What would you do?

[chrisj]

This is our situation. Any advice would be appreciated.

All houses are PRE 1985
TaX bracket currently in the 30% for both of us
We currently own
1st IP. Value $450,000 / Debt $180,000 / Rent $280 Week
Owned 8 years(Future Growth Great )
2nd IP Value $350,000 / Debt $208,000 / Rent $250 Week
Owned 1 Year (Future Growth Great )
3rd IP Value $290,000 / Debt $224,000 / Rent $250 Week
Owned 9 months (Future Growth OK)
And we rent a unit for ourselves at $230 a week.

We have recently returned back to Australia after living in London for 5 Years, and since returning 18 months have jumped into jobs we both are not really happy in and since acquiring this debt we feel like the only way out is to sell one of these properties to allow us to do what we want to do. That being buying a business.

We feel like maybe we have been smart with buying properties but we now require cashflow to give us the life we want and consolidate with selling a property to allow the buying of a business or setting up of a new business.
"We have had enough of working for someone elses dream"

Maybe this way we can build a great business then come back and start buying some properties again when the cashflow is better.

We are aged 32 and 28 so maybe time is on our side but we don't plan to work till we are too old to enjoy life.
Any suggestions or ideas woul be very much appreciated.

Thanks ChrisJ

[geoffw]

You may be able to look at Navra's cashbonds, borrowing against some of your growth to generate income.

Check the archives- there's a lot in there.

Or go to http://www.navra.com.au- more particularly http://www.navra.com.au/articles/cashbondfirst.html

[paulzag]

Hi ChrisJ

Congratulations on buying well and not stopping at 1 IP.

I would suggest reading Brad Sugars new book Billionaire in Training . Beware it paints an "easy" picture of life in business.

I jumped back into owning my own biz after 6 years in IT consulting. I figured I'd made hay while the sun shone, now it was time to focus on the important things in my life.

Most people have had enough of working to build someone elses dream. Not wanting something isn't a good enough reason.

Stop and reconsider buying a business right now -- unless you already have an business idea you are passionate about. Passionate enough that you'd do it even if you don't get paid.

What will keep you going during the inevitable hard times? The setbacks are part of the training course. I get to practice the mistakes over and over until I learn the lesson.

If you have the skills to invest successfully in Real Estate; and the portfolio will eventually maintain your lifestyle; swapping a regular paycheck for self-employment could be detrimental to your net worth. Finance becomes harder. All financiers know how to deal with "normally" employed people. A committed investment strategy will free almost anybody in 5-10 years. Go to a Steve Navra seminar to get an idea of what is possible to PAYG income earners.

Don't let the Robert Kiyosaki quadrants blind you to the boring, predictable path to wealth.

However I want to be a successful entrepreneur. I want to learn that badly enough that I hire and fire distributors; open and close offices and warehouses; make great and bad decisions; profit or loss. All the time getting better and better as an entrepreneur. Not as an importer or exporter; retailer or wholesaler; product seller or service provider. I am and entrepreneur and I wouldn't swap it for financial freedom tomorrow.

Regards

Paulzag
Dreamspinner

BLATANT PLUG Check out my weblog where I write about this sort of stuff.

Why do so many people advocate buying a business? Its much more satisfying to start your own business, not to mention not having to pay for someone elses goodwill.......ummm..... make that profit

If you want to be an 'entrepreneur', start your own business and get the satisfaction of making & watching that baby grow.

[chrisj]

Thanks GeoffW, Paulzag, Brains,

I have taken all on borad and very much appreciate your ideas and wisdom.

Well buying an existing business or setting our own up, we have read all the books and I have actually attended one of Brad Sugars 5 day seminars.(Brilliant, and it was the start of the mind shift)

Our plan is start our own business in a field we believe still has a long way to go, as we lived in Europe for many years have seen this industry really kick on.

If we bought someone elses business it would be to help them out financially (If you know what I mean).

Our business ideas are for a business not for us to buy ourselves a job, like I am led to beleive the majority of Business/Job owners do.

The reason we are probably thinking of selling is to put us a little more into our comfort zone to free up some cash for the ups and downs of what businesses go through.

I really appreciate everybodys advice and are all EARS for further correspondence and I am very much a listener and learner.

Thanks ChrisJ