No not clear. Last financial year 123,000 gross and 60,000 clear.
Charlotte30
Nice
As they say "beats working for a living"
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No not clear. Last financial year 123,000 gross and 60,000 clear.
Charlotte30
Another option is to save 2.5m and just buy the properties. Could be the simplest way if you are on a good income and minimal expenses/frugal life. After 15 years of back busting work, I have managed to save 2m. But it is getting easier to reach the 2.5m as time goes as the 2m is also put to work earning bank interest and share dividends.
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.
it seems like all the people in the forum are looking at 2770. why?
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.
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?
So it is possible to start with nothing (as attested to by many posters) and build up a substantial property portfolio.
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
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
I think that you need to be conservative and realistic with numbers but for $100kpa I would say buy 15 properties today in a capital city with pp around $250,000 and 8% yields.