woke up a millionaire

Inspirational...

Hi, Oscar

I read through all the posts and it has been very inspirational for me.

The wife and I are on the opposite end of the scale. We are a 'millionaire couple in debt'. :eek::D

Bought our PPOR in Aug 07, our 2nd PPOR (will be an IP while we stay in Aust)in Singapore in May 08, and 1st IP in May 09. Yup... millionaires in debt. :)

I look forward to the day when we become 'millionaires in net worth'.

Cheers
Daniel Lee
 
Oscar said:
IP's are in my my name, some equities in wife's name but I really see it as "multi millionaire couple" as we share everything including all financials..
Click to expand...

Likewise, my wife and I share everything 50/50 including financials, hence why I don't consider either of us millionaires yet, but that's the $2M mark that you've just reached so I guess you both are. Congrats again.
 
Oscar,

Well done. It certainly feels nice. Now remember to smell the roses along the way and get some of those little luxuries you missed out on during the first. The second normally comes around quicker due to the first compounding. Like you it's the B&H plan I use. Might not be the best plan or the fastest way but has served me well.
 
Cool thread. Didn't even realise that it was an old thread until I saw Oscar post his 2million dollar milestone. :p

Anyway...

I know my opinion aint important to (most if not all) people, but I have an urge to share.

Having $1m in net worth would be great, but if what you owe the bank is more than your equity, it sorta doesnt matter much. Dont get me wrong though, I think its great, but I wouldnt think of myself as a millionaire, but thats me.

Also, what some of the other, older posts said that because of gains tax, and what you owe the bank it wouldnt equal much. But I think once it gets paid off, and all the tax benifits its had, you'd be able to retire with good income. So what if you paid $3m for the houses. If you can afford the loan repayments, by the time you retire you'll have a steddy income. And for not doing much work. That I think is awsum!

Cheers
 
lisport said:
Having $1m in net worth would be great, but if what you owe the bank is more than your equity, it sorta doesnt matter much. Dont get me wrong though, I think its great, but I wouldnt think of myself as a millionaire, but thats me.
Click to expand...
Hi lisport,

Net worth = Assets - Debt.

i.e. To have a net worth of $2M Oscar might have properties worth $4M and $2M in debt. So, if he sold them he'd end up with $2M in his pocket (less transaction fees). In my personal opinion, that makes him a millionaire.

Unless you have an LVR of less than 50% you will always owe the bank more than your equity. A lot of people run sub-50% LVRs but a lot don't.

We're you thinking he was arguing he had a gross worth of $2M and potentially that the bank loans were greater than this amount? i.e. An LVR over 100%?

Not sure what point you were making.

Cheers,
Michael
 
lisport - i think michael is quite right. in my case my LVR is less than 50%, but was much higher when i started out. I argue that it probably needed to be for me to benefit as much as i did in the late 90's , early 00's from a booming RE market. My equity also comes from stock owned outright and some cash, which helps generate a low overall LVR.

But this thread is not so much about technicalities and over analysis, just posting a personal milestone. good luck in your investing..
 
Very important to enjoy the milestones i reckon. Well done Oscar!

All going well in 6 months I will be where you were when you started this thread. 38 years old with 1 mill net (and no debt). (lazy balance sheet i know but its my war chest!)

Started 8 years ago with 10k!

Cheers
Aussie
 
hi aussierogue. that's pretty impressive. did you leverage early on to get close to a one mil net equity position? wondering how you have achieved this with little or no debt. Or have you reduced the debt over time??
 
Hi Oscar - thanks yours. Its not really that impressive when you consider my high income.

In short

- Rent my PPOR
- Have 2 investment properties bought over that time and seen 35 percent cap gains
- high salary (200+) plus bonus's helped me pay off (nearly anyway) my 420k loan in 7 years. Im ploughing in 7k per month into those suckers!
- couple of other financial investments - totalling 200k
- also have a wife who works pt
- a small online biz that brings in 1.5k per month

The good news is that im near 1 mill but also havng paid of my loans in 7 years according to the NAB website I have shaved 480k of my interest bill over the next 23 years!

++

Im sure with my serviceablity some on here would be worth much more than me so as i said the achievent is ok but not great - but im a lowish risk kinda guy!

Cheers
Aussie
 
great stuff mate! The high income and bonuses sure helps. Doesn't matter which road you take, as long as you get there. I also have very high serviceability but prefer to play it safer with low LVR's and preserve the capital i worked so hard to develop.
 
Just a quick to reply to what mIchaelW said...

I was saying that if you owe the bank more than what you have, eg, could have $1m in equity in one place, but $2m debt in 3 other places. Hopefully thats a bit clearer.

And just so its clear, I think what oscar has done is great :)

And aussierouge, what d you do and can u get me a job? :p
 
Last edited:
aussierogue said:
Hi Oscar - thanks yours. Its not really that impressive when you consider my high income.

In short

- Rent my PPOR
- Have 2 investment properties bought over that time and seen 35 percent cap gains
- high salary (200+) plus bonus's helped me pay off (nearly anyway) my 420k loan in 7 years. Im ploughing in 7k per month into those suckers!
- couple of other financial investments - totalling 200k
- also have a wife who works pt
- a small online biz that brings in 1.5k per month

The good news is that im near 1 mill but also havng paid of my loans in 7 years according to the NAB website I have shaved 480k of my interest bill over the next 23 years!

++

Im sure with my serviceablity some on here would be worth much more than me so as i said the achievent is ok but not great - but im a lowish risk kinda guy!

Cheers
Aussie
Click to expand...

Good work Aussie.

I have a high relatively high income too, but I'm always geared up to my eyeballs! I have a more aggressive approach I think.
 
Thats some great stories throughout this thread. It is so motivational to hear them all too! Hopefully one day I might be able to achieve the same milestone!

One day....!

In the meantime, back to the RE books :rolleyes:
 
We had close to $1.5 in net assetts pre GFC. Thru some BAD investment choices and decision we are back to $250K ! :(

So back to the drawing board ... :eek:
 
Success said:
We had close to $1.5 in net assetts pre GFC. Thru some BAD investment choices and decision we are back to $250K ! :(

So back to the drawing board ... :eek:
Click to expand...

Now there's an attitude a lot pof people could learn from.
Very inspiring. You did it once, you can do it again, only better because of what you have learned.
Good for you!!
 
AndrewT said:
Thats some great stories throughout this thread. It is so motivational to hear them all too! Hopefully one day I might be able to achieve the same milestone!

One day....!

In the meantime, back to the RE books :rolleyes:
Click to expand...

Hey Andrew, great that you invest time to build knowledge, just don't spend too much time buried in the books. holding costs for IP investments can be the cost of a couple drinks and cigarettess a week, or nothing at all. learn by doing is the key!

cheers,
 
lisport said:
I was saying that if you owe the bank more than what you have, eg, could have $1m in equity in one place, but $2m debt in 3 other places. Hopefully thats a bit clearer.
Click to expand...

Lisport, you're not making much sense here.
$2m in equity is just that. It means that the subject you are talking about owns $2m more total property than their debt.

If you have $2m equity you can't/don't owe the bank more than what you have. If you think it's the case then you don't understand what equity is....

Are you trying to say that $4m in property with $2m of debt is better than $10m in property and $8m debt or something? In a way it is but at the end of the day the subject still has $2m equity and if either case was to sell everything that is the end result. $2m cash in hand.

Gools
 
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