"Plans, goals and pipedreams???"

From: Nigel W

Following on from Paul Z's debunking of that US uni study they all quote about the need for written goals etc...I thought this would be an interesting issue to explore.

How many of you propery gurus and millionaires in the making have written plans in relation to IPs? Ie do you get specific in terms of:

1) type (ie houses/units etc)
2) price & location
3) how many/value by when you'll have em
4) target net rent income
5) specific plans to achieve all the above

If so, how accurate has your modelling been in terms of timeframes and success rates?

One of the difficult things I've found is to predict growth across my portfolio. I tend to use various best, worst and likely case scenarios in my figurings...

The other question which springs to mind is how often do you check your progress? I'm sure there are some forum contributors who could tell me as at 1 second ago exactly what they're worth and what tax refund they'll get etc (u know who u are Dunc...)

From my own perspective, I have certain monetary figures in mind, but the game plan to achieve those revolves around opportunistic implementation of one or more of a couple of different strategies, depending upon what actual deals I'm able to dig up in the market over the time frame I'm working towards. (maybe i'm a freestyler and don't know it!)

Let's see if we can run our own survey :)

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Reply: 1
From: Anonymous

1. Houses with good land content which I reno
2. Slightly above the median price approx. 3 - 5 km from the CBD.
3. Currently control 9 and am aiming for another 6 which will be approx. $4.5M in todays dollars. Time frame is one a year, kids will be independent by then 2007.
4. Rental income is not a target but will be $420,000
5. No specific plan to achieve the goal - momentum is the key. The goals is financial independence as I define it. Some would already be satisfied with where I am and consider themselves FI.

Mine is not a highly geared strategy, lvr's are around 65%. I also plan to consume approx. 50% of the historical cap growth of the portfolio via LOC's and cash bonds/annuities (tax free). This will equate to approx. $120k pa plus rents and other income.

I suppose I don't have it written down but it is indelibly written in my mind :)
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Reply: 1.1
From: Jeremy Laws

Would love to see an answer from the super secretive TW! Suspect I'm dreamin' though! (Something a _little_ more specific than the priceless 'in the several millions of dollars':))

and now me.....

I have done no modelling, any goals I would have set have been surpassed well and truly. On an average income of 42kpa I made a net $1m inside 6 years. I lived at home for half of this so I admit this was a huge help. I have the main aim of buying anything I can. Under that heading, most things fall into place themselves..

So in answer to your questions....

1) Anything I can possibly get my hands on.
2) I would consider almost anywhere for any price
3) Value is irrelevant, but would prefer better quality *for the area in question* I would guess for any given market type about 7/10
4) I will re-assess my aims/goals when I have achieved a net rental income of 250kpa. Was recently asked if this was a net or gross figure, that I havent decided yet. [ed - as in pre, or postpersonal tax]
5) As a broker I have said to me once 'Its not a question of which property you buy, just buy property

Whenever I am in doubt about something I refer back to (5) for the correct answer.

I feel very bored and unproductive if I don't get a new something every couple of months or so. I am an acquisitive little bugger! Fortunately I acquire for the most part appreciating assets.
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Reply: 1.2
From: Glenn S

Love to be where you are anon!

How many years has it take to get wher U are. As a matter of interest

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Reply: 1.2.1
From: Anonymous

Hi Glenn,

It has taken 6 years from owning a $185k home with $80k equity. On combined incomes of about $80k.

Why 9 in the first 6 years and less in the next? Because I was focused and making up for lost time and now lifestyle (kids) are consuming a lot of the disposable income :)
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From: Glenn S


another legend, I have a goal of being self funding in 7 years.

You guys make my dreams seem more real.

Would love to chat over coffee some time on serviceability and other stuff that I thought may hold me back.

Feeling much better

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