From 'nothing' to semi retirement mid-30's

Just wanted to update after many years Somersofting (is that even a word..?) as a naive 20 something year old wannabee investor

I've only recently stumbled back upon this new forum due to a recent purchase and old habit of reverting any property related questions to a forum. Old habits sure do die hard

Anyhow, long story short: I, like many others bought a few properties after being inspired by Dazz's sensationalist post about 13 odd years ago one by one, all on a desperately low income and did somewhat ok out of it all. I semi retired age 35, 10 years into the investment journey and was basically labelled stupid by the SS community at the time. I naturally didn't want that sort of negativity in my life so left the place for good. I just knew that everything was fine and going to work out just fine so backed myself, naturally

So, how is early semi retirement going now almost 4 years on? Well, Incredibly good..!

I now work around 2-4 days a week and simply cannot even imagine going back to work full time. It's quite frankly terrifying actually. I enjoy the time to myself so much it's just priceless. Having time really is the carrot I'd been craving so badly early on when working 6-7 days a week. It really gives you the opportunity (I think) we all need to take real life in and to really appreciate it

Financially, the Wife and I have been kinda living it up on holidays and just generally living well not worrying about money too much. So good!! and that's just such a great feeling. You could say it's 'priceless'. How much is sleep at night factor worth? We've just bought a new home on an estate (a ******* ESTATE..?!) can barely wait to move in and life is as good as it has ever been personally. Though we did (and still do somewhat) work(ed) very hard for it all.

I know this is all a bit short but that's just how I roll. Never been one to put too much effort into these kinda things

So anyway, there it is in a nutshell. Our little story of modest wealth through hard work and sacrifice early-on. Maybe it will give some drive to some young go getter? I can only hope

Cheers and all the best to you all. I hope everyone here reaches their goal

 

Great. Congratulations.

Can you give us some on-site into what you bought and where?
What sort of retirement income do you now achieve?

I would love to retire. But our lifestyle is too expensive at this point.

Blacky

 

Don't worry Blacky. If I could give you any tips they would be: Please try to enjoy the journey too. I personally didn't do much of this because I was pretty much always crunching numbers and hating work with a passion. Just wanting to get there faster but looking back that's no way to be and it really affected my well-being. I was never present in the moment, and that's the only place life exists, right now so could not ever enjoy it. So please remember to live a little and find a good balance. We could die basically today so never take a day for granted. Unless it's one of those crappy days, then bugger it all!

I always kept my lifestyle cheap while investing. VERY cheap. In fact, too cheap.. Just ask my Wife. Lol. Since then, I actually pay for pretty well everything.. (shopping, mortgage, cars etc) which is a total contrast to me in the accumulation phase. Plus, I just couldn't afford any kind of lifestyle because I was too strapped paying shortfall into negatively geared loans earning just $60 odd k a year.

Today I'm proud to say I earn 3 times this amount due to paying down the mortgage thus saving a lot in repayments, no longer negativity geared, and becoming a business owner. I finally really enjoy what I do for a change so it's a really good feeling for the most part.

Cheers!

 

Sounds like it all worked out.. congrats

How many hours are you working those 2-4 days? Guessing that working in your business? Property related?

 

Hey thanks Brady!

Funnily enough I feel a tad guilty sometimes because I probably do about 16 hours a week all up most weeks. Sometimes less, occasionally more. I sometimes spread the hours out and sometimes try to get a lot done in one day so that brings the days back ofcourse

My work is manual labor, so not property related whatsoever. I must say, my life (personally) improved when I stopped thinking about property and money, it's just not my thing (yes, sounds contradictory but it's done it's job and I did my time)

I have to also mention that when I quit my job, I suddenly noticed that there are so many more people that seem 'semi retired' themselves despite having much at all.. I'd been missing these people as I worked so hard and of course was always at work myself so simply didn't have the time to notice. I'm not saying that's a good idea by any means, just something that really took me by surprise. It seems like half the population is just bumming around on a Tuesday morning!

