When did the penny drop for you?

@RetireRich101
this is hilarious

 

When our kids were growing up, we used to talk about the properties all the time. @Lil Skater registered on SS at 14 years of age & was a regular, and well respected, contributor. I used to have people ask me if I was answering the questions, not her.....but no - she did it all herself.

 

She's wise beyond her years.....

 

adjust for inflation, you will have to paid her/him $60 per day

 

Look what I found. You can't hide from me. Awesome work Twins



The power of two - Sana and Mona Ali
Sydney in for a soft landing + The property pulse check with Ian Rodrigues + How to make $100K plus on your next purchase | Real Estate Talk | Your Trusted Voice For Property Investing. Anywhere, Anytime.

 

Hi all,
The penny dropped only recently for me. Friends bought an IP down the road from them in Blacktown and the wife & I wondered how they did that!

A weeks forced leave last October ( I have a bad habit of not taking any) and I sat on the couch and read "The Armchair Guide to Property Investing", googled my fingers off and found this forum and started reading.

Now thanks to @Property Twins , @Rolf Latham , @Richard Williams we're now 2 IPs in and looking for IP3

And thanks to all the property megabrains on this forum for the many pearls of wisdom contained herein.

Its been an amazing learning curve, with a lot to learn yet - but no regrets; and the future looks a lot brighter than I thought possible !

 

@TadhgMor - your and Jan's commitment to your vision is absolutely inspiring. Pleasure to have been a part of your journey!!

 

Haha you found it!!!

 

Why did you sell in Coogee???? IMHO this is a Cash Cow, A Golden Goose, a position for lifestyle! Like in Monopoly after buying 4 houses you can convert it into a hotel!
I bought a unit in Coogee only 3 years ago, renovated, increased value by $410K, rent up from $590 to $850, best unit in the block N an NE facing with a garage, art deco, own laundry with second shower, 2 minutes walk to beach....
You can always draw the equity out and invest more (other than investing say via SMSF).

 

The penny dropped when I was about in my 20s (after graduating) and read Jan Somers book, understood the concept, but unfortunately did not act until 12 years later (had PPOR and land - that's all - tried lots of businesses or rather self employed businesses thinking needed to increase income!). Now have been in it for the last 17 years!
I was easily influenced by the media, now I call it 'outside noise' being told that in low inflationary environment property will no longer double every say 7 or 10 years. And guess what happened, it DID!!! So after reading the Rich Dad Poor Dad and Seven Steps To Wealth, hubby and I understood we need to give it a go, even though started as passive investors!
The rest is mentioned on my MIW interview of Somersoft....
I need to mention thanks to Somersoft and all your valuable input I had been motivated to continue. Also started one kid on investment journey, soon the second one will start after turning 18. I always said to them they will need to own an IP before they will own their car!
Compound Growth... the eighth wonder of the world...so true...yet so many really don't understand it!

 

The media have 'robbed' many, many people 100s of millions of dollars. They are 99% rubbish on all fronts, not just real estate. I have zero respect for most of the media.

 

sold it to buy PPOR in Lane Cove, and diversified a chunk of the equity into shares and IPs. yes, it is/was an amazing asset, but i had all my eggs in one basket. i am so much more comfortable with my financial position now.

 

If this was your PPOR than I suppose ok, and you did buy again and diversified then it makes sense, BUT I still do not like to pay someone the selling and buying costs.
However, I agree with you it may be better to hold few rather than one and to diversify!
My PPOR was paid off so for the 1st time I drew the equity out (mind you 2 years ago then, yet the property increased by 50% in equity since) and invested into more IPs....
We are neighbours as I live on Northern side of Sydney too... Nice to meet you Pat!
Was in Coogee too last weekend, played a tourist to some of my friends from overseas, I think we are so blessed living in Australia!

 

Welcome back @MWI / MIW. Did wonder where you went, the forum was poorer without the wisdom you brought to Somersoft. Glad to see you're back!

 

Thank you Twins,
I can see you have progressed, congratulations, look at you only few years on.... Just imagine next 25 years on, you should be so proud, as I am proud of you!
I think I decided to get serious and be more active in RE, so have been buying lots, renovating, selling some lemons, reading and writing lots, goal setting lots (for the next 10 years where we wish to be financially), mentoring family and friends lots, helping them buy lots, enjoying life lots!
I suppose part of being financially free is that you become wealthy, and by wealthy I mean your whole lifestyle, the holistic approach, where you now learn to live well, you 'fashion' for yourself the good life. Remember it is great to build financial freedom but don't forget to enjoy some of it along in your life journey.
Now I realise that money makes only sense if it can be shared, with family and friends with your closed ones, for your causes, as there is abundance there for those that wish to have it. So now I design how I spend my time, and sometimes it does not resonate with many, as they do not understand what I mean. Having the time and satisfaction in choosing what you do is so humble and gratifying...
I will pop in from time to time as I enjoy reading and certainly I wish to admire the progress of Property Chat people like you!
So make your life great, as Warren Buffet said:
- "You only have to do a very few things right in your life so long as you don't do too many things wrong."
- "It is not necessary to do extraordinary things to get extraordinary results."
- "Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can't produce a baby in one month by getting nine women pregnant."
And my favourite is:
“The most important investment you can make is in yourself.”
So that's what I have been doing (I am sorry to those who will not like my, what did they call it before, "evangelic" approach).

 

My mum (single mum) always told me you need to have a house, otherwise you can't live on the pension when you get old. So that's what I thought "buy a house". So I got a PPOR in my 20's.
I went to UNI after that (with 2 kids) so didn't have money for years. I thought about getting an investment and in 1999 bought an IP. The boom hit and I got nervous with talks of high interest rates so sold (Somersoft was just in it's infancy- wish I had seen it then).
Anyway my penny dropped just before I turned 50 (in 2008). I though OMG I'm 50 and I'm going to work until I'm 65 then go on the pension.
So I started buying and went a bit crazy (according to my husband). LOL
Retired at the end of 2015 (at 57). Travelling fulltime now. Life's amazing.

 

Luckily I didn't have any selling costs for Coogee. Sold it myself off market. But totally understand where you're coming from. I would have loved to have sold the house but reinvested in a unit in Coogee as well as buy Lane Cove but prices are insane. Minimum $1.2m for an older 2BR apartment with parking.

 

I agree, after buying the unit in Coogee and renovating, went to auction after 10 months wishing to buy another one to renovate over the road and the price was $360K more (and it required renovation too)!
However, if you a young and just accumulating than play the Monopoly game, where you buy few you can afford to grow your asset base, eventually the equity from those few may permit you to buy the hotel, than down the tract you can become more choosy as it no longer becomes how many IPs you buy rather what quality asset base you hold. Hence in my stage I am and I can be more selective in the quality of assets I choose.
Although I wouldn't dismiss buying another if opportunity arises as I like the proximity, light rail project to Randwick, lifestyle factor, limited land supply, building restrictions in height, above average earnings for the area.
Remember a good deal comes around every week if we look for it so no point in rushing too.

 

Penny dropped when i learnt that counting on a partner that i dont even know yet to come along and THEN we will build a financial future is stupid. And i can do it myself.

I was initially only wanting a PPOR but this is very addictive! And once you buy one, it just was a natural second step to move onto an IP