woke up a millionaire
- Thread starter Oscar
- Start date
1/10th - For Sale
Hi Bill,
re brains, "you cant sell 1/10th of a house to buy a new car or go OS,"
A group on the gold coast sells pieces of property.
Firstly, we've still got the time share guys...
But i think we've also got a group that sell X% of houses.
Ross
Hi Bill,
re brains, "you cant sell 1/10th of a house to buy a new car or go OS,"
A group on the gold coast sells pieces of property.
Firstly, we've still got the time share guys...
But i think we've also got a group that sell X% of houses.
Ross
Hi Brains
Like you my wealth is not only in property as I also run a very successful business.
But that not withstanding we keep a fair chunk of our wealth in property with that property portfolio generating $200k net (before tax) pa. So this year we did go OS without having to sell 1/10 of a property
But the wife still doesn't get her Merc as I hate spending money on cars.
Cheers
ps Bundy could Pm me with details on how you manage to keep the tax deduction
Like you my wealth is not only in property as I also run a very successful business.
But that not withstanding we keep a fair chunk of our wealth in property with that property portfolio generating $200k net (before tax) pa. So this year we did go OS without having to sell 1/10 of a property
But the wife still doesn't get her Merc as I hate spending money on cars.
Cheers
ps Bundy could Pm me with details on how you manage to keep the tax deduction
Hi
I'm a bit like Oscar in that several months ago I realised that 6 IP's, all in Parramatta, plus some super, meant that I have a gross of approx $2.6m and a net of over $1m.
Believe me when I say that no-one was more surprised than me. I still can't quite believe it.
For the record, the first IP was bought in 1997. In 1996 I had a total equity of $96k and an average job.
Best wishes
I'm a bit like Oscar in that several months ago I realised that 6 IP's, all in Parramatta, plus some super, meant that I have a gross of approx $2.6m and a net of over $1m.
Believe me when I say that no-one was more surprised than me. I still can't quite believe it.
For the record, the first IP was bought in 1997. In 1996 I had a total equity of $96k and an average job.
Best wishes
G'day all,
I remember all too well that day I did the numbers and figured that I had arrived at that magical number, and boy did it feel good.
Having reached that goal, I went into preservation mode for a while..........."we cant afford this and we cant afford that", didn't want to go on no spending spree as that would have jeopardised the now newly aquired eliteness that I felt I had achieved.
From there went into supercharge mode, with a bit of manouvering here and a little adding value there and a bit more finance up here and a couple of joint ventures over there...........
I was on a roll, second million was a breeze and took hardly any time at all.
...and looking back, I have realised that the first million should have been a breeze as well, but I lacked one thing....
THE CONFIDENCE THAT I COULD DO IT.
Let's face it, being a millionaire nowadays aint like it used to be maybe 20 years ago, but the confidence boost it stimulates is phenomenal.
Oscar, welcome to the club, now go forth and tell us all about your second million in a years time.
Brains, the hardest question that i often get asked is "what is it you do for a living?" I nearly burst out laughing when I say "Not Much"
regards to all present and future millionaires
I remember all too well that day I did the numbers and figured that I had arrived at that magical number, and boy did it feel good.
Having reached that goal, I went into preservation mode for a while..........."we cant afford this and we cant afford that", didn't want to go on no spending spree as that would have jeopardised the now newly aquired eliteness that I felt I had achieved.
From there went into supercharge mode, with a bit of manouvering here and a little adding value there and a bit more finance up here and a couple of joint ventures over there...........
I was on a roll, second million was a breeze and took hardly any time at all.
...and looking back, I have realised that the first million should have been a breeze as well, but I lacked one thing....
THE CONFIDENCE THAT I COULD DO IT.
Let's face it, being a millionaire nowadays aint like it used to be maybe 20 years ago, but the confidence boost it stimulates is phenomenal.
Oscar, welcome to the club, now go forth and tell us all about your second million in a years time.
Brains, the hardest question that i often get asked is "what is it you do for a living?" I nearly burst out laughing when I say "Not Much"
regards to all present and future millionaires
Basically, yes, same here. The more you have the faster it grows. We're heading for $3M net by end 2004.
I'm hitting a sort of limit where our income tax is all but wiped out by depreciation. We are cashed up and from other investments maturing next year that will give $200k after tax, on top of our already substantial incomes.
I'd like to borrow another $1-2M and buy more - the bank says yes, but I hate missing out on the depreciation.
What to do ?
Apart from moving to Canberra, and I'm too young to retire.
I'm hitting a sort of limit where our income tax is all but wiped out by depreciation. We are cashed up and from other investments maturing next year that will give $200k after tax, on top of our already substantial incomes.
I'd like to borrow another $1-2M and buy more - the bank says yes, but I hate missing out on the depreciation.
What to do ?
Apart from moving to Canberra, and I'm too young to retire.
Don't know about a year's time, but thanks for the confidence boost Mr J Slum lord.
np2003 - well, maybe not THAT easy. My IP's were bought between 1998 - 2002; suspect a little more thought (much more than I am capable of) would have to go into it today.
