I was just reflecting on the last 7 years since we started our property investing and the thing that really struck me was how smooth our path has generally been. My wife was saying we've been lucky but I think a big part this is because at no time have we taken any really big risks..
We started buying well after the previous property cycle had started , we never over committed in terms of cash flow or equity and always had plenty in reserve. Probably more importantly we didn't get involved in any thing we didn't really 100% percent understand or have control over.
We've gone from a position of being laboured with a large mortgage , three kids in private schools and bugger all in superannuation to a point where , financially , tomorrow if we wanted to retire , we could do it .
Now to an outsider , what we did might be considered risky , but to any one with basic understanding of property investing , we were relatively conservative.
The basic knowledge of property investing is " Pretty Basic ". If you want to get involved in the sharper edge property deals and that's what you want to do ,fine. Just make sure you really understand the risks involved and what will happen if things go wrong . If you're not sure what the risks, are wait untill you do. The property market generally doesn't move that fast and when it does you need to really know what you're doing or you will get burnt.
From what I've seen , it's easy for some to go from minimal assets to comfortable retirement in two cycles without much effort and hardly any risk.
For people who are prepared to put time and effort into it and make property investing a passion it's possible to do that in one cycle.
Cliff
We started buying well after the previous property cycle had started , we never over committed in terms of cash flow or equity and always had plenty in reserve. Probably more importantly we didn't get involved in any thing we didn't really 100% percent understand or have control over.
We've gone from a position of being laboured with a large mortgage , three kids in private schools and bugger all in superannuation to a point where , financially , tomorrow if we wanted to retire , we could do it .
Now to an outsider , what we did might be considered risky , but to any one with basic understanding of property investing , we were relatively conservative.
The basic knowledge of property investing is " Pretty Basic ". If you want to get involved in the sharper edge property deals and that's what you want to do ,fine. Just make sure you really understand the risks involved and what will happen if things go wrong . If you're not sure what the risks, are wait untill you do. The property market generally doesn't move that fast and when it does you need to really know what you're doing or you will get burnt.
From what I've seen , it's easy for some to go from minimal assets to comfortable retirement in two cycles without much effort and hardly any risk.
For people who are prepared to put time and effort into it and make property investing a passion it's possible to do that in one cycle.
Cliff