A single asset worth $12m would have some degree of on site management - operations/facilities manager p/t property/centre manager as a minimum - being a net lease, the tenants wear the management, maintenance and outgoing costs. Whether you outsource these functions is a business decision. Westfield, Mirvac, Stocklands keep the management in house where as many of the smaller players don't have the skill set or capacity to take on all of the compliance matters, leasing, strategy, tenancy mix, asset management, planning, property management functions, contract negotiations, finance etc which go hand in hand with managing the facility.
Hands up for those nearing Financial Freedom
- Thread starter stumpie
- Start date
A single asset worth $12m would have some degree of on site management - operations/facilities manager p/t property/centre manager as a minimum - being a net lease, the tenants wear the management, maintenance and outgoing costs. Whether you outsource these functions is a business decision. Westfield, Mirvac, Stocklands keep the management in house where as many of the smaller players don't have the skill set or capacity to take on all of the compliance matters, leasing, strategy, tenancy mix, asset management, planning, property management functions, contract negotiations, finance etc which go hand in hand with managing the facility.
This is the important bit...
We have never lived the high life, never wanted to, so when hubby became stressed in the job that for many, many years was flexible and allowed him plenty of time with his sons, I encouraged him to pull the pin aged 50.
He's done a couple of favours for his old boss and worked a couple of contracts in the five years since he pulled the pin, and I'm enjoying his pay right now, but tomorrow is the last pay we get (probably for good - unless he is called upon again).
We live a nice lifestyle, don't wish for anything we cannot afford, and to me, having a happy hubby is worth much more than any six figures he gave up.
I have found over the years that many people find the transition to retirement awkward as they have limited interests outside of work. Many of them have been financially capable, but would be lost without their "Job".
My take on it is that we are only on this planet for a limited time and there are way better things to be doing than working! Many people have retired too late, only to end up in the box shortly after.
My take on it is that we are only on this planet for a limited time and there are way better things to be doing than working! Many people have retired too late, only to end up in the box shortly after.
Hahaha keep the insults coming Dazz!! Loving it.
Let's get back to the original point, you said retiring from a 7 figure PAYG job is the same as giving away an unencumbered $12,000,000 fantastic property for free.
Ummmm sorry, but that's a terrible analogy and I fail to see any logic in it. I'll put it as simply as I can for you:
With property you have the choice of managing it yourself or giving it to somebody else to manage (whether they are 19 and pimply or 50 and the best in the country is irrelevant). The key here is that with property you have that choice, with a day job you have NO choice. You can't outsource your PAYG job to a pimply 19 year old receptionist for a small percentage.
And before you go on about "why would you outsource a large portfolio to an amateur, you know nothing about what you're talking about blah blah blah", I'm not suggesting you should or shouldn't, I'm just saying the option is there if you want it. That's the difference between investing and PAYG.
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Exactly, I stopped working recently (in my 40s) since I was sick of basically commuting between Switzerland and Spain weekly to see my kids growing up. Don?t quite have enough money to retire but I can make it work, Spain is cheap and I can cut back on some things.
I have plently to do outside of work, Time is more important to me now than money.
Spot on Scott No Mates, completely agree. This is the difference between an investment and earning a PAYG wage, you can chose to "outsource these functions" when it's an investment.
Yes, that's exactly what I said.
Don't be sorry. I can well understand why you fail to see.
I'd suggest 99.9% or more of the forum members will also fail to see.....but that doesn't make my statement incorrect.
But you can always sham contract and income split too.
Oh please enlighten the simple members of the forum almighty one
Now I can see why you're getting so wound up, it must be hard being the smartest person on the forum...Once again....
It's got nothing to do with being smart.
If being "smart" had anything to do with it, all of the dirt poor Professors in the world wouldn't be dirt poor.
You're absolutely flapping and flailing in the wind.
There's few things in life more frustrating than conversing with someone who thinks they know everything, yet clearly knows less than some experienced investors have forgotten over the decades......whilst at the same time has the unbridled cheeky temerity to castigate those who have been there and done that.
