All Topics / General Property / How long did you take?

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  • Profile photo of destined_for_millionsdestined_for_millions
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    @destined_for_millions
    Join Date: 2004
    Post Count: 38

    I have a few questions for anyone who’d like to answer…

    At what age did you start investing in property?

    What difficulties did you have in doing this?

    Was your first property an IP or PPOR?

    How long did it take you to back up your first purchase with another?

    How long did it take to acquire 10, 20, 30 or more properties?

    What are your plans for the future, ie. how many properties will get you to where you want to be financially?

    I thought this might be interesting for newbies like me to read and get some inspiration.

    Thanks in advance,
    Destined[biggrin]

    Profile photo of byronent_2byronent_2
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    @byronent_2
    Join Date: 2004
    Post Count: 337

    I would be interseted to hear your answers to the above.

    Byronent
    Adelaide SA

    Profile photo of destined_for_millionsdestined_for_millions
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    @destined_for_millions
    Join Date: 2004
    Post Count: 38

    I can only answer a couple of questions as i am in the process of buying my first…

    At what age did you start investing in property?
    I’m 19 now, and hoping to start my investing in the next few months

    What difficulties did you have in doing this?
    Finance is my main problem as i am on a commission basis, I have been told i need to be at my current job for another month before it can count towards my income.

    Was your first property an IP or PPOR?
    Will eventually be my PPOR, the current place i’m looking at has tenants until at least mid 2005… maybe move in to it or look to extend the lease until i get a payrise

    How long did it take you to back up your first purchase with another?
    Not happening as yet… would like to build enough equity in my PPOR to buy one within 2 years

    How long did it take to acquire 10, 20, 30 or more properties?
    N/A

    What are your plans for the future, ie. how many properties will get you to where you want to be financially?
    I currently really enjoy my job, so staying employed for another 10-12 years full time sounds ok, I would really like to be financially independent by 30 and be able to travel to Africa and work in my sponsor child’s village in Ethiopia (through CCF Australia)

    Hope this answers the questions well enough

    Destined

    Profile photo of OldtimerOldtimer
    Participant
    @oldtimer
    Join Date: 2004
    Post Count: 27

    Good to see young people having a go. My story is not greatly exceptional as it has taken me quite a few years but here goes.

    I started investing around 30 years ago in the early 70’s.

    Finance was extremely hard to get in those days and a friendly bank manager was a necessity to get any sort of bank money. Unlike my peers at the time I saved my money and soon was able to purchase my first PPOR, a unit in Kogarah for around 20K, I think. I managed to save enough to buy another one brand new in 1978 for 37K. I’d never do that these days unless I could get a good deal on it. This one had water views over the bay and as luck would have it we had a property boom similar to the one we just had.

    This more than doubled the value of my places and I leveraged into some apartments and houses in the Sutherland shire. I think I paid 65K for the houses. Not great houses but in good locations. We then had a property slump for a few years, 83 on and you could pick up properties cheap again. I then started to buy run down houses in and around the Eastwood, Carlingford area.

    I was still only in my 30s so did a lot of the work myself to renovate them. Then a big problem happened, high interest rates hit in the late 80’s. I had to drop a couple of places to stay above water. Real estate didn’t do too much for a number of years and if I remember rightly around 1994-5 it reached its nadir. I started to buy up in Noosa at this time. There were for sale signs everywhere and it was easy to knock 30 to 40% off the asking price. Noosa Waters land was sub 200k and average 3 bedders could be bought for 130k. Higher end places were 200 to 300k. It took a few years but another boom happened and the rest is history. In the 30 years I have been in the game it has been ever thus…boom, bust or stagnation then boom again and the cycle repeats.

    My equity in property is about 15 million I think at the present.

    Looking back it is interesting to look at what happened to my peers from school. At a recent reunion I discovered the Dux of my year rented his whole life and had plenty of “if only stories” to tell. That new Torana he bought on HP back in 1974 didn’t make him too much money. This is one reason why most end up on the pension. They have to have it all now. I still drive just an ordinary Toyota but I must admit cars never really did anything for me. I’m only in my early 50s and retired from my job in 1998.

    The things I’ve learned along the way is make sure you have good asset protection. Once you are wealthy someone will want to take it off you. Make sure you have an exit strategy if things go pear shaped, ie high rates, falling asset values. But above all do something. These forums are full of people who will never do anything. Successful people do what the majority are not prepared to do. It is far easier to become wealthy in this country today than at any other time in my opinion.

