Do you have an IP Financial Plan to get you to retirement?

[bday]

Thanks Rixter

Its been 22 years so ill give you the one page version
started out in business at 25 1985 ( food related in Albany ) sold out in 1995
It went well invested all profits in property built block 11 units ( 1/2 share with father ) , built duplex , 1 spec house , 1 house in Perth plus 4 renos ( which we lived in and sold CGT free .
Sold business in 95 when these props were owned outright bought commercial prop in Osbourne park Perth 1.1 mill in 1995 ( sold in 2000 and converted to listed and unlisred trusts ) plus started building share portfolio with procceeds of business sale .
Recently bought unit Broom , house in Karrath this year looking for duplex block in Melbourne plus small block units 4 - 8 Melb
The basic plan is 30% Shares blue chip dividend payers , 60% commercial trusts and residential , 5-10% cash
only gearing is on residential , dividends and commercial rent give ample income for residential loans equity buildup in residential allow more borrowing .
Overall grearing is low but I was fortunate to make vgood cash flow early on in business that gave me a big start .
The idear of commercial trusts with residential does work well though as fare as servicability goes ( high income low growth with low income high growth )

 

[grossreal]

hi all
I was biting mybottom lip but now I don't need to I have posted chapter three of welcome to my world because it exchanged yesterday.
so have I got an ivestment plan
if that not an investment plan I don't know what is.
in sydney and a very nice little project.
am I happy
let just say over the moon.
its not the largest in the pipeline
but is the best to date and you are only as good as your last deal.
so GIDDO I am very confident
and
cabo wabo
pop your head out and have a look.
if i can ask bday
is
(The idear of commercial trusts with residential does work well though as fare as servicability goes ( high income low growth with low income high growth )
Yesterday 01:20 PM )
what I call double investing where you us the income from the rent or dividend to pay the short fall in cost per month of a residential or can you give me an idea of how and why ( I ask questions this is a board and you have to be mindful of that so I don't mine accepting no if thats the case).

 

[bday]

Grossreal what you call double investing sounds about right .
Commercial has much better cash flow , residential has better growth so with a 50/50 mix gives you growth in residential for more borrowings with the higher income from commercial to service loans .
remember though my property portfolio is self supporting I dont add other income from wages .

 

[Andrew_A]

Interesting to read some of the older threads. I would say Jan Somers approach has proven quite resilient over the last 6 years, the LOE approach in various forms (though not in all forms) has taken a battering due to the GFC.

 

[vaughan]

Yes, it'd be interesting to see how some of the vocal "glass half full" people did over the last 5 years.

Steve N said at one point: the probability of a bust is the same as a boom.

Drawing equity from IP to put into shares...

 

[investor2009]

Yes, I'd agree with everything written here Andy.
BUT, LOE is certainly still possible if played wisely. Part of my LOE plan has always been to have the last resort ability to sell assets and release cash rather than borring it. As a 'last resort' it's still pretty darn good, really.
And thats why I love IP, there are so many end options

Interesting to read some of the older threads. I would say Jan Somers approach has proven quite resilient over the last 6 years, the LOE approach in various forms (though not in all forms) has taken a battering due to the GFC.

 

[AlmostBob]

Yes, we have one, ,
retired LOR 40CG+CF+ ,
holiday in NT right now
perhaps if there hadnt been a gfc there would not have been as many distressed sellers for us to buy underpriced bargains

 

[redwing]

*BUMP*

Interesting thread and well worth the read.

Reminds me of the Couple in API many Months back who were cleaners in Perth with a Portfolio of $6M; they are selling thier cleaning company and retiring, with 10% CG p/a they get $600,000 to live on, at 5% CG they get $300,000 to live on..however, they are happy to live on $100,000 p/a and will do so.

Wonder what thier Portfolio is worth now with the WA Boom?

There is an update in the most recent API, another interesting story

Where are they now?

Sue and John Moody had retired on property when API last spoke to them in 2005, but the GFC has changed all that.