From Farmhand… to Financial Freedom - (Tom Reincke, MELBOURNE)
Financial freedom gives you choice and let me say that is available to anyone who wants to have it. I am the greatest believer of my favourite statement, 'It's not what you earn but what you do with what you earn that really counts. And yes, if you earn more, then, do more with the more that you earn!'
Why? Because I am now living proof that it can be obtained by anyone. Yes property investment has given me choice because it it the vehicle that now gives me the financial freedom to do what I like... (within reason of course).
Has the property environment changed since I started accumulating it. Yes. Has it got a heck of a lot more expensive to buy now. Certainly! But have the rules of investment changed? NO! A 10% gain on $100,000 property is 10K. A 10% gain on a $500,000 property is 50K.
Your secret is to get into the property market - but again, as is the way of the Model T-Ford, things change and things evolve. The simplistic answer to any change in the debate is that if you want to become an investor there will be a way and you will then be able to say, 'Back in my day, property was cheap'. Think about that. Is 'well selected' property ever going to be cheaper than it is right now?
I will leave you with that thought and tell my my story about how property has now given me the comfort of financial freedom.
Just a quick not here: This happens to be a personal property profile interview that was written about me by an investment group that I belonged to. The group was a valuable information source for me at the time and has proved to be a great learning experience.
I realised very early that the more I learnt about property investment, the more I realised that there was always more to learn.
Since he was a youngster, one of Tom Reincke’s ambitions in life has been to become financially independent by age 40. At 36, the one-time farmer and grazier, now flight attendant, is well and truly on the way.
From an early age, Tom learned from his parents about the importance of saving. Eighteen months of hard slog and sacrifice enabled him to fully renovate the home he bought in Melbourne in 1989.
The capital improvements on his home, plus the cash from the sale of a much-loved 4WD, gave him the equity he needed to borrow for his first investment property in 1991.
After a few years of capital growth, he was able to purchase a second property in Sydney. In both cases, Tom refurbished the investment properties to improve their value.
Thanks to an investment group, he learned the principles of selecting investment properties that did not require the expense and exertion of renovation, and he used this knowledge to purchase two more Sydney properties.
Being a member of a likeminded investment group he learnt how to invest in the share market. He now has a substantial share portfolio, plus a luxurious holiday condominium overlooking Lake Macquarie.
To take advantage of the property cycle, some shares will be sold and converted into property – using the teachings of the group and its close mentors to guide him.
Not bad for a boy from the bush with year 11 schooling who left the farm at 23, with his Ute, life savings, a thirst for success and positive attitude.
How did he do it? "A willingness to work (thanks to my Dad), determination and a lot of stubbornness, sacrifice and the enjoyment of pursuing my goal," he says.
Tom believes that anyone can achieve financial freedom if he or she is prepared to "give it a go".
"I knew nothing about how wealth was created when I first started working," he says. "It is generally accepted that income is the be-all and end-all, but that is simply not the case.
"It is not what you earn, but what you do with what you earn that counts. This means you must capitalise on the leveraging capacity of the money you have, so that your money works for you."
Tom says experience and reading have been his greatest teachers – he reads avidly. "I read 15 or more non-fiction books a year. I read anything that I can learn from or that motivates me in creating wealth and self improvement, because I believe success is a total package."
"The information you need to succeed in any endeavour is available in print. You just have to read it."
Tom says he’s passionate about succeeding in all areas of life and finance is just one of them. "I have learned a lot from close mentors, and the group. It is a great information source and a reassuring influence in attaining my goal."
He says that going without a few fun consumer items early in life is a small price to pay compared with the opportunities available to you when your future is secure.
This profile was done some years ago. Indeed the shares have been sold down and converted to more property. I still read but I now do much more work in the local library and on the net. (I am not really sure how we got by in the past without emails and web sites!)
There has also been a long list of other changes in my life and I think the biggest in recent history outside of not getting married was losing my much-loved job with Ansett. This took a large adjustment in my physic, as I was fortunate to have worked at a job that I loved every day for 16 years.
I am however thankful of my property investments as it has enabled me to find my feet, re-educate my self with further study and put this Wealth with Property home study coarse together.
After the initial adjustment period I find myself heading in a new direction in life and while challenging to say the least at times, the world is now my oyster again.
I have spoken much more about my investing process, trials and tribulations in the CD that accompanies this package. I sincerely hope that the casual yet informative interview fills in some missing links with your progress of building wealth with property.
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