Can you really retire from investing in property in under 15 years?

I have done it. I bought 50% of a development site in Melbourne. We never got around to building. Sold last year for a tidy profit. Timing was near enough. Selling fees/CGT were not that much.

 

Just to chime in on what type of business or 'cash cow' to run. I'll give you a back story.

I was working as an employee in my current industry, commuting 5 hours a day. I had to do this, as the wages in my area are terrible and I couldn't afford Sydney RE. I was earning $95k before any tax.

I tried to cut back to 4 days a week to spend more time with my kids, and my employer said no. Ok, time to look at my options.

My wife said, "Just do the same thing now, but go out on your own!".

Big risk I thought. What if I go out on my own and don't get any clients? Very real possibility.

I think a lot of people try and find this 'cash cow' without realising that your current job could be your actual cash cow, you just need to stop milking someone elses.

I took the jump, and in my first year my company turned over $200k in revenue, with just me as the sole employee. I effectively doubled my income in just one year, and that included spending much more time with my kids, working from home, significantly less time commuting, building new contacts etc. Plus as others have said, because I am getting paid FIRST, I control how much tax gets paid.

Stop looking for the 'cow', it might be as simple as taking your current knowledge/skill set and marketing that.

 

I buy in a Trust, I never pay more than 30% tax, I distribute to my children, both at Uni/working part time. Also place some profits into SMSF as a tax strategy.

I also use a number of other strategies which I wont mention on this forum that work well for me and legal. As I grow I learn different ways to reduce tax

I sold a development in Perth, 3 villas made 25% profit, left with around $200K, the market was starting to turn on completion of this project, If I kept these I would be holding stock that has dropped significantly in value perhaps $150-180K today. The market is still falling and rents have also fallen back 15-20%. I would still be having to pay bank interest and they are rising now, not to mention I would need to wait for this market to recover before I could move on.

I have taken my profits from Perth and reinvested these in the Melb market which was rising and continued to make money. Just sold Thomastown, 4 townhouses, Croydon DA to a builder. Another strategy where possible is have the developments sold off in different financial years.

The reason I sell at the moment is because I like being cashed up, I don't like too much debt and interest rates are on the rise as I mentioned.

I have just reinvested $500K in the US market which is booming and have been adding to my stock here because the cash flow returns are higher and markets are very strong. Not sure what Australian property will hold in 2017??? I will sit back and watch

Different strokes for different folks

MTR

 

It is worth pointing out that 80% of people that attempt to follow the path of the 'mate' will fail. They will dedicate years of their life. The opportunity cost in both time and missed experiences is huge for a 1 in 5 chance of breaking free. That's probably the biggest thing (besides the lack of an adequate idea) that holds me back from spreading my wings in a business venture. Roulette table or get rich slowly scheme? For me, 'get rich slowly' is preferred.

 

Awesome work @Scott123 and @MTR!

 

Yep, compared with my mate, I am a failure.

Maybe, I should have followed his path

 

Hey MTR,

Just out of curiosity, do you need to fly to USA to buy there? Would be interested to hear how you arrange these purchases.

Do you think it's too risky for a newbie to go international?

 

I agree with you, this is my strategy.

However, it I have the skills to start the business, and the risk assessment comes good, I would do it.

But skills, skills, skills.. i think this is crucial.

 

I started buying in Atlanta in 2011 and my properties have tripled in value because in 2011 many foreclosure markets started to recover from 70% falls .... Check out some of the homes I own in Atlanta (Cash Cows) in media, I just downloaded these yesterday.

Investing in Australia can be high risk, I know investors who have lost money. Always comes down to homework and understanding and verifying the information and using the right tools and networking with the right people etc etc.

I am flying to Atlanta in February and will be continuing to source properties. You can search my threads on this so I wont bore everyone to death.

MTR

 

Do what suits you, no point losing sleep over money

No right or wrong, I am an active investor but does not mean I am a reckless investor



MTR

 

What year did you start investing, @sash ?

 

Can this be done sight unseen in your opinion, without actually traveling there?

It looks like you had been investing for years before eventually deciding to buy internationally. I also suppose buying internationally carries more risk.

 

Its like everything you have to be comfortable with what you are doing and happy that it stacks up etc. and most importantly you must be able to sleep at night, I sleep very well....LOL

Some people will not be comfortable developing property etc etc etc.... all to their own

As they say......"Fortune Favours the Bold"

MTR

 

1999.......pretty much hit income replacement 12 years later....

 

And did you stop investing after 15 years?

The thread title has 2 interpretations:- "Can you really retire from investing in property in under 15 years?"

One interpretation is that you retire from property investing (stop investing in property). That's not my goal!

 

nope still going a stretch goal of 20mil on place by 2021 that should keep me in apples for a while. Go big or go home.

 

Did you always focus on cash flow? Perhaps with timing?

 

Balanced approach...6-7% yield.....6-7% growth.....on average...this is the never ending Tim Tam theory...

 

Where do you find such yields...
Is it exclusively H&L?

 

damn you, retire already