How big is your folio untill acquisition stage ends

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.

 

My acquisition strategy:

• Buy until lenders say "no more"
• Improve income
• Repeat

 

"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.

 

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?

 

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

 

When 'comfortable' becomes 'obscene'.

 

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.

 

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.

 

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.

 

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

 

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

 

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. Even then, I hope to have left for my kids enough skills and assets for them to continue it.

 

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!

 

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.

 

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.

 

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.

 

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

 

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.

 

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.