Hi guys,
I hope you are all well and that you all had a wonderful Xmas & Boxing Day shared with loved ones.
Of late, I've been receiving quite a few PM's from some younger investors to provide an update on my journey and to give some insight into 2015 and my goals and aspirations. I hope the following helps those who have reached out (and apologies for the delay!) and anyone else who may find value in my story.
An update on my journey
I just turned 25 in December and in my own individual portfolio I own 3 investment properties. The threads for each of those property purchases are below:
1. http://somersoft.com/forums/showthread.php?p=1048574#post1048574
2. http://somersoft.com/forums/showthread.php?p=1135957#post1135957
3. http://somersoft.com/forums/showthread.php?p=1205448#post1205448
My journey was driven typically by pure post-tax savings from PAYG income, however over time it has balanced out to include a higher % of equity from my property purchases. I didn't have a PPOR with substantial equity in it, I started saving whilst at university (at some stages it was only $50pw), and over time as my income increase dramatically, I remain disciplined with my spending and budgeting (whilst ensuring I still lived life, which is critical - no point ending up in a 12 bedroom home if you don't have anyone in your life to enjoy it with, right?). I'm a big believer in putting your savings away first, then you spend (too many people are the opposite - spend then save). Have a plan in terms of target savings monthly, and stick to it religiously.
More recently, I am very excited to say that my long term girlfriend (soon to be fiance) has purchased our first PPOR, a 4 bedroom house (plus study) in Rouse Hill, NSW on a 712 square metre block. The home itself is 28 squares in size and a short drive to the new Rouse Hill train station on the new North West Rail Link. As this PPOR purchase is all in her name, it frees me up over the next few years to continue focusing on building the investment portfolio, knowing that she has taken care of the PPOR. The PPOR currently sits at 80% LVR and as it is being rented out is CF+, renting for $700pw.
So in total, our combined portfolio at present includes 4 investment properties (she also has 1 IP) and our PPOR. Total asset value based on recent valuations is approx $2 million. All our individual purchases have been in our own names, purely because you never really know what is around the corner in the relationship and we want to manage risks just in case.
2015:
We are really excited about 2015. The goal is to add an additional 3 IP purchases to the portfolio. Individually, that will take me to 6 IPs, whilst together we would have 7 IPs, plus our first PPOR by 26. Ambitious, but achievable. We will continue to build the foundation portfolio with strong bread and butter properties bought under market value in areas with capital growth upside, with strong cash flow. I've always said that my goal is to recycle my initial capital input out of that property within 6-12 months and leave an asset that is self-sustainable in terms of cash flow. The capital can be used to fund future purchases. Overall, our total portfolio is neutrally geared and doesn't effect our lifestyle.
Stay tuned but obviously there are some very exciting times ahead for us.
I hope those who have PM'd me have found this post of value, and I hope that people can take motivation from the initial stages of my journey to push themselves towards their own dreams of financial independence. I don't see my journey as anything special - I think if younger investors want to make the sacrifices and be disciplined and structured towards a plan/strategy, then anyone can achieve what I have. If you want it badly enough you will make it happen and find a way. If you don't, you'll make excuses as to why you can't or won't.
Kind regards,
N.
PS: I'll be travelling internationally on a cruise from today, returning 5th of Jan, so will be unable to reply until then.
I hope you are all well and that you all had a wonderful Xmas & Boxing Day shared with loved ones.
Of late, I've been receiving quite a few PM's from some younger investors to provide an update on my journey and to give some insight into 2015 and my goals and aspirations. I hope the following helps those who have reached out (and apologies for the delay!) and anyone else who may find value in my story.
An update on my journey
I just turned 25 in December and in my own individual portfolio I own 3 investment properties. The threads for each of those property purchases are below:
1. http://somersoft.com/forums/showthread.php?p=1048574#post1048574
2. http://somersoft.com/forums/showthread.php?p=1135957#post1135957
3. http://somersoft.com/forums/showthread.php?p=1205448#post1205448
My journey was driven typically by pure post-tax savings from PAYG income, however over time it has balanced out to include a higher % of equity from my property purchases. I didn't have a PPOR with substantial equity in it, I started saving whilst at university (at some stages it was only $50pw), and over time as my income increase dramatically, I remain disciplined with my spending and budgeting (whilst ensuring I still lived life, which is critical - no point ending up in a 12 bedroom home if you don't have anyone in your life to enjoy it with, right?). I'm a big believer in putting your savings away first, then you spend (too many people are the opposite - spend then save). Have a plan in terms of target savings monthly, and stick to it religiously.
More recently, I am very excited to say that my long term girlfriend (soon to be fiance) has purchased our first PPOR, a 4 bedroom house (plus study) in Rouse Hill, NSW on a 712 square metre block. The home itself is 28 squares in size and a short drive to the new Rouse Hill train station on the new North West Rail Link. As this PPOR purchase is all in her name, it frees me up over the next few years to continue focusing on building the investment portfolio, knowing that she has taken care of the PPOR. The PPOR currently sits at 80% LVR and as it is being rented out is CF+, renting for $700pw.
So in total, our combined portfolio at present includes 4 investment properties (she also has 1 IP) and our PPOR. Total asset value based on recent valuations is approx $2 million. All our individual purchases have been in our own names, purely because you never really know what is around the corner in the relationship and we want to manage risks just in case.
2015:
We are really excited about 2015. The goal is to add an additional 3 IP purchases to the portfolio. Individually, that will take me to 6 IPs, whilst together we would have 7 IPs, plus our first PPOR by 26. Ambitious, but achievable. We will continue to build the foundation portfolio with strong bread and butter properties bought under market value in areas with capital growth upside, with strong cash flow. I've always said that my goal is to recycle my initial capital input out of that property within 6-12 months and leave an asset that is self-sustainable in terms of cash flow. The capital can be used to fund future purchases. Overall, our total portfolio is neutrally geared and doesn't effect our lifestyle.
Stay tuned but obviously there are some very exciting times ahead for us.
I hope those who have PM'd me have found this post of value, and I hope that people can take motivation from the initial stages of my journey to push themselves towards their own dreams of financial independence. I don't see my journey as anything special - I think if younger investors want to make the sacrifices and be disciplined and structured towards a plan/strategy, then anyone can achieve what I have. If you want it badly enough you will make it happen and find a way. If you don't, you'll make excuses as to why you can't or won't.
Kind regards,
N.
PS: I'll be travelling internationally on a cruise from today, returning 5th of Jan, so will be unable to reply until then.