Seasoned Property Investors - When did you start to realise your hard work?

Hi,
Just after some inspiration from those who have realised their hard work. We are treading water & researching before we look at buying our 5th property in a few months.

We are fairly new to the game having started in 2014. Our goal is to have 11 properties (fitting our strategy)in our portfolio by 2020 and sitting back to wait for the capital gains. The ultimate goal is to have the freedom to retire by 55 if we wish.

We are by no means doing it tough or making massive sacrifices but just want to hear from those that have already tread the path - when did it all seem to get 'easier'? When did you start to feel like you could splash out a bit and enjoy some of the fruits of your labour?

 

Is your portfolio currently cash flow positive?

How much income do you require to become financially free?

 

I have to say, things felt a bit better after the first boom I got to live through where I had skin in the game.

 

Hi MTR,
Yes, currently cashflow positive. We are not retiring anytime soon on our $3000 surplus a year!
We are flexible with what we 'need' to retire and what would be 'like winning lotto' but the aim is for lotto - gotta aim high after all
My financially free estimates are about 10 years off and lotto territory is 13 years off.

 

I can only give you my thoughts and how I achieved some income streams, but it may not suit you, be interested in what PC members are doing.

A number of strategies can be used - buying in the right markets at the right time to increase capital and then either selling down to reduce debt and increase income, that is one option. However, markets are now slowing down so it will be far more difficult but not impossible to do this. Key here is to work with re agents that can source great deals.

Another option will be to take a step outside your comfort zone and start doing things differently where you can either buy a property well below market value and increase value with a renovation and start making profits this way.

Buying, selling and holding, do all three, don't limit yourself to holding everything, don't look at property in terms of the number you hold but how you can create income, this way you are reducing debt and taking advantage of strong markets.

Buying property where you can retain the original home, cut up the block and sell the land, or build at rear. The numbers need to stack up and you need to understand the market you are playing in. There needs to be a demand for this product and this will come down to lots of homework. First, you need to identify an area where this will work.

Consider land and house packages, is anything making sense? Some markets may give you 20% on completion, either sell or access equity?

Buy a development site, put together a DA and flick on to a builder after 12 months. Once again you need to identify an area where this will work. Bring profits back to the table and reduce debt. Plenty of info on this and the key is finding the right professionals to help you.

Buy a development site and build, start with small projects (2/3) and chip away.

Network with people on PC who are creating cash flow streams.

Look at other asset classes that provide high yields.


MTR

 

Hard work was hard work when we started, and 10 years later after having 'made it', hard work is still hard work.
If hard work were easy, it would be called easy work.
Even when you've made it, you may find that you'll still opt to work hard for no other reason but self satisfaction.

Anyway, for us, 'splashing out' came about after we started earning 7 figures, wasn't really related to property holdings.
Everybody's going to be different though.

When things start getting easier, you start doing more, otherwise, you stop growing personally.

 

I guess by easier I probably meant in terms of when does the compounding efforts/property buying seem to start to pay off. I have no doubt we will set new goals and move the goal posts like a lot of PC folk seem to do. Our intention is not so much to drop the effort but redirect it towards personal growth and travel, lots of travel!

 

Important to reward yourself along the way, otherwise what is the point.

 

We probably need to broaden our horizons. We have done 2 reno's, one larger cosmetic and one basic. Next buy might have to be a subdividable block so we can dip our toes in a development. Good food for thought. Thanks @MTR

 

Magnet, sounds like you are going great guns, I assume you purchased in Syd.
I misconstrued your original question, not unusual so just ignore my long post...hehe

 

A cashflow play is Airbnb style renting... who knows what the future holds but if you do 4 Airbnb style rentals each bringing in 20k extra rent per year... numbers stack up

 

Only the one is Sydney but it has started to reap benefits after a 10-11 year wait . Ours others are; Logan QLD, Deception Bay QLD, Salisbury North SA and now looking at adding a Melbourne property if it's not too late by the time we are ready.

 

its not too late for Melb, but it will mean you have to find a gem, that means a dud agent, I may be able to help....hehe

 

I will be in touch to find out about that dud agent when we have all our ducks in a row

 

Magnet. One or two property booms is all it takes to make a bid difference in your wealth. Thats what I found.

The boom of 2003 made things look rosy but then things went flat here in Sydney, specifically Mt Druitt.

Then the boom of 2013 smashed it for six. The more properties you have at pre boom prices the bigger your smile. I only wish I bought up more aggresively during the pre boom.

 

I agree, just imagine if you did this in the last 3 different boom cycles in Australia in 3 years and LVR what could be achieved.
Makes those cash flow properties returning $2K pa.... look insignificant in comparison.

 

Fingers crossed for the QLD and SA booms! Our Sydney property appears to still be riding the wave so Spring should give us some solid comparables to grab some more equity and run. Thanks for your reply, I had a sly grin when I saw you replied...disappointed there was no witty come back though