How do you get super rich?

lol..love it

 

A lot of property investors become very narrow minded in their investing and financial literacy, to the point that they neglect other areas, opportunities etc. Just a list of various things that any reasonable investor should consider:

• Debt recycling (++++++++++++)
• how they plan to actually meet their retirement and whether they can bridge the gap through alternative assets (ie super - it's been written about Somersoft previously about using a partial sell/capital sell down to fund retirement until super access, to bring forward retirement dates substantially)
• alternative asset classes to help switch a capital heavy portfolio to an income stream
• commercial property

 

Did some sums. I should be able to get 2 mill in equity by the time Im 35yo. So 5 more years. Should have about 800k equity after I finish my current project in 6 months. Have another project lined up that Ill start in a couple years. That combined with paying down debt should get me close to that 2 mill mark.

Then I would still be left with 1.5 mill in loans.

I think in 5 years I will have to think about the next step... how to get everything paid off? Or is paying off all my ips and living off the rent in retirement too boring of a strategy?

Im thinking best strategy would be to pay down into the offset account and keep my eye out for really good property opportunities when the market beings them up again... then reno or subdivide or whatever the opportunity entails.

Still wont get super rich but I might be able to hit 4 mill by the time Im 45 years old and have a massive income stream from rents...

 

Making money is easy. Having a rich life is the challenge.

 

They live out in the wild because apparently renting is to expensive and landlords should be made to cap rental increases with CPI.

 

I support you paying for the wall.

No I don't like Trump but his idea makes sense for bne.

 

That's a pretty damn good start. With the equity you can take bigger leaps. That's my sticking point at the moment.

 

Some truth in this..... its not just about the money?????

Meet the love of your life and it will certainly make for happier life, but no one can make you truly happy.... it still comes down to the individual finding fulfilment in life and setting goals etc etc etc.
I think we are now back to "the happy thread"" the meaning of life

Go Tim
Paying off all your IPs is not boring, but if you are trying to pay off $1.5M debt in 5 years may be difficult, unless you can start to tweak the strategy.

 

I was thinking 10 years to pay off the 1.5mill if I throw in some extra projects here or there.

 

I reckon if you just keep learning it may be sooner than you think

 

Young skywalker. With the advent of technology and the demonitisation and democratisation of many things is it not easier to have a rich lifestyle? Whether it's here or overseas or a combination of both.

I am thinking where air bnb allows you to live for as long as you desire. And how about uber and the other platforms that free up our time and responsibility. Why buy and own the lifestyle when you can lease or rent it and when you are done with it, hand back the keys and try something else. Somewhere else. No strings attached. I am not intending this to be a flippant post where people live high on the hog just to look rich and have no other assets and I know that the poster I've quoted wouldn't do that. Steve is the antithesis of "big hat and no cattle"

I am not as young as some here however can see myself renting many experiences in the future and living fuller because of it. More memories without the burden

Just saying.....................

 

My beliefs

If it were so easy everyone would be doing it

You need a combination of (not limited to) hard work, luck, good timing, good idea (not genious) , risks etc

 

I agree with you. Making money is simple (read Post #3) BUT it is not easy.

It is a lot like keeping fit. It is simple BUT it is not easy. That is why so many people fail.

Totally agree. Same as keeping fit. It is hard work, you have to take some risk, it takes time, money, effort, ...

That is why so many people fail.

 

Be careful of the cost. If you spend all your time now working to 'set yourself up', what will you miss out on? My dad spent a lot of time working when we were growing up and missed out on a lot. He regrets not spending more time with us.

Think about working smarter, not harder. Where are the profits to be made in property? You have already done a big reno job which manufactured equity, but that was seriously hard work. How about a build project? You could start with a duplex or triplex and see how you go. It could potentially be a way of manufacturing equity that takes less of your time and physical effort. You can still save some initial capital by doing some work yourself, such as painting, tiling, landscaping etc. It just depends on your skills and how much time and physical effort you want to put into the project.

 

Scratchies all the way for me!

 

good for you ..lol, how many do you buy a week

 

Yeah I hear what you are saying. Got to find a balance. Going to take 2 years off from projects after I finish my current project.

Dont have the cash on hand to pay for a full build. Over the 2 year off period Ill save up the 100k I need to raise and build in under an IP. That should get me 300k more equity for the 100k I spend and 250pw more rent. But it requires me working my all my spare time for 12 months.

Then Ill take it easier for a bit again so I still have some sort of balance.

Not missing out on family time. Its just me and the wife and the dogs. Although thats kind of a family in itself and would be good to spend more time with them.

 

Zero Sarcasm.

 

I had it when I was 29!. Never got itchy once.