I am 20, can I retire by 30 through property?

Discussion in 'Investment Strategy' started by Accumulo, 16th May, 2016.

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  1. Biz

    Biz Well-Known Member

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    Honestly 30k passive is very easy to achieve. If you can get access to 1.5mil debt I can show you how to do that...
     
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  2. Plucka

    Plucka Well-Known Member

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    "Crying ***ting germy little humans?" Sounds more like a previous girlfriend :)
    I guess $30k a year sounds fine if you're 20 and living in your mums basement with no responsibilities but once in the real world you'll realise how laughably low this amount is to live on, even without kids (sorry, crying germy things). I guess maybe if you live like a hermit with no life, but doesn't sounds like much of a goal to aim for to me.
     
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  3. Blueskies

    Blueskies Well-Known Member

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    Retire by 30 seems like a common idea for a lot of folks in their early 20s but reality is very few will get there. I think it is more of a dream for a lot of people rather than a clearly articulated goal.

    If it is a serious goal you need to map out both what 'retirement' looks like and more importantly a series of steps that you can take to get from point A to point B. Is it acheiveable, absolutely, I might even say if you goal is only 30k annual returns it wouldn't even be that hard, but need to approach it methodically and seriously, not just have a big dream with some haphazard effort applied along the way.
     
  4. Iamnumber5

    Iamnumber5 Well-Known Member

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    I think you are in a good position to start with at a young age. I don't see anything wrong by setting up a target of early retirement, even though the figure seems low, at least that give you motivation and to be able see the light at the end of tunnel. As you are approaching your target, you will learn so much and may/may not want to revise your end target and continue working at your own comfortable pace with peace of mind that you have achieved your target.

    I think that it is a better way instead of having too big of a target and loose the momentum to achieve it along the way as it is too far of a journey.
     
  5. albanga

    albanga Well-Known Member

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    I have not read all posts but from the few I have read all I can say is make sure you enjoy your life as well.
    Your 20's are arguably the best of your life! I have friends who went the early mortgage route, spent there weekends having a few beers at home. I chose no mortgage and enjoying all I could which included traveling.
    We are now 34, both still have mortgages, they have a lesser one but that trade off is life experiences when I was at an age to enjoy it more than ever without any care or responsibility in the world.

    You can't get your youth back but you can always get a mortgage and pay off a house.
     
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  6. spludgey

    spludgey Well-Known Member

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    That's not really how exponential growth works though.
    My goal at 27 was to have $100k passive cash flow and retire by age 40 (I've largely given up on this goal as I've realised that I don't want to stop working, but let's ignore that for the time being). I'm now 33, or half way, and not even 20% there yet, however, I think that I might still be on track. I've got a decent amount of equity and two properties that I might be able to develop in the future.
     
  7. Mumbai

    Mumbai Well-Known Member

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    I believe it did. You are at 20% at halfway. So, you see you have not reached whee you should have been, so you are working towards it by planning development on two properties.
     
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  8. joel

    joel Well-Known Member

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    30k a year in passive income is a fine target. You're allowed to have more than one goal. Once you reach one, you aim for the next.
     
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  9. bob shovel

    bob shovel Well-Known Member

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    what would NB do?
     
  10. Ed Barton

    Ed Barton Well-Known Member

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  11. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Maybe, but generating income outside of property would be more guaranteed.
    I'd say a strategy which doesn't rely on CG is the best.
    CG can then be taken as a bonus, a very large bonus once you've build a big base.
     
  12. spludgey

    spludgey Well-Known Member

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    I'm really speaking a different language this week to most people on the forums!

    Below is what how I'm seeing investing (an exaggerated model of it) and one how you seem to see it.

    upload_2016-5-17_17-10-53.png
     
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  13. Mumbai

    Mumbai Well-Known Member

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    We speaking the same language. All I meant was have milestones and if need be, re-calibrate or change the goal post. Simple!

    Nice graphs ;)
     
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  14. Biz

    Biz Well-Known Member

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    Do another graph with 100k passive income, paid off ppor and 2 overseas trips per year. The forum loves that shiznit!
     
  15. Sackie

    Sackie Well-Known Member

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    @MTR I agree with you and if we assume that is the goal that someone has chosen, I believe the main reason for this (of course there are exceptions) is that they don't want it bad enough. When you want something so bad... that it plagues your mind.. day in day out... you need it as much as you need oxygen and you chase it with a sense of great urgency....then you'll find a way to achieve it or come dam close.

    Don't get me wrong. I am not saying that approach is good or bad or is for everyone. But I do believe its the approach needed to achieve very lofty financial goals in short periods of time. (yes I know always exceptions to that, but they are few and far between.)

    Just my opinion.
     
    Last edited: 17th May, 2016
  16. spludgey

    spludgey Well-Known Member

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    Will this do? upload_2016-5-17_17-35-10.png
     
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  17. bobbyj

    bobbyj Well-Known Member

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    MMM

    I think the reason why most don't is multifactorial (obviously).
    To be the devil's advocate I will say the reasons are:

    1. People are busy investing in themselves: be in via a learning a trade, tertiary education, essentially up-skilling to increase their earning capacity

    2. Blame the education system: I don't recall ever learning in school about savings, interest (apart from mathematics), and investing. This is all the stuff you have to learn by yourself. Either by self-motivation, mentors, or family environment (which is why socioeconomic status plays a big role in this).

    3. Immaturity. If I had $50k when I was 20. I would've bought a Golf GTI and would've been awesome.
     
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  18. Sackie

    Sackie Well-Known Member

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    Hi @bobbyj, I agree with you on some of that mate. But I am more referring to once people read a property book and decide that 'property is for them' and then set lofty goals in short periods of time. Its specifically those people I am referring to.
     
  19. Biz

    Biz Well-Known Member

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    You're in rare form @spludgey pal.


    I bet someone prints that off and blue tacks it to their wall for inspiration.
     
  20. Sonamic

    Sonamic Well-Known Member

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    Aim for 60k passive by 40 and 4 weeks travel a year. Best of both worlds. Then you'll still have 40 years left to "retire".