What would your strategy be if you earned $1mil p.a In your twenties!

I was audited 4 years in a row too. The triggers were a multi million dollar property rented out for $200 per week. They couldn’t understand the concept. And my $100k pa expenditure claimed on race cars. It was all ok and it’s been 7 years since my last audit.

 

I don't have that issue right now, two friends have, though perhaps not in the same way.

1. Friend had a business which made $1M/yr. Sold. Did the travel thing, now they invest in start-ups. Some fairly ambitious ones at that. From online-media education, online-fashion retailer, to starting something similar to the ASX but for smaller businesses.

2. Didn't quite earn it per se, his family owns a load of farm land in the rezoned areas of Sydney so has become an instant multi-millionaire. He didn't rush into doing developments himself. He has more positioned himself as being the money partner in other peoples ventures. The skill-set he works on is how to pick good deals other people are seeking money partners for, not so much learning to find development sites himself. He is however currently learning to subdivide 50+ blocks using one of his family farms. He started by investing in smaller projects and learned along the way.

I know others who may or may not be at that point also. They did it through developing, and use their funds to developer larger projects. This would be more because it is their area of expertise rather than because it's a 'good strategy' for everyone.

So from observation, and not experience. They invested in businesses and people, not real-estate. Being a sophisticated investor, there will be much better (and riskier) opportunities available to you.