Rich Dad Poor Dad

[muppet]

Hi Guys

For those of you who have not read RDPD, here is a good summary of it.

http://www.bizsum.com/richdadpoordad.pdf

Regards

[inzvestor]

A great review of RDPD.

If you don't own a copy yet - get down to your local bookshop and grab a copy.

Tip - don't start reading it before bed-time as you may not be able to put it down !!

[tamara]

I agree. Rich Dad Poor Dad is a book for motivation and well worth having in you library. I has provided me with plenty of motivation to get up and going.

Tamara

[Rat]

It is THE book that started it all for us 5 years ago.
Many cock ups later ( you are only a failure if you fall down 5 times and get up 4)
We are 2 years away from being out of the Rat Race.

It doesn't tell you HOW to do it it tells you that you CAN do it and inspires you to start asking the questions, finding the answers and taking action.

( we fell down approx 7 times and got up 8 )

getting out of the rat raceRat

[mjj]

rat race

So how did you go about getting out of the "rat race"through property investment - can you share your success story?


MJJ
:mrgreen:

[Rat]

We followed John Burleys plan to get out of debt which took approx 3 years.
We started living below our means and saving the rest. We took action and put the $$ that had been in our family home into positively geared property. ( we would have used equity but we were transferred overseas and had to sell our house as we thought it would be a permanent shift)
Turned out it wasn't and we returned to NZ having increased our original deposit by approx $60,000 Aust.
We bought more IPs in Nz and all the while ( one of us was home with young children doing the reserach and finding the deals) while the other was going from job to job learning about business and sales.
Finally a business was bought and then expanded. The cashflow from the business alone should get us out of the Ratrace in 2 years but if we don't increase our living expenses and invest the additional $$$ instead the Ips may get us out even earlier.

Missing from this summary are all the costly mistakes we made. The unemployment and redundancies ( with no redundancy money) the debt we were forced to get back into and the times we hit rock bottom.
What kept us going was a determination that all this $hit would not be for nothing. We had to succeed in order to give it meaning.

getting out of the Rat race
Rat

[tamara]

well done Rat

Tamara

[mjj]

Rat Race

Thanks for the reply post Rat - very inspiring - out of interest, what areas were your positively geared IP's in?

MJJ
:mrgreen:

[Rat]

To start with in a working class suburb, ( when we were overseas) then when we returned, in and around the upper middle class suburb where we were living.
We learnt one suburb really well to ensure that we were really getting bargains. Also with young and school age children it is not practical to be driving too far to inspect properties.

Brick n tile are prefered.

Getting out of the rat race
Rat

[muppet]

Hi Rat

Good to get your views.

B and T = low maintenance = more money in your pocket.

Regards

[RentMaster]

Hi Rat.

It is interested where you have purchased your properties - in the better areas. I hear a lot from these forums of people purchasing cheaper properties in the under 80K bracket to get good cash flows. But you have gone for the better areas and still get positive cash flows.

I have myself purchased in Auckland outer suburbs and am getting positive cash from those. (Some good CG too).

What are other peoples opinions on this. What price bracket are you normally looking in? Does anyone out there own both the cheapies and the not-so-cheapies. If your puchased any more, which ones would you buy.

Thanks in advance

[cube]

Hi RM,

It depends on your definition of 'cheapies' - we have bought a 3 Bed house and a 4+2 bed home and income for $145K and $351K, and both are nearing 10% gross, so well in to +ve territory, but being in Henderson, they count as 'cheapies'!

Regards

cube

[RentMaster]

Hi Cube

I wouldn't count 351K as cheapies - I dont think 145K counts as cheapies either. That is more the price range of what I am buying, and in a similar location. I think anything 80K or less counts as cheapies.

[mjj]

10% + ??

So where should you be looking to find 10% plus returns then?

Hard to find in my experience, especially in Auckland

MJJ

:mrgreen:

[wada]

Kia Ora,

I think anything 80K or less counts as cheapies.

Same here.

We are 2 years away from being out of the Rat Race.

Rat well done. 2 years time will you still be called Rat or change it to something like Mr Rodent You can always stay down in the trenches with the rest of us until we get out of the 'race'

Wada