Whats your strategy to become financially free thru propertie ?

Hey, I didn't know you didn't agree with me on much

And I work in IT as well, maybe we do have more in common than we thought!

A book I read a couple of years ago was Robert Kiyosaki's guide to investing. In that he talks a lot about business and it is the cornerstone of being truly rich.

This isn't an exact quote but I really liked what he said;
He said the average person (PAYG) pays their tax before they get their pay packet.
The smart person gets their pay packet before they pay their tax.

Whilst I am PAYG I do have a side business and just seeing the comparisons about what is possible with tax makes this a very powerful statement. As you said in your comments, there is just so many ways to minimise tax if you have your own business. As PAYG you are severely limited.

Another thing he said that I liked is to be rich you should learn 1 new financial meaning a day. Whilst I have not entirely done this I have tried to (hence i spend so much time in the finance and taxation sections of this site). It is amazing how much more i know with this simple lesson.

 

So true. In a job your cash flow is limited to what someone else is willing to pay you. The capital value belongs to someone else.

Working for yourself, you control the outcomes. Your cash flow and capital growth is only limited by your own hard work, the decisions you make, the people you choose to employ.

The chances of failure are higher, but rewards of success are much greater.

Build a business. Use the cash flow to accumulate properties. 10, 20, 30 years later sell the business and pay down debt. Overnight you're financially free forever.

 

Ditto to you @Plutus

 

No one knows what will happen in 10,20,30 years time. The strategy of 10,20,30 years would be the hope strategy....hopefully still alive in 30 years time to be financially free.

 

I have a feeling that I got you and albaganga mixed up, or maybe it was the same thread(s) about first home buyers/"kids these days".

 

So your strategy is...

YOLO

If you've got a financial freedom strategy that can be acheived in less than 10 years, feel free to share it so we can critique it.

 

Have already shared it, many times.

 

That is the greatest thing about this site though. We don't always agree but I have the utmost respect for everyone that contributes and value every opinion.
I have learnt a lot from the other side of many arguments on this forum

 

Business to accumulate some properties first and then you can easily move back to PAYG again. One you have a few assets to minimize your tax burden then things will be a lot easier

 

1. Get a job
2. Wait until you get your paycheck
3. Bet the whole thing at least 500/1. Ideally 1,000/1
4. Pray for a miracle
5. Repeat for 10 years

Alternative strategies:

1. Repeat steps 1-2 of previous strategy, replace step 3 with buying paycheck worth of lottery tickets

2. Start a multi level marketing scheme. Its not a pyramid scheme, we are all equals comrade.. Think of it more like a trapezoid scheme where some of us at the top are just a bit more equal than the rest.

3. Live in a van down by the river, eat things thrown out by stores & bank/invest 95%+ of your pay. Living in an old boat in the river sounds classier, but is probably less comfortable (unless its a nice boat, which would be $$)

4. Invest as much as possible and plan to move to somewhere in the developing world where your dollar will go much further & most of your investments can continue to snowball. Hope you don't need access to good healthcare or have any reason to return to Australia any time soon.

6. Gold Digging. For some reason I doubt James Packer has dated so many beautiful and famous women due to his personality..

7. HIGH RISK / MORALLY QUESTIONABLE strategy guide: The little black book of scams

8. Start a new religious order (the word "cult" has such negative connotations)

9. Umm.. did I mention the trapezoid?

 

What is the actual net yield (rental less all expenses) of the NRAS ?
Where are the NRAS properties located?
IE in the CBD or CBD fringe , do some have sea views ?

 

9-10K CF+ typically, at today's interest rates and borrowing 100% + stamps + 8-10K Buffer.

I've sold NRAS in ;

Metro Sydney - Castle Hill, Elanora Heights, Enfield, Gregory Hills, Rosehill, Harris Park, Bungarribee ( Bunya Estate) , Canterbury, Pennant Hills, Macquarie Fields, Mortlake and Wentworthville and Warriewood.

