Hi all
I was wondering if you could share with me what levels of property investing you have achieved on your incomes levels. In other words if you earn $75,000 pa or whatever. I understand it depends on rental levels, personal debt and so forth.
I'm a single guy,don't work as diagonsised as permanetly disabled and will recieve income for another 8 years from insurance. The income stops and then nothing. Little in super and a mortgage of 200k. Wife went off with a younger man so my assets are not to good after the divorce and considering I'm 51 years old. No other debt and face a bleak financial future.
I have to say I dislike being on benefits and have to figure how I can support myself as soon as I can. No one will employ me, so I have to make it on my own.
Cheers
Contact a financial planner/advisor (possibly through your insurer) to advise on how to continue your income – options include putting some of your insurance payout back into super (you will only need to wait 9 years to access it and its earnings tax-free – i'd suggest an industry fund as they have the lowest fees – see super ratings), managed fund ($1000 entry + regular deposits) etc.
Get the planner to run through your current situation including income, medical expenses/care, living costs etc to determine your level of 'free' income and what possibilities could improve your situation including any structures that you may need to put in place.
You may find a good planner from discussion with friends or recommendations from this board.
Sott No Mates,
Thanks for the reply.
Prior to my accidents I had done the Spann seminars and had read the Jan Sommers books and have her soft ware. I have also read Steve's books and others. My background is finance and I am pretty boned up on Super, shares and managed funds etc. I would like to get a handle on what people can and have achieved with property investing on fixed incomes.
My income is about $75,000 and increases with inflation until it stops in 9 years. I have been on insurance benefits for 6 years so far as I am disabled enough to prevent people employing me. I have to consider all my investment options ( which may include a business to increase income) before my income stops in 9 years and besides I am going gar gar.
Perhaps the question is to broad as there are so many variables but I got the impression from my reading that average income families buy a fair amount of property. I tend to like this concept as I am good with interior design/renos and I like the personal controll.
So if anyone can give me an idea of what they have achieved on their fixed incomes I would be gateful.
Cheers
Hi, since you have finance background, the numbers may mean something to you.
I was on $60K pa with $250000 tied up in PPOR which I leased out when I went to work overseas. I was full of grievance when I realised that my hard saved earnings would be taxed to the max so I figured that if I'd no income, I'd not have to pay tax. I went on to buy 3 more houses, sold all 4 to retain 2 blocks of shops now returning $75000 pa in rent.
I'll be honest & tell you that half of my million was earned income & half of it [now more than half really] is through capital gain. And my fixed income started at $865 per month. Even after 8 years, I was earning only $11000 per year. So it's only in my forties that my income ever went to $60000+
Your mortgage is eating away a chunk of your investment potential. You'll be paying the bank about $16000 pa + rates etc which is non deductible.
Can you envision doing what I just did? Settlement incidentally is today at noon.
I SOLD MYSELF ALONG WITH MY HOUSE.
Sale price = $335000
Loan = $225000 Interest @8% = $18000 pa = $1500 per monthA condition of sale to the investor is a 5 year lease @ $350 pw = $1517 per month paid directly with no agent fees etc
Note what I gain?
a) $100000 less costs of around $20000 = $80000 cash [bank that off set = $6400 in year 1]
b) I don't pay rates, land tax, levies etc = savings of $1500 more the investor pays this & gets a deduction & depreciationBasically, in year 1, I live in my own house & pay $8000 less for the privilege. Then I continue living in it for 4 years, with less savings as I have to pay tax.
Can you find an investor to buy your house @ around 5.5% yield? [I found one the 1st time I tried.] You won't have to pay tax on the capital gain so you can bank the proceeds less your loan. Assuming you net $100000 & keep it in fixed deposit, you'll get an extra $7500 pa
A variation of course is to rent out your house & rent from someone else. The only way it works is to live in a cheaper house than the one you own, much harder to do because of the fees involved.
This post is so long I'm exhausted!
I'll also add the rider that I don't offer financial advice. How you interpret the numbers is entirely at your own risk.
My intention is to share with you what can be done. AND NEVER IMAGINE YOU'RE TOO OLD OR UNABLE.
I only got serious near fifty & I'm retired after 6 years.
Good luck,
Kum Yin
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