Lower Income investing

If you earn less than $50k per year of SALARY, how many IP's do you have?

  • 1

    Votes: 14 15.1%

  • 2

    Votes: 9 9.7%

  • 3

    Votes: 8 8.6%

  • 4

    Votes: 7 7.5%

  • 5 or more

    Votes: 10 10.8%

  • Not Applicable

    Votes: 45 48.4%
  • Total voters
    93
  • Poll closed .
BayView

BayView

Further to my post on JIT's thread about forumites' salaries,

I was wondering how many forumites or lurkers are earning less than the "average wage", and have already bought an Investment Property.

Lurkers; you'll have to register and join the fun for this.

This is not your PPoR, but an IP that you receive rent from, and cannot be a place that you own, live in and rent out rooms in.

This "average wage" figure is probably wildly inaccurate due to the percentage of Aussies that are on obscenely high incomes, and I don't know what that figure even is these days, but my guess is that if you are earning $1000 per week you are probably about the average? Correct me if I'm way off.

So, if you are earning a SALARY OR WAGE of less than $50,000 per year please respond to the poll.

Everyone else is, of course, free to post comments.
 
LA can you put a "not applicable" option into the poll so those who dont fit the profile can vote. Otherwise we can't see the results.
 
Well, I'm not aussie, but I am a forumite.
If $1000 a week is average, I guess I'm at the poverty line.I made $32K last year.(that's with overtime too) Rob doesn't have an income.

I voted 5+ IP's

We have 6 properties, but 26 units. either way you count them...I guess it still goes in the same category.
 
I haven't registered a vote as it's not me, but my girlfriend fits this criteria. (Marc, do you want me to vote?)

She is on an income of $37k gross and just bought her first IP in October last year.

She was able to buy using a small inheritence she received earlier in the year, but is able to fund the weekly shortfall from her wage.

She wouldn't have been able to get it without the inheritance for the deposit, but I believe it's valid for this thread as she can afford the ongoing, and could have just as easily blown the money on a car, holiday, computer, break from work etc. like all her cousins seem to be doing with their same inheritance $'s.

Obviously she has been influenced by me, but I didn't pressure her - just explained how property works. At first she wasn't comfortable with the idea, so instead we set her up in Managed Funds, but then a few months after that she decided to take the plunge. The property is now up 7% since purchase which is nice as I didn't want her first foray into property to be a case of market doldrums - that can come later.
 
myoung said:
LA can you put a "not applicable" option into the poll so those who dont fit the profile can vote. Otherwise we can't see the results.
Click to expand...


Surely you can view the results without having to vote?
I'm failry sure I've done this with other polls...
 
steveadl said:
I haven't registered a vote as it's not me, but my girlfriend fits this criteria. (Marc, do you want me to vote?)

She is on an income of $37k gross and just bought her first IP in October last year.

She was able to buy using a small inheritence she received earlier in the year, but is able to fund the weekly shortfall from her wage.

She wouldn't have been able to get it without the inheritance for the deposit, but I believe it's valid for this thread as she can afford the ongoing, and could have just as easily blown the money on a car, holiday, computer, break from work etc. like all her cousins seem to be doing with their same inheritance $'s.

Obviously she has been influenced by me, but I didn't pressure her - just explained how property works. At first she wasn't comfortable with the idea, so instead we set her up in Managed Funds, but then a few months after that she decided to take the plunge. The property is now up 7% since purchase which is nice as I didn't want her first foray into property to be a case of market doldrums - that can come later.
Click to expand...


Yep; please vote - it's still an example of the target even though it's not you. I guess she is a forumite by association/proxy? heh, heh!

For example; I know several people in the target, and none have any IP's. I haven't put them in though as they are not forumites.

That's all good stuff though; it could be an indicator that people on these sorts of incomes need "extra" help to do a lot of this.

Interesting to note what the other relatives have done/are doing with their inheritance.
 
L.AAussie said:
That's all good stuff though; it could be an indicator that people on these sorts of incomes need "extra" help to do a lot of this.

Interesting to note what the other relatives have done/are doing with their inheritance.
Click to expand...

I guess that's one of the major limiting factors of being on a low income.

Whilst they can afford to hold the property, they can't afford to get the property in the first place as it's hard to save a decent amount on the low income. eg. it may cost them $100pw which they can afford, but how long would it take to save even a 5-10% deposit with $100pw?

Yeah I'd say the other cousins will have gone through it before too long. One bought (or I guess put onto a payment plan) a Mercedes van, another is going to Sydney to catch up with friends for an undetermined period during which she won't work, so I would assume will start eating into it etc. Quite sad really as it could be used as such a leg up!
 
I had 2 whilst I was still on 45k, however I have more IPs and earn more now.

Living at home paying nominal board and having a University student spending habits during my first two years in the workforce is how I managed it.
 
steveadl said:
I guess that's one of the major limiting factors of being on a low income.

Whilst they can afford to hold the property, they can't afford to get the property in the first place as it's hard to save a decent amount on the low income. eg. it may cost them $100pw which they can afford, but how long would it take to save even a 5-10% deposit with $100pw?
Click to expand...


