Hi All, We need some direction, if someone would like to help us out with suggestions please. For the past 11 years, we have operated a very successful Caravan Hire Business, a fleet of 19 Caravans, now reduced to 10 (great returns if anyone is interested in it). As well, Hubby has worked full time as a carpenter/builder. Hubby is worn out from burning the candle at both ends, so we want to sell the business. We are around 50, and need to think about retirement (don’t have much super). As well, we have a 12 Y/O Son with special needs. Because of him, we will be moving to another city who can offer suitable secondary/tertiary education for him in around 12 months time. This means, we will arrive in new city with about 400K and no debt after selling PPOR & business. We haven’t owned Investment RE ever as we always seem to have had our plate full, but hubby feels he could do something using his building trade skills (he’s an excellent carpenter). We need to think of son’s future, as well as our own retirement. Hubby is not huge on dealing with tennants (have heard all the excuses known to man over the past 11 years from our own tennants, LOL). Hubby feels he’s a doer, not a thinker, so direction is largely left to me to figure. I’m just completing Steve’s Book, and am a little confused. Would anyone like to comment please? Thank You so much in advance.[
]You are ideally placed to buy a renovator and do it up whilst you live there.
Any profit you make will be tax free as it is your home.
Also depends which city you are off to? I imagine $400K goes a long way in Hobart but would buy a pretty average home in Sydney[
]All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon, Thank You for that. We did think of doing some renovation homes and just move from one to the next as PPOR. We are in QLD, and moving to Toowoomba. Arnitrav
Toowoomba is a great little spot. I lived there about 15 years ago!
I imagine you will easily buy a great renovator there with your funds.
You can also explore the area around there and collect a few IPs as well!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon, Heartening to hear your thoughts. Would you mind enlarging on the concept of also looking at IP’s as well please? Should we buy the reno out of our own money and borrow for IP’s, given our ages? A
Thats how I would do it.
If you have income coming in then this will be the more tax effective way.
I would wait a bit and really get to know the area well. That way you will be able to identify really good deals and pounce on them.
But if I was a carpenter I think I would go down the reno path. I did one over summer and added $75K in value by spending less than $10K.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon, It is very re-assuring to hear your suggestions – I had thought along the same lines myself, reno + IP’s as we went along. It had also occurred to me – while we were doing a reno, we would have no income, hence IP’s as we could find them. Wow, you did really well with your reno Simon, that is great news!!!! Just proves we are all different people – while poor old Steve faltered with his reno, you have shone! Thank You, you have been great, Simon.[
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