No not clear. Last financial year 123,000 gross and 60,000 clear.
Charlotte30
Nice
As they say "beats working for a living"
Stacking up numbers with cash flow positive properties
- Thread starter sprightly
- Start date
Nice
As they say "beats working for a living"
While that sort of saving is admirable, not everybody can put aside $130,000 annually. I've never seen anywhere near that gross income in my pay packet. However even with families, there's many on this forum on a much smaller income who have, through leveraged investment, built assets up to and often exceeding yours.
Yes there are definitely many ways to achieve an end result of 100k p.a. cashflow. Similarly, I would say that there are many who do not have the skills/expertise/temperament/discipline to build a significant asset base by means of leveraged investment, even on larger incomes than mine.
Yes, it seems reasonable with all the hard work.
China, how did u manage to save so much? Your pay package must be huge!!!
Is that from properties income or business? If u don't mind me asking
Thanks. starter for the info.
But according to what Nathan has said he can source properties in capital city for that price????
But st Mary's is more than 50km from the sydney cbd.
Nathan, can u give us the suburbs for example???
Really would like to hear your experience
Thanks
China, how did u manage to save so much? Your pay package must be huge!!!
Is that from properties income or business? If u don't mind me asking
Thanks. starter for the info.
But according to what Nathan has said he can source properties in capital city for that price????
But st Mary's is more than 50km from the sydney cbd.
Nathan, can u give us the suburbs for example???
Really would like to hear your experience
Thanks
oh ok.
I thought he meant by captial city as within 30 mins away from the CBD.
No way will that be possible.
the prices are too expensive now in the outer west to achieve any where near 8% yield.
it seems like all the people in the forum are looking at 2770. why?
how amount positve cash flow in liverpool, campbelltown, etc in the south end of town.??? I dont have experience in those suburbs but there ought to be some sort of opportunities there?
I thought he meant by captial city as within 30 mins away from the CBD.
No way will that be possible.
the prices are too expensive now in the outer west to achieve any where near 8% yield.
it seems like all the people in the forum are looking at 2770. why?
how amount positve cash flow in liverpool, campbelltown, etc in the south end of town.??? I dont have experience in those suburbs but there ought to be some sort of opportunities there?
A bit late now to look into 2770. You can still get a good deal if you look hard enough. But seems people are paying stupid money for burnt houses too.
yes, i was looking at fire damaged properties and a recent one sold in wilmot for $130K
it will probably need a fair amount to fix it up.
What a nightmare!!!
So as i understand it, there is a many ways to achieve $100K per year from rent.
1. Hard work
2. save your *** off....
3. find properties that are around $250K mark at 8% yield
4. buy 10 and sell IF they go up in value
5. renovate, sub divide, develop and add granny flat
6. luck and wait and wait and hope it will gain in value and not burst into a bubble.
7. buy lots of properties in the regional area with +ve cash flow of more than $5000. (of course significant risk in smaller population)
hmmmm........
there you have it..... thank you so much somersoft family for sharing your experiences. Iam happy you have been so helpful and being so kind. It really feel like i have joined an extended family.
please continue include what else i have missed......
it will probably need a fair amount to fix it up.
What a nightmare!!!
So as i understand it, there is a many ways to achieve $100K per year from rent.
1. Hard work
2. save your *** off....
3. find properties that are around $250K mark at 8% yield
4. buy 10 and sell IF they go up in value
5. renovate, sub divide, develop and add granny flat
6. luck and wait and wait and hope it will gain in value and not burst into a bubble.
7. buy lots of properties in the regional area with +ve cash flow of more than $5000. (of course significant risk in smaller population)
hmmmm........
there you have it..... thank you so much somersoft family for sharing your experiences. Iam happy you have been so helpful and being so kind. It really feel like i have joined an extended family.
please continue include what else i have missed......
Nightmares could pay off.