I haven't bought since March 2002 and have hit a bit of a lull. Almost borrowed around 700K last June for a 3 bedder in Coogee. My gut feel told me not to close the deal- and the yield was pathetic. I need to get off my a' for the next million, but as Jakk put it, think I'm in a kind of "preservation" mode.
What is that special ingredient that pushes people past this barrier? Reading this thread it appears many have shot past this milestone and achieved substantial wealth. In one thread I hear about nett equity 1m, 3m, income of 200k pa......., I guess one answer is to keep active on this forum!
Cheers, Oscar.
Sorry I should explain... I have owned property for 16 years, with a few personal disasters along the way but in recent years things have finally come good.
I had messed around with owner occupier renovations for a while and did OK in the late 1980's, and stupidly got out of debt (!). My parents were of the dumb "pay off your house and never borrow, all debt is evil" variety. Little did they know.
I also received what I can only describe as incredibly poor advice from our then bank (Which Bank ? I hear you ask) on a number of occasions, and firends I had who were in a much better position (much higher income than me) were investing but were unable to explain how it worked.
Going to Mortgage Choice was a very edifying experience, and we have done well ever since.
The 200k concerns our share from a sale of foreshore land owned by a body corporate in which we have 2 IP's.
I have a solid professional income though to underwrite investing.
I had messed around with owner occupier renovations for a while and did OK in the late 1980's, and stupidly got out of debt (!). My parents were of the dumb "pay off your house and never borrow, all debt is evil" variety. Little did they know.
I also received what I can only describe as incredibly poor advice from our then bank (Which Bank ? I hear you ask) on a number of occasions, and firends I had who were in a much better position (much higher income than me) were investing but were unable to explain how it worked.
Going to Mortgage Choice was a very edifying experience, and we have done well ever since.
The 200k concerns our share from a sale of foreshore land owned by a body corporate in which we have 2 IP's.
I have a solid professional income though to underwrite investing.
Hi all,
I have actually been proved correct.
Well about another thread, that was talking about how to think like a millionaire. All I said was to ask those on this forum as there were quite a few here.
We are also in the "club", which isn't a bad effort for being the black sheep of the family.
It's nice to gloat every now and then.
Like others most of our nett worth has been created in the last few years, after only growing slowly during the previous 15(mostly due to incorrect strategies/poor investment choices).
As Jakk states adding a bit of value really helps. We bought a dump(couple of months ago) spent $25K on reno, for about $120K gain in value (according to the price obtained for house down street at auction recently, that is on much smaller block).
Meanwhile other properties continue to grow. You only have to add value like this once a year for 10 years and you can be in the club too.
I'm rambling too much, sorry .
bye
I have actually been proved correct.
Well about another thread, that was talking about how to think like a millionaire. All I said was to ask those on this forum as there were quite a few here.
We are also in the "club", which isn't a bad effort for being the black sheep of the family.
It's nice to gloat every now and then.
Like others most of our nett worth has been created in the last few years, after only growing slowly during the previous 15(mostly due to incorrect strategies/poor investment choices).
As Jakk states adding a bit of value really helps. We bought a dump(couple of months ago) spent $25K on reno, for about $120K gain in value (according to the price obtained for house down street at auction recently, that is on much smaller block).
Meanwhile other properties continue to grow. You only have to add value like this once a year for 10 years and you can be in the club too.
I'm rambling too much, sorry .
bye
This is what Robert kiyosaki has to say about Net worth.
"I cringe every time I hear someone say to me that their net worth is a million dollars or $100,000 dollars or whatever. One of the main reasons net worth is not accurate is simply because the moment you begin selling your assets, you are taxed for any gains. So many people have put themselves in deep financial trouble when they run short of income. To raise cash, they sell their assets. First, their personal assets can generally be sold for only a fraction of the value that is listed in their personal balance sheet. Or if there is a gain on the sale of the assets, they are taxed on the gain. So again, the government takes its share of the gain, thus reducing the amount available to help them out
Of debt. That is why I say someone's net worth is often "worth less" than they think.
In my world, real assets fall into several different categories:
1. Businesses that do not require my presence. I own them, but they are managed or run by other people. If I have to work there, it's not a business. It becomes my job.
2. Stocks.
3. Bonds.
4. Mutual funds.
5. Income-generating real estate.
6. Notes (lOUs).
7. Royalties from intellectual property such as music, scripts, patents.
8. And anything else that has value, produces income or appreciates and has a ready market.
--------
Furthermore how much money would you have paid the bank just to service the loans over 20-3years.. Assuming you borrowed $500K, you would of paid the bank over $500k -1Mill in just pure interest.
So who's the real winner here? The good old bank.
He also outlines this in his book:
Poor class -> Always pays for expenses (rent, food, etc), no liabilities.
