Quitting your day job to take up Property fulltime?
- Thread starter ozzier
- Start date
Thats a quite a jump from your first post, there will be a number of stages in between.
I am currently transitioning, from working fulltime, to now 3 days a week. I am a developer and creating a website to teach property development for aspiring developers. I'm looking to be out of my day job in the next year.
The key thing is cashflow. Developing can be lucrative, but it also requires reinvestment. If you have the cashflow sorted out to live off, then the lump sums that you get irregularly from development are just the icing on the cake.
I am currently transitioning, from working fulltime, to now 3 days a week. I am a developer and creating a website to teach property development for aspiring developers. I'm looking to be out of my day job in the next year.
The key thing is cashflow. Developing can be lucrative, but it also requires reinvestment. If you have the cashflow sorted out to live off, then the lump sums that you get irregularly from development are just the icing on the cake.
The secret is about 5-10 years of hard work between the first property and quitting your day job.
What you need to do is sign up for my property mentor program it only costs 30k and i can make you rich rich rich. All secrets revealed once payment is in my bank account, no refunds YAY
Joke
I'm soon to fully exit rat race. Secret is, there is no secret. You need to replace your PAYG income with passive income from investment and/or business. In my case, passive income via my CGA Property Investment Strategy
Rixter
may I ask how long did it take from your first IP to your exit point? I 've been invested for 6 yrs now and increased my IP as soon as I can but cannot see that I can exit the rat rate in 4 - 5 years
thanks
Timing certainly helps. As discussed many times previously anyone who bought property in early 2000's has done very well (like Rixter). If you have bought after GFC your time may take longer - thats just how it goes with economic cycles.
Not having a go at Rixter but being in the game just prior to a significant boom certainly shortens your time. Unfortunately i wasnt as smart with my cash.
Not having a go at Rixter but being in the game just prior to a significant boom certainly shortens your time. Unfortunately i wasnt as smart with my cash.
The Capital Growth Averaging (CGA) Strategy I employ utilises a regular purchasing cycle similar to what Dollar Cost Averaging is to the share market.
The major underlying principle to its success is it relies on your "time in" the market, NOT "timing" the market, and never never sell.
So in other words it does not matter whether you buy at the top of a boom or at the bottom, just so long as you purchase good quality, well located property in high density areas (metro area capital cities), at or below fair market value, on a regular basis.
This is what allows the replenishing of CG/equity to use for investment purposes in the portfolio acquisition stage and later in the final harvesting stage for lifestyle funding.
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I've done it by being a slumlord. But I am hands on and do work quite a bit, just on my own terms and things I like doing and outsource the rest. I could be totally passive if I liked but then what would I do with my time - I already do a fair whack of travel and side projects like writing novels. Suppose I could volunteer and give back to society or something
The OP is discussing quitting one's day job and doing something property related to make a living. I wouldn't put a "buy-n-hold-and-wait-10-years" as an active way of making money.
Cheers
Oscar
I'm on a similar path to Rixter and have never had any luck with CF+ investment property. Bottom line for me (no matter how impatient I get on a regular basis) is that with a 'normal' wage from a job, it usually takes quite some time to reach the point where one can feel free enough to LOE a little and or sell some stuff and replenish it with more property and wait another 10 years while they live off the released cash profit(s)
I often get discouraged and feel like I'm taking the long and hard road to wealth when I read about those in books who manage to make multi million dollar deals within months but then I remember that most of these folk also earned hunderds of thousands per year and could get there much faster than I currently can.
My journey is my journey and no matter how hard I try, life keeps telling me that and I just have to stick to the plan. We'll make it, and on time too but it's just not as fast as some.
We're (the Wife & I) currently make around about our combined full time working income in capital growth per year yet don't feel any free-er (is that a word?!) than we did 2 or 3 years ago. And will remain that way until the house is paid off. When you've got a mortgage there's no such thing as a savings account because your mortgage will save you more in interest than it will in any interest bearing account after tax and it's what keeps people feeling chained to their work.
My broker who is a successful property investor also has always told me to pay the house off, quick as I can. But in the early days I was all about LOE and planned to just sit back and pay the house off with ever increasing debt from the IP's. That doesn't sit well at all with me anymore. As long as we can live rent free, even rent the house for a profit while we travel, and manage to put some more investments under our belt without too much having to work then we'll be happy but the biggest thing for us is not having to pay debt from week to week, thats most of the way to financial freedom and from there, a simple savings account or property to redraw from is worth much more than it was.
I estimate our entire investment journey might take around 15 years start to finish. The next phase once we're out of debt is to buy only cashflow positive property, and from there capital growth.
I often get discouraged and feel like I'm taking the long and hard road to wealth when I read about those in books who manage to make multi million dollar deals within months but then I remember that most of these folk also earned hunderds of thousands per year and could get there much faster than I currently can.
My journey is my journey and no matter how hard I try, life keeps telling me that and I just have to stick to the plan. We'll make it, and on time too but it's just not as fast as some.
We're (the Wife & I) currently make around about our combined full time working income in capital growth per year yet don't feel any free-er (is that a word?!) than we did 2 or 3 years ago. And will remain that way until the house is paid off. When you've got a mortgage there's no such thing as a savings account because your mortgage will save you more in interest than it will in any interest bearing account after tax and it's what keeps people feeling chained to their work.
My broker who is a successful property investor also has always told me to pay the house off, quick as I can. But in the early days I was all about LOE and planned to just sit back and pay the house off with ever increasing debt from the IP's. That doesn't sit well at all with me anymore. As long as we can live rent free, even rent the house for a profit while we travel, and manage to put some more investments under our belt without too much having to work then we'll be happy but the biggest thing for us is not having to pay debt from week to week, thats most of the way to financial freedom and from there, a simple savings account or property to redraw from is worth much more than it was.
I estimate our entire investment journey might take around 15 years start to finish. The next phase once we're out of debt is to buy only cashflow positive property, and from there capital growth.
Hi ozzier
The secret is to never stop learning.
Started off with negative cashflow properties, road a couple of booms cycles in Perth, Melb, Syd, sold 5 properties in Melb at the end of Melb cycle, turning negative into cashflow generating an income. I also built land and house packages and onsold these for a profit in Perth, and started purchasing properties with dual income for cashflow.
Purchased in USA 2 years ago, have an income stream of around $55,000-70,000 pa now, depending on what is happening as very high mantenance tenants/houses.
I watch the markets in Australia, Perth market has been rising over the last 9 months, I jump in when I see this happening to increase equity, I will probably sell a couple prior to the market slowing down, reducing debt.
I may be retired, but still love and do property stuff, I have now started to develop and in process of developing 3 unit site, this requires a new skills set and I plan to continue doing this, 2 development projects on the go per year, sell one, hold one, creating cash streams.
Cheers, MTR
Thanks for sharing, I'm interested in your progression from the sale of 5 props to cashflow pos, are you able to shed more light on this for us? Were these USA properties? reno's? country town cash cows?
I'd also like to know how manu US houses you currently control for that sort of income if possible
I'd also like to know how manu US houses you currently control for that sort of income if possible
I agree with MattNZ on this one.....
It is highly unlikely we will ever see booms of the 2000's again where it doubled more than once in that 10 year period...
Unfortunate for us younger or those not in the market but hey I guess you have to take what you get and maybe just bad luck with timing
It is highly unlikely we will ever see booms of the 2000's again where it doubled more than once in that 10 year period...
Unfortunate for us younger or those not in the market but hey I guess you have to take what you get and maybe just bad luck with timing
