Fledgling property investor

Discussion in 'Investment Strategy' started by Peter Carpenter, 30th Sep, 2019.

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  1. Peter Carpenter

    Peter Carpenter New Member

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    30th Sep, 2019
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    Location:
    Melbourne
    My wife and I have two units (one under NRAS) and a house through SMSF
    Wanting to build on this but that is a challenge. Relatively easy to start investing in property but to move to the next step up is proving to be difficult.
    Ideally want to quit my current job and focus energies into property - But you have to have regular income to do this while cash flow is building.
     
    Peter Carpenter, 30th Sep, 2019
    #1
  2. Archaon

    Archaon Well-Known Member

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    I see it being very difficult to ever quit your job and focus on property unless you have trade background and are looking to buy and renovate.

    The biggest thing needed to accumulate properties is to have A) alot of income B) not carrying alot of debt.

    What is it you are looking to achieve?
     
    Archaon, 30th Sep, 2019
    #2
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  3. euro73

    euro73 Well-Known Member Business Member

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    Why? whats preventing you?
     
    euro73, 30th Sep, 2019
    #3
  4. Dan Wood

    Dan Wood Well-Known Member

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    What's a lot of income classified as? 80k, 100k 200k?
     
    Dan Wood, 30th Sep, 2019
    #4
  5. Archaon

    Archaon Well-Known Member

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    Depends how many properties you want to accumulate, and what those properties cost.

    A broker is the best person to talk to about realistic accumulation strategies.
     
    Archaon, 30th Sep, 2019
    #5
  6. Sackie

    Sackie Well-Known Member

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    Most people who want to quit their jobs and invest in real estate will realize soon enough it will never happen. Residential RE for the most part is an investment providing very poor yields, often barely enough to cover the assets expenses, let alone pay for your lavish lifestyle most dream of, and dream of decades too early.

    Now if you decide you use real estate not just as an investment vehicle but also as a BUSINESS.....then the story is very different.
     
    Sackie, 30th Sep, 2019
    #6
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    good point

    hobbies rarely set one free financially

    ta
    rolf
     
    Rolf Latham, 1st Oct, 2019
    #7
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  8. The Y-man

    The Y-man Moderator Staff Member

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    Congrats - you have 3 props - that's more than "fledgling" IMHO :)

    What you have discovered is the proverbial "serviceability brick wall".
    People have various solutions around this, and there is no single "right way" or magic bullet. Part of the journey is exploring and discovering new things, and what works for you.

    Just some of the paths available
    1. Upping the worked income - pay from job(s) is IMHO the most easily leveraged and most efficient form increasing the number of properties for many people. However, the cap realistically is about 4 houses per $150k pa income.
    2. Generating more income form the properties ~ be it rooming, AirBnB etc ~ comes with its own set of exciting (potentially hair greying) experiences
    3. Adding secondary income like granny flats (which are referred to on this forum as GFs... which always confuses the heck out of me..... )
    4. Developing (buying a house, knock down, split the land build 2 or 3 etc)
    5. Generating income from other sources such as shares, commercial props etc
    The Y-man
     
    The Y-man, 1st Oct, 2019
    #8
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