You speak of things you know nothing about. Good evening.
It's got nothing to do with being smart.
If being "smart" had anything to do with it, all of the dirt poor Professors in the world wouldn't be dirt poor.
You're absolutely flapping and flailing in the wind.
There's few things in life more frustrating than conversing with someone who thinks they know everything, yet clearly knows less than some experienced investors have forgotten over the decades......whilst at the same time has the unbridled cheeky temerity to castigate those who have been there and done that.
You speak of things you know nothing about. Good evening.
Hi,
What a great thread.
I can understand the separate issues of being financially free and letting go of your job. My mom who is in mid 50's has been financially free for the last 15-20 years. Was always able to pay everything out of rents, without including the capital appreciation on other land, properties etc.
But she still goes to work everyday, in spite of earning an insignificant income compared to her investments. She finds it keeps her active, busy and gets her out.
Hi Oscar, always find your posts illuminating. Congrats and well done on being considered for the promotion and pay hike. Wish you all the best!
Hi Dazz, always enjoy your insightful posts and they always get me thinking. Thanks very much.
So you are saying that a $12M property will yield $1M. So that's around 8.3%.
Thanks
What a great thread.
I can understand the separate issues of being financially free and letting go of your job. My mom who is in mid 50's has been financially free for the last 15-20 years. Was always able to pay everything out of rents, without including the capital appreciation on other land, properties etc.
But she still goes to work everyday, in spite of earning an insignificant income compared to her investments. She finds it keeps her active, busy and gets her out.
Hi Oscar, always find your posts illuminating. Congrats and well done on being considered for the promotion and pay hike. Wish you all the best!
Hi Dazz, always enjoy your insightful posts and they always get me thinking. Thanks very much.
So you are saying that a $12M property will yield $1M. So that's around 8.3%.
Thanks
Dazz, lighten up!!
You say it's frustrating to converse with someone who thinks they know everything - that's the whole problem Dazz - you're not conversing, just attempting to attack and insult. Have a look at where this began - your very first response (or any of your responses for that matter), no context, no rationale, no logic, just patronising arrogance because I had the "unbridled cheeky temerity" to question you:
But lastly, just so I know we're on the same page because I really want to make sure I never castigate you again, is this what you mean by castigate?
You say it's frustrating to converse with someone who thinks they know everything - that's the whole problem Dazz - you're not conversing, just attempting to attack and insult. Have a look at where this began - your very first response (or any of your responses for that matter), no context, no rationale, no logic, just patronising arrogance because I had the "unbridled cheeky temerity" to question you:
I think that says it all really...
But lastly, just so I know we're on the same page because I really want to make sure I never castigate you again, is this what you mean by castigate?
Good work. I love Spain, cheap and the seafood in Barcelona.... mmmmm memories. Time to smell the roses
I can relate . Really I don't have many interests out side of business and investing and think I will find retirement awkward .
Michael Yardney says that retirement is only a working class mindset and I think that is about right .
I have worked long hours for years and could stop work if I really wanted to but find the habit of a lifetime hard to break .
Hi pursefattener.
Would it be possible for you to take an extended break from your "Job"? Possibly with more free time you could focus on an outside interest. Think outside the square, you may shock yourself! You can't buy time.
It's interesting you mention that pursefattner. We were studying & interviewing successful entrepreneur's as part of a course I did last year and one of the traits many share is they never see themselves retiring, well not in the traditional sense that many of us have, like sitting on a beach somewhere or playing golf everyday.
This is mainly because they love what they do (which in turn is a major reason why they are successful). Many picture their later working years moving to a different role, such as chairman, or maybe working less hours or becoming a consultant, but very few plan on leaving the workforce completely while they are still capable of working.
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In the last ten years I would have had no more than a week away from the business at any one time although there are quiet times when I need to be around .
I find that money makes life interesting and ever since I was a kid I have had a hankering to make money . A world without money would be very boring for me.
Maybe I could start a new business when I retire .
