Your stratergie to join the Millionaires Club.

withdrawn due to comments by mark suggesting my contribution is a waste of time and to be ignored. Please close this thread.

withdrawn due to comments by mark suggesting my contribution is a waste of time and to be ignored. Please close this thread.

just borrowed $250,000 to start my strategy (should hit my account at the end of next week, can't wait to go shopping).

Selling covered calls and naked puts over bluechip shares should make 3-5% income per month (+/- growth on the underlying shares) so $7,500 to $12,500 pm less interest of $1,875. Thats positively geared, none of this negative geared b.s.

Each year borrow against the equity you have created in the prior 12 months. And add to the strategy. After 6 years should have $1 Million in equity.

I need to start a company and a trust to keep my tax rate at 30% and distribute income to my wife, but I'll see how I go after 6 -12 months.

CRC

Right now, I think capital preservation is very important because your capital is what will get you to your $1Mil destination and the lesser your capital amount the longer it will take you to get there.

I am confident that gearing is the only way to get to retirement earlier
but I am not risking my IP equity to buy shares or funds in this environment.
I have decided that I will wait for the share markets to turn around before I reconsider changing my position.

On the property front, I am adding 1 property to my SMSF very soon and the plan is to add 1 more property to my IP portfolio.

This is the plan anyway.

Cheers

CRC,

Research to buy IPS in better performing areas (eg ~10% compounding).
Buy IPs, let equity build, extend loans for more deposits, buy more IPs.
Take some equity from IPs and put into Navra for more cashflow (locations for IPs with better CG tend to mean -ve gearing) ... working longer hours helps a bit too. ... acquire >$2m in IP value.

... wait 7 years for approximate doubling ...

Progressively sell down IPs over a couple of years to result in >$2m equity. $1m will be worth a lot less then than it is now.

Go travelling

D&K

Great plan.
It will be very hard to do this today because property prices are already quite high and because of the high cost of money but it can be done if you are able to time the market and get in early before a boom.

Cheers

Bill,

I'm not negative on buying IPs now, just don't have the money. Interest rates are going to head down, maybe not in the next month, but sooner or later. If a person can't handle today's interest rates then they're probably not in a position to play. It looks bad, everytime we're at the bottom of a cycle it looks bad ... but they look really good in hindsight.

The drop, when it comes, will stimulate house prices, because there is so much built up demand. That just means there's time for research now to get the right locations. We're near the bottom in a couple of cities, others are still settling down.

If I was starting now, I might consider this to be a good time, given a long term view. This next year might just be the counter-cyclical opportunity that we'll all look back on and say ... "if only".

But I didn't say when I (we) started Dave

withdrawn due to comments by mark suggesting my contribution is a waste of time and to be ignored. Please close this thread.

CRC,

I know what you mean, particularly regarding serviceability. I haven't been real good with shares, hence the need for Navra to provide that offset in cashflow. Can't say that the last year has been a fun ride in either market. But not giving up yet!

dave

withdrawn due to comments by mark suggesting my contribution is a waste of time and to be ignored. Please close this thread.