Hi All
I am a new member and seeking some advice if I may and thank you in anticipation for any repies.
I recently went into a business venture, primarily for my daughters, which went bad and I lost a considerable amount of money. In doing so, I tendered my resignation to the company I worked for as a well paid consultant and am currently unemployed.
I am 65 yo with the following assets;
Home – value $1.65m
Investment property – 50% ownership – $375K (mother lives in – no income)
Shares/self managed Super fund – $500k
Personal assets – motor vehicles/personal/furniture – $80kLiabilities – nil.
Currently will be drawing $3k month from self managed super fund and my wife works part time with a small income of $25k per annum.
Is it a lost cause at this stage of my life, and given my current circumstances, to consider using what equity I have for an Ivestment Property? I think not having a regular income could be a problem????
Thank you all for any advice
Hi Sotiris.
Obviously I don't know where your home is, or how committed you are to living in that particular location, etc. My initial thought is, however, that you could find a great house in numerous locations for less than half what your home is worth. The remaining money could be used to buy, say 2 x $350,000 properties or 3 x $250,000 properties freehold. This would be quite achievable in South Australia, for example. This would provide you with a nice taxable income in the form of the rents to supplement your super with. If you did decide to do part time work you might be in a position to borrow against this equity to buy more properties. At the very least, the properties will hold their value with inflation and provide an inheritance for children, or lump sum funds by liquidating if you need to later. I wish you good times ahead.
Regards,
GThank you Geraldine for your input – your suggestions are something for me to think about
Cheers
Sotiris$2m net wealth, quite a comfortable retirement no? Why would you say it's a lost cause! Theoritically (and simplistically speakig) if your investment gain 10% you'll have $200k/year income! Half that you still get 100k! Quite nice!
I suggest you consult a property / financial adviser (one that take hourly fees and not one that trying to sell you any funds) – the stakes are high and you don't want to get it wrong. Geraldine's suggestion sounds quite reasonable too – you have enough to implement that even in Sydney/Melbourne. But ya I'd say downgrade from your current exclusive home seems to be an easy way to go. Outside of your own home, make sure you pick investment grade properties only tho.
sotiris wrote:Hi AllI am a new member and seeking some advice if I may and thank you in anticipation for any repies.
I recently went into a business venture, primarily for my daughters, which went bad and I lost a considerable amount of money. In doing so, I tendered my resignation to the company I worked for as a well paid consultant and am currently unemployed.
I am 65 yo with the following assets;
Home – value $1.65m
Investment property – 50% ownership – $375K (mother lives in – no income)
Shares/self managed Super fund – $500k
Personal assets – motor vehicles/personal/furniture – $80kLiabilities – nil.
Currently will be drawing $3k month from self managed super fund and my wife works part time with a small income of $25k per annum.
Is it a lost cause at this stage of my life, and given my current circumstances, to consider using what equity I have for an Ivestment Property? I think not having a regular income could be a problem????
Thank you all for any advice
Hi Sotiris,
I have to agree with J900, it is quite an acceptable position. Having a chat with a qualified financial adviser can potentially maximise your investment returns. I think it’s important to work out your personal circumstance (current and future), your investment objectives and requirements (current and future), risk profile, etc (a financial adviser can probably help you with that). Then you can consider how you can investment your money. At 65, I assume you would prefer more conservative investments? There are many things you can do, especially you have an SMSF and retired!
You may consider unlocking the equity (via LOC or downsizing) your existing home, and use that to invest conservatively in properties.
One of the issue you face is the lack of income and hence serviceability for an investment property. You may consider cash flow positive properties?
You can also consider contributing to your SMSF and purchase properties within your SMSF.
There are many ways to skin a cat!So no, not a lost cause! Another chapter in your life, and I think you owe it to yourself to enjoy your retirement.
Best of luck
Kenny
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