Property ladder: I'll be retired by 40

[Leftette]

Nothing to do with being a so-called hater. More a reflection of a questioning mind that's not taken to believing all the bullshit one reads on the internet.

[halfempty]

Your probably right, I'm way too believing.

For instance I'm 100% sure you look exactly like your profile picture.

[Wayne]

Your probably right, I'm way too believing.

For instance I'm 100% sure you look exactly like your profile picture.

and you look like yours

[donna]

...I look like mine.

cheers,

Donna

[halfempty]

I don't look like mine because it's a cartoon, I don't look like a cartoon...

Donna actually looks better than her photo IMHO

[Bluekiwi]

Your probably right, I'm way too believing.

For instance I'm 100% sure you look exactly like your profile picture.

Yep I find its best to think like that, it gives some temperance to the words that sprout out.

Now I find out finally TLL is a lady, well, I have to be more kind and respectful.

[ScottSI]

@ Spaceman - still see you think I am full of shit, Thanks. Interesting to see how you handle your renovation challenge, I can't wait. You are right about number and sounds like madness. I haven't done this for years, it has only been a short run and increased heavily over the last 12 months from large hours to insane hours. I do call work anything to do work and travel between centres. 16 Hours a day - Lets see Friday - start at 7 - out of bed, that's right I sleep on site so don't have travel time and waste money on motels.

Coffee and into work while eating breakfast (emails) (mix of renovation and office for day), leave chch at 6pm, stop at a place in Ashburton for a few jobs, then onto Dunedin. Tired so slept in car at just after midnight past Omarau (7am till 12.30am - 17.5 hrs). Back on road at 6am, jobs in Dunedin then back to CHCH few jobs then back home to Nelson (pull in to home at 2.20am Sunday so guess 20.20 hours). By my count isn't that almost 38 hours in 2 days?

At home in the office for the whole week now. If I am at home does that count as working? For those who are concerned about my business nothing I am doing is different to people I know who are large investors (a little more intense yes I agree). My folks even retired at 38 years out of property and have never worked a day since (and no I didn't get any hand-outs, I keep it quiet till no 5). I actually get a bit lost on why everyone thinks it so impossible get ahead through property.

Also on a note the point of the article is you need work hard and get a plan if you wish to get ahead not just moan about how times have changed which I am sick of hearing. Also Spaceman the list you present is what I plan to do as work slows down (selective editing on your part?) and work is slowing down, prices have risen and I haven't brought anything for a couple of weeks now.

Yield down - stop buying - it is that simple sorry. I am going to brag as I don't care cause it is my life and not yours but we now pay off the equivalent of a house every 6 months and increasing (total principal repayments on loan value) so I am pretty happy about how it is all going. Happy investing all and focus on your plan, I recommend that you work a bit less as not easy though.

[Leftette]

I recommend paragraphs.

[Razzzor]

@ Spaceman - still see you think I am full of shit, Thanks. Interesting to see how you handle your renovation challenge, I can't wait. You are right about number and sounds like madness. I haven't done this for years, it has only been a short run and increased heavily over the last 12 months from large hours to insane hours. I do call work anything to do work and travel between centres. 16 Hours a day - Lets see Friday - start at 7 - out of bed, that's right I sleep on site so don't have travel time and waste money on motels. Coffee and into work while eating breakfast (emails) (mix of renovation and office for day), leave chch at 6pm, stop at a place in Ashburton for a few jobs, then onto Dunedin. Tired so slept in car at just after midnight past Omarau (7am till 12.30am - 17.5 hrs). Back on road at 6am, jobs in Dunedin then back to CHCH few jobs then back home to Nelson (pull in to home at 2.20am Sunday so guess 20.20 hours). By my count isn't that almost 38 hours in 2 days? At home in the office for the whole week now. If I am at home does that count as working? For those who are concerned about my business nothing I am doing is different to people I know who are large investors (a little more intense yes I agree). My folks even retired at 38 years out of property and have never worked a day since (and no I didn't get any hand-outs, I keep it quiet till no 5). I actually get a bit lost on why everyone thinks it so impossible get ahead through property. Also on a note the point of the article is you need work hard and get a plan if you wish to get ahead not just moan about how times have changed which I am sick of hearing. Also Spaceman the list you present is what I plan to do as work slows down (selective editing on your part?) and work is slowing down, prices have risen and I haven't brought anything for a couple of weeks now. Yield down - stop buying - it is that simple sorry. I am going to brag as I don't care cause it is my life and not yours but we now pay off the equivalent of a house every 6 months and increasing (total principal repayments on loan value) so I am pretty happy about how it is all going. Happy investing all and focus on your plan, I recommend that you work a bit less as not easy though.

