New Goal - Starting Today - Advice needed

Viewing 8 posts - 1 through 8 (of 8 total)

Jpcashflow
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@jpcashflow
Join Date: 2007
Post Count: 575
October 12, 2011 - 1:56 am
Hi Every one,
In the last few weeks my overall cash flow position has improved.
Reasons being we have changed some structures towards our business and also cutting out on some expenses we used to have.
New Goal: From OCT 2011 to OCT 2012
1) To bring our PPOR Loan from $110,000 to $99,500. (Need to save $10,500)
Time Line: 12 months = $875 extra a month towards our Home Loan.
2) To have passive income of 10k and then by the following year i would like to double it. (Overall Goal is about 70k in Passive Income)
So my questions is this:
1) what do consider as passive income? (To me it means having income from other sources such as rent, dividends and other sources.
What methods can i use to to make this income?
cheers
Jpcashflow | JP Financial Group
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dcwwood
Member
@dcwwood
Join Date: 2011
Post Count: 27
October 12, 2011 - 4:02 am
Hi Johann,
You're right about passive income but ideally its an amount over and above any holding costs.
What is the value of your PPOR? A 100K loan seems low so if you have a large amount of equity you could buy several IP's.
DC
Jpcashflow
Participant
@jpcashflow
Join Date: 2007
Post Count: 575
October 12, 2011 - 4:25 am
Hi DC,
My home has been valued at 420k by the bank. I have done pretty well for my self at the age of 27 too.
I am selling my business at the moment and once that has been done i will be looking at investing again.
but with such large amount of equity "yes maybe i can buy a few properties" But at the same time will i get the return on a postive cash flow basis or will i have to outlay money too?
cheers on your thoughts
Jpcashflow | JP Financial Group
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Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
October 12, 2011 - 7:25 am
Jpcashflow wrote:
Hi DC,
My home has been valued at 420k by the bank. I have done pretty well for my self at the age of 27 too.
I am selling my business at the moment and once that has been done i will be looking at investing again.
but with such large amount of equity "yes maybe i can buy a few properties" But at the same time will i get the return on a postive cash flow basis or will i have to outlay money too?
cheers on your thoughts
Hi,
I remember your own post ( regarding the Business and CBA); so i would say avoid paying down your PPOR ” directly” But instead add the extra surplus fund into your MISA account ( Cba’s offset account).
That way:
1. Interest is still less for your PPOR
2. Emergency funds that YOU can control – owing a small business is NOT easy and anything could happen…get sued?etc — CASH IS KING
3. Buffer
Regarding passive income- what you have mentioned are the common ways of achieving passive income…wont be easy i have to say…
But as DC mentioned, having 50k passive is all good, but it depends on the holding cost as well.
Like any investment it comes with it’s initial outlay and risk. Being so young you have one important weapon in the investing world and that is “time”….you have time to ride out any negative changes in any market.
So i would say GIVE your investment some time and use “time” to your advantage…your not going to jump from 10k passive to 50k passive with no outlay + low risk within 12 month- applies to shares and property.
When i was still in H/S, i paper traded property and shares on a weekly basis- keeping track of all my ” virtual” investments did this for a good 3 years- i had time and NO money at that time lol
Once i got my first full time job and save up my first deposit – Boom! bought my first place within 9 month of starting my job over a period of 7 years bought a few more IP and shares. Was a long journey but till this date in time i still haven’t sold ANY of my investments as im giving it time to grow further + if i sold all my investment as of today and paid out all my debt i would have excess of $1.3M in cash ( after all CGT paid etc..) and im also only 27 + still living at home like a true Asian
Moral of my life story.
Give your investment some time + i personally believe capital growth is more important then cash flow in term of wealth creation.
Regards
Michael
Mick C | Shape Home Loans
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Jpcashflow
Participant
@jpcashflow
Join Date: 2007
Post Count: 575
October 12, 2011 - 9:47 am
Thanks Michael
well done were both on a way up and doind well for our ages
im looking at shares at the moment maybe buy.1k a.month.
Cheers
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
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Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
October 12, 2011 - 10:27 am
Shape wrote:
and im also only 27 + still living at home like a true Asian
I always assumed I was the young broker on the block…..I just hit the ripe old age of 29
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
October 12, 2011 - 11:34 am
Both under 30….both young.
Richard is the ummmmm “experienced” one here ahah
Regards
Michael
Mick C | Shape Home Loans
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Jpcashflow
Participant
@jpcashflow
Join Date: 2007
Post Count: 575
October 12, 2011 - 10:07 pm
Moral of the story there is always some one who is going to be younger.
we sound like a pack of old woman lol
Jpcashflow | JP Financial Group
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Your first port of call in finance :)