Hi there,
i am hoping for some clever strategies so we can speed up our early retirement dream. Situation PPR debt free worth $800k. (would only rent for $600 per week if we were to rent it out) we own 3 investments, a triplex worth. $390k still owe $380 on mortgage. P&I returns $630 per week. Also a duplex worth $500k. We owe. $400k. Returns $550 per week and a house worth $230 we owe $200k returns $300 per week my question is we are paying every extra cent available from both our incomes into offset accounts inn order to pay down debt but my best case scenario is 3 years to retire and that requires selling our PPR in order to pay down all investment debt so we can travel with the income from the investments. Has anyone done this out there? Any advice would be appreciated. By the way joint incomes $220k gross thanks in advance! We are mid forties and cannot wait!
Hi Michelle,
I have a number of scenarios I think are worthy of consideration, but there needs a little more understanding of your circumstances. Some further questions;
1. Are any of the loans Fixed?
2. Are there multiple Lenders, or just the one, who are they? There are interest rates in the market place now that are under 5% in the Fixed Interest products,
3. What is the income you feel that you need in your travels?
4. Is there any chance or possibility that you would return to work after traveling?
In addition to the above, dependent on your answers I am sure there will be more questions. Something that I would recommend is that after your feedback you also consider talking to a Financial Planner.
We are always open for a no obligation chat if you would like to do so,
Regards Grant
Hi Michelle
Firstly welcome to the forum and i hope you enjoy your time with us before you set off travelling.
Retirement when you are young isn't all it cracked up to be without careful planning. I was fortunate enough to retire at 40 and be in a position to comfortably live off my rental income for the rest of my days.
I had 3 children between the ages of 5 and 10 so travel was limited to school holidays etc. When you wanted to play golf or go out most people of your age were working.
There is a limit to how much gardening you can do and bike riding up and down the hills of Brisbane's Western Suburbs.
So i ditched the idea of retirement and set up a boutique Financial Planning / Mortgage Brokerage / Property Investment Sourcing organisation to help other forum investors enjoy what i was lucky enough to have.
What you have to understand there is no quick fix to early retirement as it takes hard yards and careful planning.
Sure there are a number of techniques, cash flow strategies you can adopt to increase your long term wealth but these won't be achieved in 3 years.
Ask yourself how much do you need to enable you to travel and work backwards.
I adopted a slightly different strategy to most and paid down all of my investment debt to position now where the expose on a $24M property portfolio is under $1M.
Be realistic and talk to other investors who have been there and done that and see what they did to achieve the same thing.
What fits one client does not fit everyone and this is the message we put out at our investment workshops.
Get yourself mentally right and with the right attitude and you will get there with discipline.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