    Profile photo of destined_for_millionsdestined_for_millions
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    @destined_for_millions
    Join Date: 2004
    Post Count: 38

    Thanks Oldtimer,

    It is good to hear from someone on this topic. I thought there would be heaps of people jumping at the chance to share their stories. Obviously there aren’t as many successful investors reading the posts this week [blush2] he he

    I believe your story IS exceptional considering you have been able to retire early (and comfortably) ahead of the rest of your peers. Good on ya![biggrin] By the way, where are you based? I wouldn’t mind hearing more stories from you.

    Come on everybody else.. share those stories, You know you want to!

    HAPPY NEW YEAR!![party] [party] [party]

    Destined

    Profile photo of obiwanobiwan
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    @obiwan
    Join Date: 2004
    Post Count: 75

    I wouldn’t clasify myself as successful yet, and this is probably not going to be very inspiring as it has taken me about a decade to build up my equity.

    At what age did you start investing in property?
    24
    What difficulties did you have in doing this?
    i had to save for a deposit
    Was your first property an IP or PPOR?
    PPOR
    How long did it take you to back up your first purchase with another?
    3 years
    How long did it take to acquire 10, 20, 30 or more properties?
    i have 3 properties atm, PPR (no debt) and 2 commercial (40% owing). My philosophy (and other people may disagree) : just the act of buying property or stock doesn’t make you money. Any fool could go out and buy a whole load of stock or property.
    What are your plans for the future, ie. how many properties will get you to where you want to be financially?
    I don’t have a target number of proeprties. I would like to double my net worth to 4m in the next 7 years.

    What I have learnt : saving is an essential habit, capital preservation is important, sometimes you will lose – learn from that and get back on the horse.

    Profile photo of Brenda IrwinBrenda Irwin
    Participant
    @brenda-irwin
    Join Date: 2003
    Post Count: 119

    Great topic ‘Destined’, and by your interest, I think you should be able to get there with patience and perserverance.[biggrin]

    Wow,’Oldtimer’, you have been in the game for a while. I only have $12million to go to get to your level.

    I bought my first house, a neg geared beach house, in 1998 with my hubby. Our reasoning was, that should hubby lose his job in the future, at least we may have paid off enough of the mortgage to move in to the house, or have enough capital gains to sell it and make a profit. Purchase price was $125k and permanent rental was $125pw.

    We followed that purchase with a little cottage to rent to my sister for only $27k. After a reno, we charged her rent of $100pw.

    Our PPOR was the third purchase, a year later. It was $70k and this knocked our loan serviceability around somewhat as although we no longer had to pay rent, the interest repayments we unsupported by any tenant rental income.

    In Nov 2000, and after revaluations we bought another IP this time in Brisbane for $105k which rented for $170 pw.

    In 2001, we bought an IP in Ipswich for $55k which rented for $135 pw.

    In 2002, we bought an IP near Ipswich for $50k which rented for $130pw.

    By now, we were realizing what we were doing and in 2002, we bought a total of 8 more IPs mostly around $65k each and rented for around $140pw.

    In 2003, we bought another 4 positively geared IPs plus 3 negative ones, for capital growth. The bank was not happy. Serviceability dropped with the latest buys and the bank said, “no more money, and don’t even ask”.

    More than one way to skin a cat tho, and we sold our first IP for $185k and fully paid out the debt on our own PPOR. Serviceability problem solved. We also sold the Brisbane IP for $220k and a little reno we’d bought in Ipswich for $35k for $80k.

    We then bought 5 more positive geared IP’s in 2003 before the housing boom came and the prices all shot up.

    Latest purchase was in June 2004 for $145k with a rent of $160pw, which I raised to $170pw recently.

    I have just sold one of the earlier IP’s to help with serviceability again and to give us breathing space should interest rates rise or hubby loses his job.

    We got to over $3 million in value with current loans of $1.2 million in 6 years which I am very happy with. All in all, we don’t really have to do a lot more except slowly pay down debt with the incoming rents.

    In the future, I may go crazy again and buy lots more but am content at present to cruise along and have time to smell the roses.[biggrin]

    Cheers Brenda.

    If you want to get out of a hole, first stop digging.

    Profile photo of ScreminScremin
    Member
    @scremin
    Join Date: 2003
    Post Count: 448

    Ok, let me have a go at this one…

    At what age did you start investing in property?
    25 (nearly 26)

    What difficulties did you have in doing this?
    Waiting the 6 months required employment after coming back from stint overseas.

