Join Australia's most dynamic and respected property investment community

How big is your folio untill acquisition stage ends

Discussion in 'General Property Chat' started by Myendgoal, 21st Dec, 2015.

  1. Myendgoal

    Myendgoal Member

    Joined:
    19th Jul, 2015
    Posts:
    19
    Location:
    Nsw
    Hi people I've been reading the forum for a while and this is pretty much my first post. Just wondering how big are your portfolios untill you really finished the acquisition stage? 3M? 4M etc?

    Or till you can't borrow anymore from the lenders?

    Thanks for your Advice.
     
  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    My acquisition strategy:
    • Buy until lenders say "no more"
    • Improve income
    • Repeat
     
    tomlemke, Observer and Myendgoal like this.
  3. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,731
    Location:
    Sydney
    "Just wondering how big are your portfolios untill you really finished the acquisition stage? 3M? 4M etc?"


    HI mate,

    Really depends on your own goals. If someone has a goal of X amount of passive income in X amount of time, then they can work backwords to work out how big an asset base they will need, growing at X% a year, how many years will it take to have the net equity to provide the income.

    Very roughly, if you want $100,000 a year in passive income, then you will need at least 2.5mil in net assets to make that happen at roughly 5%. In my opinion, people who want a larger asset base generally want to reach their goal faster (usually a larger passive income wanted as well) , becasue there is simply more assets growing for them , hopefully increasineg their equity.

    So it all comes done to what your end figure goal is and how fast you want to achieve it, which will determine how large an acquistions base you will need.

    The work is really in ' how do i build that base to achive my goals in the time i want?'.

    And there are quite a few ways to build that base.

    Just my opinion.
     
    Last edited: 21st Dec, 2015
  4. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    900
    Location:
    Melbourne
    "Until they lend us no more" for us.

    The Y-man
     
    MsAli, Gockie and Myendgoal like this.
  5. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,516
    Location:
    Sydney
    We could borrow more, but don't know if we want to at the moment, just waiting, watching...
    Don't know if the acquisition phase has been reached, who does know?
     
    MsAli and Myendgoal like this.
  6. blackenator

    blackenator Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    96
    Location:
    sydney
    Until the banks say no more. Since the Aphra stick has been waved will probably have to pay some debt to help with borrowing power
     
    Myendgoal likes this.
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,551
    Location:
    Sydney or NSW or Australia
    When 'comfortable' becomes 'obscene'.
     
  8. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    737
    Location:
    Homeless
    Mine ends when I reach the net worth required to fund the lifestyle I want. Hopefully serviceability won't be too much of a problem before I reach that point.

    Not having a goal will more than likely lead to your acquisition phase falling short of your expectations or never ending.
     
    Leo2413 and Myendgoal like this.
  9. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,516
    Location:
    Sydney
    Phase 1 ended when 10 mil was reached a little while ago.
    On an investing break right now.
    Phase 2 will probably start in another year or two.
     
    MsAli, House and Myendgoal like this.
  10. Myendgoal

    Myendgoal Member

    Joined:
    19th Jul, 2015
    Posts:
    19
    Location:
    Nsw
    Thanks guys, long way to go for me. Mine is around 2.5m but only having 150k cash buffer. Reaching the wall tight now tho. I think I will need a bigger buffer for the next round of buys, hopfully pick up some bargain in sydney in a few years time or 1 more in QLD if the market goes well in these 3 years there.
     
  11. sanj

    sanj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,142
    Location:
    Perth
    I dont do buy and hold so as long as i keep enjoying projects and the numbers make sense ill do it. Im diversified across different asset classes though so a slowdown in one doesnt mean my progress is stopped
     
    Myendgoal likes this.
  12. sanj

    sanj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,142
    Location:
    Perth
    Similarly once u reach the stage where youre in a good place i think not having a end date/result for a goal can help as it coulf lead to u limiting yourself. If youre always moving forward and youre in a strong position financially the money is almost secondary imo
     
    MTR and Myendgoal like this.
  13. Adele

    Adele Well-Known Member

    Joined:
    11th Dec, 2015
    Posts:
    189
    Location:
    Melbourne
    I set myself 5-10 year goals. Doesn't have to be an extraordinary amount.

    3-4million might seem a lot for now, but it won't be in 40 years. My goal is to keep growing my portfolio, and be able to do it without having a full time job. There is no end until I am dead. :D Even then, I hope to have left for my kids enough skills and assets for them to continue it.
     
    cherubym, ellejay, monalisa and 4 others like this.
  14. C-mac

    C-mac Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    792
    Location:
    Sydney
    For me it is a mix of two factors;

    1) Until the lenders say 'no' (whereby I then add value or increase income to then continue lending)

    2) Doing the above accumulation phase as quickly as I can. Being in my 30's now; I'M pretty much in my prime for salary/income/career in my industry sector. However, this won't last forever; I'll hit my 40's and not have the energy/patience to keep doing the longer hours and workload required in my career to earn the 'bigger' bucks. This means I'll either need to tone down my workload and earn less, or switch careers entirely (which would require re-skilling into another career stream altogether; so; probably further study).

    Either way, the key for me is to borrow as much as I possibly can, during the peak career years I am in!
     
    Myendgoal likes this.
  15. freyja

    freyja Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    147
    Location:
    Sydney
    I'm not in my 40s yet but my husband is. I think healthy people in their 40's have plenty of energy and have every opportunity to earn the big bucks if they choose.
     
    Soul likes this.
  16. Myendgoal

    Myendgoal Member

    Joined:
    19th Jul, 2015
    Posts:
    19
    Location:
    Nsw
    Haha I'm the same, I don't think I will have that much energy to do it at my 40s. So going all out now with the debts.
     
  17. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,577
    Location:
    Adelaide, SA
    Acquisition phase isn't always linear. There might be a series of acquisitions before consolidating back a step then going again. This could be in line with market cycles or available lending.
     
    ellejay, Westminster, Gingin and 2 others like this.
  18. Dwalsh

    Dwalsh Well-Known Member

    Joined:
    14th Dec, 2015
    Posts:
    73
    Location:
    Nsw
    Currently 2.2 million at 25 , hoping to make 5 million by 30 and let that double to 10mill by about 40 ish, then retire haha these plans never seem to go as we plan haha but I aim for that, if I go close I will be happy
     
    York and MsAli like this.
  19. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,122
    Location:
    FNQ
    That's true, one or two setbacks or mistakes and it might take 5 years or more to totally recover. Employment income either from a business or PAYE career can ebb and flow.

    If you are lucky to hit gold with a few purchases it can turbocharge your progress for a while then things might plateau for a couple of years. That's why its good to spread your asset base IMO.
     
    WattleIdo likes this.
  20. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,122
    Location:
    FNQ
    Haha I thought the 40s was the peak income, earning and career period. Late 30s to early 40s is definitely the most expensive family wise. Once a upon a time I could live on practically nothing, not anymore.