How do you get super rich?

...or I want a divorce

 

One thing I am not interested in is being "super rich"

Being poor brings problems
Being mediocre you get by but you will want for things
Being comfortable you will be.... comfortable, you may not have an Aston in the driveway but you will have a decent car and be comfortable, no mansion but enough to keep you happy
Being super rich you will work longer than being comfortable so as to have enough money to get "things"

Time runs out, it's your most precious asset. For me personally my time is worth more than "things" like Astons and mansions, so long as I can be comfortable and walk on the beach with my wife each day (weather permitting obviously) then I am super super happy and I don't think more money would bring me more happiness.

The day I get to sustainable comfortable, I will retire. I won't work 1 day more than I need to, my time is worth more than any company could pay me.

 

I know this is a property investment forum but.... what about playing the lotto?

Just kidding....don't waste your money on gambling!

My plan is to work hard while still young and single and always, always spend less than I earn. I may not become 'super rich' this way but as long as I have a comfortable life in retirement then I don't really care how much is in my bank account.

 

Yes I would like to come even though I don't have $1m net

 

Lets face it, unless your single or have an extremely supportive, helpful and understanding partner, becoming "rich" is externally difficult.

I don't think many 'other halves' would be truly happy you spent 10-12 hours a day working on your dreams to become filthy rich whilst they stayed home and raised your kids right? (the members with kids will understand that one), or risked the family homes equity on a business venture which may leave you all living back at the in laws.

Get online and find yourself a sugar mama or daddy

 

I was unaware you had those things up there.

You could always come on down the road and join one of the future meet-ups we have here on the Gold Coast.

 

Other relevant news and publications:

• http://www.smh.com.au/business/the-...-in-land-rezoning-racket-20150929-gjx8nh.html
• Queensland: http://ftp.iza.org/dp9028.pdf
• Victoria: Rezoning open to routine corruption by both sides of politics: economist
• NSW: Premier Barry O Farrell, Councillor Salem Mehajir, Ex Minister Eddie Obeid....

@Cactus should be able to provide more intricate details of what happens before the H&L reaches the masses.

Happy to be corrected, but IMHO there is no better strategy than rent-seeking / rezoning (in property as an asset class) with political connections on both the parameters viz. risk and reward.

 

I've seen a lot of similar posts in this forum asking the similar question. Let's assume you do not have support or any financial help from family and relos.

I'm gathering this summary for an average Australian.
Note that: To simplify this problem, I have removed a lot of parameters e.g. inflation, change in individual situation or household etc.

Well the definition of an average Australian is debatable. But I'm using this scenario and hopefully it's realistic enough for the "average":
- Single person age 30
- Bought an average property = 550,000
- Paid 20% deposit + expenses and left with $440k loan.
- Interest rate = 6% (average based on the last 5 years)
- Income = 75,000 before tax (average based on 2015 ABS data)

Goal A: Pay off 440k loan
Goal B: Have $1m unencumbered
Note that -> these goals may not result in a "super rich" status but it may gain a "comfortable" status.

Now, the question... When does it take the person to reach goal A and B? and how?

My observations
Goal A: ~15 years or by the time he/she reached the age of 30 + 15 = 45
Calculations:
Take home income = 57,388 (75k minus tax minus medicare, see this link: Australia Tax | 2016/17 Salary example for $75000)

Assume the person saves 50% of the take home income, then total loan 440k / total savings 28.7k = ~15 yrs to pay off the loan.

Goal B: ~35 years or by the time he/she reached the age of 45 +35 = 80
Total Amount $1m / total savings 28.7k = ~35 yrs to reach the unencumbered $1m.

Back to the OP, for an average Australian to become super rich, I think the possibilities are as follow:
1. Do all the above but start early
2. Earn more ...
a. by working harder/smarter/legally/illegally
b. obtain businesses/investments that return a LOT higher than the (debt) interest rate
3. Better luck e.g. win lotto, inheritance, etc.

 

Goal B could be done in less than 23 years if you compound savings calculator.

 

This is true. It is difficult. But she'd be happy if I only worked 10-12 hour days!

 

No Northsiders allowed. I'm building a wall.

 

Without a supportive partner it would be far more difficult, seen a few family members whose partners have different views when it comes to investing, not prepared to take on any additional risk.

 

They will also reinvest the profits in other ventures beside the business/s they own, operate and over see.

 

how do you fit PC into this......, that's not a bad thing just saying

 

Not sure what your getting at here. I have never been on the receiving end of a surprise rezoning nor have I acted for a client in one. I have only ever acted for clients in buying UGZ land and assisting in the PSP phase.

Anecdotally I have heard of a developer that owns a helicopter flying a head of state around and showing him what should be zoned many years ago. Not sure what truth was in it but wouldn't surprise me.

As for H&L it's no different to OTP apartment sales if you buy them from a marketing agent there is commissions of circa 6% involved. The difference is with H&L you can buy the land and do it yourself. With apartment that's a little harder.

@Skilled_Migrant Have I answered you or missed your point?

 

A PC poll might be in order, I bet there are more wealthy current/former south side residents here.

 

Despite popular opinion, I will drag the average down.

 

Ahh sounds like you already have a keeper! hold onto that one.

Don't you just love those family gatherings when you can hear the 'brother in law' from down the end of the table whom doesn't own house just babble on about the pending housing crash and how they will wait and save for 5 years. Spreading fear and making you seem like the irresponsible one to the rest of the family for getting your family into millions of dollars in debt....

Yet Christmas is always at my house....because I'm the only one who has one. Ironic.

 

Where do all your other relatives live? Cardboard boxes in the park?