Best method to have 4 ips paid outright ?

Yes, but unfortunately they don't value very well, more often than not.

 

It's not just Sydney that goes through cycles where you can make money, Melbourne, Perth, Brisbane all had their time and the cycles won't stop. Many places in Brisbane alone if you bought right 18 months ago you could have made 20-35% equity. All comes back to education.

Also if you've bought 20 properties and after 15 years only have 2 mil in equity you've done somethings very wrong imo.

 

Hash

Read what Leo said .

Sydney's boom in the last 5-7 years has been the smallest and slowest boom I've personally experienced .... seriously .

Cliff

 

Many people in this thread are working on the assumption that what happened in the market in the past will continue to happen in the future... which is mathematically impossible because soon homes will cost five million for some two-bedder in Sydney and how can anyone pay that when wages are flat or declining in real terms?

The "strategy" of buy as much as you can, I/O, extract capital growth, buy again, go for twenty properties, sell some off only works during credit expansion.

In the past, this credit expansion was widespread across Australia to the point that country towns have seen gains outstripping local wages that could support those prices.

But credit expansion can't continue forever or you hit hard mathematical limits.

I notice as well that many here who are ra-ra buy as much as you can, etc, aren't dipping even a toe in that thread where that poor person is up for losing $150K from Gladstone. They're not participating in the Perth collapse threads.

As a strategy "buy it all, I/O, equity, buy again" worked in the past. But ask people buying in Ireland 2006-2007 how that strategy went. 50% loss.

The core assumption that property will always rise is not true at all... there are economic circumstances that can destroy a model entirely such that it is impossible to buy twenty properties in a single year. A hard loan-to-income ratio rule would wipe that out entirely.

Given we're still in the slow-motion collapse of the end of mining, job losses around Australia and we're hitting the peaks of the highest private debt to gdp the world has seen, it's pretty reckless to suggest pulling out that old "gulp down debt" strategy.

 

All comes back to education.

Where to buy?
When to buy?
how to buy?
what to buy?
Buying strategy?
Risk mitigation?
Bmv?
Add value?

Doing well and reducing risk along the way is all about education. Forget Ireland.

 

As I mentioned many times if you want to fast forward its all about timing the market to achieve growth, get this wrong and you may not even make anywhere close to $2M in equity in 15 years. Its different strokes for different folks, but my experience and Seech probably not much difference in terms of timing markets.

I left my day job after Perth boom cycle 9 years ago. I continued to jump into 6 boom cycles during this period around Australia and US the capital allowed me to keep making money. Cash flow is important too, but its a catch 22, without capital you can not continue buying.

Perth 2001-2007 Boom
Melb 2008-2009 Boom
USA - 2011 Boom
Perth - 2013-2014 Boom
Syd - 2013 Boom
Melb - 2013 Boom

Now if I invested in perhaps the Adelaide market during this period I probably would still be holding my day job. Same can be said if I kept playing in the Perth market in 2007 (peak).
I know some Perth investors who lost the capital they made in Perth during that 2001-7 boom because they continued to buy in Perth peak rather than move onto other markets.... timing is everything.

MTR

 

Where is the school located?

 

Youtube. Library. Property Chat. Networking with fellow successful investors, various reports, to name a few.

All the information and resources are out there and mostly for free, just most ppl don't bother to read and implement it imo.

 

You never stop learning.

BTW - love this....
Capitalist Leader of the Narcissistic Mindset Brigade

 

You'll never guess where the inspiration came from...one of @Skilled Migrants posts making reference to myself and others. Inspiration can be found in all sorts of interesting places

 

Property Chat

 

100%. There has been ridiculous credit expansion for too long. This is coming to and end and will be followed by credit contraction. But what happens after that? Credit contraction can't continue forever either. It's mathematically impossible.

Perth will boom again. Sydney will boom again. Melbourne will boom again. Those who are ready will make money from these booms.

 

Oh dear. Half the posters here are illiterate. Two or three offer very good posts, the rest are useless. <smile thingie>

 

What's illiterate mean?

 

I think it has something to do with a book and interest rates??

 

Just like any school. Half my teachers were basically illiterate, one was good, the rest were useless.

 

I feel like with debt pay down you know exactly when you will pay them all off etc so basically ill know which year i can leave work , but with the CG model its more risky because its more picking the right time to buy and more speculation, you can find your self waiting for years in a flat market ( waiting long after you planned to retire) , but then again if a crazy boom happens you will be much better off but you cant predict that and no chance of guessing if that would happen or not . So yeah atleast with paying down the loans you can figure out exactly when they will be paid off the other method is more guessing and playing around /which btw i can see why people who are going to retire late wont care because they are going to keep working anyways regardless , but what about somone like me that wants to rerite asap i cant leave that to chance hoping the markets will go up etc , what if i do that method of buying heaps with debt and the markets go down , i would be screwed

 

Great post, good to hear instead of fluffy crap we keep hearing.
@Drunkanbarbarian what ever you choose to do, make sure you can service the loan/loans. Have a secure job, if it's not then have a back up plan for another or source of income. If you don't feel comfortable with to much debt, then buy one and pay most of it off(into offset account) before you move onto the next. If you buy right and if growth does occur, maybe that will be enough in 10 years time. But don't listen to all the fluffy posts some spruikers keep feeding in regards to property always goes up, as it doesn't. It also goes down and sideways for a long time too. Prepare for the worst case scenario and work your butt off and get the job done.

 

There is so much you can learn to help you make the right decisions and minimize risk. From what your saying it's quite evident you just dont know enough to be making any informed decisions. It's like me making statements and drawing conclusions about stock trading when i really know almost nothing about it. Just doesn't make sense to do so. Please don't take this as an attack it's just honest feedback from someone 1 or 2 steps ahead.

 

Nice post , thanks for the feed back