Baby Boomer nearing retirement, no investments, no super...HELP!

[Ausprop]

I don't believe buy and hold is a way to get very rich, but it's a good long term plan. BUT you have to buy very well, with the right loan and right LVR.

you need other activities going on, like a job or a business or developing - plough the proceeds into modestly geared properties and other asset classes.

 

[Bon]

I strongly disagree with others saying 10 years is not enough time to do anything and it is little too late. pffft! If we can't achieve something in 10 years, why go through the sacifices of investing, etc. and what not? I hope to well and truly financially free in 10 years time myself personally

My only advice with property would be that it is CRUCIAL you time the markets in the capital cities of Melbourne, Sydney, Brisbane & Perth... if you time the markets right and get an increase in value quickly, then you can leverage into your next property much quicker. e.g. I bought in Melbourne 18 moths ago, I have seen a ~20% increase in value over that time and I have the equity there to put down as a deposit on another property, but my problem is serviceability (only casual, not full-time and the banks won't lend) and has been for the last 6 months or so otherwise I would be onto IP #2 already.

In a 10 year time frame, you could very EASILY be looking at acquiring a $2-3 million property portfolio IMHO.

 

[Edmond Dantes]

....

My only advice with property would be that it is CRUCIAL you time the markets in the capital cities of Melbourne, Sydney, Brisbane & Perth... if you time the markets right and get an increase in value quickly, then you can leverage into your next property much quicker. e.g. I bought in Melbourne 18 moths ago, I have seen a ~20% increase in value over that time .....

I really don't believe one is capable of timing a market. Would be interesting to know how you do that. There's so many economic factors that need to be taken into account for this. I buy whenever I feel comfortable, regardless of trying to time a market.

 

[radelaide]

You are definatly behind the eight ball leaving it this late, but the GOOD thing is its NOT TOO LATE! I would first speak to a professional accountant or financial adviser as you may be better to put more money into superannuation, you may be better to buy property or some shares. I think you need to hedge your bets a little since you only have 10 years left, the first thing you need to work out is how much cash you actually need to retire, you may find you will not be able to retire as early as you think. Maybe selling you house now and downsizing could be an option and put the cash into other investment properties...

anyway speak to a professional, as there can be HUGE tax implications for you superannuation etc depending on what investment strategy you have so get that right first.

 

[kathryn d]

10 years to go.
Personally, I don't too much of a problem.
Some other suggestions :

1.Take out a reverse mortgage when retired
2.Sell your house to your kids and rent it back when retired
3.Buy a large house close to where you live and rent out rooms, and self manage.
4.Buy rental properties in Nova Scotia (our town) and we will manage it for you You may also qualify for tax deductible trips here.

 

[want2bewealthy]

I like this thread.
To me, the original poster represents the majority of working Australian's who have the dream of owning their own home. Well done might I add! It's a fantastic feeling and you have almost achieved your goal

The reason I like it so much is because it reinforces the point that working all your life isn't at all necessary, yet most people 'just do it' because that's what everyone else is doing. Never giving a second thought to where working in a job is taking them (or not taking them) financially.

My point being: It doesn't matter what age you are, if you're 18 and have the desire to retire at 28 then so be it, so long as you have a plan and execute it properly.

The original poster (representing the majority of working Australians) work all their lives, and are no better off than they were when they were doing the same thing 30 years earlier (apart from their savings sitting in the mortgage and a little super which could have been made investing much sooner). Their wage has all gone toward the costs of living, as well as a few depreciating doo-dads along the way.

Happy investing everyone, may it take you to wherever you want to be in life and I'm glad the original poster has taken the time out to stop in for some advice while theres still time and I wish you all the best.

 

[bornfree]

The capital growth averaging (CGA) strategy I employ utilises a regular purchasing cycle similar to what Dollar Cost Averaging is to the sharemarket. The major underlying principle to its success is it relies on your "time in" the market, NOT "timing" the market, and never never sell. So in other words it does not matter whether you buy at the top of a boom or at the bottom, just so long as you purchase good quality, well located property in high density areas ( metro area capital cities), at or below fair market value, on a regular basis.

For those who have a bit of time and not in a hurry to become financially free (if they can tolerate the day job), this is the most honest, sound and simple to follow plan. May be can turn it into "The Little Book Of Property Investing" or something.
There may be a bit of issue with high B.C. fees in Brissy though - have to choose IPs carefully.

 

[Rixter]

There may be a bit of issue with high B.C. fees in Brissy though - have to choose IPs carefully.

I have a few properties in Brisbane with BC fees that range from $2500-$3000. From my experience this seems to be around the average for properties with pools and good size common areas.

To those with less experience in this, one has to remember that the BC fee is not an additional fee that one would pay if say you chose to purchase and invest in a house over a villa/town house type property.

Most the items contained in BC fee one would be paying if they also bought a house.

It pays your buildings insurance, public liability insurance, repairs and maintenance to the building and outside common areas, and a BC managers fee to manage/orgainise of all this for you - similar to what you would pay your property manager to manage tenant issues and look after the inside of your property.

For those who have a bit of time and not in a hurry to become financially free (if they can tolerate the day job), this is the most honest, sound and simple to follow plan. May be can turn it into "The Little Book Of Property Investing" or something.

That's the plan and a book is on my 'to do list' once I have fully exited the rat race.

I hope this helps