What is your Gross Worth?

[sash]

Well...it looks like may return to good times again for property in most part of Australia.

As a result...I thought I would do a survey of what people's gross worth is - i.e. total value of properties. Don't worry about lvel of debt etc.

Would also be good to know if you have increased your gross worth. The reason for this there are quite a few people on this forum who have substantially increased their gross worth 2-3 fold in just 18 months.

Anyway....look forward to seeing what you have to say.

 

[Rob Williams]

I wish I was one of the 3 fold . However, mine has grown substantially over the last 18 months.
I would say that my net worth has close to doubled in that time and many of my 5 year goals (set 2 years ago) have been achieved, or very close to it.
Apparently there's been some kind of global crisis going on, out there. I've been so busy doing my own thing that I kind of missed it.
Great idea for a post, Sash!

 

[steveadl]

Must be an Adelaide thing Rob cos I've experienced the same thing. Probably cos we're a sleepy backwater cut off from the rest of the world etc etc eh?

Sash, last 12 months propery values up 8%, gross assets up 38% (mind you that's also because I've been investing heavily in the downturn), net worth doubled.

Individuals can prosper just as much in bad times as in good.

 

[BlackSpider]

If you had just over 1 mil, but could qualify for and service about 10 mil, is that a bad thing?

 

[JIT]

I've increased my gross worth 2-fold (ie. 200% !) over the last 12 months with 2 X RIP purchases, one in Dec '08 and one in Aug '09 (this week!). The main challenge though was getting finance, one was at 95% LVR, and the most recent was at 90% LVR. Had 2 finance applications turned down in the process, but eventually managed to find a lender with favourable LVR's/rates/terms to do the last 2 deals.

The plan now is to hang on for dear life while the next boom unfolds...giddy up!

 

[Andrew L]

11.6% growth in 12 months & cash flow + for 1 IP = 60k growth

big dream of 60k x 50 properties = $3,000,000.00pa in CG oh how good it will be. Now I just need to multiply............50+ properties here i come

 

[HiEquity]

Dunno about retirement coming soon if ur over $4m - it's still quite possible to have quite a -ve cash flow at that level, depending on your debt levels... and I assume very few would want to consider the LOE bandwagon ATM.

If you had just over 1 mil, but could qualify for and service about 10 mil, is that a bad thing?

From an investing point of view it sounds like you might be a bit risk averse... ie not achieving your full potential. Or you could just be unable to find something worth buying! I like to stretch myself more than that ratio to buy quality assets but I also like to leave some in the tank for the deal of a lifetime that may come my way tomorrow! It's a balance IMO...

 

[Rolf Latham]

Sash, you forgot < 0.

For many, due to the share market dive, to be broke is a goal !

ta
rolf

 

[RumpledElf]

2.5 properties (the .5 is a bit of a sticking point) worth well under 500k.

We're not trying to collect houses though, it just seems to be an awfully good way to make money to fund other nefarious activities since it has now been quite some time since I quit my day job.

 

[investor888]

Gross Worth??, does it make a difference. The numbers are meaningless. If like JIT, you have a "200%" increase in gross wealth, by getting two 90% and 95% LVR properties. Maybe then all of $20K closer to retirement.

You should be asking net wealth. Gross wealth is very easy to aquire (just get a lot more debt). Net wealth is what is important.

Hey, the Storm people who had $1.5million margin loans were probably very happy with their "gross" wealth, hehe.

Don't know, sometimes the Somersoft patting each other on the back is a little to much.

So lests see, at 25% LVR currently, I can increase by "Gross" wealth by about 300% instantly why going to 80% LVR instantly with more properties. Woohoo, financial genious I am.

So Sash, hyperthetically, 300%. Guess I've gone better than others than. )

 

[Ausprop]

gross wealth is one of many KPIs but it wouldn't be the one I would survey primarily.

 

[keithj]

Gross Worth??, does it make a difference. The numbers are meaningless.

