Who lives off rental income alone

Discussion in 'Coffee Lounge' started by james_w, 9th Jan, 2010.

?

Do You Live Off Rental Income Alone?

Poll closed 19th Jan, 2010.
  1. yes

    6 vote(s)
    5.7%
  2. No

    81 vote(s)
    77.1%
  3. mix of rental income and other investments

    13 vote(s)
    12.4%
  4. Almost There

    7 vote(s)
    6.7%
Multiple votes are allowed.
  1. james_w

    james_w Member

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    Hey I thought I would ask who here has actually made it and living off rental income or other invesments alone without a 9.5 centrelink etc so self funded retiree etc
     
  2. Nikolina

    Nikolina Member

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    Hi,

    Im not retired but im 23yo living off my rental return. I don't touch my wages they just go striaght into my savings account which i will use soon to purchase more IPs. :D
     
    vincenzo likes this.
  3. james_w

    james_w Member

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    Awesome your hurdles above alot of people your age:cool:
     
  4. eternit

    eternit Member

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    So you live off rental income after paying all property related expenses from the rent?
     
  5. Nikolina

    Nikolina Member

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    Yes that is correct.
     
  6. Trogdor

    Trogdor Member

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    And presumably interest on your IP, and also rent or interest on your PPOR? :confused:
     
  7. eternit

    eternit Member

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    That is extremely good for 23 years old. Very Impressive!

    If you dont mind me asking, did you get help with the purchase of the property(financially) or you purchased on your own?

    About 80% of my properties I have bought at 9%+ gross yield and they are slightly +vely geared. So I am wondering how you get there? Did you use a large deposit?
     
  8. Nikolina

    Nikolina Member

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    My IP is just about paid off and has an excellent return BUT when i purchase my next IP i won't be able to do this as ill prob be using the rental return of current IP to help cover costs of next IP unless i buy CF or positive geared. Will see what happens but im aiming for CF.
     
  9. Nikolina

    Nikolina Member

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    Hey,

    I purchased my IP on my own. I had a massive deposit. I know alot of people on this forum would have spread the money i had as an deposit over 3 or 4 properties but i chose not to and im happy with what i went with as you can see i wouldn't be in this fantastic position if i did otherwise.
     
  10. james_w

    james_w Member

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    Did you end up buying in a mining town if you don't mind me asking?

    who cares what the majority think you bought and could basically live off the rent tommorow I see your goals are 5 ips well you still have the huge deposit as equity to buy more as I see it pretty good move although many may disagree:cool:
     
  11. Nathan

    Nathan www.nathanbirch.com.au

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    Good work, if what you have is doing the job then thats the main thing :)
     
  12. Nikolina

    Nikolina Member

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    Hey,

    Nah i didn't buy in an mining town, I brought in sydney. Yes the equity is good, although i don't think ill being using it to make my next IP purchase as i have another large deposit ready to go. Might use it on IP number three or four. Will see what happens i can't make up my mind atm.
     
  13. james_w

    james_w Member

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    Omg where you getting all this cash at 23 run a business of some type?

    only thing I can think of that would make enough to buy a house almost outright in sydney is either an internet biz or currency trading etc:eek:
     
  14. Nikolina

    Nikolina Member

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    No i don't run any kind of business, im on an average wage - He He. I pretty much saved evey single cent possible from an young age and put the money into an savings account which i was earing a few k intrest on per year, to me EVERY cent counts! I purchased my IP (house) just over 1.5 years ago now at that time the market was down, the owner had to sell and i put in a low ball offer which eventually got accepted. Last 1.5 years i have continued to saved every cent possible, working pretty much 6-7 days a week by choice obviously so i can purchase my next IP with the same strategy in mind..... Off to work now.
     
  15. skater

    skater Capitalist

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    I would presume you still live with your parents, making it easy to save so much.
     
    lizzie likes this.
  16. kathryn d

    kathryn d Member

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    We have been living off rental income since June 2009.

    We are in the middle of a Income Tax Objection, so I have voluntarily asked my employer to take my paycheque and make it go towards Income Tax deduction.
    I don't expect to win the Objection..as we all know how powerful governments are.I will either have my tax bill paid or receive a nice refund.

    When we need to refinance our properties, we will have 2 years of living off rental income, That should make them feel comfortable.
     
  17. kum yin lau

    kum yin lau Member

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    Hi, been doing that since 05.

    KY
     
  18. RumpledElf

    RumpledElf all fun in the big city!

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    At the end of this year, fingers crossed, we will be living off rent + passive internet income + intermittant 'hobby' business income + FTA/FTB. I suspect we will also qualify for something from centerlink at a part rate too but aren't counting on it.

    We need the passive income as we have a business plan that will require all our time and won't earn money in the early years, so right now we are actively working on getting a passive income, if that makes sense. The day we throw ourselves back into the business is the day we count as 'retired', as the business idea is one of those uber-fun things that we'd happily do for the next 30 years or so for no pay but are, of course, going to charge for it when it is done. Turns out it is just too impractical to try doing this kind of thing without a supporting income, as we have already discovered and is why we are taking an extended break from it. You can't even get the dole if you are working on unpaid projects.
     
  19. rugrat

    rugrat Member

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    This is interesting to read, as this is what DH and I are aiming to achieve - our timeline is significantly in the future though, I don't want to live like a uni student (been there, done that) to acheive this aim, but am looking forward to a good retirement.

    Nikolina - I wish I had of been smart like you and started saving my money at a younger age before kids. I think the method you employ works and is about as low risk as you can get in the property game, so very smart from my perspective.
     
  20. HomeBuyAU

    HomeBuyAU *

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    Hey that's well done and good on you Nikolina. Obviously your working hard for it so you deserve everything!