Middle class -> Always pays for liabilities (mortage off their home, IPs, etc)
Rich class -> Always pays for assets, limited liabilities, low expense
"I cringe every time I hear someone say to me that their net worth is a million dollars or $100,000 dollars or whatever. One of the main reasons net worth is not accurate is simply because the moment you begin selling your assets, you are taxed for any gains. So many people have put themselves in deep financial trouble when they run short of income. To raise cash, they sell their assets. First, their personal assets can generally be sold for only a fraction of the value that is listed in their personal balance sheet. Or if there is a gain on the sale of the assets, they are taxed on the gain. So again, the government takes its share of the gain, thus reducing the amount available to help them out
Of debt. That is why I say someone's net worth is often "worth less" than they think.
In my world, real assets fall into several different categories:
1. Businesses that do not require my presence. I own them, but they are managed or run by other people. If I have to work there, it's not a business. It becomes my job.
2. Stocks.
3. Bonds.
4. Mutual funds.
5. Income-generating real estate.
6. Notes (lOUs).
7. Royalties from intellectual property such as music, scripts, patents.
8. And anything else that has value, produces income or appreciates and has a ready market.
--------
Furthermore how much money would you have paid the bank just to service the loans over 20-3years.. Assuming you borrowed $500K, you would of paid the bank over $500k -1Mill in just pure interest.
So who's the real winner here? The good old bank.
He also outlines this in his book:
Poor class -> Always pays for expenses (rent, food, etc), no liabilities.
Middle class -> Always pays for liabilities (mortage off their home, IPs, etc)
Rich class -> Always pays for assets, limited liabilities, low expense
B
brains
Guest
Whos this Robert Kiyosaki bloke?
Ofcourse if you sell you are taxed. But why cringe!! The point is, it is a key milestone on the journey. $1m in nett assetts is better than having done nothing and I am looking for ways to celebrate and move forward. I hope I am still servicing these loans in 30 years, just imagine the net woth by then
np2003,
Your post seems to have missed the point of this thread - or at least what I felt to be the point.
It's not whether you can go around & brag about being worth $1 milllion net, it's about recognising that all the effort you've put into your financial success is paying off.
No-one in this thread has talked about selling up & retiring - $1 million doesn't go that far these days anyway. However it is a milestone on the financial success journey.
All kudos to those who have achieved it & all the best to those aiming to reach it.
Cheers,
Aceyducey
Your post seems to have missed the point of this thread - or at least what I felt to be the point.
It's not whether you can go around & brag about being worth $1 milllion net, it's about recognising that all the effort you've put into your financial success is paying off.
No-one in this thread has talked about selling up & retiring - $1 million doesn't go that far these days anyway. However it is a milestone on the financial success journey.
All kudos to those who have achieved it & all the best to those aiming to reach it.
Cheers,
Aceyducey
B
brains
Guest
Its a silly statement that this Robert guy makes because its impossible to earn money in any context without paying tax. (in a legal sense) Its like your net worth is $1 million gross.
Wth the CGT discount and dep. deductions, property happens to be a bit less taxed than other ways of earning money.
Wth the CGT discount and dep. deductions, property happens to be a bit less taxed than other ways of earning money.
Originally posted by Oscar
Ofcourse if you sell you are taxed. But why cringe!! The point is, it is a key milestone on the journey. $1m in nett assetts is better than having done nothing and I am looking for ways to celebrate and move forward. I hope I am still servicing these loans in 30 years, just imagine the net woth by then
Good point Brains - I also agree the statement is silly
I've heard some questioning the gains that IP's make, and they go to great lengths to state that "the figures don't include Inflation" - and they are right.
BUT, I don't hear others (share investors) talking about REAL gains (i.e. AFTER Inflation) WHY? BECAUSE IT IS CONVENIENT to talk in $$$ gained without agonising over the inflation figure, that's why.
Jeez, if we all had to account for Inflation in EVERY GAIN MADE, we'd stop talking, comparing, enthusing, INVESTING??? In short, OF COURSE any REAL gains are after inflation - but just who has either the time or inclination to work each and every gain to "after inflation" figures??? I certainly don't.
And, isn't it all relative anyway? If none of us use the REAL figures then aren't we on level ground anyway?
Long live common sense - and ease of calculations.
Regards,
The way I see it is, "Who's talking accuracy?" As others have said, it's a milestone. One might also say "Who's talking SELLING?" Most of us agree that not selling, but borrowing on equity will work pretty good for us anyway......
I've heard some questioning the gains that IP's make, and they go to great lengths to state that "the figures don't include Inflation" - and they are right.
BUT, I don't hear others (share investors) talking about REAL gains (i.e. AFTER Inflation) WHY? BECAUSE IT IS CONVENIENT to talk in $$$ gained without agonising over the inflation figure, that's why.
Jeez, if we all had to account for Inflation in EVERY GAIN MADE, we'd stop talking, comparing, enthusing, INVESTING??? In short, OF COURSE any REAL gains are after inflation - but just who has either the time or inclination to work each and every gain to "after inflation" figures??? I certainly don't.
And, isn't it all relative anyway? If none of us use the REAL figures then aren't we on level ground anyway?
Long live common sense - and ease of calculations.
Regards,
I think that just about sums it up.