So if you were actually only at property #5 now, rather than #51, would you still be slowing down? Or is the fact you've got enough properties come into it as well?

I too work long hours, but I don't have a family. If working 38 hours in 2 days is normal for you ScottSI, I'd suggest you do something about that. Life's too short.

[ScottSI]

I am slowing down as my income is large enough to support me & my family even with vacancy, property management, contractors and interest rate fluctuations. I have had time but no money when in my 20's and trust me it is pointless if you are broke, can't do jack. Yes I will have to do some work still and I would anyways as I am of that nature. I would rather work hard for a few years and get financially free and able to enjoy all that life has out there to see and do. If you want to have time to enjoy your earnings you also need support structures otherwise I would spend all my time managing and repairing houses or have no income by paying people to do it all. If I was at # 5 I wouldn't work so many hours and didn't when I started. If I had 5 properties how would I get a reasonable income unless I had owned them for years and was mortgage free. Also know what paragraphs are but this blog site won't let me use the enter key - See start of post comments.

[ScottSI]

Some costs of life, may help people understand why 1 or 2 properties won’t cut it unless you are in the long game (and then I still think you would struggle).

• Education – $ 35k pa for private boarding school or $673 pw
• University - $ 20k pa or $ 384pw (I have 2 kids that may go)
• Travel – $ 15K pa or $ 288 pw
• Coffee – 1 coffee day $ 1642 or $ 31.5pw
• Food - $ 10.4k or $ 200 pw
• Wine - $ 3.9 k or $ 75 pw
• Power – $ 3K or 57 pw

And still you have phone, rates, insurance, maintenance, car costs, medical, dentistry, clothes, material items and the list goes on, depressing aye?

When I talk to people about investing I like to point out what life costs even if you are mortgage free on your own primary dwelling. Most people don’t often understand what you really need.

In today’s money if you had 2 mortgage free rentals (say $ 300 clear after opex on each rental) that will give you $ 600 a week but only if tenanted.

Add that to your pension and/or kiwi saver and that will give you a better income but probably less than you earn now?

So my 2 cents worth is get a plan, start as soon as you can and start building an asset base which will generate an income. It is best to do why young and you have fewer ties but most of us start too late (thus the intense plan I have) but the simple thing is get going. From the numbers above you can't hopefully see why I have aimed for the size of portfolio I have, mine are cash-flow positive but not mortgage free only have use of some money from rent.

The financially free investors (or ex) I have met on my travels all hold big portfolios (residential or commercial) or have cashed out and banked a few million. As I have said before if you listen / follow those who have had success then you are more likely to succeed.

Also I wrote this in word thus the use of a enter key.

[spaceman]

@ Spaceman - still see you think I am full of shit,

Yes .....yes I do......but in the nicest possible way

Thanks. Interesting to see how you handle your renovation challenge, I can't wait. You are right about number and sounds like madness. I haven't done this for years, it has only been a short run and increased heavily over the last 12 months from large hours to insane hours. I do call work anything to do work and travel between centres. 16 Hours a day - Lets see Friday - start at 7 - out of bed, that's right I sleep on site so don't have travel time and waste money on motels.

Coffee and into work while eating breakfast (emails) (mix of renovation and office for day), leave chch at 6pm, stop at a place in Ashburton for a few jobs, then onto Dunedin. Tired so slept in car at just after midnight past Omarau (7am till 12.30am - 17.5 hrs). Back on road at 6am, jobs in Dunedin then back to CHCH few jobs then back home to Nelson (pull in to home at 2.20am Sunday so guess 20.20 hours). By my count isn't that almost 38 hours in 2 days?

At home in the office for the whole week now. If I am at home does that count as working? For those who are concerned about my business nothing I am doing is different to people I know who are large investors (a little more intense yes I agree). My folks even retired at 38 years out of property and have never worked a day since (and no I didn't get any hand-outs, I keep it quiet till no 5). I actually get a bit lost on why everyone thinks it so impossible get ahead through property.

Also on a note the point of the article is you need work hard and get a plan if you wish to get ahead not just moan about how times have changed which I am sick of hearing.

I like the cut of your jib....but let's be honest here, you're putting yourself and other people at risk driving like that.

Also Spaceman the list you present is what I plan to do as work slows down (selective editing on your part?) and work is slowing down, prices have risen and I haven't brought anything for a couple of weeks now.

