Building Portfolio on Average Income, Reality or Illusion?

@sash appreciate the call out but damn you are selling me short haha.. I've bought 5 in 2 years. Purchased my first in Oct 2014 and settled on my 5th 3-4 weeks ago.
It's been a grind but it's only the beginning. I am expecting to do the next 5 in half the time (because when I bought my first one I didn't have a strategy and this slowed me down) The sacrifice now is nothing compared to the feeling I get of closing on every purchase and seeing my hard work come to fruition

 

Brackenridge....Deception Bay....Beenleigh...Salisabury North...reno and pull money out...don't know where the fifth one is..

@jins13 .... take note...that is how to roll...

@Gockie @euro73 ...... I rest my case ...... even the current environment it can be done..sure there is some hard work..and getting better jobs and living lean....

 

Can be done? Absolutely for sure. I wasnt debating that.
However don't expect the banks to be more generous in the future though.

 

A couple of phrases for your persusal:

1. Impossible is Nothing!

2. Just Do It!

After that banks policies are not so prominent....

 

I bought in kallangur (4th) before my Salisbury North property. same strategy - buy BMV, cosmetic reno, reval, equity pull

 

Yep....Kallangur went nuts...what did you pay for it?

 

I was gonna say, whats holding you up....lol

 

what were the lender's used?

 

Top effort !
Going fully 10X

 

5 is a really great effort , but its a long way from your starting argument of 11 properties being possible in 8 years on 80K income ...

Providing examples of what @Taku has achieved - as great as that is - doesnt support your case about 11 properties in 8 years on 80K income.

Firstly - 5 is less than half of 11. So there's a little bit of an apples v oranges thing going on there that I can only assume you hoped we'd all missed....

And secondly - I dont know what @ Taku earns but it if he already has 5 properties , its unlikely to be 80K or less, unless the 5 properties were real cheapies. But even if it is 80K or less, doubling his portfolio from 5 to 11 isnt going to be achievable at that sort of income unless everything he buys is well below 200K and generating $380-400 per week, and a bank will accept that yield for servicing, and he is single, and has no dependents, and i has no non deductible debts, no HELP debt etc... Thats an awful lot of IF's...

So while I'm in complete agreement that many things are achievable using property investing, I still have to call out claims like the one you made below, because its just misleading and gives newer investors starting out today a false sense of whats possible. It fails to alert them to the different credit environment they are accumulating in. So it's just not good or responsible, or ultimately helpful advice. Not for this credit environment. Worked for you, sure. But wont work for them . Cant. The maths dont fit. The ingredients are different.

 

What's total value of your portfolio and lvr if you don't mind sharing @Taku Ekanayake.This to me is more important than the number of properties. I'm sitting at 4 I.ps and a Ppor. A fairly conservative value of all, would be around 2.7m @58% lvr. Haven't purchased since Feb 2015 first purchase was Jun 2011.

 

How did you manage that on a plumbers wage below 70k? If you don't mind sharing?

 

Yeah off course, I've actually only earnt 50k per financial year over the last 3 years. I have Been unlucky with injuries stopping me from working for around 3months each year. People on here bang on about buying below market value, I don't think I have purchased one place that has been. I just bought when I could, made sure that I always purchased an average 3-4 bed home not on a main road so if I had to sell quickly I would'nt have any dramas and made sure I could add value and turn the i.p into neautral. From day one to help with holding costs. Yes finance was easier prior to 2016, it didn't stop brokers or banks telling me no. All up I've used 1 bank and now up to the third broker. Up until finding somersoft around 2014 I thought Newcastle was the only market in Australia, Since then I have purchased a couple of I.ps in qld. Now on the hunt for the next I.p in the wives name, as I've hit servicing issues in my name.

 

Very true. i was told i couldn't borrow any more. but that was not the case.

 

Great work @tomlemke ... @Seal .... @Taku Ekanayake .....you boys are showing it can be done...if one puts their mind to it....forget about the negative noise of one can't and look at the possibilities. Sure things will get tough in the short term....but over the longer term... "Who Dares Wins"!

 

Great thread guys. Some very interesting and valid points raised. (I'll need to read it 3 more times to pick out all the info ) i originally skipped over it cause the posts were growing to quickly for me to catch up

This is where anyone now starting out should come for a read. Shouldn't be scared off with the "new lending rules" and the oldies saying "back in my day i just needed a bank statement and a postal address to borrow 120%" things change, always will, just do something! .... I'm not doing anything atm, dam apra! lol I'm just resting

Im curious to know about your little black book @sash or you have a very good memory for remembering people's portfolios. Youve called out a few and you get pretty bloody close

 

I was told by a reputable mortgage broker that I could not borrow any more money. But then I went ahead and revalued my ppor, and spoke to my ppor bank and got more equity out, and then got another loan for my next ip with another bank.

I think it is worth always politely and respectfully questioning.

 

Yeah...bob some of the stories are very motivating.

You are spot about not being scared off...lots of negativity and some with vested interests in keeping the masses down.

The reason I remember these people's portfolios is because I have talked to them personally. ..but not only that but how they have continued to grow their portfolio....even with APRA rule. Perhaps people should talk to these people...on how it was done...I did give a few pointers to a few...and it was great to see them succeed in pushing another 1-2 places through.

Believe me i have seen this happen before...but it seems some of the newbies think the tank is empty when they have not thought through alternatives.

Resting is not bad....at some point you will be able to buy again...why because the banks are in the business of loaning money. If there is no circulation of money...then the economy will be in trouble. Same things with markets...certain markets are now at the peak and in for a correction - i.e. Sydney. Life goes on.....

 

Hey mate,

I love how positive you are! It's very encouraging for us beginners. And I don't think you give people fake hope, you speak from your own experience, which is enormous. That's exactly what we need, people to generously share their ideas and stories. Much appreciated!