonderful Xmas & Boxing Day shared with loved ones.

Of late, I've been receiving quite a few PM's from some younger investors to provide an update on my journey and to give some insight into 2015 and my goals and aspirations. I hope the following helps those who have reached out (and apologies for the delay!) and anyone else who may find value in my story.

An update on my journey
I just turned 25 in December and in my own individual portfolio I own 3 investment properties. The threads for each of those property purchases are below:
1. http://somersoft.com/forums/showthread.php?p=1048574#post1048574
2. http://somersoft.com/forums/showthread.php?p=1135957#post1135957
3. http://somersoft.com/forums/showthread.php?p=1205448#post1205448

My journey was driven typically by pure post-tax savings from PAYG income, however over time it has balanced out to include a higher % of equity from my property purchases. I didn't have a PPOR with substantial equity in it, I started saving whilst at university (at some stages it was only $50pw), and over time as my income increase dramatically, I remain disciplined with my spending and budgeting (whilst ensuring I still lived life, which is critical - no point ending up in a 12 bedroom home if you don't have anyone in your life to enjoy it with, right?). I'm a big believer in putting your savings away first, then you spend (too many people are the opposite - spend then save). Have a plan in terms of target savings monthly, and stick to it religiously.

More recently, I am very excited to say that my long term girlfriend (soon to be fiance) has purchased our first PPOR, a 4 bedroom house (plus study) in Rouse Hill, NSW on a 712 square metre block. The home itself is 28 squares in size and a short drive to the new Rouse Hill train station on the new North West Rail Link. As this PPOR purchase is all in her name, it frees me up over the next few years to continue focusing on building the investment portfolio, knowing that she has taken care of the PPOR. The PPOR currently sits at 80% LVR and as it is being rented out is CF+, renting for $700pw.

So in total, our combined portfolio at present includes 4 investment properties (she also has 1 IP) and our PPOR. Total asset value based on recent valuations is approx $2 million. All our individual purchases have been in our own names, purely because you never really know what is around the corner in the relationship and we want to manage risks just in case.

2015:

We are really excited about 2015. The goal is to add an additional 3 IP purchases to the portfolio. Individually, that will take me to 6 IPs, whilst together we would have 7 IPs, plus our first PPOR by 26. Ambitious, but achievable. We will continue to build the foundation portfolio with strong bread and butter properties bought under market value in areas with capital growth upside, with strong cash flow. I've always said that my goal is to recycle my initial capital input out of that property within 6-12 months and leave an asset that is self-sustainable in terms of cash flow. The capital can be used to fund future purchases. Overall, our total portfolio is neutrally geared and doesn't effect our lifestyle.

Stay tuned but obviously there are some very exciting times ahead for us.

I hope those who have PM'd me have found this post of value, and I hope that people can take motivation from the initial stages of my journey to push themselves towards their own dreams of financial independence. I don't see my journey as anything special - I think if younger investors want to make the sacrifices and be disciplined and structured towards a plan/strategy, then anyone can achieve what I have. If you want it badly enough you will make it happen and find a way. If you don't, you'll make excuses as to why you can't or won't.

Kind regards,
N.

PS: I'll be travelling internationally on a cruise from today, returning 5th of Jan, so will be unable to reply until then.
 
You're making a cracking pace mate. Even better, the combined portfolio is cashflow neutral. Things are looking very good.

What's your timing on picking up the next 3? When in 2015 are you aiming to acquire each?
 
Hi guys,

I hope you are all well and that you all had a wonderful Xmas & Boxing Day shared with loved ones.

Of late, I've been receiving quite a few PM's from some younger investors to provide an update on my journey and to give some insight into 2015 and my goals and aspirations. I hope the following helps those who have reached out (and apologies for the delay!) and anyone else who may find value in my story.

