I would like to hear from people who actually have started with property and have retired. I have been thinking about this....but feel too young at 42 to do it.
Would life to hear about:
1. What sort of income you have retired on? What sort of asset base did you need (property, shares, super)?
Retirement is a loose term, you still need to do something. In our case we don't work for anybody don't have any employees but are still renovating units and doing general maintenance. Our two sons are also involved in the renovating and maintenance. Thus we all use the investment income.
If we hadn't lost our contract then I would still be running our original business as the income was so good and the hours were ideal. We finished up in this business in 2005 so technically from that point on I was retired.
Currently our gross income is about the $700k mark, out of which come all the expenses (but we only have a 10-15% LVR).
The asset base that we established is very property orientated with shares, these days, only representing about 25% of the total. Super is irrelevant as this is locked away for some years yet but this will represent about 10% maybe less.
2. Are you still working part-time?
We are still renovating and will be for about another year. Beyond that we are looking are doing small developments mainly to allow one of my sons (who is now a carpenter/builder) to utilize his trade. Obviously this would enhance the total portfolio.
Beyond this we are also toying with the idea of establishing some sort of business but with the overriding criteria that in the longer run it is passive for my wife and myself.
3. What age did you manage to retire?
A forced retirement at 50
4. Did you shift from property to other things to increase cash-flow - i.e. shares, cash bonds, etc.?
Yes. Tried this path and was very profitable for a number of year then lost all this extra income as a result of inaction and the recent crash.
5. Are you happy with your lifestyle? What are the pros and cons?
No. Working with your sons can be very trying.
I actually was more 'retired' when I was running my business as I had many more resources that I could draw on. For last few years in the business my work day consisted of turning up at 10:30 - 11:00 so I could play a few games of pool over lunch with the staff and leave again by 3:00.
Now with the full on renos etc I am far busier as the days tend to be less routine more chaotic as everyday is different
6. Do you have any regrets?
Regret not buying more property But really, no, its turned out pretty well along the lines of my mud map.
7. Has the GFC affect your plans and asset base?
As mentioned elsewhere we lost about $3mil so bit of a hit on the asset base but also a major hit on income as this was generating a massive income which in fact was the problem regarding my timing and not wanting to terminate the investment. Be it that I originally planned to terminate the investment at exactly the time I should have.
This has affected some of my longer term plans as this was going to be the base for doing some larger scale developing.