How I increased my income

Discussion in 'Investment Strategy' started by MTR, 14th Dec, 2017.

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  1. sash

    sash Well-Known Member

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    Hi MTR...the yields are great.

    The issue I have is that it is still active investing....I am not getitng younger...so looking for more passive investments. Eventually these will come with replacing items etc.

    That is what I am finding with my OZ property...the new stuff is brilliant but the old stuff is high touch. My plan is to reduce the number of properties from the current 30 plus to under 20 in 5-7 years time...can't happen all at once for CGT purposes and growth in market.
     
  2. MTR

    MTR Well-Known Member

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    yes I get this.

    I have a strategy for this .......reduce stock once they have doubled.

    I dont have a crystal ball but the market is on fire. These deals wont be around in 12 months time

    There are also ways of keeping costs down ....but if I told you I would have to kill you:p

    Altanta stock ... circa 2005, maintenance not too bad

    Its good to have choices, this will only happen if we make it happen

    MTR:)
     
    Last edited: 11th Aug, 2018
  3. sash

    sash Well-Known Member

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    Yep...na what ya mean.

    I am tryin to get my Geelong Ocean stuff end of next year...the values on completion would have doubled. A 100% return in 2.5 years on 3 places is not bad.
     
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  4. MTR

    MTR Well-Known Member

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    Time to crack champers........ as I have said many times.........timing is everything
     
  5. sash

    sash Well-Known Member

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    No champers till the deal is done. :)

    I am also diversifying a lot ...my super target is $1.6m by 2027.......at just over 500k now......

    Also setting up another fund...for ETFs/LICS...lots goin' on......
     
  6. Dalts

    Dalts Active Member

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    MTR/sash - reading your convo with keen interest haha.

    What hasn't been discussed is how YOUNGER people (<30) can accelerate their income quick. Especially as most of the time they are in their accumulation phase of their journey and don't have the access to the opportunities presented later down the track (development, offshore investing). More often than not, they are tied to a desk job where they are analysts and spend a considerable amount of their time at work.

    My ask to all: How would I achieve more income?!
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Typically, the clients we work with in our businesses have done this primarily by business.

    Ta

    Rolf
     
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  8. sash

    sash Well-Known Member

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    My advice is do a good job and work..which will allow you to earn a higher income.

    But not to the point work is the be all. With this time you can build a portfolio of shares. Here are my tips in hind sight:

    1. Initially build a property portfolio....do not be shy to sell when the market in one area hits its peak. The rinse and repeat.

    2. Do not ignore super...that could be the game changer in later life. You might have spent your gains but this could be the safety net. If you are on about say 100k. The company puts in 9500/annum. 5k salaty sacrificed would not be missed by most but will add substantially to your super pool if started early. The 5k would be taxed at about 40% so you would have $60pw which you would forego (changing your phone plan and insurance could put this in your pocket). The beauty is in super it would go in as $82 dollars. Be careful to not put this in low growth and expensive funds. I have found funds like Hostplus and Australian Super great value.

    3. Later in life put some money into ETF and LICs and convert some of the property gains and put it here.
     
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  9. sash

    sash Well-Known Member

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    Rolf I hear this a lot...but a lot these people only amass $3m-5m net.
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Which is a lot better than an average payg income earner I would have thought.

    I suspect 99 % of people on PC would be fine and dandy if they had 3 to 5 mil nett value.

    If nothing else it's a good platform surely ?

    Ta

    Rolf
     
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  11. sash

    sash Well-Known Member

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    Yeah okay... :D
     
  12. AndyPandy

    AndyPandy Well-Known Member

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    @sash in 7 years time you may need someone to inherit all the money you've made so that someone can enjoy it. Just putting it out there, I'm available for adoption.
     
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  13. sash

    sash Well-Known Member

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    Nah mate ...I am will be spending it fast .....lots to do...
     
  14. MWI

    MWI Well-Known Member

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    I think I am sort of where you are, have concentrated to offload some less performing and taking opportunities else where for better assets. Like in Monopoly offloading some houses for hotels...:)
     
  15. MWI

    MWI Well-Known Member

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    It really depends on what they do, I know some who amassed around $150M say 15 years ago an now continue to build more....it really depends on the nature of business this was mining.
    If we however look at BRW Rich 200 in Australia, most are in some kind of business but most also divert their earnings into RE too.
     
  16. Indifference

    Indifference Well-Known Member

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    I'm curious how you plan to grow your super by 1.1M in under 10 years without incurring massive tax liability. ... is this intended to come from using $300k one time contribution limit combined with high growth forecast?
     
  17. sash

    sash Well-Known Member

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    Noce what hotels are you buyin' :p

     
  18. sash

    sash Well-Known Member

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    Agreed but most people never get past 3m.....dont know why?
     
  19. sash

    sash Well-Known Member

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    Still under contribution limit. Still have abot $275. At this stage i might only use part of $300 limit for non cocessuonal contrbution.

    Based on my calculations assum8ng no major down turn. I will be at around 750 to 800k by 55. I am actively managing my super.

    Plan to tip in 100k at 59 and 100k at 60. By then i would be pretty close.

     
  20. MTR

    MTR Well-Known Member

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    This is very interesting

    Comparing apples for apples, this property below is on the market in Detroit for $64,000.

    I just purchased a property on this street, same product etc. for $35,000

    If there is any doubt Detroit is booming I think this will give you just an example of what we are seeing. But I am purchasing at whole sale prices, this property is on market at retail price. There will be many investors buying at this price point.

    Good way to make money from day one, not to mention the higher returns is to buy in at whole sales prices. .

    [​IMG]
     
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