    Was your first property an IP or PPOR?
    PPOR that we are renovating to be an IP in about a years time.

    How long did it take you to back up your first purchase with another?
    6 months. We have just bought our first IP. A huge 5×2 house that will house our future us and our future kiddies quite happily. But for the moment it will be rented out as it gets way more rent than the house we are currently living in. (Plus it isn’t finished yet!)

    How long did it take to acquire 10, 20, 30 or more properties? Not applicable yet, but hopefully the goal is to have 15 properties by the time I am thirty. So 3 and 1/2 years to go.

    What are your plans for the future, ie. how many properties will get you to where you want to be financially?
    We haven’t quite worked out our exact plan yet, but are currently working on it. Maybe looking into lease options and do some investigating about wraps a little later on.

    So we have only just started but we have time on our side and we already have what we want in life. Each other… Awwww so friggin sappy, I know…

    Success is 1% inspiration and 99% perspiration.

    Profile photo of femaleage20femaleage20
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    @femaleage20
    Join Date: 2004
    Post Count: 68

    It is really nice to here people’s stories! I’m 20 (hence the username!) Me and my now Husband brought our first home when I was 17, since then we have used our money and skills to reno the house and after expences ($20,000 on reno) we’ve made about $60,000 in unrealised gains. Our goals now are to move closer the sea and the city where we’re hopeing that property opertunaty’s will open up or us.
    OLDTIMER- fantastic story, I hope we to will achieve as you have.
    At present I’m busy bringing up our 2 boys (under 5) and feeding my addiction to reading all about PI.

    A suggestion if you haven’t read my other post “subscribe to Australian Property Investor Magazine” each one they’ll tell you a great story of average people making it bigin PI.

    Bring on the success stories we could all do with a dose o motivation!

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    I’m almost embarrassed to add a post here. I am 32 and have only my PPOR (Val 460K, owe 300K) and 100K in shares.

    I should add though that I have also been investing quite heavily in my business for a few years now, by way of forgoing wages and dividends. This has placed me in a position where I have a strong and growing income (though not passive). I am now looking to consolidate my work into lasting wealth and passive income through property and further share investing. I’m actually looking at my first IP at the moment.

    If you like the idea of working for yourself, your own business is another area where you can invest. In my working life I worked for somebody else (in terms of full time employment) for a grand total of 3 months.

    I would also like to say that while I have always spent less than what I earn, I have travelled overseas quite a number of times and have spent liberally on my social life. As a 19 year old, you should recognise that these things are also important. You may travel and go out when you’re older, but the experiences will be different (most probably a lot less wild). On one of my many nights out I met my beautiful wife, so I have no regrets on spending money in this way.

    Regards
    Alistair

    Profile photo of ScreminScremin
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    @scremin
    Join Date: 2003
    Post Count: 448

    Alistair you shouldn’t be embarrassed at all.

    Everyone chooses different paths in life and yours has lead you to your business. I am envious that you have the guts and determination to go it alone. I would love to have the balls to be self employed but not just yet.

    Plus you said it, if you hadn’t done the things in your life that you have, you wouldn’t be at the position you are in now. I’d say just having a loving wife is a pretty mean feat as well. (Well, that’s what my hubby reckons. He still thinks he is too ugly to be married! Me, I think he’s a cutie.)

    Good luck in the new year and live and love life!

    Steph.

    Profile photo of OldtimerOldtimer
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    @oldtimer
    Join Date: 2004
    Post Count: 27

    Hi Destined,

    To answer your question I live in Sydney but I spend a fair bit of time in my place at Noosa.

    I don’t post too much but I have followed your investing path Brenda. Well done. Your attitude and approach to investing really is exceptional. For what it is worth I think that in the current market your stance is also very prudent.

    Wishing you all a very happy and healthy 2005.

    Oldtimer

    Profile photo of femaleage20femaleage20
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    @femaleage20
    Join Date: 2004
    Post Count: 68

    In regards to starting your own business,in the ‘rich dad, poor dad’ series he writes ”always think : “how can I serve more people, do less work and make more money” We to are hopeing to set up a cabnit making firm in Port Lincoln and put it toghether in a way where it could easily we run by someone else.

    Profile photo of ScreminScremin
    Member
    @scremin
    Join Date: 2003
    Post Count: 448

    Good luck female.

    My hubby trying to get out of cabinet making coz there is no money in it. All very hard work for very little.

