lol yeah right dude. That whopping 2% real increase is gonna masacre the 10% pa you get on housing :S
That compound interest gig is an old wives tale.
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1, Remember people that look like millionaires seldom are, High income does not always correlate with high net worth.
2, No, But being a doctor is not the only way to earn good money. the economy is a very dynamic thing, Full of holes and niches that need to be filled, and their is plenty of opportunity for smart and productive people to earn alot of money.
3, I haven't seen any body say that, But it is true you have to save and make sacrifices to own a property, that has always been the case, If property is truely over valued, don't worry, it will correct, it's impossible for it not to,
Obviously though if you wait till you turn 30 before you decide to start saving you are going to have a harder time at than someone who started saving at 18, and you will have to work harder and make much larger sacrifices, and those sacrifices will seem so much larger because for 10years you have spend every dime on consumption so it will be hard to cut back.
If you blow the opportunity to save in your 20's, your life will be harder and it is no ones fault but yours,
lol yeah right dude. That whopping 2% real increase is gonna masacre the 10% pa you get on housing :S
That compound interest gig is an old wives tale.
lol yeah right dude. That whopping 2% real increase is gonna masacre the 10% pa you get on housing :S
That compound interest gig is an old wives tale.
im sure ur not trying to say property returns 10% pa?
and tyson this idea wont work when interest rates hit between 0 and 1% in the next 18 months(optimistic timeline)
- property to faaaalllllllll
I am sorry, Both of you missed the point.
I am not trying to say property earns 10%, or earning bank interest is the way to success,
The point is, Starting early, and deploying capital in a way that it earns good returns that compound is the way to success,
There are many ways to skin a cat,
but if you are saving a decent chunk of your earnings, and deploying the saving in a way that earns decent returns, and you allow them to compound, you will grow richer and richer.
Mcgoo, Compounding returns is the only way to wealth, I am sorry if you disaggree. I know you are nearly 30, but it's not to late. Better to start now than when your 35 or 40.
I started when I was 14, and am now 29, I could easily retire on an income alot of people struggle to make working 40 hrs, So I have been there and done most of what you seem to think is impossible,
But hey each to his own, Honestly I am not here to argue, I just give my opinions based on what i have done and what I believe, It has worked out for me so far.
Would inflation eat into the principle though if you retired now?
im sure ur not trying to say property returns 10% pa?
and tyson this idea wont work when interest rates hit between 0 and 1% in the next 18 months(optimistic timeline)
- property to faaaalllllllll
Would inflation eat into the principle though if you retired now?
I am sorry, Both of you missed the point.
I am not trying to say property earns 10%, or earning bank interest is the way to success,
The point is, Starting early, and deploying capital in a way that it earns good returns that compound is the way to success,
There are many ways to skin a cat,
but if you are saving a decent chunk of your earnings, and deploying the saving in a way that earns decent returns, and you allow them to compound, you will grow richer and richer.
Mcgoo, Compounding returns is the only way to wealth, I am sorry if you disaggree. I know you are nearly 30, but it's not to late. Better to start now than when your 35 or 40.
I started when I was 14, and am now 29, I could easily retire on an income alot of people struggle to make working 40 hrs, So I have been there and done most of what you seem to think is impossible,
But hey each to his own, Honestly I am not here to argue, I just give my opinions based on what i have done and what I believe, It has worked out for me so far.
Property makes up maybe 30% of my net worth,
Why not start saving on the $8 uni job, I first entry into shares was funded by delivery of paper, earning less gha $5 an hour.
1, uuumm... bills ?
2, How long did you say you were in the army for ?
1,So you have cash, property and stocks I presume. Most people have these as investments. I have 2 out of the 3.
2, Id find it hard to believe you can retire on it now though!
3, How much debt do you have?
1, And an operating business,
2, Why, would you find it hard to believe you can live off rental income and dividends.
3, Not much debt at all,
My home is pretty much paid for,
My other property investments are less than 40% LVR and generate positive cashflow which is clearing the remaining debt pretty quickly.
I have a largish share portfolio personally that generates considerable annual dividends.
I hold an emergency fund of about 12months wages personally in cash (offset against property)
and,
My company is debt free and has an operating business which could be sold when i choose to scale back, a pile of cash and also a trust holding further share investments.
I started when I was 14, and am now 29, I could easily retire on an income alot of people struggle to make working 40 hrs, So I have been there and done most of what you seem to think is impossible,
You'll seldom find a doctor who is not a millionare before 30. Their earning capacity is truly amazing.
Now back to property,
?
Sorry to continue this off topic stuff but I was just wondering
1, Tyson, what % of disposable income did you have to put aside and
2, what % return did you have earn to achieve this?
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