Gross worth is an indicator of how quickly your nett worth is likely to increase in a favourable market.

Nett worth is an indicator of how close you are to retirement.

IMO both are useful.

 

[Aaron Sice]

If you had just over 1 mil, but could qualify for and service about 10 mil, is that a bad thing?

isn't that called under capitalising.....?

under $1mil here.

 

[investor888]

Gross worth is an indicator of how quickly your nett worth is likely to increase in a favourable market.

Or how quickly your nett worth is likely to decrease!! If the property prices come off 10%, JIT's gross will be about 180%, but his net negative.

Anyway, to play the Somersoft game (gross wealth increase about 90%), Potential for 300% + 90% (or 400%), four fold. Yeah, I'm feeling rich baby!!

 

[JIT]

Gross Worth??, does it make a difference. The numbers are meaningless. If like JIT, you have a "200%" increase in gross wealth, by getting two 90% and 95% LVR properties. Maybe then all of $20K closer to retirement.

You should be asking net wealth. Gross wealth is very easy to aquire (just get a lot more debt). Net wealth is what is important.

Hey, the Storm people who had $1.5million margin loans were probably very happy with their "gross" wealth, hehe.

Don't know, sometimes the Somersoft patting each other on the back is a little to much.

So lests see, at 25% LVR currently, I can increase by "Gross" wealth by about 300% instantly why going to 80% LVR instantly with more properties. Woohoo, financial genious I am.

So Sash, hyperthetically, 300%. Guess I've gone better than others than. )

Ease up triple 8, most of us here already know the difference between gross/net wealth, but thanks for the refresher nonetheless.

Here's a poll done a while back by me... since you're so interested in net wealth :

http://www.somersoft.com/forums/showthread.php?t=22808

Like a few others here, my aim is to grow my asset base as big and quickly as possible.

Higher LVR's aren't a worry for me, as I'm 29 with a relatively high income and secure JOB.

Increasing your gross wealth doesn't take much genious, but still, not everyone can do it.

At the beginning at least you need a reliable income stream, cash savings, buy the right properties at the right times, and manage finance/interest rate risk appropriately.

What's exciting for me is the compounding effect of holding on to such a large asset base at this stage in my life and the net worth that is possible for me now in 5-7 years time as a result of the calculated risks I am taking now.

Here's a compound interest calculator:

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Put for instance $3,000,000 in at say 10% pa for 5 years, if such a growth rate happens, and see the end figure...

Regards.

 

[Aaron Sice]

Higher LVR's aren't a worry for me, as I'm 29 with a relatively high and secure JOB.

*gasp*!!!

a high LVR and a jayohbee?

 

[steveadl]

Like a few others here, my aim is to grow my asset base as big and quickly as possible.

Higher LVR's aren't a worry for me, as I'm 29 with a relatively high and secure JOB.

...

What's exciting for me is the compounding effect of holding on to such a large asset base at this stage in my life and the net worth that is possible for me now in 5-7 years time as a result of the calculated risks I am taking now.

Spot on JIT, accumulate the assets while we're young and we don't need exceptionally big growth, just average and we'll be nicely taken care of.

 

[Witzl]

Spot on JIT, accumulate the assets while we're young and we don't need exceptionally big growth, just average and we'll be nicely taken care of.

Thats my goal - collect the assets, sit and wait, then maybe collect some more. Im probably one of the younger ones here at just 27.

 

[steveadl]

Thats my goal - collect the assets, sit and wait, then maybe collect some more. Im probably one of the younger ones here at just 27.

Jeez you are young Witzl, what are you doing on SS? Shouldn't you be out spending all your money on booze and chicks at the clubs every weekend?!

 

[Witzl]

Jeez you are young Witzl, what are you doing on SS? Shouldn't you be out spending all your money on booze and chicks at the clubs every weekend?!

Yeah! With a brand new HSV for both me and girly, 5 plasma TVs in the house, an account at the local latte shop.......

lol!!