Depends on where it is and how much it costs. My first IP was 65k with a 5% deposit - for the mathematically challenged that is only 3k! Even with costs and rennos straight away I only had to save 12 k to get in. I was on 38k at the time, have held 3 ips with income of 48k(and a family to support), now earning more tho.

It can be done, look further than your own suburb!
 
I was only able to enter the market because of my strict savings plan, I was a total scrooge and now still pretty well am the same but splurge out a little from time to time,

the end goal is simple, on a 50k income working one full time job and a part time at night I managed to save 40k over 2 years, it doesnt sound like much at all but the cost of living combined with fuel and car repairs really takes its toll,

I saved as much as possible over that time, never bought new clothes, never ate out, didnt drive if I didnt have to because it saved me a little etc etc
but it was the end goal I had in mind and nothing couldve stopped me, we constantly hear about how hard it is to enter the market these days, its actually the way people have to live like kings these days as to why they are complaining they cant afford it, theyre driving new Commodores and have a rented house full of designer furniture while eating at Cafe's all day!
what do I care, not my problem.. ;)
Ill be buying again soon but am saving a larger deposit and waiting for the cycle
 
knightm said:
Depends on where it is and how much it costs. My first IP was 65k with a 5% deposit - for the mathematically challenged that is only 3k! Even with costs and rennos straight away I only had to save 12 k to get in. I was on 38k at the time, have held 3 ips with income of 48k(and a family to support), now earning more tho.

It can be done, look further than your own suburb!
Click to expand...

Agree, you can always look for cheaper areas elsewhere.

In this particular case, we got pretty much one of the cheapest houses (not a fan of units atm) possible within the Adelaide boundary that still has enough land for development - so were'nt exactly over spending.

Point I was trying to make was even if you only need $5k to start you off - on a low income that can still be over a year of savings and in a moving market may mean you miss out.
 
Not sure if you want me to vote or not. I am only on part-time wages, so well under $50k, however Hubby is working & earning more.

When we first started out, we were on a combined income of $25k. This was about 11 years ago. We were self employed & had low incomes for quite a while. I flew to Tassy & bought 2 more plus one in Regional Vic. Then a Sydney IP. All of this was on extremely low wages, however the yeild from the properties was over 10%, which helped immensely.
 
"not applicable" means you have zero but aspire to get one?

Poll would be really interesting to me if you asked
"How many IPs if your sole income is less than 50k? Or combined household income is less than 50k?"

Paying everything for a ppor household on one income less than 50k while trying to invest is very tricky.
"less than 50" is on top of another household income, totally different scenario.
 
Last edited:
wish-ga said:
If the "less than 50" is on top of another household income it is totally different.
Click to expand...

I agree, however decided to vote as, even though we are currently on well over $50k, when we started we were well under the average income, yet still had IP's.
 
DavidMc said:
I had 2 whilst I was still on 45k, however I have more IPs and earn more now.

Living at home paying nominal board and having a University student spending habits during my first two years in the workforce is how I managed it.
Click to expand...

That's perfect! This is the sort of info that the lower income earners need to hear.

My guess is they sit on the lurkers seat, watching us all bangin' on about 3 Ip's this, and 6 IP's that, and think; how the hell will I ever do this?

This shows it can be done.
 
skater said:
Not sure if you want me to vote or not. I am only on part-time wages, so well under $50k, however Hubby is working & earning more.

When we first started out, we were on a combined income of $25k. This was about 11 years ago. We were self employed & had low incomes for quite a while. I flew to Tassy & bought 2 more plus one in Regional Vic. Then a Sydney IP. All of this was on extremely low wages, however the yeild from the properties was over 10%, which helped immensely.
Click to expand...


That would qualify. To be fussy; I guess it would be one person earning less than $50k, but I suppose there are families out there that earn this figure (or less) combined; that would be ok.
 
wish-ga said:
Does "not applicable" mean you have zero but aspire to get one asap.

This poll would be really interesting to me if you asked
"How many IPs do you have if your sole income is less than 50k? Or combined household income is less than 50k?"

Paying everything for a ppor household on one income less than 50k while trying to invest is very tricky.
If the "less than 50" is on top of another household income it is totally different.
Click to expand...

I meant the poll to be from 0 to 5, but I did it incorrectly and then couldn't edit it.

I was with a chardy at the time (aren't I always?).

If you have zero, then put it down as "not applicable".
 
L.AAussie said:
That's perfect! This is the sort of info that the lower income earners need to hear.

My guess is they sit on the lurkers seat, watching us all bangin' on about 3 Ip's this, and 6 IP's that, and think; how the hell will I ever do this?

This shows it can be done.
Click to expand...

I figured the time in my life between finishing school and starting a family is when my ability to save will be highest. All I had to fund was a low board, run my crappy Camira and my personal entertainment. I admit I did live a pretty basic lifestyle for a couple of years but figured it's a small price to pay for where I am now. I look at my friends who are in this stage now and think that if they can't save for a deposit now then how do they expect to with a dependent spouse and kids.

The other thing I forgot to mention is that the first one is the hardest one. After that one just needs to let time and compounding to work it's magic.

(Note - These were outer suburban places in Melbourne).
 
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