Good to read about success! We just cracked our first equity million this year. I'm figuring 5 years or so to the next.
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We just cracked our first equity million this year. I'm figuring 5 years or so to the next.
Some names in that lot that have since gone to the wall....sad to see really.
You might just suprise yourself. It's like a snowball. The growth isn't linear.
After you hit the first, the second is inevitable and will arrive ahead of schedule.
In 5 years time you will look back on this post as say "what was I thinking"!
You might just suprise yourself. It's like a snowball. The growth isn't linear.
After you hit the first, the second is inevitable and will arrive ahead of schedule.
In 5 years time you will look back on this post as say "what was I thinking"!
We're still here, even if a tad poorer. The GFC whiped some equity out of our portfolio through our share market exposure and we've spent another couple of hundred thousand getting our development ready to go. When its done though, we should be back above that $1M mark and half way towards the next one even allowing for our GFC equity losses. Holding a touch under $4M in properties might see us get there pretty quickly if Sydney holds up its end of the deal, even 10% growth would just about get us to $2M.Some names in that lot that have since gone to the wall....sad to see really.
The GFC whiped some equity out of our portfolio through our share market exposure
Hi Michael, we also lost in the market more than we thought we ever will. A lesson that will stick with us for ever.
Cheers!
Curious if you're willing to share what kinda % drop? The lesson learnt for you is to avoid shares or to avoid certain industries?
My question for those who have got to $1m or $2m net equity fairly quickly
is this...have you acheived this level of net equity mainly as a result of the large size of gross property holdings (i.e. $4m gross property value going up 7% p.a. means net equity increases another $280k in a year)?
I suppose it mostly comes down to what level of property capital gains an individual predicts for the next few years.
Does it feel any different having that million or two in equity? Do you feel wealthier?
Has the wealth mindset changed?
This is starting to get interesting for me.
Net equity $700k.
Gross value of property $1.5m
Property Debt $1m
Gross value of shares $255k
Margin loan on shares $55k
If I sell the shares and put into the line of credit, property debt falls to $800k and my lvr on property falls to 53% from current 60% lvr overall.
An accountant may say that I have a lazy balance sheet.
If I sold the shares I would be looking to buy another property (say a $450k property in Moranbah, where properties seem to be close to cashflow neutral at the moment).
My question for those who have got to $1m or $2m net equity fairly quickly is this...have you acheived this level of net equity mainly as a result of the large size of gross property holdings (i.e. $4m gross property value going up 7% p.a. means net equity increases another $280k in a year)?
I suppose it mostly comes down to what level of property capital gains an individual predicts for the next few years.
Agent007 (and other established millionnaire forumites),
Does it feel any different having that million or two in equity? Do you feel wealthier? Has the wealth mindset changed?
I was saying to my wife just the other day that even with two IPs, I still feel somewhat poor and struggling. Now with a 7 month old kid, it seems at times we are not going forward financially.
Regards
Daniel Lee