Anyhow I'm getting away again.. Yes, so property for me personally, was really just a stepping stone to semi retirement. If I still held most of what we had them I'd still be working full time to support them and equity has reversed so I'd have lost all I did have previously if never sold. That's a bloody scary thought! I basically paid the mortgage off and my business supports our lifestyle while putting money away into funds. Modest for the time being but also very comfortable and is proving the best investment we've made to date.. Main aim has always been to have time to live, and not to have to be at work. Also to have good cash flow to enjoy things. So, there you go I guess, that should shed a better light on the subject anyway

I think we all know of investors who wish to retire early and are always working hard toward that goal. Sad truth is, we still see people doing the same investing, year after year, despite missing planned exit dates from yesteryear and still working really hard to reach retirement. I have to ask: just when are you going to take a step back? At some point we really have to start doing what we came for and take that leap. It's just sad when people keep continuing on all their lives, never actually retiring much earlier at all

I think we should all reasess our portfolios often and perhaps look at things differently sometimes. Like mentioned earlier, I know everyone is different but I'd be back to square one if I'd held all (which was 6) properties due to an unforeseen bust where prices have all reverted to what they were when I bought them 10 years ago. I'm just 'Lucky's that I couldn't take one more day of work and pulled the pin, selling in great times. So just perhaps a different perspective. I was one of those people who had only ever experienced the good times in property and didn't want to believe those who warned against leverage so, there you go. Luck had a part in all this too

Just think about it is all I ask. I (and the Government! Laughs) want to see everyone do well.

Cheers guys, have a great weekend

 

PS, you'd be amazed how much less you need without debt. And daily commuting certainly doesn't help the hip pocket

I think we all underestimate that simple fact

 

Not all of us!!! I did the maths and buying somewhere walking distance to work anf it saves us megabucks in car costs.

P.s great story @Somepropertyguy , congrats!

 

Inspiring post that resonates with me. Thanks.

 

Quote..
I semi retired age 35, 10 years into the investment journey and was basically labelled stupid by the SS community at the time. I naturally didn't want that sort of negativity in my life so left the place for good. I just knew that everything was fine and going to work

Well done,Dazz,s had a way with words -good to see it worked well..

 

Hmm... so.. let me get this right.
10 years ago, you bought 6 properties. You have sold them now. You have made enough profit to make yourself semi-retired now.
To top it all, you were on about 60K wage.
Can you please tell us about your properties (Suburb, Type, Transaction dates (month & year) and nearest to 10 K sale values)?

 

Your retired, but you run a business ? Your retired yet earn 200K p/a ? You earn 200kp/a, but had to sell 6 properties? You paid off investment properties but are now borrowing for PPOR ????

 

YOUR RETIRED, BUT YOU RUN A BUSINESS?

It's actually spelt 'you're' when referring to another. Nope, I'm semi retired.

Yes, I run a business part time, as specified a few days ago. You may recall reading about that?

YOUR RETIRED, BUT YOU EARN $200K P/A ?

As above, no I'm not retired. Yes, I make around $200k p/a.

YOU EARN $200K P/A BUT HAD TO SELL 6 PROPERTIES?

Correctimondo'!

YOU PAID OFF INVESTMENT PROPERTIES BUT ARE NOW BORROWING FOR PPOR ????

Who said I ever paid off investment properties?

 

Great story. Inspiring stuff.

 

I would tell you all about each and every joyful property I so humbly purchased in my quest as a youngster to achieve world financial dominance, but... I'm simply not going to.

Why you might ask? Because it really matters none what and/or where I bought them.

They were all modest residential lower/mid class units and houses with a modest 5% yield to match. I recall always thinking I could have done better with every one afterwards but you know what? I got somewhaty lucky and made some money on almost all (all but one sold too late)

A blind monkey could have done the same if he was able to find a lender.

I wasted so many hours on SS and in investment books I'm still mad at myself. Turns out I really only needed to know the very basics and have a rough plan in place rather than spend all time and energy thinking about it

 

You mention “SS” what does that mean?

 

Somersoft ! .. Simon helped it stay alive and its now called PropertyChat

 

Got ya thanks. Before my time lol.

 

@Somepropertyguy Sounds like you are happy with the decisions you have and where that has led you.

Do you have children ? I find that one choice can determine a lot in terms of the direction you take.

 

I like this.
In the past this approach worked for many but not all.

Going forward the monkey will need a good set of glasses and access to a good lender and cash flow to easily service P and I loans but ymmv

 

So you sold all the properties, made a profit, I am guessing in Perth from the timeframe, good timing in hindsight! That decision was a splendid decision at the time!

You have invested these funds in a business that is doing well, you have a great lifestyle and seem to be investing in funds etc? Purchased your own home debt free.....All before you are 40?

Congratulations, you have done very well for yourself and family. Property is not the only way to financial freedom.