Regional NSW - Orange, Dubbo, Port Macquarie, St Georges Basin, Fairy Meadow, Goulburn Maitland and Moss Vale

Metro Brisbane - Gaythorne, Mt Gravatt East, Alderley, Annerley, Windsor, Nundah, Cannon Hill, Wynnum, Sherwood, Fitzgibbon , Morningside, Zillmere and soon Taringa

Metro Melbourne - Ringwood, Brunswick.

Metro Adelaide- Athol Park

Metro Perth - Gosnells, Baldivis, Rockingham, Madeley, Dayton, Vic Park and Brabham

Regional WA in Dunsborough ( dual occupancy ie double NRAS that yield @ 22K CF+ tax free )

I've probably missed a few, but that should give you a fair idea.... By and large, these projects have been exclusive to me, where I organise the NRAS allocations and have exclusive sales rights...you won't find my stock on the net being sold by marketers at inflated prices. I run a B2B business . Planners, Accountants and Brokers bring their clients to me, where I show them how to use NRAS to put their dormant equity to work with the end goal being to reduce their taxable income to the lowest level possible, increase their after tax income to the highest level possible, then use that to pay off their PPOR mortgage as fast as possible, then use that equity and improved borrowing capacity position to build a large portfolio that they can hold at zero cost... before selling some to pay off all debt and leaving them with an unencumbered PPOR and several unencumbered INV properties generating a healthy passive income for life. We dont focus on growth, as we believe that holding long term takes care of that itself. But we do very much focus on the yields NRAS produces, as that facilitates debt reduction, which facilitates borrowing power.

I also do a lot of business with PC members who seem to enjoy my posts and with whom my strategy resonates. Several have purchased multiple NRAS approved dwellings from me. All tell me they are very very happy with their purchases and the cash flow they are seeing. We live by the keyboard and die by the keyboard on forums, so if they'd had a bad experience or been duped, you'd have heard about it long ago and I'd have been torn to shreds the same way the NB's and whatnot of this world get torn to shreds here.

Put simply - over 350 settled NRAS deals in the past 3.5 years or so since I started Hibernian, with 1 val shortfall ever. And as the guy who designed and implemented the first NRAS loan product in Australia back in 2009 , I like to think I know NRAS better than anyone, and put NRAS deals together far better than anyone else...

PS - Mortlake has water views - the site is 50 metres from Parramatta River/ Sydney Harbour . Rockingham has ocean views - its 2 streets back from the beach. Elanora Heights...if you squint

 

Agree with you @albanga, that's why to make the big bucks you really need to turn investing in property into a business and not just buy and hold and wait. Nothing wrong with that at all, but it wont make most ppl super rich if that's what they are after imo.

 

Is your website hibernianwealth.com.au ?

 

Correct

 

Property is one of a growing number of income streams trickling into a river of passive income for me.. the more, the better.

 

Same. Property is just one income stream I am growing. I don't want to rely solely on super, or listed securities or property when I retire. I want income from all of them!

 

@euro73 , what happens when the NRAS ends? Is NRAS the equivalent/the same as housing commissions? I noticed no more NRAS in Sydney, what does that mean exactly?

Sorry for the silly questions. I know nothing about it.

 

Not remotely like Housing Commission.... not even close. There are multiple threads on NRAS where you can get up to speed on how it works.

That's OK... it's important to ask questions. Do some reading on here and all your NRAS related questions RE what, how etc, will be answered.

PS - yes I do still have some Sydney NRAS available....

 

I am only 25, now have 7 houses so I'm lucky I have time on my hands. But my strategy is to buy and hold 10 to 15 properties before I'm 30. Wait until rents go up. Renovate some of the houses/ subdivide others. I also want to start a business in the next 3 to 5 years. I will drive trains part time and earn about 500 in the hand a day doing this. May do 2 or three days a week. When I want more income I will borrow for my expenses on the properties so it's tax deductable and use the extra income from rents as income. I will build up a property management business as this is what my Mrs does and that can be income as well.
Aim is 1500 a week from houses / 1000 a week from the trains 2 days a week, other income from property management. Hope to be doing this by 35 to 38 years old.