How I increased my income

This explains what we are seeing and stock is tightening which means prices will just continue to
rise.

Competition fierce for metro Detroit homes as prices rise

Median sale price, June 2017: $27,250

Median sale price, June 2018: $38,500

Percent increase/decrease: 41.3 percent

Average days on market, June 2017: 49

Average days on market, June 2018: 38

Percent increase/decrease: -22.4 percent

On-market listings, June 2017: 1,960

On-market listings, June 2018: 1,790

Percent increase/decrease: -8.7 percent

 

Talk about timing the markets. Hope it goes well for you.
Is this working on the basis of around 10% per annum for the next 10 years plus whatever you can tip in?

 

No working on returns of 7% averaged pa return and 25k super contibution. Plus 200 tip in non concessional

 

This is a cutie at $61,000, B grade suburb, in high demand.

This was a foreclosure and purchased well below market value

This is going to be my first flip in Detroit.... watch this space

 

How do they foreclosue when such low prices under 100k. ??

 

not an expert on foreclosures but they are already under market value and conditions apply, cash, sold as is
Also dependent on competition

 

Banks, they write it off and mark to market, part of risk management they allow a certain % point in default and write it off and sell for whatever the going price and be done.
that why they want cash, sold as it they just want to recover whatever cash the market willing to pay and not spent another cent on it

 

Just better quality assets....mainly in QLD and NSW for now!

 

I thought the saying was the hardest to make was the first million, then it becomes easier...what $3 million, how do you conclude that, as I am a bit baffled?

 

Our aim was to build to around $10M is SMSF, but since the rules changed so did our SMSF strategy changed.
Unfortunately or fortunately we are in that > $1.6M category each with never putting NCC so it is possible to make $ if timing is right (direct investments, private IPOs, made 30 on one share, few years back, then bought quite few IPs for cash, later others with loans - so we actually have a quite substantial SMSF IP portfolio too).
I am just astounded how most 99.99% never take direct control of their Super, just invest like most others do via direct shares, or managed funds, or financial advisors - we never did or do that?
I even read that around 2/3 of Aussies Super is held in retail funds with very high fees as compared to low fee funds, whose performance is compatible if not more....

 

Why NSW?

It is still headed down....

 

Ddi you hit past the $1.6m..because you will need some of the money to an accumulation fund..which will not be tax advantaged.

Some people apparently had $10m plus...and had to move ...

 

First million is easy..and $2m is easy..but getting to $10m plus is a lot harder....

 

We are still in accumulation phase have not met the age criteria yet, still too young, so not in pension phase yet, so still paying 15% tax. Just cannot use NCC like you can and why would we dump more anyway? Plus we are self-employed running a quite successful business so we feel partly retired anyway...and no need for SMSF funds to access yet....if ever....we grew and developed few entities in similar times...many years ahead. Life has been good to us so far!

Why NSW, not at this stage only looking and waiting for now...more to do with setting up our adult kids...plus our business favours NSW....maybe too much land tax in QLD too?

Common Sash , we did have a conversation prior, few years back and actually $10M was easier thanks to rising markets and CG+, really depends on the asset base you hold and where, whether you renovate, add equity or value, improve rents, a number of factors, we become better at what we do too.

MY said one needs 30 years to be truly wealthy via RE, I think I agree, the longer I hold, or add, or remove some, or improve, the lower LVR, so at our stage lowering the LVRs is the game (currently at 26% across All entities including SMSF).

We have been only 18 years in the market now (if I don't count our 1st PPOR bought in 1989) so have another 12 years to go. That's the plan at least to do what we do for another 12 years... it will be exiting to see the budgeted predictions in 2030!
Really, I don't to plan to sell any with such low LVR and the portfolio now, perhaps will just redevelop larger >1000sqm blocks, or on sell to developers, or kids can do that? Having the choices is what is exciting to me !

For now, it is just a numbers game, and the excitement is in helping those close to us getting ahead...if you know what I mean!

 

i can't wait another 12 years...I am 51...need to be out in 4.....

$10m is almost there....but that includes super...I wanted $10m in just property. My LVR high at about 40%......with the developments and selling should put me down to 30% with 2 years....

 

I assume $10M net?
Sash I am a year off your age, that's all! I could have been out already but then what will we do, if we like what we do and are good at it and have the time for other things in life why quit at all?
Although I have been or at least feel partly retired for the last 20 years or so, have not been woken by alarm clock so many years....so I do feel blessed!
You see our LVR is so low excluding offsets, hence the need to invest more....?
Congratulations though, you are a rare breed, don't be so hard on yourself you are nearly there, then imagine what it will be in the next 10 years or so, like your thread said. Don't underestimate what 10 years can do! We have surpassed that but I feel the same whether it was $1M, or $10M or more....!
Personally, the only thing now I have against H&L developments is the locations (unless you plan to sell them and direct proceeds elsewhere) as you said, to me it depends whether there is more land surrounding hence can be again redeveloped and hence can dilute the price of that land again in the future, hence my IPs future CG+. So I sold out some of those locations just for those reasons.
So that's what I meant about the hotels, buying more expensive larger blocks with house, in established closer areas, no land is available there, then eventually being able to redevelop them. I think the land values % growth is larger there - just check that out yourself - do the numbers and see if they work for you? However, you do need a larger asset base as yields on some of those are not so great, unless you renovate, if possible for short term...? As I say sort of playing the Monopoly game, converting few house then into hotels!
I always enjoy your threads so keep posting, even though I am not such a frequent user....

 

I have another quote....you have know when to call it....life is too short...but you need to plan for it.

I too can retire today..but...given life expectancy if you make fifty...there is a high chance you will see 82.....30 years in retirement is long time...but you can't leave it forever...I see too many people keep working....buy not enjoying.....a balance I guess.

 

One of my favourite quotes is..."Life or success is a journey not a destination", so I do try to live a balanced life.... I even think I spend too much now, but why measure, like you say, we don't know what tomorrow will bring!
Had a look last night at some scenic explorer cruises, OMG, some prices for penthouse were like $90K for 3 weeks or so.....
So I certainly enjoy my life now, as you suggested, don't forget to dip in and live a little too! Why after all we worked so hard....?

 

Have you checked out Jerry Paffendorf's dataset yet?
Probably knows Detroit better than most. Good guy to get to know even if he is a socialist hippie

 

Yep...so many still skimp.

Scenic has some awesome cruises...but 90k...i am happy with balcony upgrades