woke up a millionaire

[Bill.L]

Hi all,

Les, on that inflation vs "real" return, many miss the point that your loans don't go up by inflation, just the value of the asset does.
So when you sell something 20 years later, you can pay off a lot of old loans with deflated dollars.
A period like the early 70's saw massive inflation, and interest rates lagged far behind, many people were able to pay off loans over a 3-4 year period, without selling anything.

bye

 

[Les]

G'day Bill,

Les, on that inflation vs "real" return, many miss the point that your loans don't go up by inflation, just the value of the asset does.

Right on, Bill. Using the "long term average" of 10% per annum growth, this means values double (in $$ terms) roughly every 7 years !! So, using 15 years as a marker, your properties have quadrupled in value - but you still only owe the original debt.
So, sell one for each 4 you own - and pay them ALL out (perhaps one more to cover costs!!) It can be that easy....... Fortunately, rents are somewhat "inflation adjusted" so the remaining properties can keep you even when you've stopped working (ad infinitum). THAT'LL DO ME !!!!

It's one of Jan's major points in my opinion - i.e. buy 10 IP's over time, sell 3 (say) in xx years and pay off ALL loans - then you're sweet.

And, probably the major, ANYONE can do this !! All you have to do is KNOW that you can..... And then DO IT !!! (Took me a few decades of ignoring the simplicity of all this - making up for it now )

Regards,

 

[Oscar]

a big bump here.

I posted (if not gloated) about a personal milestone back in Nov 2003 reaching $1MM net equity....

Well it took a while longer than anticipated and alot more of my savings than anticipated, but having looked at comparable sales in the areas I have invested in I believe my net worth to be now around the $2MM dollar mark.

I've been looking forward to posting this since I started this thread...now, nearly 6 years later, I have finally been able to do so.

I love checking into this forum every now and then for ideas and reality checks. I significantly increased my exposure to Australian equities since March 09 based on some comments from this forum and have obviously done well out of that, so thanks guys..

Of course, nothing is certain, and I don't see this getting me any where near financial freedom but I look forward to posting the $3MM net equity milestone when it happens. I suspect that given where we are in the Sydney property cycle and equities cycle, and that beautiful phenomenon known as compound interest, that it will take much less time for the next mill. I suspect 3 to 4 years years will do it.

cheers,

 

[shuggy]

Well done Oscar!
Was the latest milestone a result of good growth on the same 4 IP's or have you added more to your portfolio?
I think i remember you were also doing some subdivision stuff since your original post?
Do you have any exposure to the sharemarket?
Keep up the good work and enjoy your travels

 

[ianvestor]

Congratulations Oscar!

Are you married? Is that your net worth as an individual or as a couple? I always wonder that when married people talk about their net worth. e.g. I'm not a millionaire and neither is my wife but together we're a 'millionaire couple'

-Ian

 

[geoffw]

I remember the day I woke up a millionaire.

He was quite upset about it.

 

[investor_eddie]

lol Geoff you made the same joke 6 years ago in this thread

 

[geoffw]

lol Geoff you made the same joke 6 years ago in this thread

Sorry.

At my age I'm starting to forget some of the posts I've made in the forum

 

[chilliaa]

a big bump here.

I posted (if not gloated) about a personal milestone back in Nov 2003 reaching $1MM net equity....

Well it took a while longer than anticipated and alot more of my savings than anticipated, but having looked at comparable sales in the areas I have invested in I believe my net worth to be now around the $2MM dollar mark.

I've been looking forward to posting this since I started this thread...now, nearly 6 years later, I have finally been able to do so.

I love checking into this forum every now and then for ideas and reality checks. I significantly increased my exposure to Australian equities since March 09 based on some comments from this forum and have obviously done well out of that, so thanks guys..

Of course, nothing is certain, and I don't see this getting me any where near financial freedom but I look forward to posting the $3MM net equity milestone when it happens. I suspect that given where we are in the Sydney property cycle and equities cycle, and that beautiful phenomenon known as compound interest, that it will take much less time for the next mill. I suspect 3 to 4 years years will do it.

cheers,

well done buddy, also nice to hear stories of others over decent periods of time. congratulations.

