What Age were you?

[nhg]

First place at 17 with sis. Sold shares to parents at 21. Left money in their mortgage.

Tried for another at 21 after big 2008 drop in prices. Parents wouldn't give me my money to protect me from bad investments. It is worth $100ks more than original purchase price.

Started again end of 2011, so 25. Purchased 3 in a year.

 

[archk]

PPOR @ 31

IP 1 @ 38

IP 2 on it's way

 

[BayView]

Me at 25
Ace at 26
BayView at 24

At 24 it was my first PPoR.

The first "conscious decision" IP was at 40. (was living in PPoR no.4 by this time)

 

[BayView]

In terms of time in the market, and how early you can start for folks who are on middle to lower income.

Lower income folk can only enter at the lower end of the market usually, so their CG in dollar terms is lower than say; a high income earner who comes in to IP at aged 35 and starts immediately buying up half mill dollar townhouses (or higher) etc in hot-spot inner city suburbs.

A that level, a 5 year window of CG at say; 20% will escalate their nett wealth a fair chunk more than the lower income earner who has to start with a $250k 2x1 unit in the outer burbs.

Of course; inner city and outer burbs do not always go up (or down) at the same rates as we know, but you get what I mean.

Income level notwithstanding; start as early as you can, I reckon.

If you are on a high income; the whole thing becomes that much more of a walk in the park, and you can start waay later and still be ahead of the low income earner who has to start really early.

 

[jim1964]

25 in 1989.The interest rate nearly killed me.

Cash rates and bills rates peaked at 22 % in 1981, at 20 % in 1983 and at 18 % in 1989. Housing lending rates were fully deregulated only by the Hawke Government and reached a peak of 17 % in 1989. This is the basis of the current government’s claim that it has held interest rates well below those of the most recent Labor government.

 

[Redwood]

I was 19 bought a property in Mount Waverley VIc - 750 sq metres for 170k. Ended up subdividing and building 2 townhouses. Still own one.....successful investment....

Cheers Ivan

 

[china]

PPOR at age 34. Commercial property aged 38. Still no IP.

 

[BayView]

PPOR at age 34. Commercial property aged 38. Still no IP.

Commercial property is still an IP.

Interesting opinions on which is better of the two - Resi or Comm. Pros and Cons on both sides of course.

Here's two Comm horror stories - large-ish premises here where I live has been vacant for almost 18 months now - asking $5k per month.

Another one twice as big (used to be a Sam's Warehouse - sorta like a Kmart that sells everything' but even moreso "lower-end" standard and assortment) has been vacant for almost 6 months now.

 

[BayView]

I was 19 bought a property in Mount Waverley VIc - 750 sq metres for 170k. Ended up subdividing and building 2 townhouses. Still own one.....successful investment....

Cheers Ivan

Brilliantly done!

 

[china]

Commercial property is still an IP.

Interesting opinions on which is better of the two - Resi or Comm. Pros and Cons on both sides of course.

Here's two Comm horror stories - large-ish premises here where I live has been vacant for almost 18 months now - asking $5k per month.

Another one twice as big (used to be a Sam's Warehouse - sorta like a Kmart that sells everything' but even moreso "lower-end" standard and assortment) has been vacant for almost 6 months now.

I am the owner occupier of my commercial property. Technically my smsf owns it and I am the tenant.

I think the best age for me to have a commercial Ip is when my passive income from other sources exceeds the holding costs of the commercial ip should it fall vacant. Then it would be a no stress situation.

 

[D.T.]

I am the owner occupier of my commercial property. Technically my smsf owns it and I am the tenant.

I think the best age for me to have a commercial Ip is when my passive income from other sources exceeds the holding costs of the commercial ip should it fall vacant. Then it would be a no stress situation.

But wouldnt you have to buy investments for your investment to cover your investment from your investments?

 

[china]

But wouldnt you have to buy investments for your investment to cover your investment from your investments?

In the current financial year the passive income from shares, term deposits have come to 65k. Should this amount increase I would feel safer with comm Ip.

 

[pinkboy]

In the current financial year the passive income from shares, term deposits have come to 65k. Should this amount increase I would feel safer with comm Ip.

China

Following on from DT, do you second guess purchasing your own premises for your business? You now need to keep practice to get income for your SMSF long term. Had you just locked in a lease say a 3x3x3 you then had options for retirement every 3 years when you achieved your desired passive income. You could then have used your SMSF funds differently, or get a CIP.

I'm just getting at it won't be easy sanity wise when you are in a position to retire to search and endlessly wait for a tenant prolonging your own retirement.

I feel though you will want to retire a long time before Super access age and you are locking away funds for too long a time.

Fully each to their own, but what is your sentiment between investment inside vs outside super at 38 years old?

pinkboy

 

[china]

China

Following on from DT, do you second guess purchasing your own premises for your business? You now need to keep practice to get income for your SMSF long term. Had you just locked in a lease say a 3x3x3 you then had options for retirement every 3 years when you achieved your desired passive income. You could then have used your SMSF funds differently, or get a CIP.

I'm just getting at it won't be easy sanity wise when you are in a position to retire to search and endlessly wait for a tenant prolonging your own retirement.

I feel though you will want to retire a long time before Super access age and you are locking away funds for too long a time.

Fully each to their own, but what is your sentiment between investment inside vs outside super at 38 years old?

pinkboy

I agree. Almost a year ago, my business and I were given notice of eviction. At the time, I felt that I needed to find permanent security and I guess that further leases were not really palatable to me at the time. I just wanted to move somewhere wherein no one will ever be able to evict me ever again.

In retrospect, it may have been better to enter a lease of some form in terms of achieving flexibility to retire. But currently, I am enjoying the non-financial aspects of being an owner.

I guess the imperative right now is how to sell off the whole deal and enter a lease with a new owner so that I may exit at a time of my own choosing. This is a behemoth task in itself which I am sure I will need the guidance of this forum as time progresses.

The only consolation was that the purchase price of the office and refurbishment probably came to about only 10% of my net worth and hence assuming the whole thing was a write off, it should not delay my retirement overly so. But the painful thing is that should I be retired, the hefty office strata, currently 20k per annum, is still ongoing till I find a new owner.