An update on my journey
I just turned 25 in December and in my own individual portfolio I own 3 investment properties. The threads for each of those property purchases are below:
1. http://somersoft.com/forums/showthread.php?p=1048574#post1048574
2. http://somersoft.com/forums/showthread.php?p=1135957#post1135957
3. http://somersoft.com/forums/showthread.php?p=1205448#post1205448

My journey was driven typically by pure post-tax savings from PAYG income, however over time it has balanced out to include a higher % of equity from my property purchases. I didn't have a PPOR with substantial equity in it, I started saving whilst at university (at some stages it was only $50pw), and over time as my income increase dramatically, I remain disciplined with my spending and budgeting (whilst ensuring I still lived life, which is critical - no point ending up in a 12 bedroom home if you don't have anyone in your life to enjoy it with, right?). I'm a big believer in putting your savings away first, then you spend (too many people are the opposite - spend then save). Have a plan in terms of target savings monthly, and stick to it religiously.

More recently, I am very excited to say that my long term girlfriend (soon to be fiance) has purchased our first PPOR, a 4 bedroom house (plus study) in Rouse Hill, NSW on a 712 square metre block. The home itself is 28 squares in size and a short drive to the new Rouse Hill train station on the new North West Rail Link. As this PPOR purchase is all in her name, it frees me up over the next few years to continue focusing on building the investment portfolio, knowing that she has taken care of the PPOR. The PPOR currently sits at 80% LVR and as it is being rented out is CF+, renting for $700pw.

So in total, our combined portfolio at present includes 4 investment properties (she also has 1 IP) and our PPOR. Total asset value based on recent valuations is approx $2 million. All our individual purchases have been in our own names, purely because you never really know what is around the corner in the relationship and we want to manage risks just in case.

2015:

We are really excited about 2015. The goal is to add an additional 3 IP purchases to the portfolio. Individually, that will take me to 6 IPs, whilst together we would have 7 IPs, plus our first PPOR by 26. Ambitious, but achievable. We will continue to build the foundation portfolio with strong bread and butter properties bought under market value in areas with capital growth upside, with strong cash flow. I've always said that my goal is to recycle my initial capital input out of that property within 6-12 months and leave an asset that is self-sustainable in terms of cash flow. The capital can be used to fund future purchases. Overall, our total portfolio is neutrally geared and doesn't effect our lifestyle.

Stay tuned but obviously there are some very exciting times ahead for us.

I hope those who have PM'd me have found this post of value, and I hope that people can take motivation from the initial stages of my journey to push themselves towards their own dreams of financial independence. I don't see my journey as anything special - I think if younger investors want to make the sacrifices and be disciplined and structured towards a plan/strategy, then anyone can achieve what I have. If you want it badly enough you will make it happen and find a way. If you don't, you'll make excuses as to why you can't or won't.

Kind regards,
N.

PS: I'll be travelling internationally on a cruise from today, returning 5th of Jan, so will be unable to reply until then.

Nixba

Well done and fantastic mindset for someone so young.

I think many young people ought to read your post and learn the most important thing you wrote; put away some before you spend anything. This motto is the essence of the book "The richest man in Babylon". Follow this concept and you will never be short of money.

Once again, congratulations on your achievements, have an awesome time on that cruise.
 
Great work Nixba

Will you still be looking in your own back yard for properties or expanding your horizons in 2015?
 
Thanks for the kind words everyone - I really appreciate it.

You're making a cracking pace mate. Even better, the combined portfolio is cashflow neutral. Things are looking very good.

What's your timing on picking up the next 3? When in 2015 are you aiming to acquire each?

Thanks Richard. Timings on the next 3 are as follows:
#4 by end of April (My savings will be ready mid March).
#5 by end of August
#6 by end of December

great work Nixba. I just read your other thread too and tahanks for posting.

What is your overall goal?

Thanks for the kind words Terry_w. My overall goal is to generate $200,000 passive income from property investment by the time I'm 35 (December, 2024). Ambitious, but achievable. The first goal is to get to $200,000 in gross rent by 30 (December 2020), and then work on consolidating the portfolio and paying down the debt. Currently it sits at just over $45,000 gross rent, so about 25% of the way there.

Great work Nixba

Will you still be looking in your own back yard for properties or expanding your horizons in 2015?