    He wants to help out others but the way he feel he can with his trade is to help train up and coming apprentices through tafe, so he is going to look at that avenue.

    If you can make it work though, excellent!
    Good luck again.
    STeph.

    Success is 1% inspiration and 99% perspiration.

    Profile photo of lukis plukis p
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    @lukis-p
    Join Date: 2004
    Post Count: 47

    destined what a great question.

    I started my portfolio at 20. My father died and i had 40 k and invested it in a villa in wa scarborough 126k. it was my and my defactos ppor, after living in it for some 6 years and spending 15k on renos we now rent it for $230 a week. We have bought in Craigie, Joondalup and Clarkson all in WA. I looked for under valued properties ie properties surrounded by expensive suburbs, close to 1 or more attractive things to tennants ie majour shopping complexes, good public transport, beaches etc… I like suburbs like padbury and have spoken to the girlfriend about purchacing there.
    Anyway, we have 4 props and are looking for number 5 this year or next.
    Started investing in prop at 20.
    properties worth 900k loans of 500k
    just fixed finance at 7.4% for 15 years with free loc…could go on but dont want to be an advert for a bank.

    Our biggest problems were 2 fold- All my partners family got very concerned when we bought our second prop (in Craigie) and more so with each new purchase. They were worried that we could not afford them. But it has always been our philosophy if we cant afford them we sell and start again. We are young enough (27+28). But now family and friends r not worried any more and seek our advice on how they can do it. We did it on 28k and 23k a year jobs, it is do able.

    The second prob was 2 lots of bad tennants in our Craigie prop. The insurance wiggled out of their commitment[argue]. And the prop has been vacant for 1.5 yrs but we have saved thanks to a big tax refund and r renovating in feb. We had people offering to buy the prop for 150k as is but refused, we paid 133k a bout 3 years ago and now os worth 200k+. Hold for ever is our stratagie- no cap gains and you buy more by unlocking equity.

    2nd property purchase 3.5 yrs after our ppor grew in value.then the 3rd 1 yr later and the 4th 1.5 years later.

    only 4 props so far. I enjoy the “hunt” in finding properties and managing agents and researching, and looking at home opens etc so i want to buy as many as possible until i no longer love it.[computer]. It is my hobbie[elf].

    [medieval]1 tip i have for people out there is to consider getting a job for a govt dept or local shire in a country town. Often you can get housing supplied real cheep with the job. I live in karratha and pay the shire 76$ per week to rent a place that would cost me 350$ plus a week from a real estate agent. If i was in perth 1 of ny ip’s would be my ppor and i would be missing out on the rental income now get. I dont think i will ever leave the regional areas with housing supplied, because I love it here and it is such a great deal.
    Hope this is interesting for everyone and good luck with your dreams. Make them happen while you are awake.

    Profile photo of destined_for_millionsdestined_for_millions
    Member
    @destined_for_millions
    Join Date: 2004
    Post Count: 38

    Thanks for your reply lukis…

    It’s great to hear from people who are going well in their property investing. Yours is a more inspiring story than others, as myself and my girlfriend are on about the same wages as you were when you first started out.
    I am looking to be a buy and hold 4eva type of investor too… It may not be the way others choose to go and it may not be the best way, but it is my way![blush2] I am fairly close to buying my PPOR and will hopefully be able to buy another in approx. 1.5 years if everything goes to plan.

    I look forward to hearing others’ stories

    Destined

    Profile photo of ian_from_brisbaneian_from_brisbane
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    @ian_from_brisbane
    Join Date: 2003
    Post Count: 97

    Hi!

    At what age did you start investing in property?
    25 (I’m 26 now)

    What difficulties did you have in doing this?
    Trying to save a deposit while simultaneously clawing my way out of $25k in bad debt (still 10k to go, but i think putting spare cash into property is still best in the long run, rather than pay that down and have to save another deposit).

    Was your first property an IP or PPOR?
    PPOR for the sake of the FHOG and stamp duty concession, but will be an IP as soon as renos are complete. I bought a 1 br unit in November 2003 for $125k and just had it revalued to $145k (all I’d done to it so far was rip out the old 1970’s flouros etc and put modern lighting throughout). With this $20k, I’ve spent half on reducing bad debt and the other half is going into new kitchen, bathroom and laundry starting in about a week to bring the place up to $160k (or at least $155k and therefore pay for the reno).

    How long did it take you to back up your first purchase with another?
    I haven’t yet, but I’m probably looking at May this year, so I guess around a year and a half.

