FIRE Starters (Financial Independence, Retire Early)

There may a few investors trying to get in touch with him, or the equivalent, if within the next few years thing get a bit tough.
Sydney in dire straights, Dire Straits in Sydney we may see both.

 

Yep....it is the Walk of Life .....

 

The value does not matter much to me as long as I'm getting rental income. As all my income is a multiple of what I spend and I have a year or so of cash, the income can fall as well without concern. Debt is low so interest rates can go up without problems for me. Calendar 2020 was a very bad year for me financially, but I survived.

That makes a lot of sense to me.

I knew a builder like that. He did beautiful renovations and builds, and owned just a PPOR. He liked to sell quickly and move onto the next project.

 

The Investment Property Clock - McCarthy Group

See the chart of Sydney and Melbourne property values. Sydney last cycle was 1990 to 2008......prior one was 1971 to 1989. Sydney last cycle took a pretty big hit...Melbourne also but not as sever.

There will be some more growth..but not as much...watch out 2024-2029...could be sever correction. Let see....

We are currently in a mid level recovery....for how long....couple of years. COVID has to settle.....I am taking profit now. Ole story money in the hand....

 

Hey @sash, have seen you say in a few posts that you’re somewhat cashing out.
Do you think you’d be taking money off the table even if you were earlier in your investing journey or it’s more due to timing for your retirement?

 

A combination of both.....I have to get rid of 12...I am taking money off the table..this boom will never last forever...you never know once the music stops.

The other issue...is I can only get rid of so many...at any one time...as CGT is a killer. I would rather take profits slightly earlier yes...I might leave some money on the table but I would pay less tax. So that evens out.

 

Is this rlvis? Where do you find these?

 

I'm just the messenger.
realestate.com.au

 

I sleep in on days ending in "y". This only works English.

 

We retired i.e. quit our well paying jobs at the very peak of our respective careers/ earning capacity in 2009 (just before I hit 40) and 2011 My youngest kid had just turned 7 (is turning 19 soon!) and oldest was 13!.

Bought our PPOR in 2012 *after* retirement. 3 "IPs" (2 were purchased just before this crazy boom). We don't really consider them investments per se since we bought them for our children to live in and eventually inherit. Zero debt. Not even credit cards.

 

That is very impressive - well done. It would be great to know how you did it and what was hard and what was easy.

 

Thank you. Nothing impressive really. Arrived in Melbourne in 2009 (hubby joined us in 2011).

I'd say it was firstly luck (or in my terminology - karma) to be able to get high paying jobs and from thereon it was just good old fashioned saving.

The most challenging part for most people would be to be able to say "that's enough", let alone at the prime of your life/career. For most people there is no end to accumulating wealth and keeping up with the Joneses. X has a portfolio of 10 properties, so Y works hard to top that. It is a race. Not participating in this race will be the biggest challenge.

Remember this: What is important is not how many properties you have or how big your investment portfolio is. It can be gone in an instant or you could be gone in an instant! What matters is whether you are content with what you have and knowing when you have enough.

 

This is a valid point. There also needs to be enough cashflow so that there's a margin in case income drops substantially, and enough cash to manage this. The GFC and 2020 are good examples for my situation. I have enough trinkets. Good health, something meaningful to do and adequate finances are enough.

 

Well done!

Hope you don't mind my asking, but did you pay cash for your PPoR or take a loan? If a loan, did you find it difficult to get a loan without being employed? I've read that even with substantial assets, many institutions don't want to lend to someone without a "proper job".

 

Not at all .

You're right, no bank would have lent us any money. Was purchased outright.

This. Cannot stress upon this enough. Nothing, I repeat nothing is as priceless as mental and physical well being.

Not being attracted to accumulating junk errr trinkets helps a lot. Haha.

 

A distinction is made between trinkets (have to pay for this) and what some people call junk (costs nothing). After a number of renos and quite a lot of free household items exchanges (the local council calls them hard rubbish collections) I have quite a lot of non-trinkets. These are used to repair and make things. Sadly, I do not have the means to make a federal government.

Repairing and making things keeps me at or near the top of Maslow.

 

That's a FIRE!
2 mil income from youtube 2021....
That's why these "retired" peeps keep hussling their blogs for endless hours a week.

 

Agree with those saying that it is far far better for a young person to benefit from the power of compounding then the power of saving.

In fact those young people living frugally on low savings probably don't understand compounding. While it's good to have moderate spending habits its far better to not waste the time advantage to making lots of money.

 

Interesting story