Thanks for the kind words redwing. As I think I've mentioned on the forum in the past, I'll buy where the opportunities are and where the numbers work. I personally still see a lot of value in SE QLD at the sub $250k level. The focus in 2015 is having the ability to recycle my initial capital quickly (6-12 months) out of the property, leaving an asset that is self sustaining from a cash flow perspective.

I hope this has helped.

Kind regards,
Nixba.
 
Thanks for the kind words everyone - I really appreciate it.

Thanks Richard. Timings on the next 3 are as follows:
#4 by end of April (My savings will be ready mid March).
#5 by end of August
#6 by end of December

Fantastic and ambitious! I wish you the best in nailing those purchases.
 
Fantastic and ambitious! I wish you the best in nailing those purchases.

Thanks! I'm just going to give it my best shot and have no regrets this year. I want to be able to look back at the end of the year and know that I couldn't have done any more in the pursuit of that goal. That's all you can really ask of yourself, right?

N.
 
Thanks for the kind words Terry_w. My overall goal is to generate $200,000 passive income from property investment by the time I'm 35 (December, 2024). Ambitious, but achievable. The first goal is to get to $200,000 in gross rent by 30 (December 2020), and then work on consolidating the portfolio and paying down the debt. Currently it sits at just over $45,000 gross rent, so about 25% of the way there.

Great that you are planning like this and also good to measure.

How many 'average' properties do you need to get this?
 
Great that you are planning like this and also good to measure.

How many 'average' properties do you need to get this?

Working backwards at avg of $300pw rent per property:
$300pw x 48 weeks (vacancies etc) = $14,400 rent per Property P/a
$200,000 divided by $14,400 = 13.8 properties = 14 properties

Working backwards on my by 30 gross rent goal:
Currently on 4 IP combined (3 individual)
2015: +2 properties (conservative)
2016: +2 properties
2017: +2 properties
2018: +2 properties
2019: +2 properties = total of 14 properties. On the surface it looks like a big goal, but when you break it down it is very achievable and realistic.

Kind regards,
N.
 
I don't see my journey as anything special - I think if younger investors want to make the sacrifices and be disciplined and structured towards a plan/strategy, then anyone can achieve what I have. If you want it badly enough you will make it happen and find a way. If you don't, you'll make excuses as to why you can't or won't.

I found this a key point from many successful people (across any walk of life) - if you want it you'll get it, no matter what is in front of you, if you don't really, you will put up excuses.

I also like that you have the $ figures for your goal and current position, in terms of passive income. What equation have you used to get these figures??

Now off with the forum (although great learning) and on with the suburb analysis.... :rolleyes:


Cheers,
 
Thanks for the kind words Terry_w. My overall goal is to generate $200,000 passive income from property investment by the time I'm 35 (December, 2024). Ambitious, but achievable. The first goal is to get to $200,000 in gross rent by 30 (December 2020), and then work on consolidating the portfolio and paying down the debt. Currently it sits at just over $45,000 gross rent, so about 25% of the way there.

Nice work Nixba :)

Have you got a detailed plan for 200,000 gross rent in 2020 to 200,000 passive income 2024? even if your properties have good yields that seems like a big jump. i have similar goals but i need to work on how i will effectively consolidate my portfolio once it reaches the value I'm after.


cheers
 
Nice work Nixba :)

Have you got a detailed plan for 200,000 gross rent in 2020 to 200,000 passive income 2024? even if your properties have good yields that seems like a big jump. i have similar goals but i need to work on how i will effectively consolidate my portfolio once it reaches the value I'm after.


cheers

Thanks for the kind words Blair007. In short, I don't :(. I've focused my attention on the gross rental income target, and have devised a realistic plan to get to that by 30. After that, I guess I'll have to reconsider where I'm at and devise the next plan to pay it all off.

Perhaps when we both get to that stage we can share ideas? :p

Kind regards,
N
 
Good work mate, with your sort of thinking it sounds like you'll have no dramas achieving your goals. I look forward to reading about it in the future.
 
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