Hi all
new to this forum, wondering if anyone has experience similar to share.
My husband and I are mid-50's, own outright one IP bought 22 years ago
(I know, why did we stop???) valued at $800k, rented for $430/week ($22,400pa)We don't want to sell it just yet, even though yield is not good, growth prospects are great,and we'd have a huge capital gains tax if we did. So instead we're thinking of extracting some equity and using it to buy 2 x $500k units,
possibly in Melbourne where we live, but also interested in Qld opportunities.But what worries me is I don't work but do have sm income from shares of $10k pa, husband earns a good salary but I want him to scale back sometime in next 2 – 3 years to part-time. Are we mad to be thinking this would be a good idea?
Anyone out there in a similar boat?
thanks
TarliHi Tarli
There are options and no you are not to old. I would be happy to have a chat as I am based in Melbourne. I have been helping people get directly involved in Development. I can show you how to replace your income.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Cashflow is good with Central Qld investment mining town, not so good on Capital Growth. PM me for details
Tarli wrote:Hi all
new to this forum, wondering if anyone has experience similar to share.
My husband and I are mid-50's, own outright one IP bought 22 years ago
(I know, why did we stop???) valued at $800k, rented for $430/week ($22,400pa)We don't want to sell it just yet, even though yield is not good, growth prospects are great,and we'd have a huge capital gains tax if we did. So instead we're thinking of extracting some equity and using it to buy 2 x $500k units,
possibly in Melbourne where we live, but also interested in Qld opportunities.But what worries me is I don't work but do have sm income from shares of $10k pa, husband earns a good salary but I want him to scale back sometime in next 2 – 3 years to part-time. Are we mad to be thinking this would be a good idea?
Anyone out there in a similar boat?
thanks
TarliHi Tarli
Welcome to the forum.
Property is a long-term asset.
With that in mind – I would start with working out your end goal and work back from that.
What do you want to achieve from property investing? What do you need to do to make this happen? Is this likely to happen within the timeframe that you've set?
These are the questions I'd be asking myself.
In terms of financing IPs – providing there's income coming in and sufficient assets elsewhere, it's certainly possible.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Tarli wrote:Anyone out there in a similar boat?
thanks
TarliWe are not 55 yet (49), and have only recently started buying IP's. We've managed to acquire 4 in less than 5 years and will certainly be looking at more. I haven't worked (for a wage) since we purchased our first property, and the missus is only on an average wage (works in not for profit area). We only look at neutral or positively geared property since we don't pay much tax to negative gear against (due to the not for profit) and plan to keep purchasing into the future (past 55).
I think it's possible for you, but as Jamie mentioned, you need to look at your own goals and expectations.
Our goals are to have 10 properties by the time we're 60, but they certainly won't be prime stuff like your 500K units as they'd require too much tax requirement on us (that we don't have) and we like the flexibility of not having to work to pay for our properties at this time in our life. Make sure you take all things into account or you could be caught off-guard. We have a couple of outer metro (Cranbourne) and couple in the vic regional areas but are now looking at other states for our next purchases, possibly QLD (maybe Logan) due to land taxes now coming into play with the Vic properties.
Tarli
I have already turned 55 and still acquiring – last one was off-plan projection is 10%pa and so cashflow positive . My biggest regret was selling CF+ve Potts Point, Epping (Vic) and Manly Vale properties post GFC to de-leverage against my better judgement (ex banker's conservativism and excessively prudent business partner)
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