How?

$1500 pw = $78,000 pa

To get $78,000 pa on a rental yield of 4%:

= $78,000/0.04

= $1,950,000

So you would need about $2 million worth of unencumbered property to get $78,000 before tax if you were getting a yield of 4% after paying costs.

You mentioned that you will be out of work…

Even if you have $140,000 saved up, the only way that I can think of for you to perhaps get close to your goal is to use leverage. But you would still need a job, and perhaps a high paying one at that, in order for you to get the loan serviceability and to get those loans in the first place.

Will you still be in a job, and if so, is it a high paying one?

Put it all on black!

I'm going to ask the bleeding obvious:

1. Why can you not have a part time job of some kind to cover your living expenses during this time of re-training?

2. Why do you need $1500 a week?  An individual can live on wayyyyyyy less than that.  I assume you have a partner and children  you are supporting?  If so, why can the partner not get a job during your time of career change?

Make sure your first car is a Ferrari.

Thats one way to learn how to handle a car and find out how expensive it is to crash.

Seriously .. if you think you are going to rip straight into a set of properties returning x% and make your first ludicrous amount of lucre (money) you are …. tasking yourself to the extreme.

Put yourself in the novice drivers seat and learn your market .. if you want to go faster and sooner .. then learn more about what people who HAVE gone faster and sooner have done.

Bite and Chew. Its a simple strategy.

Bite – Learn how much financial pressure you are prepared to take onboard and how much risk and ability to absorb risk you are prepared to involve yourself with.

Chew – Having accepted the amount you have 'bitten' you give yourself time to become familiar with the figures and expenses and tenancy pattern involved. Once satisfied with what you've 'chewed' off, you can go back for another 'bite'

you either dip your feet in the water and learn if you can handle the temperature and flow .. or you become the next person to rush in .. make a series of well intentioned heady mistakes and spend the next twenty years telling anyone who will listen how property is such a scam.

Thats the reason i'm on here. I'm like Steve .. i've made my money (twice) and really had no need to write a book about it. However .. to present a picture for starters who are on their way .. i'm here for them.

And if you are really smart .. even now .. there are still ways and means to make a fortune .. even quickly. But it requires smarts .. it requires negotiation skills (do i keep repeating this to sound wiser or does it really work) and it requires the time you might usually spend watching some inane TV show that keeps you entertained.

They wont be the same ways that any other investor took. Often that road has been taken and the path to that particular achievement is long gone. But they will be YOUR path .. and the successes you have will be based either on taking onboard other people's experience .. or making the mistakes yourself.

Think about that last statement .. and take it onboard.

My feeling for you Adiskay is this.

If you are going to take a 'fast' strategy .. you'll need to accept more positively geared (or neutral) property with ongoing potential. With a faster strategy you'll need more positive and highly positive (1%+ over loan and expenses) to get you to the point and potential you wish to achieve. You will need to take on slightly riskier propositions and be prepared to do some of the work on upgrades yourself. Allow plumbers to do plumbing .. and electricians to do electrical work. But painting .. tiling .. cabinetry, and any place where you feel you can save money .. thats where you will benefit.

Skill yourself up .. and prepare yourself so you can achieve results quickly when required.

Good Luck.

AdisKay,

From having read your comment #15 i think you are missing the point.

What you are asking is how to do things to get to a certain point of finance.

And here is what i'm saying. By the time you get to that point of finance (unless you do it EXTREMELY quickly) your point of reference will be irrelevant. The money you would have wanted .. WONT be the money that you need or want in that point of time. Money itself moves. My father's big dream was to RETIRE on 10,000 pounds (a HUGE amount in that time .. about 2000 could buy you a house). My first amount borrowed was 200k and i wondered how I would be able to pay it all back. But the money has moved on since then and I earn ten times that a month.

You will need to start small and with projects and solutions you can comprehend and take onboard. Read Steve's book, no matter how far along he's come .. he started with a couple of smaller projects and thought big.

You will need to build your castle brick by brick. Revalue your assets .. and continue. Thats how its done.

Hence my allusion to a Ferrari. You are starting your wealth strategy .. dont bet it all on black … thats a high risk .. high reward OR LOSS move.

My father used the sheep strategy for me to understand it. He said you buy a couple of good breeding sheep and soon you will have a flock of them. For me … the only place I want to see a lamb is in a pita bread covered in garlic sauce. I love my souvlakis.

You need your good working assets to build yourself up. Dont feel that anyone is offering you a negative solution or holding you back. They are working on experience. And that experience says .. if you are going to be working in the fishing business you need to know what sort of fish people will pay for. If you are working in the fruit business .. you'll need to know what fruit will sell out on a daily basis .. thats how you will make your money. Same with property. If you want to know how you are going to survive and manage well .. you can either listen to people who have already been there or make the mistakes yourself. In that .. i'm repeating myself .. but i'm building on what I said before.

The regional solution works .. but the RIGHT regional solution works even better. In a town where I have a single property .. and the town vacancy rate is closer to 6%, in seven years i have never had the flats vacant once. Thats a mix of experience and accomodating the right tenants.

Thats what you will need. Learn your area, understand WHERE your tenancies will be coming from and what they will be wanting. With that sort of experience .. there isnt a single town that you wont be able to conquer.

Look don't wish too appear negative but even at a 50% lvr under NCCP if you can't clearly demonstrate that you can support the loan and that there will not be any material change to your personal circumstances within the next 2 years you wont qualify for any loan let alone enough to generate a rental income of $1500.

Cheers

Yours in Finance