Hi everyone, I'm new here, often stumble upon the Somersoft forum and find myself reading for hours on end. Found a thread which lead me to here. Looking forward to being a part of the community and hopefully along the way learn as much as I can. Grew up in Sydney, been living in Darwin for the last 4 years. I have worked hard to put myself and my partner in a position where we are ready to invest in some more property. Cheers everyone for making this forum what it is and allowing new members like myself to take part. Dave
Welcome Dave! We have a few Daves here now. Look forward to hearing about your journey! What is your vision?
Welcome Dave ! Well done on getting yourself into position to make more steps forward. Have you had a think about appropriate buying structures (what name to buy the property in ... own name/s, company/trust, smsf) to best meet your needs given your circumstances?
Thanks for the warm welcome everyone. As far as my vision is concerned, I need to start off with research, reading books and various resources. I need to then pick a strategy and follow it through. I would like to eventually be earning a passive income within the next 15-20 years, 10 would be ideal although I feel I may of missed that window of opportunity. I am currently 30 years old. I am suffering from what people on this forum call analysis paralysis so very much procrastinating. However, I am determined to get it done. As far as buying structure goes I haven't looked into any of that either. Clearly I still need to do a lot of research. If anyone has any recommendations on books or other resources outside of this forum I am definitely open to suggestions. Cheers again.
Hey Lastone! That's a good goal to have - to replace your income with income from property. As you know property is a long term investment and there are a few examples of people who've retired on property on the forum. The first thing will be to figure out what sort of $ figure do you want in income? For someone with income of $100,000 per annum, they would need $2,000,000 paid off assets. I.e. 5% return on 2,000,000. I personally aim for 7% return on buying (have odd cases where it's been below 7% but that's due to the market having moved and us jumping in a rising market). Though as the markets rise, the returns diminish and at least in Sydney, the returns are as low as 4.5% in Western Sydney (used to be 7%). There are multiple ways to attain $2m in assets. Could be you buying $2m in real estate @ 5% rental return and the portfolio doubling to $4m. There fore the 5% on the $2m equity is $100k. This would give you some idea. Use this to work back to what you can borrow and then go for the kill! 30 is young. Congrats on your decision to take charge of your financial future. Goes back to vision . 1. Richest Man in Babylon by George E Clason 2. Rich Dad Poor Dad by Robert Kiyosaki 3. Slight Edge by Jeff Olsen Good luck!
Rich dad poor dad is a great book, inspirational and also helped open my mind about different investing strategies and ideas. Looking forward to getting into Richest man in Babylon. I think I've decided to aim for cash flow investing strategy first, maybe down the line when I have a strong grasp of investing and real estate I may look at some CG strategies. Still lots of learning to go yet. Cheers again.
