I’ve only recently decided that it’s time i put some roots down and get some direction happening in my life as i’m getting old now and need to think about the future [xx(]

I’d love to be able to retire at 45-50 and that’s why i’ve recently discovered these property investing forums to get some advice…so i can indulge in my love of travelling. I can live really cheaply and don’t need a fancy PPOR or all the fancy toys (but a Ducati would be nice). When i travel, i do it with a backpack, stay in dorms/hostels and eat street food.

I guess the main thing i want to know using “creative finance”, is how i can avoid selling the unit (i’d prefer to hold onto it and i can abort the auction), and also buy my PPOR with little/no debt on it. Of course i don’t want to pay interest on my PPOR which i cannot deduct.
I guess that would mean using my equity as extra security for the PPOR and take out a bigger loan – but… would i be able to get finance considering i don’t have a job at the moment?

Also are there any thoughts on what’s the best way to retire on property investments – i.e through rental income or capital growth?

I’ve always thought that rental income would be the way to go, but that would mean having little debt and/or cashflow +ive properties, plus paying tax. I figure that to get to this point, i’ll need to do some renovations and sells to pay off some debt, or accumulate more properties that are cashflow +ive…but then again i have that tax thingy (PAYE?)
I guess using capital growth could be done be either selling a property when i need some cash and living off the proceeds (paying CGT…yuk [!]), or drawing on a LOC to live off.

Not sure which is the best way to go here…any suggestions on what is the best way to do it? Has anyone come to any conclusions?

Muchas gracias,
Quentin

Hi again, an update:
After much uhmming and ahhing (are they words?), i’ve signed up with an agent and will be auctioning the unit on March 29 at 11am on site at 15/12 Tivoli Rd, Sth Yarra. If anyone is interested in a well located, solid investment that will show excellent growth, come along and make a bid!
Am i allowed to put down the details here? I asked earlier but had no response, so here i go:
Invest or Occupy: in this top floor North facing 1 bedroom apartment which has been freshly painted and recently carpeted. Features a sun drenched leafy outlook, direct access to Rockley Gardens and the South Yarra library, built-in-robes, laundry facilities and is in a sought after location in leafy Tivoli Rd. Literally minutes away from Toorak Road and Chapel Street – enjoy the cafes, restaurants, bars and shopping in this blue-chip location.

Sounds good ey?

It was a very hard decision for me to make because of the CGT and stamp duty that i’ll have to pay, but i figure that it’s the only way i can buy my own place to live in without taking out a loan (which i probably wouldn’t get without a job). As i mentioned, i haven’t worked for the last year so it may also be a good time to realise those capital gains even though i believe in the strategy that you should NEVER sell.
I like the idea of buying something that can have some value added, revalue it and then borrow again for the next IP.
I also hope to have my cake and eat it too by buying my residence on the Gold Coast, add value to it and sell it after 1 year to avoid CGT…i think that’s possible? So in effect, I’m back where i was in terms of property held though 1 will now be my PPOR with no/little debt.

Hi Greg, thanks for the reply. You sound just like the person i’d like to have a chat with and it would great to hook up and see if there’s anything we can do together.
I hope to be back on the GC by mid April, so please get in touch if you’re interested.
Can we put e-mail addresses on this forum?

~ better to die on your feet than to live on your knees ~