Same strategy but two different outcomes

I thibk the intention was the same.
Buy a few properties in your area and hope thatll be your nest egg at the end

And this brings up the debate of cashflow vs cg debate

But this area was a very average area back in the day.

I find it interesting that it is 2m vs 30m . A huge difference

I doubt the 30m couple were thinking. Oh one day this area would boom

I think luck played a 20m role in the end result.

They would have bought in to the blue chip subrub when they first started had they set out to do so

 

I like to think of it as "accidental appreciation".......met some older folk who purchased land for beachside fishing shacks and ended up with $$$millions.
No due diligence required, just location, luck and time.

No shame retiring with $2m either........most of the population will be dead/broke.....and I bet they enjoyed some steady cashflow along the way.
And $30m....hope they are not the richest people in the cemetery...!

Wonder who had the biggest passive income.......?

 

@TMNT now that you have some brilliant answers, can you tell us the sub u rb and town? Or is there a m'privacy issue'?

 

Sure i dont know them personally.

The richer couple owned 15 properties in glen Waverly. Apparently all on the streets with high density. Prucahed for somrthing ridiculous like 10k from the 70s to 2000s

The other couple 5 in newcastle and i cant temeber the other 5. They apparentlty sprnt their younger married years in new castle and moved a little further out

 

Was Glen Waverly a slum many years ago ?

 

it was never a slum,

it was simply an average suburb that had absolutely nothing going for it

whats propped it up is the asian population boom in this pariticular suburb,

there is also glen waverly secondary college which 20 yrs ago was just another a school in the suburbs, but now is one of the most desirable i nthe state and you have to be in the catchment area

im no expert, but I doubt anyone would have predicted the asian population boom to the area. the schools reputation has been increasing over the years though

 

Second that @sash !

I agree a combination of CF+ and capital play will help develop a more balance portfolio.

I mean, the question I would ask the couple with a +$30m portfolio is how do they keep acquiring debt without getting rejected by the banks after property #5.

 

This is what failure feels like folks!

 

Although not easy, the obvious determinants of high incomes and solid equity would have been what got them there. But don't forget, we are talking pre-APRA. It was a very different world then.

 

Clear exit plans and Opportunity cost is a big one.

 

In my experience. Most property investors dont have a strategy except to keep on buying and buying in fairly low risk decent areas.

Not many people intend to have more then a few ips.

Real estate fortunatrly is long term , low risk, high barriers to exit (ie you cant just have a bad day and decide to sell withitn 24 hrs)

Thats why most people buy and forget while those that got a bit lucky and boufht decent properties will end up with a decent chunk of equity after a cycle or two

 

I would prefer 2 million than 30. 2 million - means I'm still worried a bit about my future, so I have to act one way or another. 30 million will make me a lazy bum with no reason to use my brains whatsoever.
Never understood why some drive a Bentley or live in a house more than 300 sq.m., no reason for that in my book.

 

TMNT ........ You cannot eat capital/equity..... there is more behind every story, that is if you have been fed the facts. One may have required much more income than the other.

You really need both, cash and growth & they are not exclusive of each other.

Oh, and did you ask them how they cope with the land tax and outgoings for last decade or so.......

 

People become blinded by the money and quickly forget their original goal.

I knew a fellow whose household income was 3 times higher than ours, always had brand new hire-purchase luxury vehicles and lived in a huge brand new house. He could not have been any more miserable or jealous of other people (us included).

We have always lived modestly on one income, 4 kids, drive two cheap cars and life is great! I don't see us changing our way of life no matter how much our financial situation improves.

 

I say this respectively.

But its because you are thinking like a person that doesn't have 30 Million to spend.

 

That's correct. I had my chance in the past and turned it down. Money isn't everything. Health and peace of mind mean a lot more to me than a pile of money bigger than my comfort zone.

 

In early 90s to 2000s sites were 250-500k in glen Waverley got relos who bought there throughout those times so they must have spend 3.5-7.5 mil. I was still in high school and Uni back then. Those 15 sites must be ard 800-1000 sqm + more to be worth 2-3 mil which seems like a damn lot sqm. Rentals in gw is also not exactly high as in CBD As those kind of sizes doesn't come up that often and don't often even hit the 3mil mark

 

If i had 30 mil id keep investing until im earning a million a year

 

I just dont really see the point or a need for that much... but... even 30 mill at less than 4% rate of return is over a mill... so all you would need to do with your 30 mill is to invest it, even in a fairly defensive manner (but not in a regular bank account) - presto, there you have it.

 

Then id aim for a million a month