Who lives off rental income alone

Do You Live Off Rental Income Alone?

  • yes

    Votes: 6 5.7%
  • No

    Votes: 81 77.1%
  • mix of rental income and other investments

    Votes: 13 12.4%
  • Almost There

    Votes: 7 6.7%

  • Total voters
    105
  • Poll closed .
Nikolina, well done. Appears you are being bombarded with questions and hard to tell if it is because some are sceptics or just wanting to know how you done it. I know some in similar situations to you. Most have worked for around 3-4 years and saved every penny and put large deposits on units etc or cheap houses. Sometimes it is hard for some, especially those trying to save for a deposit, to accept that not all young people spend their money on things like cars and I know quite a few who do that. I will assume you probably lived at home and had the benefit of a supporting family that allowed you to live cheaply whilst saving your money. (If wrong I stand corrected) If my daughter wants to live at home until she is 25 to save up money to buy her own house I would happily support her in every way but if she started to spend on frivolous things then making her pay board would be my way of compulsory savings for her. Again well done and keep up the good work.
 
Congratulations - sensational result - and kudos to you.

You are in a very good position going forwards in life - so much at such a young age.
 
well done Nikolina !

Great work Nikolina ,you are doinf really well !
I too did the same thing saving when i was about 15.
Paying off yr debts before going forward is a great strategy! Then u become the bank rather than being held at ransom !
I pretty much paid my first property off by 23 ish,then i was all cashed up to buy commercial at a young age after leaving full time work .Then I just kept going.I havent worked full time since and that was 14 years ago.
I later took a hit though which taught me a lesson,that my original strategy
was the best-Dont get gready !
Many people will tell you not to pay off debt just keep mortgaging out
and buy more,but i take my hat off to you ,keep going !!
 
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I would presume you still live with your parents, making it easy to save so much.

Yes i do still live at home, however in saying that if i was to purchase a PPOR and move out tomorrow my rental return from my IP would cover the mortgage repayments on my PPOR in it's entirety.
 
Nikolina, well done. Appears you are being bombarded with questions and hard to tell if it is because some are sceptics or just wanting to know how you done it. I know some in similar situations to you. Most have worked for around 3-4 years and saved every penny and put large deposits on units etc or cheap houses. Sometimes it is hard for some, especially those trying to save for a deposit, to accept that not all young people spend their money on things like cars and I know quite a few who do that. I will assume you probably lived at home and had the benefit of a supporting family that allowed you to live cheaply whilst saving your money. (If wrong I stand corrected) If my daughter wants to live at home until she is 25 to save up money to buy her own house I would happily support her in every way but if she started to spend on frivolous things then making her pay board would be my way of compulsory savings for her. Again well done and keep up the good work.

Yea i am being bombarded, Such a shock. He He. Well sceptics or not the way i see it is at the end of the day im not here to prove myself to anyone.

Thanks for your kind comments Y33 and that goes for everyone else too! :D
 
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Yes i do still live at home, however in saying that if i was to purchase a PPOR and move out tomorrow my rental return from my IP would cover the mortgage repayments on my PPOR in it's entirety.
You're in a great position. Like others have said, well done.

There's no right or best way to do things, just different ways. Sounds like you've found what works best for you in your current position. Just keep putting one foot in front of the other ad nauseum.

Regards
Marty
 
Great work Nikolina ,you are doinf really well !
I too did the same thing saving when i was about 15.
Paying off yr debts before going forward is a great strategy! Then u become the bank rather than being held at ransom !
I pretty much paid my first property off by 23 ish,then i was all cashed up to buy commercial at a young age after leaving full time work .Then I just kept going.I havent worked full time since and that was 14 years ago.
I later took a hit though which taught me a lesson,that my original strategy
was the best-Dont get gready !
Many people will tell you not to pay off debt just keep mortgaging out
and buy more,but i take my hat off to you ,keep going !!

You are correct i have had people tell me, what on earth am i doing, why am i paying P&I on it and not just I, why didn't i spread the money over a few IPs, stop making bulk mortgage repyaments on it and the list goes on. I have thought long and hard about all of this and yes i could go out and purcahse x amount of properties if i wanted too but at the end of the day i don't wan't to own the banks millions of dollars. I would perfer to be a 30yo whom owns 5 IPs outright or close to it rather then own 15 + properties and millions of dollars to the bank.

Im looking forward to owing 5 IPs outright or close to it in the future and being debt free. Here is just an senario.

5 IPs returning $400 rent p/w.
5 x $400.00 = $2000.00 p/w and debt free. That's choice to me.

Each to their own though, this is just my strategy everyone is entitled to their own. :D
 
This is interesting to read, as this is what DH and I are aiming to achieve - our timeline is significantly in the future though, I don't want to live like a uni student (been there, done that) to acheive this aim, but am looking forward to a good retirement.

Nikolina - I wish I had of been smart like you and started saving my money at a younger age before kids. I think the method you employ works and is about as low risk as you can get in the property game, so very smart from my perspective.

Thanks rugrat, totally agree in terms of low risk etc..
 
