Early in my 30's, I already considered that becoming financially independent well before the 'normal' retirement was certainly a possibility. To me financial independence is a place when my monthly passive income covers my regular monthly expenses. I am longer dependent on a wage. My favourite method of wealth creation and financial independence is home. I found some interesting information about property investors... less than 1 ) 5% of investors own more than four investment components and 87% own only one investment property. I come across this interesting because when we started on our residence investing journey, we didn't start with the intention regarding owning one investment property. Our intention was to set up a property portfolio that would eventually replace the need to work. One particular investment property would not be enough. I wondered why 87% of property investors stop at one investment property. Achieve they have similar goals to build a property portfolio? If sure, why do they stop buying at one? When i was astounded to find that I am in the top - 5% of property investors. Astounded because I am a little regular person, on a regular income who got proficient, found a plan, took action and over time found achieving success. The next important question is how many properties do you need to turned into financially independent? I think most property investors would think it's quite surprising that you may only need five properties. Let me look at an example. In the area where we invest, you would really need to own five properties outright to replace an income of $62, 000 per year. This is based on a median property rate of 450, 000 and a median rent of $425 per week. You would need to own four properties outright to an income of $50, 000. These figures would depend within the price and rent of the properties you are buying. Even, if you are holding a minimum of five good properties in your real estate portfolio, over time a wealth of capital growth will be making. If today I am holding five median priced real estate, my total portfolio would be worth $2, 250, 000 It's generally said that property purchased in a decent location, doubles in value every 7 to decades but this depends on many variables in the economy. Let's possibly be conservative and use 10 years. My example portfolio will be worth $4, 500, 000 in 10 years time as well as $9, 000, 000 in 20 years time. If I really don't sell the properties, there will be an amazing amount of equity for sale to live a very comfortable lifestyle. This is in addition to the rental Now i'm still receiving on the properties. I would need professional help to learn how to tap into the equity, but this is the remarkable journey property investing offers. Buy and hold building in a good location, manage your finances to ensure you can put them for the long-term and then see the equity build because property values increase. A buy and hold place investment strategy offers long-term streams of income: nightly rental income plus tapping into the equity created by the property account capital growth. For 10 years I have been on my own journey when it comes to financial freedom. That journey has involved time, dollars, energy and a focused belief that it is possible. I have learn lots of books, attended workshops and seminars, completed training, studied others, but most importantly jumped in and ingested action. Mistakes have been made and many lessons have been discovered but 10 years down the track, I am now loving the results. I truly believe that anyone can achieve his or her dreams on life. To me a dream is just a not but still realised reality. If you can picture what living your vision will look like, describe it in words and burst it down into smaller goals that you can work on each month, it will be no longer a dream. It will become a reality as long as you stay in focused on your goals and take action.
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