How many properties to retire?
- Thread starter Tim
- Start date
I've been reading Rich Dad, Poor Dad and it had me thinking IPs alone would take longer to retire. I suppose thinking "X amount of IPs will do it" is fine, but there are too many factors...for me $1000/week of clear income is semi-retirement, for others its $2000 and for others it's $10,000/week. I would tend to think multiple income sources may be easier to achieve (and build up to), rather than property alone, especially with a negative gearing strategy.
I've been lucky so far.
I had 1 eviction in 10 years (kicking them out this week)
and a vacancy of 3 weeks at the time when vacancy rates were 4.5%
Look forward to some numbers from your deals then then Dazz
Leave off some 0000's though and bring it back to a residential comparison as the big numbers just confuse us
Agree 100% on what you've posted above
100 unencumberd would be a nice start!
As you get to your goal, most people get addicted and the line moves outwards, unless you have a mentality where the tide goes out and your line goes down to meet the water. I like the thought the tides rise and my line goes futher towards suburbia (and no not so mt druitt become waterfront property either)
buying at the prices you have posted on this forum you must be getting close I would rateher have a mix of resi/cip unencumberd
Saw someone reading this old thread from 2003 in who's online so I thought i'd bring it back to life.
When I decide to retire I'm thinking 1 option I could have is to sell off 3/4 of the properties. Use the money to pay down the ips I keep which might just be 2 or 3 ips. With the rest of the cash I'm thinking a smart choice would be to invest in a conserative income fund or perhaps invest some of the money in fixed term deposits and put some money in a savings account.
So this way you diversify. Its safer this way. Some money in property, some in shares, some in fixed deposits and some as just cash in the bank.
I'm aiming for $75 K gross pa.
Bought my PPOR after a divorce 10 years back.. Rented every room , worked like a dog and lived like a backpacker.. Paid off 3 years.
Kept that bought 2 more, 10 years later, sold PPOR, $165 becomes $700k.
Bought new PPOR with my savings plus gain then Sold 2 houses used that gain and bought old block of units (5 pack) returning $62k , do full Reno and raise return to $75-80k ( moved new purchase to a trust so I can split income with wife, kids if required / now or later)
Use new rental income to buy another old unit block and double down on payments. (Reno along the way 10% spend)
Pay off in 4/5 years and have $150k+ rental income plus PAYG income, load super ( I wonder if the trust can pay into my super ? 15% tax in and zero out ?) and retire by 60 ( I have 2 young kids) so I'll be paying for that for a while!
It's a plan.. Its Low risk and doesn't rely on CG anymore.. Which I don't think we will see for a few years yet... I'm sure I can do more but this I think will get me there safely and without much risk of loss.
Die and give it all to my kids... Geez dad ( my dad ) where's my trust ! Ha ha !
Kept that bought 2 more, 10 years later, sold PPOR, $165 becomes $700k.
Bought new PPOR with my savings plus gain then Sold 2 houses used that gain and bought old block of units (5 pack) returning $62k , do full Reno and raise return to $75-80k ( moved new purchase to a trust so I can split income with wife, kids if required / now or later)
Use new rental income to buy another old unit block and double down on payments. (Reno along the way 10% spend)
Pay off in 4/5 years and have $150k+ rental income plus PAYG income, load super ( I wonder if the trust can pay into my super ? 15% tax in and zero out ?) and retire by 60 ( I have 2 young kids) so I'll be paying for that for a while!
It's a plan.. Its Low risk and doesn't rely on CG anymore.. Which I don't think we will see for a few years yet... I'm sure I can do more but this I think will get me there safely and without much risk of loss.
Die and give it all to my kids... Geez dad ( my dad ) where's my trust ! Ha ha !
thanks for the insight Georod3
so how many properties do you actually own?
had ppor bought 2 more
sold all 3
bought a new PPOR, and block of units (5)
then bought another block of units (?)
so your saying you own a PPOR and 2 blocks of units?
what do you see the benefit of owning the whole block of units as oppose to 5 units in different areas?
so how many properties do you actually own?
had ppor bought 2 more
sold all 3
bought a new PPOR, and block of units (5)
then bought another block of units (?)
so your saying you own a PPOR and 2 blocks of units?
what do you see the benefit of owning the whole block of units as oppose to 5 units in different areas?
Control.. I have control over the block, no body corporate.. No one to block my decisions or cause issues.
Also its "one" property so it's
Lower insurance and Lower rates .. Looking for a second block now.. Found one but it sold before I could nab it..
Low cost old units less than $1m in fact you can find them for $750k as the market is tight and cash is king.. If you buy a 4 pack it's a residential loan if it's a 5+ it's a 90 day bank bill commercial loan .. And you need 40% dep.
No strata so you can't sell a part eg. Can't sell one keep 4 etc.. So as long as you don't want to break them up it's fine..
I like rolling income or passive income.. Again lower risk but these days the tortoise looks ok to me as long as I get there.. Fast normally = risk.
So take this example
2 houses = $900k return about $38k rent
1 unit block lower price (say $800) return = $62k with lower costs and upside
You decide !..
The reality for me is I have discovered that 1 bedroom units return a much higher yield than houses.
House rent $380 cost or value=$450_$490k = 4.1% return (on a $475k)
1 bedder $250 cost in block about $120? Beat that !10.3% return
Anyway I think I was lucky... Right place right time, right passion.
Also its "one" property so it's
Lower insurance and Lower rates .. Looking for a second block now.. Found one but it sold before I could nab it..
Low cost old units less than $1m in fact you can find them for $750k as the market is tight and cash is king.. If you buy a 4 pack it's a residential loan if it's a 5+ it's a 90 day bank bill commercial loan .. And you need 40% dep.
No strata so you can't sell a part eg. Can't sell one keep 4 etc.. So as long as you don't want to break them up it's fine..
I like rolling income or passive income.. Again lower risk but these days the tortoise looks ok to me as long as I get there.. Fast normally = risk.
So take this example
2 houses = $900k return about $38k rent
1 unit block lower price (say $800) return = $62k with lower costs and upside
You decide !..
The reality for me is I have discovered that 1 bedroom units return a much higher yield than houses.
House rent $380 cost or value=$450_$490k = 4.1% return (on a $475k)
1 bedder $250 cost in block about $120? Beat that !10.3% return
Anyway I think I was lucky... Right place right time, right passion.
I just enjoy doing what I do, so I don't envisage a beginning or end to this, (building wealth). I already live the life and lifestyle I choose, so no problems there.
I guess it might be useful for some to quantify though. I am not just about property investing though, that is/was a foundation or springboard into other wealth creation, which can include businesses, (not related to property), and industrial and commercial property, and tinkering (buying/selling) land.
I guess it might be useful for some to quantify though. I am not just about property investing though, that is/was a foundation or springboard into other wealth creation, which can include businesses, (not related to property), and industrial and commercial property, and tinkering (buying/selling) land.
congratulations on reaching your goal. what you think is achievable is a certainty, you just have to do it
