How big is your folio untill acquisition stage ends

2 mil by the time I am 50 and then I will start to eat the capital at a rate of 100k a year. Nom nom nom nom

When i am 70 i will be broke and on the pension.

 

@Biz Sounds like a plan to nom nom it at 50.
By 70 I don't need that much money, I can hardly eat and walk anyways.

 

@MTR I will do that too. I should look into development later on but risk is high in that field. Will go bankrupt if something goes wrong.

 

I've never had a figure for this; probably why I haven't succeeded to date....no real plan or goal to reach for it all.

My brain has only ever been about the ongoing process of acquiring income assets to replace income and get out of ever having to work again...first; IP's, then; businesses...that should be enough, right?

 

Or you could 'store' that money in your ppor and go nom nom after 70.by downsizing every 5 years. Although more enjoyable to spend before 70 i guess.

 

I was waiting for my wife to get a job paying $200k a year so i could retire.
20 years later i'm still waiting ! Dont they say that good things come to those who are patient.

 

I did two air conditioners this year. One of them was ducted.

 

Ouch

 

I'm surprised at the number of people who say "as much as the bank will lend me".

If the banks lend you $10M, and rates up 2% that's a $200k hit to your annual cashflow (minus gearing deductions of course). Add to that the likelihood that you cannot extend your IO periods when they end (thanks crAPRA) - will you be able to absorb a several hundred thousand dollar impact to cashflow ? Yes rents will go up, but unlikely to offset the whole amount.

As someone mentioned in another thread - I think there is an invisible line around borrowing amounts at which you should pause and consolidate before plunging back into accumulating assets. This line may appear before you hit the serviceability wall with your lender, hence its apparent "invisibility", meaning you can cross it without realising.

Just a thought; not intended as criticism.

 

I think a lot of the folks around here are not the average Joe and understand how to mitigate risks and assess their own financial situation etc quite well and that's why they relish the idea of more finance from the banks. Just my opinion.

 

I'm not surprised at all, its a property investment fourm after all. Its the only real way to gain any real wealth from property and "retire" early. But there is a very real risk of losing allot that way. I'm not going down that path myself but am happy to leverage to more comfortable levels and let time work its magic. I wont retire early, but i should still retire wealthy. at least wealthy enough to live comfortably.

 

Kind of, just a lot more expensive

 

I don't know, 70 is not particularly old. If I am healthy then I can't see why I wouldn't want to spend plenty of money. 80 is slightly different though.

 

I really need to nom nom some when im still young and beautiful. I know I shouldnt be buying useless toys but sometimes I just can't stand the tenants are driving mad cars have sea views and I cant even buy a 30k watch.

 

I don't have a clear limit on acquisition phase. I've reached my first passive income goal and now taking a break from paid work. I'm going to continue buying though for a while longer, while the bank allows, so will go back to work later next year for a while to be able to satisfy lending requirements. I'm just doing it for fun though now, $60-70k pa with no mortgage is enough passive income for me.