 

[MichaelW]

Well done Oscar!

Awesome stuff. You're now officially miles ahead of me. Still chipping away quietly but not nearly as far progressed as you are. You're right though that it will have a snowballing effect as soon as you start getting a decent amount of passive income then the portfolio self-propogates. Just need to get to critical mass first.

Cheers,
Michael

 

[Rob Williams]

Awesome stuff. You're now officially miles ahead of me. Still chipping away quietly but not nearly as far progressed as you are. You're right though that it will have a snowballing effect as soon as you start getting a decent amount of passive income then the portfolio self-propogates. Just need to get to critical mass first.

Trust me, Michael, it will happen soon enough. You will get busy doing stuff, then one day you will look at what you acheived and it will hit you.
You don't truly appreciate the power of time and compounding until it kicks in and you are on the receiving end of it.
You're well on your way. Congrats to you, too!!!

 

[chilliaa]

Trust me, Michael, it will happen soon enough. You will get busy doing stuff, then one day you will look at what you acheived and it will hit you.
You don't truly appreciate the power of time and compounding until it kicks in and you are on the receiving end of it.
You're well on your way. Congrats to you, too!!!

You have hit the nail on the head with this, its so important, yet people with the short time focus continuosly ignore it (or try to chase the fast bucks).

For myself i focus on momentum.

This works in two ways:
1) Asset price appreciation. This is nice because it enables me utilise asset price appreciation in the persuit of income. However i never let myself become delusional with this. I constantly remind myself of the musical chairs and greater fool sydromes.
2) Compound on income (or earnings). This is my primary focus, asset price appreciation is just a means to an end, and generally when i focus on income Mr Market gradually becomes exited and pays top dollar for those income producing assets.

 

[Rob Williams]

You have hit the nail on the head with this, its so important, yet people with the short time focus continuosly ignore it (or try to chase the fast bucks).

Interestingly, it has been found that one significant attributes of self made millionaires is their ability to take the long view when it comes to investment strategy.
Despite all the examples of this being critical to success, so many people do chase the fast buck and take the short term view.
It seems so obvious, yet ....

 

[our obsession]

Good for you Oscar. Well done. I'm right up your clakker.

 

[wylie]

Sounds rather uncomfortable

 

[our obsession]

Ooooh, yes, rephrase, take a peak over the shoulder Oscar, lots of happy little vegemites squealing and dancing and frolicking, having fun. Down the yellow brick road........

 

[Minxdamanx]

I remember the day I woke up a millionaire.
SHE was quite upset about it.

There, that's better.

Seriously, congratulations! Probably another 10 years away for us, but hopefully those years will be quietly productive.

All the best and look forward to the 3m addition to this post in a year or so!

 

[Oscar]

thanks for the replies - to answer some of the questions;

shuggy - growth has been on the same old 4 "blue chip" sydney IP's plus added one in 2007 in northern beaches that was PPOR for a year before I moved OS again for work reasons. I have been tempted to sell one for the last few years but glad I held on now. It's great that it is a real pain in the a@#$ to sell property - stops any impulse selling... Other "growth" has come from personal savings and DCA averaging into shares from 2004 to 2006 and again end 2007 to now...

ianvestor - 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..

geoffw - I look forward to the same pun in a couple years time

michaelw - you will leap frog me with your development potential and drive, so just stay patient...

chilliaa/RobW - yes, I am also true believer in long term focus, stick to a simple plan that has worked for you and avoid over analysis that i see so much of on this forum.

cheers,

 

[virgo]

At what age?

Hiya

Care to share at what age did you guys (gals?)become a millionaire? Just curious ...

cheers
jennifer

 

[JIT]

Does anyone have a similar tale to tell. How easy have some of you done it. Has anyone reached massive wealth using a simple strategy with just a few high CG potential IP's.

Cheers

Well done Oscar.

I am using the same strategy, with 5 high CG RIP's in inner Melbourne purchased over the last 5 years. Haven't quite hit the first $1MM equity mark, but it's not too far away I think. No renovation/development etc... just simple B+H so far. Paying down debt and looking at commercial property now.