But sometimes it's the mansions that have value and people overlook it - because they all think they can value add on the nightmare and end up overpaying for it.
But sometimes it's the mansions that have value and people overlook it - because they all think they can value add on the nightmare and end up overpaying for it.
I thought that mansions are highly speculative plays. A 3m mansion consumes much resources, puts all your eggs into one basket, excludes most buyers, is definitely hugely cashflow negative on 105% borrow of purchase price and you are counting purely on one thing: capital gain.
To quote Nathan on the matter of mansions versus Mt. Druitt holdings: note the second last paragraph.
http://www.news.com.au/realestate/i...e-primed-to-grow/story-fndbarft-1226630549336
Yes it's speculative. But there's an art and skill to it that makes it probably as speculative as investing in relatively higher yielding assets with less growth.
To put in to context, how many years of $100k cashflow positive would one need to replicate a $1m tax-free gain on their PPOR in 12 months?
To put in to context, how many years of $100k cashflow positive would one need to replicate a $1m tax-free gain on their PPOR in 12 months?
The problem with gains in the value of PPOR is that it is hard to access and/or enjoy without selling it or just having access to increased equity. It is very different to having cash in the bank or rent which also means cold hard cash.
Whilst your ppor may have gained 1m, it is likely that other similar ppor have also done likewise. This means that to access the 1m, you would need to downsize and reduce quality of life.
If you just use the increased equity to invest, you would be risking your own ppor constantly.
Whereas if you derive your cashflow independent of ppor, you should be secure in knowing that the roof over your head will remain as such.
I think that it would be unwise to invest too much in one's ppor for the above reasons and that if one can be frugal in their ppor and utilise other investment vehicles, the end game would be reached far sooner.
Entering the discussion a bit late.
And also not promoting USA property as I think it is to late.
But we have 11 properties in the US (Atlanta)
Bought from 2011 to 2012 total investment $800k gross return $158k based on full occupancy (tends not to happen).
Still need to work out the current financial years figures (friggin paperwork) but think the net return will be about $80-90k.
Was looking to expand the US portfolio to 20 odd properties and this would have pushed my gross income to the $1mil mark.
I started with a PPOR and just kept adding property when I could. Ran a business along the way and kept buying property.
So it is possible to start with nothing (as attested to by many posters) and build up a substantial property portfolio.
Just remember that you start small and you really don't need to take in the whole picture. It will come into focus as time goes on.
You will also need to practice and refine your processes for managing a property and later many properties. If you don't manage to get on to of one or two properties then, really, it will be a nightmare if you continued accumulating them.
Cheers
And also not promoting USA property as I think it is to late.
But we have 11 properties in the US (Atlanta)
Bought from 2011 to 2012 total investment $800k gross return $158k based on full occupancy (tends not to happen).
Still need to work out the current financial years figures (friggin paperwork) but think the net return will be about $80-90k.
Was looking to expand the US portfolio to 20 odd properties and this would have pushed my gross income to the $1mil mark.
I started with a PPOR and just kept adding property when I could. Ran a business along the way and kept buying property.
So it is possible to start with nothing (as attested to by many posters) and build up a substantial property portfolio.
Just remember that you start small and you really don't need to take in the whole picture. It will come into focus as time goes on.
You will also need to practice and refine your processes for managing a property and later many properties. If you don't manage to get on to of one or two properties then, really, it will be a nightmare if you continued accumulating them.
Cheers
I started off with nothing. Still have most of it.
You'd do the same investment but treat it as an IP. So you pick the yield too.
hi handyandy,
good on you mate. well done.
could you give all of us some advice as to whether to invest in sydney or other state to obtain a good yield and positive cashflow properties?
would be great to hear from someone like yourself having so much experience.
thanks
there is a guy who buys and sells million dollar real estate in the US, jeff lewis each making approximately 1mil per sale.. i think he has done this like 20-30 times.
Amazing returns.
Would be scarce in Perth?
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