Hi All,
I need your advice on what to do.
My plan, as always, is to have an IP free from mortgage so its rent income will be used to supplement my superanuation pension. I came close to what I plan but decided to sell the IP 2 months ago. After reserve the money needed for other purposes I have $150K left.
I need around $10-12K/year after tax from this investment and I need it in 2 or 3 years time. I’m thinking of setting up a Trust and buy another IP. With $150K deposit it will be a positive cash flow and the cash income will be used to pay for its mortgage. I’ve been looking for a good IP but unable to find one in the last few weeks so I decide to wait.
Now I have more time to explore other options so your ideas/advice will be greatly appreciated.
Regards
Huey
Grandma Huey you appear to have a nice predicament in that really you have a lot of good options.
Why not go half and half between shares and property. For the property side of your investments personally I’d seek out some one-on-one mentoring from an active and experienced advisor like our very own BillFromOz for help in finding properties that suit your yield and possibly location requirements. For the shares side again the likes of crashy or waynel seem really helpful and honest in how they invest and profit from shares.
I agree I think you are doing the right thing too, rather than poking it into a low interest rate bank account and hoping the government support doesn’t dry up, good for you!
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Mel
[email protected]Thanks Melanie,
I asked a similar question few months ago. Now I know more about how much I have and what I want out of it so I bring up the question again, hoping to get more ideas/advice from all of you.
I just put in an application to split the home loan of our other IP into 2 parts: $150K variable and $300K fixed rate for 1 yr. Temporary I will put that $150K into a mortgage offset account for the variable rate portion. It’s a “bad” negative cashflow IP + bad property manager + bad tenants.
I hope to buy a positive cash flow IPs with that money later on. Incomes from the new IP will be used to pay off its loan since I won’t need the extra money for the next 2 – 3 years.
I had a 5 years scholarship with the Australian government back in 70s. Although I’ve paid it many times over through tax, I still want support my own retirement instead of relying on the government payout. When I left work I chose a regular superannuating income instead of a lumpsum payout. It’s enough for me to live on comfortably now but not in the far future. The additional source of income from 1 or 2 IPs will keep me up with inflation and healthcare costs. It’ s funny that although I paid my after tax money to the superanuation fund I still have to pay tax on my super income again!
I think at my “great great great grandma” age, it’s sensible to be more conservative in investing. I won’t have enough time to recover if I fail.[
]Cheers
Huey
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