The selective editing just isn't true on my part...... I blame you for not knowing where the enter key is or how to edit a paragraph......here is the full text of your post (post # 25) ..........I buy family homes generally 3 & 4 bedrooms. Have a few 2 bedrooms though and 2 duplexes. Auction, tender, listings, private sales. Go to kids sport and school stuff, crash my mountain bike a lot, knock off my bucket list, sail, cook, tramp, mountaineer, fly, dive, fish, drink coffee, travel, read, waste more time on the internet, volunteer, take photos, annoy my partner even more, 4wd, caving, build stuff in my shed, sleep, walk across Antarctica, sky dive from 300,000ft and look at the curvature of the earth, to name a few. Should have started sooner I feel. Buy and hold only...................... Nothing in there about "planning to do this as work slows down"...........and it wasn't obvious to me until I went back and reread it that part of your response was in answer to the question "what do you plan to do once you retire?"........my bad, but learn to type better

Yield down - stop buying - it is that simple sorry. I am going to brag as I don't care cause it is my life and not yours but we now pay off the equivalent of a house every 6 months and increasing (total principal repayments on loan value) so I am pretty happy about how it is all going. Happy investing all and focus on your plan, I recommend that you work a bit less as not easy though.

Sweet a house every 6 months ...colour me impressed.......inspiring

Cheers Spaceman

[Keys]

Some costs of life, may help people understand why 1 or 2 properties won’t cut it unless you are in the long game (and then I still think you would struggle).
Education – $ 35k pa for private boarding school or $673 pw

Don't see this as my cost. Why would you?

University - $ 20k pa or $ 384pw (I have 2 kids that may go)

Again, why would you?

Travel – $ 15K pa or $ 288 pw

Personally, not interested in travel

Coffee – 1 coffee day $ 1642 or $ 31.5pw

It's a drug. You are relieving withdrawal symptoms

Wine - $ 3.9 k or $ 75 pw

Again, a drug

And still you have phone, rates, insurance, maintenance, car costs, medical, dentistry, clothes, material items and the list goes on, depressing aye?

Not necessarily depressing. Just realistic. If you thought about it, you could live off of the pension. After All, many thousands do in this country. Yes, we here are working towards a better life for ourselves when/if we retire. I have no intention of retiring. I will become self sufficient income wise and continue to work. It's something to do. It's interesting. It keeps me alive.

Just as each persons income varies dramatically, so does each persons choice on what they spend their money on varies. I have a relative who has budgeted hard all her life and knows no other way. Got into property and sold out around 2005 with $280k cash. Believed they could retire on that amount as they only had 5 years to go until the Pension. They managed it. BUT, have a life which they are used to.

You wish to travel. That costs. I don't wish to. Therefore I don't need to factor that into my retirement funding scheme. I want to work throughout until at least my mid 70's, you don't. Therefore you need to factor in your non working status.

There is no one fits all solution (apart from voting Greens ).

[ScottSI]

I agree not one solution fits all and it depends on what people want to do in life and meet these costs. People do need to price what they think they would like to be up too and have a real basis to form a plan not just say I need 2 rentals. Good work on for being committed to working into your 70's, nothing wrong with that. Personally I don't believe in an afterlife so I want to pack it all on this trip is my thoughts.

[Razzzor]

You are relieving withdrawal symptoms Again, a drug
Not necessarily depressing. Just realistic. If you thought about it, you could live off of the pension. After All, many thousands do in this country. Yes, we here are working towards a better life for ourselves when/if we retire. I have no intention of retiring. I will become self sufficient income wise and continue to work. It's something to do. It's interesting. It keeps me alive.

Just as each persons income varies dramatically, so does each persons choice on what they spend their money on varies. I have a relative who has budgeted hard all her life and knows no other way. Got into property and sold out around 2005 with $280k cash. Believed they could retire on that amount as they only had 5 years to go until the Pension. They managed it. BUT, have a life which they are used to.

All outgoing is a cost, doesn't matter if it's for your kids education, it's still something that has to be paid for. My loans I put into my costs as well. Just the way I prefer to calculate things.

I have up to 3 cappa's a day (homemade), and I can just about guarantee despite this, I don't have any kind of addiction to it and wouldn't have any withdrawal symptoms if I had no coffee. In fact I had no coffee at all over the weekend and I certainly wasn't sitting there shaking and freaking out without my caffeine hit. Sure there are people out there that do get withdrawal though.

I'm actually with Scott, I plan to be semi-retired by 40 (I'm 32 now). I say semi-retired because I'll still probably have my business but I'll slow it down to a bare minimum and then having properties isn't completely a hands-off job either. Scott you've got it good though, with 51 properties and paying one off every 6 months, I'd have no concerns about my future. I see people complaining about "what if the banks cash in" - why would they? "what if some of them sit empty" who cares 51 properties all at high yields above 10% is more than enough to cover a few empty ones.

I'd personally sell several that'll make a good profit off and feed that back into the rest to pay them off quicker, because at that rate you'll be in your mid 60s by the time they're all paid off. Or have some money in the bank to splurge on. Take the family for a holiday to europe or aussie.