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How hard was it for you..??

Discussion in 'General Property Chat' started by MTR, 11th Jan, 2016.

  1. MTR

    MTR Well-Known Member Premium Member

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    Calling anyone who has made their first MILLION dollars from property, how hard was it for you?

    Not necessarily interested in how long it took, but more about your experience if you would like to share?


    Marisa:)
     
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  2. wylie

    wylie Moderator Staff Member

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    We didn't find it hard really because time did the work for us. We chose to do a lot of renovating ourselves because we couldn't afford to pay tradies (of course we used plumbers and sparkies - but did the grunt work ourselves).

    We never had buckets of spending money, never needed it either. We don't have an expensive lifestyle, but did the hard yards when the kids were young and hopefully will benefit into the future.

    I enjoy renovating, but enjoy it more now that I can afford not to be the one doing the physical work.
     
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  3. Xenia

    Xenia Adelaide Property Manager Business Member

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    Easy - thank you capital growth.
     
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  4. wylie

    wylie Moderator Staff Member

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    LOL Xenia said it with so many fewer words. I cannot seem to speak or write a short reply (and my husband and kids remind me of this regularly).
     
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  5. MTR

    MTR Well-Known Member Premium Member

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    you too:)
     
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  6. wylie

    wylie Moderator Staff Member

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    I think the word I need is "succinct". I'm not good at "succinct" :p:D
     
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  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    I'm not always either - I think it's a female thing, we love to chat lol
     
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  8. ZachAnsel

    ZachAnsel Well-Known Member

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    At the beginning its seems like out of reach..

    We sacrifice small things like buying lunch, coffee in the first 3 years. But we stick to the bigger picture. Start saving 2007, after we lost money in share market. We bought basic normal 3BR house, do reno (painting, replace carpet with laminate floor, etc) while we live in it.

    Still doing frugal and saving, 2 years after we purchase IP (don't have idea about reval and equity back then). Then start learning, convert our PPOR loan to IO, reval. Grow our portfolio..

    Then suddenly reach our first mill of equity.. I realise that what seems "hard" at the beginning, once you get into the routine/discipline, its become natural. In fact you start enjoyed.
    Example : I still bring my own lunch, except catch up with friends. Because healthy reason, I can control the amount oil, salt, pepper, etc. Even though I can afford to buy lunch everyday.
     
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  9. Bran

    Bran Well-Known Member

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    I'm hoping for some inspiration here. We are much closer to zero than 1M. :/
     
  10. SerenityNow

    SerenityNow Well-Known Member

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    I'm looking forward to reading everyone's responses. But gosh. You really know how to write a great thread title :cool:
     
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  11. Sonamic

    Sonamic Well-Known Member

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    Halfway there. But working at it.
     
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  12. Scott No Mates

    Scott No Mates Well-Known Member

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    So you should be aiming at $5m ;)
     
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  13. Sonamic

    Sonamic Well-Known Member

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    That's what she said?
     
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  14. Blacky

    Blacky Well-Known Member

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    Im not there yet, but sitting on the cusp - I can see it sitting there, like an apple on a tree. Cant quite reach it - but damn close.

    I made it a lot harder than what it should have been. Mostly through poor decision making and impatience.

    What worked well for me was to focus on constantly increasing my income.
    What failed me, was thinking I had to always be doing 'something', rather than just letting capital growth do its thing.

    Blacky
     
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  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Ah, the joys of that first "BIG" land tax bill. There are no words that can describe it.
     
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  16. ZachAnsel

    ZachAnsel Well-Known Member

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    Yes Scott, still on track.. We did tweak our strategy, and combining manage funds, direct share trading with property.

    I realise that I don't have enough knowledge (still learning) on the development, but I believe this will be one of the key for me.
     
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  17. Nimble

    Nimble Well-Known Member

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    I am not there yet but look forward to see what others say!
     
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  18. WilliamB

    WilliamB Well-Known Member

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    10k in one entity last year thanks to very poor accountant advise on one of my earlier projects.

    I can think of a significant number of words, both about the land tax bill, and the accountant :)
     
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  19. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    It was both hard and easy. Easy because of CG as Xenia & wylie have said.

    But hard because:
    1. We only started off with 1 x deposit extracted from equity from our (at the time) one & only PPOR. The first valuer was a moose so we found another one with a brain.
    2. We bought older properties and did renos to increase value and let us refi our deposit back out. So we had to do a lot of project management and hard labour on top of our regular jobs - lots of nights and week-ends and missed kids-things.
    3. We had to fund renos on credit cards. We had to find willing financiers to refi to after only 2-3 months from purchase.
    4. We had to deal with 9-11% mortgage interest rates (and some 17-18% IRs too for a 2 yr period).
    5. We overstretched at one point and nearly came undone finance-wise.
    But the moral of the story is:
    1. have a vision,
    2. know you are going to experience difficulties and so they are not a surprise,
    3. be prepared for family opposition (you are how much in debt? :eek:)
    4. don't overstretch but don't take the too-easy route either
    5. don't stop
    6. don't stick your head in the sand when the market moves against your position - always have a fall-back position
    7. pace yourself - it is not a race
     
  20. abbyfresh

    abbyfresh Well-Known Member

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    first mil from PPOR is that counted? Just bought it 9 years ago and that has been the increase, however not the plan as it was purely the home to live in. IPS after that have been a lot harder to get similar gains.
     
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