You're in a great position. Like others have said, well done.

There's no right or best way to do things, just different ways. Sounds like you've found what works best for you in your current position. Just keep putting one foot in front of the other ad nauseum.

Regards
Marty

Thanks kissfan :D

Correct, each to their own i say. I will keep at it that is for sure. I have no plans whatsoever on stopping any time soon with it all.
 
I would perfer to be a 30yo whom owns 5 IPs outright or close to it rather then own 15 + properties and millions of dollars to the bank.
Im looking forward to owing 5 IPs outright or close to it in the future and being debt free. Here is just an senario.
5 IPs returning $400 rent p/w.
5 x $400.00 = $2000.00 p/w and debt free. That's choice to me.
Each to their own though, this is just my strategy everyone is entitled to their own. :D

I mainly agree, cash & wealth comes from equity. Allways has always will.
Though I'm sure many people here could live off rent if they reduced their portfolio, but don't as their own choice. With the idea of doing it at later stage of course.
Also from that $2,000 you'll be left with around $1200 wk after expenses & taxes.


A good book to read (though i have the audio book) is Transforming Debt Into Wealth - John Cummuta, mainly the last few chapters.
"True income is not shown by my income statement, but rather by my nett worth statement. It isn't how much I'm making, but how much I own."
 
Piston broke that is true in relation to tax, however $1200 after tax per week for doing nothing still sounds pretty damm good to me.
 
Piston broke that is true in relation to tax, however $1200 after tax per week for doing nothing still sounds pretty damm good to me.

Absolutely!!
Though I do not believe for one second that you can "earn" (5 x IPs) in the first place by doing nothing unless you inherit it.
But hey, I know exactly were your comin from. Been there long before you.
And I have posted many times about keeping LVR low.
And still ~40% of our work goes to someone else :( oh well.
 
Absolutely!!
Though I do not believe for one second that you can "earn" (5 x IPs) in the first place by doing nothing unless you inherit it.
But hey, I know exactly were your comin from. Been there long before you.
And I have posted many times about keeping LVR low.
And still ~40% of our work goes to someone else :( oh well.

No, what i was trying to say is eventually earing $1200.00 p/w by positive gearing is by doing nothing. Tenant's pay for your lifestyle. Sure i would have to put in all the hard work to have them all paid off but once they are ill have that benefit. Hope that makes sense.
 
Love your work Nikolina.

I'm 26 and whilst I do borrow to fund IP's, my current LVR is around 50%.

It's a nice feeling to know that you can sustain a general price decrease or vacancy period and not have to worry about being able to afford your monthly repayments!

Another advantage is that if the deal of a lifetime comes up, you have the equity ready to go and don't need to add in any subject to finance clause.

Make sure you post your progress with the next few IP's - You are obviously developing a good strategy and I'm sure it's something that people can learn from.

Cheers,
Steve.
 
Love your work Nikolina.

I'm 26 and whilst I do borrow to fund IP's, my current LVR is around 50%.

It's a nice feeling to know that you can sustain a general price decrease or vacancy period and not have to worry about being able to afford your monthly repayments!

Another advantage is that if the deal of a lifetime comes up, you have the equity ready to go and don't need to add in any subject to finance clause.

Make sure you post your progress with the next few IP's - You are obviously developing a good strategy and I'm sure it's something that people can learn from.

Cheers,
Steve.

Thanks and will do. My next IP will be with the same strategy but this time round im looking at buying a property that's run down. I wan't to renovate, add CG, rent and hold. Been looking for a while now. Missed a few opportunities late last year but oh well. Im sure something will pop up.
 
No, what i was trying to say is eventually earing $1200.00 p/w by positive gearing is by doing nothing. Tenant's pay for your lifestyle. Sure i would have to put in all the hard work to have them all paid off but once they are ill have that benefit. Hope that makes sense.

Thats what he was saying - you are putting in the hard work to get the later free firde... ergo, no free ride, you've earned it... Hope that makes sense.
 
HI Nikolina,

Firstly congratulations on doing so well for someone so young.

Secondly, don't disregard some of the advice you have received about multiple properties instead of one at a time. Let me explain.

By paying off one property you will have to pay tax on the rent received. As this is on top of your normal income, you will probably have to give up ~30% of your rent to the ATO, less after costs. I'm sure you could use this money more effectively than the govt. ;)

By buying the second and/or third property, to the extent of having a slightly negatively geared portfolio, will mean paying no tax on the rents received and therefore probably reaching your goal a little earlier than would have been possible otherwise.

If I could recommend you read Jan Somers books to get a perspective on what is possible, hopefully it may help you a lot.

bye
 
Horses for courses.

Worth understanding different strategies and making an informed choice for yourself for sure, but as a saying goes I am sure there is "more than one way to skin a cat"
 
If I buy the property I'm about to look and if it rents for the same amount as other properties in the area then I will be able to live off net rent of about $1000 per week not including tax if I choose to (which I don't at this point in time).

I'd much rather put all my spare cash flow into paying down my loans and investing further while I'm still young enough to work and be even better off down the track.
 
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