How hard was it for you..??

What years and price brackets were your purchases Bayview? If I may ask..

 

Loving this thread!

 

1985 - Bought PPoR No.1 - $76k.
1992 - Bought vacant block of land for PPoR no.2 - $60k
1995 - Built PPoR No.2 on land - build cost was $180k.
1998 - Bought PPoR No.3 (B&B) - $450k
2000 - Bought PPoR No.4 - $305k
2005 - Bought vacant block of land for PPoR No.5 - $300k
2010 - Biult PPoR No.5 - build cost $830k (high-end architect designed house, pool and spa on a sloping block, so was not yer standard Metricon type build).
2015 (Dec 30) - Bought PPor No.6 - $660k (older house - will need to knock down and rebuild, but currently tenanted for the next 2 years at least until build admin/permits etc process is done and building work commences).

PPoR No.3 was the fluke for us; we bought that property to run a B&B and golf schools business, but found out the work required was not going to allow us to make enough to service the very big loan attached to it...in time it probably would have; but in the mean time my wife (and me to a lesser degree) was having a nervous breakdown of sorts due to the workload etc.

We were only in it 2 and a bit years, spent the best part of a year doing the reno, then about a year as a B&B, tried to get the golf schools happening but not much success (before internet mfor us) but then sold it due to no money, no life and too many hours to run it and our full-time jobs (I still had my Proshop for most of this period)- but it almost doubled in value in that time.

This house allowed us to pay cash for PPoR. No.4 after all loans were paid out from the sale...then I found out about Property Investing and started to use our equity to buy IP's in 2001.

My Proshop business was gone by 2000, so we were asset rich now, but cash poor (I was working at the ICU making about $40k per year by this time, wife working at the same Hospital part-time so we could look after our son - income was only average overall).

 

Grey Ghost you're right mate, it is very easy to blame professionals whose advice you pay top dollar for when they get it wrong and it costs you dearly. But my post was meant more of a joke mate, not a whinge.

And an answer to the OP, it took discipline when starting out (first home loan etc), then a bit of elbow grease with two reno projects, one in Brissy, one in WA. Then a bit of time in the market, and then a couple of small development projects.

I think we had hit 1m before we really had any ambitions of creating a big property portfolio. We weren't really pushing hard for the total numbers, just focusing on going in the right direction with each project.

The biggest and most challenging roadblock for me was dropping over 100k from the LOC I pulled out from the first renovation project into the ASX, and losing almost the entire amount. That was a difficult time, but a lot of lessons learned.

 

Spot on. But times have changed now.

 

First million, cash

 

just a side issue, I know you gave up the day job, how long did it take for this to happen from property investing?

 

Christchurch?
How did this impact on your investments?

 

Mixed bag really. Some properties still waiting to be repaired. Bit complicated as they are part of a multi unit block and you have several owners. However they are still able to be rented. Rents have risen for the last 4 years but are now settling back to pre-earthquake levels. My properties have risen in value at last Government valuation in 2014. I have been able to buy 2 as is where is properties post earthquake and renovate them. Both now tenanted and cashflow positive. So pretty much business as usual. Biggest issue is getting insurance on "as is where is properties". You just have to get engineers involved and or council to make sure the building is repaired correctly.

 

I expect insurance is very expensive.
Interesting, are you still buying in NZ?
You should start a thread on this

Insurance in USA is expensive, and never claim unless the house burns down

 

I bought my first IP at 18. That was a big sacrifice. Could barely afford to go to the bloody pub

 

Struggled through our 20s studying, moving and buying a ppor in Brisbane in the mid 90s when IRs were much higher on low incomes.
Held on just as incomes and rents rose as our first place doubled then doubled in value again.
By our mid 30s the hard work started to pay off and now we don't need to be as careful but expenses are higher again.
Luck with some perseverance has paid off but we are far from done and we are looking to continue purchasing again this year.

 

Too hard but they say the first million is the hardest right?

 

That's what they say? There is some truth to do this I guess.

I think a lot of luck comes into play, buying in areas at a low base and then for whatever reason these areas become hipster Ville adding enormous value, buying into areas that get rezoned etc etc

 

I've noticed as my portfolio grows it gets much easier. Especially just having more rent run through your offset accounts. Haggling on my next one now

 

It was hard, but not extrodinary. we bought our 1st as PPOR in Sydney 2007, the idea is to stretch our financials to the limited to capitalize on this (remember only have 5K left in our bank account after settlement), as PPOR don't have CGT. Then GFC hits, it was flat for a long time. till 2nd half of 2010 when sydney markets come back a little. 2011, we just manged to pull out some equity and purchased 2 IP. that was when it hit 1mill. i remember i didn't buy any new shirts for the 1st 5 yrs! (working in coporate world) and save on take away food, coffee, minimium night out etc, although both of us on are abover average income. Looking back, not a single regret, we managed to get where we are now.

 

Most probably took us from 1985 (first IP) to 1996 to make our first million. Hard to say exactly as never really played the 'pull out equity' game except in 1993 when we drew out all equity (350k) to start our business.

By 1998 we were paying cash for blocks of units at 500k - 1.2mil. Refinanced these to repeat cash purchases. Saved having to be negotiate with banks when first purchasing multi tenanted properties.

By 2014 a single market move grew our equity by $6mil. Only happened to have noted it as someone was telling me how their equity had grown by a $1mil which made me look into my own situation.

Conservatively our USA portfolio has grown by about a $1mil USD since 2012

Our investment philosophy is income rather than equity and we have been living of rents since 2005 and are still investing (USA).

 

@Handyandy - your story is incredibly inspiring and something to aspire to!!!!

 

Am I correct in saying your net rental income is $1M net pa....nice