Hi remy
I think I’m in the same boat the difference is we are both semi retired already (pension)anyway I see wear your coming from I wounder how many others are in this boat and what thay do
aaron
Hi remy
I think I’m in the same boat the difference is we are both semi retired already (pension)anyway I see wear your coming from I wounder how many others are in this boat and what thay do
aaronHi Aaron, thanks for replying [
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I see my partners point of view. He has reached an age where he wants to stop saving and start reaping the rewards of past investments(we had two -ve IPs for many years)and start ‘living’. He’d be happy to sell our home and live in a shack and spend the rest on cars and lifestyle.I’m happy for him to retire if that’s what he wants, but I think it’s naive of him to think that he can do that without some other contingency plan in place.
We have had our fair share of horror tenants(and resulting repair bills over and above the bonds) in the past(understatement), “filthy irresponsible animals without consciences” would be closer to the truth. So another reason hubby is not keen to tread that path again.
Hi Remy, I think you have a situation that is more common than you think! One option worth considering is selling your home and moving to another desirable (perhaps more so for lifestyle!)but cheaper area. For instance if your home is worth in excess of $700,000 there are many lovely areas (like where I live – Goulburn) where you could buy a lovely lifestyle for say $400,000 and have $300,000 to invest.
Goulburn is experiencing an enormous growth in people moving to the area for a better lifestyle for themselves and their children, but it is still relatively very affordable.
With your childrens desires to go to Uni, don’t feel you have to bear the full financial burden. Get them to start work at Maccas or somewhere similar at the earliest age possible, teach them the work and savings ethic, and guess what? – they won’t need much financial support from you when they do go to Uni! It worked for us.
Good luck and keep us posted!
CappieCappie
Good to see Goulburn is startingto pick up as for getting kids to work that can be easyer said than done but the saving ethic is good what ever our’s bring in to the house gets split into 3 1/3rd for rent (maybe a bit more depending on how much they eat)1/3rd for bank 1/3rd for them it’s worked so farRemy
we are both the same age my Idea is to have a portable home or house sit my way places “there’s that but again”
aaron
Hi Remy, I think you have a situation that is more common than you think! One option worth considering is selling your home and moving to another desirable (perhaps more so for lifestyle!)but cheaper area. For instance if your home is worth in excess of $700,000 there are many lovely areas (like where I live – Goulburn) where you could buy a lovely lifestyle for say $400,000 and have $300,000 to invest.
Goulburn is experiencing an enormous growth in people moving to the area for a better lifestyle for themselves and their children, but it is still relatively very affordable.
With your childrens desires to go to Uni, don’t feel you have to bear the full financial burden. Get them to start work at Maccas or somewhere similar at the earliest age possible, teach them the work and savings ethic, and guess what? – they won’t need much financial support from you when they do go to Uni! It worked for us.
Good luck and keep us posted!
CappieThanks Cappie, great ideas!!!
Remy have you tried to get your husband along to a property investing seminar, eg Steve’s – they can be very inspirational, if only for the other people that you bump into and share stories with – building knowledge AND a network at the same time.
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MelI would be worrying more about funding your retirement than funding the kids university fees. There is always HECS. Although you get a discount for upfront payment, it is very easy to pay off the debt later through the tax system. It’s what I am doing right now!
Instead of paying my uni fees upfront I saved my money and bought a property instead. Now I pay my HECs through the tax system each week, but my house has gone up in value since I bought it by $50k (less than 12 months ago), plus I am getting the tenant to help pay the mortgage.
If I had worked to pay my uni fees and then bought property, I’m pretty sure i still wouldn’t own a house and it would be even harder for me to enter the Melbourne property market.
your kids will only learn to save if you teach them how. They should get part time jobs after school definately. It helps them to become mroe independent.
Remy
we are both the same age my Idea is to have a portable home or house sit my way places “there’s that but again”
aaron
Aaron, I know of a retired couple (friends of my mother) who have been doing the house sitting thing for a few years now. Not sure how they manage not to be sitting on the side of the road between contracts, but I do know they are having a blast. They absolutely love it and don’t plan to settle anytime soon. They have some regular clients now who fit around them for their holidays [] way to go.Remy
You can still pay off your mortgage and invest at the same time. Imagine if you got into a few positive cashflow properties, you could get a LOC secured on your house, so you ‘home loan’ would remain the same level, then buy cashflow property using IO loans, and pour the excess funds into your home loan-paying it off in now time.
Taking things to the extreme, you have a $700,00 property, 80% of this is $560,000, minus $30,000 home loan would leave you with $530,000. This money cold then be used as deposits on wraps. Taking an $80,000 property for examaple, you would need $20,000 for deposits and costs (taken from the LOC). $520,000 divided by $20,000 = 27. So you could theoretically purchase 27 of these properties. The cashflow on one of these would be about $3000 per year, so that would give you a yearly income of $81,000. Plus when each property wrapee cashed you out (about every 1 to 3 years) you would make another $15,000 capital gain as well.
The above all depends on your incomes and serviceability etc.
(If you think you can’t wrap, there are people/companies that will do it all for you for a fee-some are on this forum.)
So you could probably retire within months if you really wanted to.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Remy have you tried to get your husband along to a property investing seminar, eg Steve’s – they can be very inspirational, if only for the other people that you bump into and share stories with – building knowledge AND a network at the same time.[
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Mel
No I haven’t tried to get him to a seminar, I don’t think he’d appreciate spending that much money, buuuuuuut I am going to convince him to read the 0 – 130 book I think it would help greatly if he had more knowledge about +ve IPs with cashflow,…we have only ever had -ve IPs and he has always been a believer that -ve was the only way to go. I need to change his way of thinking.
I would be worrying more about funding your retirement than funding the kids university fees. There is always HECS. Although you get a discount for upfront payment, it is very easy to pay off the debt later through the tax system. It’s what I am doing right now!Instead of paying my uni fees upfront I saved my money and bought a property instead. Now I pay my HECs through the tax system each week, but my house has gone up in value since I bought it by $50k (less than 12 months ago), plus I am getting the tenant to help pay the mortgage.
If I had worked to pay my uni fees and then bought property, I’m pretty sure i still wouldn’t own a house and it would be even harder for me to enter the Melbourne property market.
your kids will only learn to save if you teach them how. They should get part time jobs after school definately. It helps them to become mroe independent.
Thanks Nats, what you say makes perfect sense, and particularly buying your IP instead of paying UNI upfront. OK, will concentrate on funding my retirement and let Uni fees take care of themselves.Thanks for enlightening me [
]Terry! just the kind of information I was hoping to hear. I know it’s theoretical and all, but you’ve given me an outlined scenario that I would be very interested in having a crack at.
Now I just need to arm myself with a tonne of knowledge so I can work towards a nice IP portfolio.
Thanks heaps,.I’m going to print your reply out and keep for reference.
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