[*]What gave you the hunch that the southern part of Canberra would do well?
[*]And how on earth do you manage to pay them off in a few years? Especially at the beginning - even with a high income? How about without a high income?
[*]Do you go fixed or variable or no-rules or blended or ...?
[*]At what point did you determine that you were doing well enough to live off rents?
[*]And does your position improve over time?
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1. I knew that self-government would come with more development opportunities; that self-government would want in-fill; and that prices in inner suburbs would go up as the population grew and people wanted to live close to the city.
2. I started saving money very young, and I kept saving. I have had a couple of periods in my life where I have had a high income. They are the times I have been able to make leaps forward. With a low income, you just have to slog it out. There are probably smarter ways of doing it than I have done it, but I am very conservative in my approach and don't like risk.
3. I have never had a fixed loan; always variable. I pay my ppties off as quickly as possible. An 'expert' did tell me in the late 1980s that I was crazy not to take out an interest-only loan. I know that's what some people do, but I don't.
4. A couple of years ago started grossing more than $100K in rent. That's enough for us to live on.
5. Yes, definitely--your position improves over time. For me, time has been the factor that has helped the most. The rental income has been the icing; the capital growth over time has been the cake.