Matt's Investment story

Hi all,

thought I would share my investment journey.

I am 30 years old and started investing around 5 years ago. I bought my currently POR in Cremorne a 1 bedroom apartment for 450 k now worth around 800k. All paid off!!

I am currently in the process of purchasing a IP in Brisbane through a BA for around the 550 k mark. Lookng at a house for this one. Was a little hesitate to use a BA due to cost, but thought it is worth the money and one well spent. (hopefully)

I also have another IP in Melbourne a 2 B2B 1C in Hawthorn that is to be built in July off plan. this was purchased for 675 in 2016.

I am currently on around 80 k PA income. My goals is to be financially free with passive income of around 200 k by 40. Think it should be achievable.

Thanks to everyone who has shared their stories.

Matt

 

Welcome Matt

You have done incredibly well for somebody so young. Congratulations.

 

Nice work paying off the PPOR. That's my no.1 goal right now that I'm done buying for a bit. It's my main retirement goal

 

Hi Matt,

Well done I am 31 years old and find it amazing you have paid off 450k as a PPOR already. Even at 80LVR that would be 360k loan which if you just paid principal over the 5 years is 72k p.a.

Is there another business adventure that isn't being disclosed haha?

Actually genuinely interested in how you repaid it back so quickly as our PPOR loan is still 410k (only done I/O) but have already drawn out equity and purchased in Brisbane about a year ago so we are both on very similar paths (although 1 year apart due to our age difference) but your place is paid off and mine isn't.

 

I like big dreams mostly, because if you set out for $200k passive in 10 years and "fail" only getting half way, you've still achieved something huge, that said I am intrigued as to your motivation for hitting this number and proposed strategy.

RE Motivation, what do you need that sort of cash flow for? You currently make $80k pre-tax and have managed to pay off a $450k place (now valued at a lot more) in I'd guess 10-ish years of work, that's an incredible effort and you must have done a fair bit of investing and optimising of your spending along the way.. So assuming you're living relatively happily around your current pre-tax income, why do you want/need 2.5x that?

Re Proposed Strategy, I'm really intrigued as to your plan to go from $800k-ish PPOR > $2m in 10 years. I think with some high risk, high reward plays its pretty doable given that you've already got a solid net worth at an early age, decent income and hopefully further income potential (I think you could probably throw it all on black and potentially achieve that now by selling the PPOR and buying the right commercial property.... Big gamble though as you'd need to leverage up hard to get above the mum & dad super fund purchase price point), but I'd also be really interested to read what your plan is. I'm guessing buy outside of Syd/Mel and hope for a growth cycle to achieve some big cap gains, then convert to income?

 

Thanks for all the great feedback and comments

 

Brilliant, just keep working it.
Good to see you playing in more than one market.

Curious, how is Hawthorn tracking, this OTP product??