Financially free at 32 – My 10 year property journey

Big congrats @Jack Chen.
Very inspirational. Thanks for sharing.

 

Don't hate the player, hate the game.

 

Well done jack! Incredible story.

I especially like your last 2 properties

 

Hi @The Y-man, my wife and I are naturally very conservative due to our upbringing. For instance we plan out our meals for the week based on whatever is on sale at Coles. We shop around for the best deals on mobile, internet, electricity provider, insurances, etc.

I also practice daily gratitude, and after reading books such as "Your Money or Your Life" and reading personal finance blogs, my relationship with money was completely transformed. I quickly realised that buying more "stuff" and having a garage full of toys doesn't necessarily bring you happiness. For instance, everytime I pull out my 12 year old Japanese car (purchased 2nd hand) from my garage I'm still amazed at the feat of engineering.

My guilty pleasure is travel though. I average two overseas trips a year and will gladly take unpaid leave in order to do so. Most recent trip was in March where I went snowboarding in Japan and a multi-day cycling tour in Taiwan. If I include overseas trips I'll be looking at closer to 50k.

Your $60k is still pretty lean though! Congrats on being able to achieve this number.

 

Thanks @Simon L, me too Instant equity and positive cashflow on purchase. I need more of these in my portfolio!

 

well done! I read the article in domain , now you are here...

 

Yep this is my sanctuary from all the noise on facebook/reddit

 

me 3... better parts of Logan too. It's probably top 5 of the 60+ Logan suburbs I would purchase in right now.

 

A visitor to the PC forum, who's also a Reddit whinger? Impossibru!

 

Hi @Jack Chen I am looking at debt recycling, similar to what you have described. Did you do it by having separate loan splits (of say $25k) or through a large line of credit?

Thanks in advance

 

Hey @RetireRich101 I still remember your previous posts on the Logan suburbs with more owner occupier appeal. Glad I heeded your advice

 

Hi @Propertyman my experience has been through separate loan splits, at around the $100k mark. If it's $25k, you'll have to take into account all the paperwork required as it is considered new lending.

I've heard of others using a using a line of credit facility, but when I looked into it, the rates were much higher so I didn't explore much further. If this is something of interest I'd be happy to do some further research for you.

 

It's not just you who has that attitude. I came from working class parents, was the first in my family to go to uni but unfortunately got into IT a couple of years before the big tech crash where I lost my job and subsequently my accommodation. So no money, no job and no accommodation by early 30's is not really what I expected from a uni degree.

You are right about massive opportunities though. It didn't take me too long to retrain, get a good job and buy my first house, although I had to borrow half the deposit. From there, I borrowed against equity in my house to invest in 50% of an IP in Melbourne. Opportunities everywhere!

I haven't achieved half of what @Jack Chen has achieved though. That's amazing Jack!

 

A huge congrats @Jack Chen . One thing I like in the title is the '10 years'. While some may be able to build a portfolio quicker (although highly unlikely in the current climate), that this portfolio has been built up over 10 years shows stability and ongoing management to keep the portfolio as a whole growing and returning, especially to be in a position to retire!

 

Hi @Simon L, not sure if I ever told you this, but you had a large part to play in my story. When we connected about a year ago your drive and determination started to rub off on me and it inspired me to take action in my property investing and personal development.

I'm grateful to have the opportunity to work with you on my two Logan purchases. You've got a keen eye for properties and were able to negotiate so much harder on the purchase price, contract terms and building & pest than I could ever hope to achieve.

As you know I was extremely busy at work at the time and you made the whole process so seamless. It was a huge weight off my shoulders and you delivered way more value than you charged.

Additionally, I was able to get instant equity on both purchases and are cashflow positive from day one. They are also situated in desirable parts of Logan that have plenty of owner occupier appeal. I couldn't ask for more! Within my property stable, they are now my favorites

Thank you @Simon L!

 

Thanks @Mac Fields. It was always slow and steady for me. I never wanted to be in a position where I was forced to sell or have property compromise my lifestyle. The intention was never to get-rich-quick. My modelling at the time was a consistent 7% growth.

I was a little fearful of taking on too much debt which was why I kept saving up 20% deposits for my initial set of purchases.

If I had known Sydney was going to go gang busters I could've gone in with 5% deposits, incurred LMI and accumulated a 2x-3x bigger Sydney portfolio preceding the boom. But knowing me, I probably would've had quite a few restless nights. My sanity is more valuable to me than an extra million in equity.

 

Hi @Bunbury, what do you plan on doing in your free time when fully retired? What brings joy to your life?

I plan on offloading when I need the income and no longer actively working. Perhaps in a few years when we start travelling abroad as a family. Until then I'll continue to let them compound in the background

 

Thanks! I know for sure it would bring me a lot of joy to grow avocados in my own backyard.