    What are your plans for the future, ie. how many properties will get you to where you want to be financially?
    Other than have millions of kids one day, my big dream is to see Earth from above… so however much that costs in the decades to come, I’d like to have enough spare cash to be able to float around up there for a week or so as a tourist (in space). I guess I’ll need at least 300-400 average properties to make this happen.

    -Ian

    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150

    Great contributions everyone. Really impressed with “Old timer’s” and “Brenda’s” replies. Just imagine if we could tap into all that knowledge that is obviously out there in the community. I remember a famous quote by an elderly chap worth a few billion who still is running his show – who said “You can’t teach a new dog old tricks”. I’d like to learn some of the older techniques.

    Anyway…..here goes;

    Bought first prop (IP) with wife just after getting married at 24. Very -CF. Big thing was scrapping up the 10% deposit. Got shafted royally by the finance broker. Haven’t used one since.

    Bought second prop (IP) two years after that. Very -CF. Got shafted by white ants – despite an inspection. Tenants eventually destroyed this one.

    Bought third prop (PPOR) – paid cash for our PPOR. It was nothing flash (3×1 B/T) but suited us at that time. Made no mistakes with this one. Learning curve starting to plateau.

    Bought fourth prop (IP) – a big step for us at the time…posh suburb…very -CF.

    Bought fifth prop (~IP, beach shack)…not really for investment…mainly for fun…very -CF.

    Sold Props 1&2…very good move – pumped it into equities – no tenant hassles or ongoing costs.

    Bought sixth prop (IP)…extremely -CF. Definitely worst house in the best street scenario….lotsa work and no cashflow. Ended up being our current PPOR. Paid off now.

    Bought seventh prop (IP)…riverfront but extremely -CF, so much so, vowed never to buy another residential prop. Getting crushed at this stage by interest payments. The goal of giving up work and retiring was moving further and further away !!!

    Bought eigth prop (first IIP)…big +CF, much better…eased the tension heaps. Nothing to do and costs us nothing

    Settling on ninth prop now (2nd IIP)…big +CF, and cashflows are looking better all the time.

    Despite the -CF outpouring over the years, the growth has gone through the roof, which was our aim. We’ve gone from 10K equity to controlling 8MM. Bank has just approved another 3MM so we are currently on the hunt for props that have the ability to replace my job/ income.

    There is a heavy expectation to retire in 2 years and 4 months at the age of 37. Retire from working that is, not buying IIP’s.

    Would love to hear some of the other older investors tales.

    Cheers,

    Dazzling

    “Go hard or go home”

    Profile photo of Lou32zLou32z
    Member
    @lou32z
    Join Date: 2002
    Post Count: 26

    great question Destined. Its quite inspiring to read all these stories. It just shows some of the many many different paths to property investing!

    I started in 2000 aged 23. Jumped on the d’oh!-better-hurry-up-and-buy-something-before-the-only-thing-I-can-afford-is-a-kennel-bandwagon. Glad I did. I bought my current PPOR (2bed unit north of Sydney).

    Its now almost 5 years on, and through paying off my current mortgage and paying for my postgrad uni degree (not to mention blowing money on my favourite hobby – fast cars!! [biggrin] ), Im finally ready to jump in and buy my first IP.

    It certainly is daunting taking the plunge on your own, but Im willing to give it a shot at the end of the year – giving myself the first part of this year to get serious about investigating and researching my target areas.

    Good luck with your own investing!

    Cheers

    Louise

    Profile photo of SnowySnowy
    Participant
    @snowy
    Join Date: 2004
    Post Count: 89

    Hi[biggrin]
    I’m new at these posts but I find reading them very interesting.

    I have enjoyed the stories, and the way you have asked the questions Destined.
    Thanks.

    I am 32 and have only seriously looked at property investing in the last year, after reading Steve’s book.
    This is the year for me to really make IP work.
    My plan is to retire (from working hard) on my 40th birthday and have enough cashflow from my IP.
    I have always travelled around, been self employed which I wouldn’t have done it any other way.
    But I never really looked at the future until I hit my thirty’s and thought WOW I have to do something, so I have choosen this way. As my husband has choosen the stock market.

    If only I had started in my 20’s, but no point thinking what if.
    I beleive it’s never too late (hopefully) your just gotta keep trying and simply just do it.

    Thanks again to all those people out their with your stories as it does help knowing it can be done.

    Snowy[cap]

    Snowy | Cre8tiv Home Styling
    http://cre8tivhomestyling.com.au

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