While it's good to get out there and start investing, I think it's important to have some sort of end game in mind. This thread is to elaborate on that goal, how you're going to achieve it and how you're tracking. This forum seems to be full of success stories of people that have made it. And while my kudos goes out to all that are in this position, I would also be interested in hearing about the journey of people that have not reached their goals yet. So please contribute.
Below is mine.
Goal: To have a net passive income of $100k per year in 2010 terms by the time I turn 40 (just under 9 years away). This will in theory allow me to stop work if I chose to, but I doubt I really would. It's all about the peace of mind for me.
Method: My strategy is to buy houses on reasonably sized blocks of land in regional areas with population growth and yields over 7%. Once the value rises, I can refinance and buy more of the same.
I bought my two Central Coast properties with future developments in mind and plan on putting a total of 7 townhouses up in five years or so.
I have calculated that I need between 12 and 20 investment properties to achieve this, depending on how optimistic I'm being with my forecasts.
Status: I started investing just under three years ago and am just about to settle on IP number 5. My total portfolio is geared at nearly 90% LVR, so I don't have much value in it yet, but hopefully that will come in time. I'm looking at buying IP #6 before the end of this year as well.
My positive cash flow is just under $10k per year, which is invested back into property.
Everything seems to be on track, but I also have to factor in that I'll probably buy a PPOR and start a family in the next few years as well. This will slow my progress somewhat, but even if it's a bad investing decision, for me it's a good life decision.
Please feel free to critique my plan!
Below is mine.
Goal: To have a net passive income of $100k per year in 2010 terms by the time I turn 40 (just under 9 years away). This will in theory allow me to stop work if I chose to, but I doubt I really would. It's all about the peace of mind for me.
Method: My strategy is to buy houses on reasonably sized blocks of land in regional areas with population growth and yields over 7%. Once the value rises, I can refinance and buy more of the same.
I bought my two Central Coast properties with future developments in mind and plan on putting a total of 7 townhouses up in five years or so.
I have calculated that I need between 12 and 20 investment properties to achieve this, depending on how optimistic I'm being with my forecasts.
Status: I started investing just under three years ago and am just about to settle on IP number 5. My total portfolio is geared at nearly 90% LVR, so I don't have much value in it yet, but hopefully that will come in time. I'm looking at buying IP #6 before the end of this year as well.
My positive cash flow is just under $10k per year, which is invested back into property.
Everything seems to be on track, but I also have to factor in that I'll probably buy a PPOR and start a family in the next few years as well. This will slow my progress somewhat, but even if it's a bad investing decision, for me it's a good life decision.
Please feel free to critique my plan!