Can you replicate it? Doesn't sound like a very successful strategy to me
Seems more luck than anything.
Yearly earnings
- Thread starter want2bewealthy
- Start date
Can you replicate it? Doesn't sound like a very successful strategy to me
Seems more luck than anything.
If you do what most people do, then you just end up being one of the most people. That's all.
Very true, to be in the top 1% in terms of net worth, you must do what the other 99% do not do. Very few, if any, if any individual residential property investors, through resi property investment alone, will get to being the top 1% by any method.
I would be interested to know if want2bewealthy set up this portfolio entirely by himself or was his wife contributing at least at some point in time (before kids maybe?)
I noticed he mentioned 'we' sell off an IP eventually. If the wife was contibuting, then the portfolio was set-up on higher than $55k income
I noticed he mentioned 'we' sell off an IP eventually. If the wife was contibuting, then the portfolio was set-up on higher than $55k income
The best asset I've ever had is my wife...
One of my mates who's up to wife No. 3 might disagree.
But; she (my wife) goddamn knows she's bloody lucky to have me and I make sure she knows that every day when I give 'er a back'anda!
Have to agree, but for almost every average person; it would be the safest method of investing with the most factors to increase returns.
For eg; A school teacher, or nurse, or bricklayer etc, who buys half a dozen well-placed 2x1 units around the place will never lose - unless they lose their job for some reason and suffer a serious cashflow drain from this sort of eventuality.
The truly wealthy 1% did/do it from their business, and supplement it with property and probably shares..
I wasn't really talking about being in the top 1%.
I guess I should of said "most people start out this way"
Quick Question tho:
If you had 10 or so properties wouldn't you be in the top 1% of Australians anyway or is this more like 5%?
Or are we talking about the top 100 rich list in aus?
John.
I guess I should of said "most people start out this way"
Quick Question tho:
If you had 10 or so properties wouldn't you be in the top 1% of Australians anyway or is this more like 5%?
Or are we talking about the top 100 rich list in aus?
John.
In Australia, to be in the top 1% of Australians in terms of wealth requires about 10 milllion dollars in net worth according to Australian bureau of stats.
Around 2.5 million dollars in net worth gets you in the top 20%. So even owning 10 resi properties, assuming the average cost about 500k, will not get you into the top 1%. We know that 90% of property investors never get beyond one IP and one PPOR.
Around 2.5 million dollars in net worth gets you in the top 20%. So even owning 10 resi properties, assuming the average cost about 500k, will not get you into the top 1%. We know that 90% of property investors never get beyond one IP and one PPOR.
Even if u have 5 mil in debt and 2.5 mil in equity. thats nothing to turn your nose up about, unless that isnt enough money for you..
Everyone is different I guess tho
Everyone is different I guess tho
I always find it fascinating that the top 1% of income earners are not always the top 1% of people in terms of net worth.
Last time I checked the stats, the top 1% of income earners earned greater than 300k per year after tax.
Personally, I am far more impressed with someone who is in the top 1% in terms of net worth rather than the top 1% in terms of income earnt.
I think that 2.5 mil equity with 5 mil debt is not unreasonable provided you own your own PPOR. However, it is hard to fathom whether the 2.5 mil equity would generate sufficient income in terms of income for daily living for a family of four.
Last time I checked the stats, the top 1% of income earners earned greater than 300k per year after tax.
Personally, I am far more impressed with someone who is in the top 1% in terms of net worth rather than the top 1% in terms of income earnt.
I think that 2.5 mil equity with 5 mil debt is not unreasonable provided you own your own PPOR. However, it is hard to fathom whether the 2.5 mil equity would generate sufficient income in terms of income for daily living for a family of four.
I'm even more impressed if people can get in the top 1% without "earning" it at the same time as not being in the top 1% in net worth.
Oh, I dunno, I think that $2.5M net equity would be more than enough to comfortably support a family of four (and then some).
Wouldn't that depend alot on your age though?
The more mature and experienced would surely be likely to have greater wealth than those early in their journeys.
Even if the young ones are on massive incomes, it's tough to catch those who have been in the game for much longer.
2.5 mil net equity means that if it is was all realised and cashed in means that you would have 2.5 mil in the bank. I guess that would earn 125k per year pre-tax - comfortable but not flash for a family of four. This is a figure that allows you to just join the top 20% of australians in terms of net worth and wealth.
Ace, you are right, due to compound effects, it is hard for a young player on high income to catch up on someone who is 20 years older and have been diligently investing and saving.
Ace, you are right, due to compound effects, it is hard for a young player on high income to catch up on someone who is 20 years older and have been diligently investing and saving.
Many and most of us are. We generally don't tell our children to aspire to the dole queue or become a toilet cleaner. We are an aspirational society: look at how well premium wines, cars, houses sell. James Packer walking into a pub is far likely to receive better treatment than you or I and I bet it is not due to his good looks.
Certainly, we are not impressed by people who earning nothing and has nothing. Even a father will dissociate from his kids for lack of wealth and earnings.
http://www.telegraph.co.uk/news/ukn...naval-officers-email-to-children-in-full.html
Money is nothing more than an amplifier of who a person really is anyway.
I don't know about that one China,many people these days spend so much time and energy trying to be something that they will never be,every Man-Father that i know have given their family 100% as the wander from island to island on the great sea of imagination..
Says who exactly? In your opinion?
It isn't always about the money....
It is never about the money. It is about the quality of life that money can afford you and your loved ones. It is about the opportunities that wealth can give your children. It is about the dignity and freedom to live life on your own terms free from money worries. It is only the poor that are shackled to money and the constraints of poverty not the truly wealthy. With great wealth, comes great fun.
Thanks Uncle Ben
