Financially free at 32 – My 10 year property journey

I'll take you up on that offer! I private messaged you.

 

Ultimately our primary focus will be spending time with our son before he goes to school. We are travelling to Europe later this year and will be free to do more of that. Beyond that, knowing that I am my own master brings me great joy. I have a career that has been rewarding but this can't compete with the ability to live an autonomous life. Getting a balance between family, friends, travel, leisure and being able to 'work' at taking care of my financial interests wins hands down compared to working.

In the short term I will be occupied taking care of my real estate portfolio and building my share portfolio. I've a site that is yet to be developed and I'll look to getting DA for that.

Like you I'm more than happy to let the properties compound in the background. Patience is very important and for the time being I'm happy to continue riding this wave. However, I am getting closer to selling down part of the portfolio. I'm very curious about what will happen in Melbourne and Sydney over the next year or two.

 

@Jack Chen
What's your plan moving forward?

 

Congrats on achieving what you have at a relatively young age .

Your portfolio is about cashflow neutral. What would you do to be able to 'retire' from your IT job, and still have cash to service your current and future lifestyle?

 

I sense a move into avocado broking

 

Wouldn't it be slightly positive, factoring in on-paper depreciations at tax time? From the Domain article the repayments are $9k/mth and rental is $12k/mth, so $3k in the positive - bit less after rates, fees etc.

Still, a great position to be in. $25-30k a year of money that arrives in the bank account like magic.

 

Hi @Jack Chen thanks for the reply. My understanding was that you dont need to go through all the paperwork as it's just using a redraw? the separate loan splits seems like a better option for me, particularly given the higher rates associated with a line of credit

 

Thank you for the kind words! Its been great working with you for your last purchases.

Having clients like you and seeing the progress first hand is a constant inspiration for me to further my own personal goals and take action!

Ready when you are for the next ones

 

Hi Jack, Congratulations on your achievements. Do you plan on becoming a broker or consulting, it would be great to have someone with your experience to look at my current position and help with a property investment strategy/ give advice?

 

Great investment journey, Jack. Consistent actions with a little bit of luck lead to financial freedom in a such young age. The online business, share investment and mini retirement make the story more interesting than other property investors

 

There are lots of people on here that can help you. Keep reading the forums and you'll learn heaps!

 

Hi @Bunbury it sounds like you've managed to achieve quite alot over the years, which has now created options for you. It also sounds like you're optimising for happiness, which I absolutely applaud. Hearing your story gives me a lot of confidence I'm on the right track.

How does one know they've reached the sell down part of the portfolio? Is it when you've rode the wave long enough and now want to convert equity into other asset classes for income?

 

I briefly described it in my original post:

I'll just add to that it's the knowledge that I'm firmly in consolidation phase, and on the cusp of sell down phase that's given the confidence to wind back to part-time and to explore other business opportunities. I've always had a vision for myself to be my own boss. I don't intend on retiring anytime soon.

Even if I don't convert equity to cashflow, the fact that I could survive on barista pay and still afford to keep the portfolio compounding in the background gives me alot of comfort and security.

 

Hi @Stuart 2128 I'm not licensed to give specific investment advice but more than happy to catch up with you to discuss potential options. I'll PM you.

 

Well done @Jack Chen! More proof that working hard and having the right attitude can help you reach your goals.

 

Not licensed... yet

 

There's a misperception for many here that retiring equates to doing nothing. In my view, retiring means not being tied down by a 9-5 job and having the freedom to pursue what you want - starting own business, travel, study, dedicate to family, charity work, etc. Also your partner has to have the same mindset and be on board.

We are cashflow positive that we don't need to work. However, the missus is always stressing out of the 'missed opportunities' to make more money from working. She still doesn't understand even when I tell her that our cashflow position is the equivalent of someone working full-time and earning $200k salary. It may be a different story with the kids starting private school soon though.

 

I've noticed this too.
Retirement should be when your life starts so you can do all the things you want to do.
I think retirement is too traditionally linked to old age, **ck that, retire young and enjoy the choices financial freedom provides.

 

maybe 'leave the rat race' is a better phrase?