Our 1st equity Mil.
- Thread starter agent007
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Thanks, Kev. And you on yours, too.
This once in a hundred years' boom seems to last a few years.
Touche` Pete,
Maybe we're going thru a paradigm shift and its a THOUSAND year boom ???
Reading China Inc. by Ted C. Fishman atm and it details some dizzying stats. on what going on and whats to come.
Of course it could all be fiction ............
Kevin
If someone had forecast the last five years of WA growth it would have been greeted as fiction.
The other day a mate emailed me something from "The West" in July 2003. It had BIS forecasting that in three years time, the June 2003 Perth house median of $205,000 would have grown to $247,000. 20% over three years. And look what happened! The Perth median went to about twice that!
The rapidly increasing equity sometimes seems to lack reality, but is becoming less so every passing month.
From where I sit, the Pilbara has not yet started in earnest.
Then theres Onslow, Pt Hedland, Broome, Barrow Is. and others not yet announced.
Most of it energy related.
It will take a global meltdown/ global disaster/ disease pandemic to stop what is currently unfolding.
You can't predict those, so no sense in worrying about them.
Its business as usual, and WA is open for business.
All this will flow onto to the city and hold up property values.
Kevin.
Then theres Onslow, Pt Hedland, Broome, Barrow Is. and others not yet announced.
Most of it energy related.
It will take a global meltdown/ global disaster/ disease pandemic to stop what is currently unfolding.
You can't predict those, so no sense in worrying about them.
Its business as usual, and WA is open for business.
All this will flow onto to the city and hold up property values.
Kevin.
I saw house and land packages in Karratha in the paper a few weeks back, I think around 6-700k for a place with ~85-900pw indicative rent. Is this pretty typical?
Is this sort of thing you're looking at... new builds? Is this all that is available given the shortage?
Do you predict rents (and therefore most likely prices) to keep going up or is it reaching some sort of stabilisation.
Is there much of a home owner market in Karratha or is it mostly driven by investors?
Thanks for the info
Gooram
Not quite...the clue is to put together the house and land package at a lower cost because the market value is $600k to $700k.
eg...the ones we did cost $325k to $340k ( house and land) and market value is $600k.( based on sales evidence)
I won't pay market price, especially not up here.
To repeat today will cost $145k for land and $360k for build.
Market value is $650k to $750k.
The cost of housing is underpinned by the cost local builders charge to build which is $450k to $500k +
I prefer not to predict where rents might end up. Instead use current rents to make decisions on whether to proceed or not.
eg..when we started we used rents at $550 pw to $600 pw and they came in at $875 pw, so the extra is just a bonus.
Current rents are $900 pw to $1200 pw.
There is a strong home owner market in Karratha.
The strongest segment of the market is the new homes/new subdivision scenario. Mostly families who have the same aspirations and dreams in this day and age and want to live in a new and modern designed comfortable house. They just happen to choose to live here instead of the city, and probably they have more means to afford the cost of the house.
Quite often the mortgage is paid for or subsidised by their employer as part of their employment package.
Kevin
Hi all,
This year a milestone in our financial plan has been achieved. We've reached our first $1M in equity!. It happens 2 years before originally planned. When we started this journey, we thought that a million $ was a lot of money and that somehow we’d feel different. But, the reality is that we feel the same. We still feel poor though, with a rich mind set.
According to our calculations, the next equity Mil will come in another 3 or 4 years. This time around we have no expectations and most probably will still feel the same.
Our relation to $ and finance had evolved along these years. The way we structure deals, even simple ones, is different to what most of the people we know do. It is a lot of fun
Thank you all,
James.
Well done James, Lizzie is right the second one comes around before you can blink!!
Keep up the good work.
Diane
Hi
I can relate to some of the previous comments - kinda feeling underwhelmed, almost blase about the achievement of having attained $1m+ net.
I'm looking forward to doing my biannual scorecard at the end of december to see if I have hit the target which I set myself last year.
I think it was the late Kerry P who when asked "how much is enough ?", replied "just a little bit more".
I feel the same - just a little bit more, please.
Merry christmas to everyone, and a very prosperous new year.
Tony
I can relate to some of the previous comments - kinda feeling underwhelmed, almost blase about the achievement of having attained $1m+ net.
I'm looking forward to doing my biannual scorecard at the end of december to see if I have hit the target which I set myself last year.
I think it was the late Kerry P who when asked "how much is enough ?", replied "just a little bit more".
I feel the same - just a little bit more, please.
Merry christmas to everyone, and a very prosperous new year.
Tony
i'm a long way off the 1mil equity mark yet, but by this time next year i should be at the 1mil portfolio mark, which i'll be pretty chuffed about
congrats to all you big guns! and thanks for giving me positive examples to aim for, so i know my goals are achievable!
congrats to all you big guns! and thanks for giving me positive examples to aim for, so i know my goals are achievable!
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Well, it took 4 years for the 2nd MIL to arrive. It wasn't 3y due to the GFC and all the $ we lost in the stock market. Though, I must admit it was a hell of a learning experience. MIL number 3 should be with us around 2014.
Every homeowner in Australia will shortly be millionaires with property doing this well in Australia. I knew I crossed this years ago when all of our cheaply bought properties went up in value and I did... NOTHING.. It's no secret really, even my mechanic mates knew property was the way to wealth, you just had to buy a property, rent it out and let it rise.
It is interesting to see how many individuals are asset rich (property boom) but are income poor, thus why they still feel the same/poor as they were before having the paper asset, essential nothing has changed except for inflation/property growth CG.
It is interesting to see how many individuals are asset rich (property boom) but are income poor, thus why they still feel the same/poor as they were before having the paper asset, essential nothing has changed except for inflation/property growth CG.
Well done, Congrats!!
Same here just finished reading it..
Well done 007 and everyone else that has reached similar milestones.
Regards
Regrow
