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

I think that 3rd one is just as much priorities as it is immaturity. I'd give up every cent I have to be 20 again and I don't reckon you could name me an amount of money to give up the experiences I had as a 20 something instead knowing full well that they'd be impossible to do now at even 30!

 

likewise. I had a couple of side businesses then started one somewhat seriously at 21, it was doing really well, grew too rapidly and crashed and burned when I was 24 or 25; leaving me completely broke and took a few years to start recovering.

the lessons I learnt AND the fun I had can't be replaced. plus the ideal time to do something like that and make big mistakes is when youre young, have no dependants or responsibilities and have plenty of time to recover.


not sure why you feel you can't have fun at 30 though!

 

I don't need an interpreter Spludgey, exponential growth as the base gets bigger.

Makes sense.

 

Learn how to trade financial instruments like CFDs, Forex or options in the next 10 years. If you'll do it everyday 10 years should be enough. It's a lot better than bet on the property market which might stop rising. (and it will) You can retire at 30 having a nice skill and interesting life in trading, but you have to have passion for this - it's tough.

 

I didn't say you can't have fun at 30 but you sure pay a far greater price than at 20!

There are a lot of things that just aren't realistic at 30 that were at 20 or 25. Sports is the major and obvious one I think of firstly, as someone who has had sports as a major part of their life and is now having to transition to doing other things. Travel is another that changes massively, especially group travel where the group has gone from 20 guys you could easily get 10 to commit from to maybe 4 if you're lucky and only if a couple can bring their wives/children. A night out is the same problem with the added bonus of paying for the next 3 days instead of waking up and planning the next night! I've done a lot of 30ths over the past couple of years and not one of them is going to make my top 50 birthday parties because 21sts and 18ths were just so much better!

Not saying you can't have fun at 30 though, just that you need to adjust the parameters greatly and the ways that you can have fun are very different in many areas.

 

Easy, first you'll need to buy one of these.....

1981 DeLorean DMC-12 Manual

 

I think I was there at 27. Just too young and stupid to realise it at the time. It's great you have identified your goal and that the Internet has now been invented!

 

Wow that's a great achievement to retire in 5 years what was your stretergy ?

 

It was a mixture of reno deals here in Australia and also some Tea Shops in Asia. I think it most likely took just under 7 years but I remember at the 5 year mark I was already free.

 

Wow that's amazing congrats on that

 

Thanks. Blood Sweat and Tears. A lot of tears.

 

Well ...that is very broad question. You need to be more specific.

It looks like you can comfortably live on the equivalent of $40k per annum in todays dollars.

So to your point...if you want to retire by 30 in 10 years time...you will need your home paid off about $1.1m of property fully paid off. This can be done in one cycle provided you buy quality property at fair or under market value either in Sydney, Melbourne, Perth or Brisbane. My preference is Sydney, Melbourne or Perth to get the returns.

So how many properties will it take....probably 5 properties worth about 350-400k will do it. In 10 years time they will be worth between 550-800k. Assuming an average of say $650k per property..and buy in price of $380k.....you will have spend a total of $1.9m to buy ....and in 10 years hopefully you are holding assets of $3.25m. If you sell two places...you should hold assets of about $2m with a debt of say 700k.

Assuming an interest rate of 4.5% and rental returns of 5.1% in 650k...you should have income of $105k from rentals. minus 35k from interest...and costs of say 18k....you should have an income of 55k which would be the equivalent of 40k today.

Thar you have it....good luck!

 

I bet
What state were your Renos in ?

 

So have you done this?

 

I am aiming for a fair bit more than 30k since I want to travel ect... But for those homebodies who appreciate the simple life and are relatively self sufficient.. $570 or so a week post tax is not slumming if you don't have rent/mortgage. I might be biased, since I live in a semi rural area where many people live sustainable lifestyles (growing veggies, running livestock, chopping wood for the fire, alternative energy sources ect), but seriously, I know sooo many people who could live on this... Needless to say it is more than any pension or allowance centrelink is going to offer.

 

Is that sustainable once you add kids to the mix?

 

Historically true. However, I was under the impression the pendulum is swinging in the other direction...

 

You are just messing with me now right?

Seriously though, if you plan on having kids than 30k will not cut it.. Unless you home school maybe? ALSO family tax benefit would help. On 30k you would get max rates of Part A

 

Easy , you could do it by 21 if you wanted .

Just arrange a serious injury so you can't work , Get on a disability pension , accomodation from Houso and you're " set " for life .

Cliff

 

Im 28, and would hate to be retired at 30. As much as I hate getting out of bed of a morning, once Im at work doing my job I actually like it! On days when I don't have much to do I go a bit mad. There isn't much for 30 year old retirees to do- you couldn't hang out at the usual retiree fun spots (I don't know- country club/bowles/RSL lol) because you would be 1/3rd of the age of everyone else! I would be bored out of my brains and on the phone annoying all the non retired people I knew just to have someone to talk to. I think work hard while your young, and enjoy it when your older. If you want to retire your I think 50-55 would be considered an early retirement these days, and if you worked til then atleast you would have a lot more than if you didn't