Hello everyone.
I have been living in isolated area’s in the Northern Territory for the past 24 yrs and now have a desire to live with the multitudes in more civilised area’s on the east coast.
I would like to put my position to you and have you examine my proposal for the fiscal pros and cons. I know if I remain in my current position, I will grow more wealthy as time goes on following my investment plans, but I am a man of simple wants and would rather improve my quality of life then to be the richest man in the grave plot.
This is my situation.
Currently I earn $90k per year. Wife earns $35k so we would be leaving this income behind. We have no outstanding dept apart from property investment dept. We own our PPOR outright.I am owed 8 months leave on full pay or 13 months leave using some half pay options.
I have attend a Steve Navra seminar in 2004 and have a basic understanding of LOE.
This is what I am considering to do. If you can find fault or maybe offer other alternatives I would be very thankful for your thoughts. I know it will at the end of the day come down to my comfort level, although your thought would be valued. Bey the way my wife is willing to follow my proposed plan, so no trouble there.
I have $360,000 available to me through a recent property sale of a block of units. I would also have approx $30,000 in wages during the next 12 months.
I would invest $295,000 and live off $95,000 in 2006. This includes relocation costs and the purchase of a second hand vehicle if needed as I am happy to travel in public transport.
Anyway here are the sums.
$295,000 x 5.75% and leave during 2006 year.
Live off the $95,000 during 2006 year.
At the start of 2007 I would have the following amount to draw down on and reinvest. I am assuming rates remain constant and figures are prior to any tax.2007 $295,000 is now $311,962. Draw $72,000 to live through 2007. Reinvest $239,962.
2008 draw down $74,160
2009 draw $76,384
2010 draw $78,675
2011 now am able to draw Superanuation at approx
%67,000 p.a. wife has no super to speak of.I am holding $1,650.000 property at this time.
I would rent for the first couple of years on relocating.I am hoping that the property will have risen to at least $1,900.000 in the next 5 years. I have property dept of $885,000 so LVR stands at 53.9% The portfolio is about $6,000
neg geared before tax. I would support this by the rental I would get from my PPOR when I moved approx $8,000 net after expenses.Both would seek other employment on the Coast and hopefully get something to keep us busy. If I change my mind I can always scamper back to the desert as I will not have resigned until approx 12 months after the relocation.
Any comments or recommendations before I jump over the edge ?
I realise that your thoughts are only comments and not advise.
Bradshaw.
Hi Bradshaw,
I am in a similar position in that I am also lost in the desert in the Pilbara of WA.
I have a similar idea to move on within 12 to 15 months.It seems that you have the opportunity to make the move and not leave your employment for 12 months.
I would suggest try it out first and see how you settle in.
Theres plenty of work in most places anyway, so if you can get some part time work, you probably will not need to LOE as you previously described.Bottom line, you’ll never never know, if you never have a go.
It maybe be a bit daunting and a big decision to make, but you can always retreat back to the desert if it doesn’t work out.
kp
Sounds fantastic, one thing, would you be able to work while recieving annual leave payments from your previous employer? My contract has a clause about that saying I can’t. I supposed worse case scenario is they would pay you out all entitlements (nice little package).
Hi Bradshaw,
I think you and the wlfe are in a fantastic financial position.
Your super payments from 2011 looks great and you will have substantial equity in your properties too.
I concur with KP’s comments.
I would suggest that you seek advice from some Financial Advisors.
Good luck.
hrm
Dohicky
In my line of work, I am supposed to seek permission to hold other employment. I do not think it would be opposed.But then again, why bother them with details.
Bradshaw.
You’re in an excellent position to move on in life whilst also having the security of a solid foundation to fall back on if need be.
People with a lot less have made that ‘leap’ and done quite well, so you’re in a great position to set up for a comfortable future. Good luck and keep us posted on how it all works out…G7
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