Driving on my way to work the other day, driving down a few streets & seeing house after house, unit after unit, it's funny how if I owned a small street like a close of 6-7 houses I'd be setup for life - $400k per house - $2.4-$2.8m returning 5% = $130,000 per year. It seems so easy to do but it eludes 99% of the population! It seems so easy to buy 1 property every 4 or 5 years over a 25 year period or obviously even less. I'm on this journey now with a few cheaper IPs under my belt & still in my early 30's. I guess the same could be said for a lot of things like going to the gym & losing weight. Interesting though...
Own a small street & you'd be setup for life! Seems so easy...
- Thread starter BigCol
- Start date
Alot of people just don't think investing is for them, to afraid to invest?, or they think they don't earn enough money to invest. Then again, some are just happy to live up the lifestyle they have and keep on spending every dime until they retire.
Last week I attempted to have a chat to a bloke about investing, how buying something now and holding onto it can make you some good coin later on...next day he told me he is going to buy a 40k (loan) car!? My response was along the lines of "But you have a work car, and live in the city - do you need it?"...He told me that he would like to have something to drive on weekends that looks nice. My guess is that I didn't put up a very good arguement to convince him, maybe it was the words "hold, patience, wait, sacrifice" that put him off!
Last week I attempted to have a chat to a bloke about investing, how buying something now and holding onto it can make you some good coin later on...next day he told me he is going to buy a 40k (loan) car!? My response was along the lines of "But you have a work car, and live in the city - do you need it?"...He told me that he would like to have something to drive on weekends that looks nice. My guess is that I didn't put up a very good arguement to convince him, maybe it was the words "hold, patience, wait, sacrifice" that put him off!
6-7 houses is fine but all in a row just smells like a ghetto.
Wouldn't it be great to own a street! A little "Eggs in one basket" but yeah like you say you'd be set. I too am in my early 30's (30 exactly 
) and I have 2 properties and our PPOR, i have a goal of 10 props by the time in 40 or more.
Like you say though, i have enough people around me, (seams like all of of them sometimes) that would rather spend it on something they simply don't need, OK we don't neeeed extra houses but the income and security long term they provide is something we all wouldn't mind!
Keep going I say!
) and I have 2 properties and our PPOR, i have a goal of 10 props by the time in 40 or more.Like you say though, i have enough people around me, (seams like all of of them sometimes) that would rather spend it on something they simply don't need, OK we don't neeeed extra houses but the income and security long term they provide is something we all wouldn't mind!
Keep going I say!
I didn't mean exactly ALL IPs in the same street - I meant it as a metaphor for having 6-7 IPs altogether
A friend of a friend was 18 & looking to buy his own home & had the money for the deposit & was ready to go a few months ago, now I get told last week, that he's spent the deposit money & bought a motorbike!! I thought what a waste & in 5 years time the bike will be worth 1/4 of its value now, but the home will be worth 50% more.
So your nick says next IP in 2010 - have you achieved this as only a few months to go?
It's not all that difficult, and there are many ways to skin a cat.
There would be a "ghetto" effect if it was cheap housing.
Which is why most people prefer their IP to amongst owner occupied properties.
As for your numbers, you forgot to include interest and other expenses.
Your 5% return would be a loss. After you own them, you may have to wait 15-20yrs for a 5% return.
"1 property every 4 or 5 years" as you put it could be a 40-50 yr process.
As I've posted before, buy & pray is ok if ya earning big $$, otherwise you have to find ways to "beat the market". And their are many.
There is/was a notorious crime family in Vic that at one point in time owned 17 adjoining homes/terraces in Hawthorn l think from memory.
Most of them were brothels/drug houses but the main reason Mother bought them all in a row was that it was a great get away, rabbit warren type hide out from the Police.
Imagine if they still owned them all now? $$$$$$$$$$$$$$$$$$$$$$$
FYI, They dont, Mother is off in a country town running the bingo and broke and on Centre link and most of the other family members are dead.
cheers
Most of them were brothels/drug houses but the main reason Mother bought them all in a row was that it was a great get away, rabbit warren type hide out from the Police.
Imagine if they still owned them all now? $$$$$$$$$$$$$$$$$$$$$$$
FYI, They dont, Mother is off in a country town running the bingo and broke and on Centre link and most of the other family members are dead.
cheers
5% return on 2.8m??? Not such a great idea. I would want 12%, at least by retirement age (45)
It's funny you should mention this and some of the examples of people not listening. There's a guy at my work in his late 20's that earns more than me, single and still lives at home. I've said to him before that he should do something with his money. If he's still happy living at home that he should think about buying an IP (or investing it somewhere) and make his money work for him for later on in life.
Nope doesn't want a part of it. I always think to myself where's he going to be in 10-20 years time. Still living at home and nothing to show for his money (except maybe a flashy car). Certainly not where I would want to be that's for sure. Each to their own I guess.
Nope doesn't want a part of it. I always think to myself where's he going to be in 10-20 years time. Still living at home and nothing to show for his money (except maybe a flashy car). Certainly not where I would want to be that's for sure. Each to their own I guess.
Yadreamin
I know who your talking about and it was 3 houses in Richmond. I do know someone with 4 houses in a row and then a another house owned by someone else and then they own the next 2, they hyave put numerous offers to the lady that owns that middle house with no success. They don't want to own all 7 but build a large developement
Jezza
I know who your talking about and it was 3 houses in Richmond. I do know someone with 4 houses in a row and then a another house owned by someone else and then they own the next 2, they hyave put numerous offers to the lady that owns that middle house with no success. They don't want to own all 7 but build a large developement
Jezza
We only want two ... preferably next to each other (duplex). If I was in the city I'd love a small block of 3-4 units.
We'll be in that position soon enough though - right now we have three properties. Two are under contract, one to build and one to sell. Cutting it extremely fine considering one is funding the other and the building of one can't go ahead until the other is sold.
This time next year it should be all happening. Anything involving property is sloooooooooooooow.
We'll be in that position soon enough though - right now we have three properties. Two are under contract, one to build and one to sell. Cutting it extremely fine considering one is funding the other and the building of one can't go ahead until the other is sold.
This time next year it should be all happening. Anything involving property is sloooooooooooooow.
....or go and buy a nice office / warehouse in a capital city somewhere and get the same return for less than half the outlay.
Of course, you don't need to put up with 7 residential headaches or pay any bills either.
No need to own a street...
http://www.realcommercial.com.au/cg...header=&cc=AU&c=51528221&snf=as&tm=1286071361
Only issue with this example is that I need to finance $1.3m at once, rather than build up to it by adding more IPs to the portfolio...but then again I could always buy a smaller comm IP & add additional comms to the mix
Yea l think your right it was Richmond but there definatley was approx 17 houses in a row they owned.
That's where I want to head dazz but the only way i see to get there is to play resi for a few years then head their on equity. But my goal is have a million+ commercial in 5 years.
That's similiar to something I had in mind to buy in 3-5 yrs when I sell up all 3 flats here in Moscow and move back to Australia...
I have 8 properties now, including PPOR, and figure on buying another 1 or 2 over the years, if I can find what I consider to be a good deal.
For me the issue now is waiting for capital growth and rental increase. I've already had some of each, but need more before retirement. I figure I have another 10 years of working full time anyway, so that's ok.
Slow and steady, and all that...
For me the issue now is waiting for capital growth and rental increase. I've already had some of each, but need more before retirement. I figure I have another 10 years of working full time anyway, so that's ok.
Slow and steady, and all that...
Depends on the size hey... you could have 3-4 $1.0m ones renting for say $1k per week. Same result.
