How soon can you realistically retire?

[spludgey]

I started investing in 2010 as a 27 year old and set my goal as being able to retire in 2022 (on my 40th birthday) with a $100k pre tax income from properties.
At the time I only had around $50k to my name, which was just enough to get me started.

Now I'm just over four years into my 12 year journey and have 5 IPs and I'm looking at getting another two or three cheapies later this month.
While the money I make out of it so far is little, I can start seeing how my deposits seem to accumulate a bit quicker now. Plus using the equity that I gained in some of my other properties helps a great deal too.

I've made similar mistakes to most people, including one of my five IPs being a bit of a dud, but even with that it's looking to me that I might just be able to surpass my goals.


How long do you think it will take you (and what are your goals)?
Or if you have sufficient passive income to retire already, how long did it take you?

 

[EN710]

My goal is to be at least half retire in 10 years (ideal is of course, fully financially free with 84k pa after tax), I still have 9 years to go, in the process of getting IP #2 and it seems to be still so far away. That said though, I know that if I move from my current PPOR to cheaper place, then use the surplus to get more investment it'll be very likely to be achieved. Just can't mentally jump there yet, maybe in 4th or 5th year

 

[kathryn d]

Took us 6 years from the time we started purchasing rentals until we started to live on our rental income.

This year we have encountered, what we knew was inevitable.
We are required to pay income tax.

We are paying off the mortgage principle and every year, our taxable income will rise quickly.

Quite scary, actually.

 

[TMNT]

usually people find deposits harder and harder to accumulate,

what have you dont to make depsoits easier?

 

[D.T.]

usually people find deposits harder and harder to accumulate,

what have you dont to make depsoits easier?

Why wouldn't it be easier?
Getting more rental income to save
Have higher asset base thats growing

Under normal circumstances, I'd say the progression from novice to advanced would be:
hard deposit (because have to save for it) and easy serviceability
to
Easy deposit (because of the above) to hard serviceability (as have lots of loans)

 

[spludgey]

usually people find deposits harder and harder to accumulate,

what have you dont to make depsoits easier?

Interest rates have dropped and my portfolio yield is over 7% (on purchase price), so it's slightly cashflow positive.

 

[Brady]

Parents retired in the last few weeks. Aged 55 & 53

They plan to live off ~$60k p.a

No debt, PPOR ~$500k, IP ~$200k with ~$250p/w rent ~$1M Super ~$100k cash ~$100k shares/FUM

Parents were always pretty conservative, at one point they had 3IP but sold 2 and paid down debt.

 

[westminster]

Parents retired in the last few weeks. Aged 55 & 53

They plan to live off ~$60k p.a

No debt, PPOR ~$500k, IP ~$200k with ~$250p/w rent ~$1M Super ~$100k cash ~$100k shares/FUM

Parents were always pretty conservative, at one point they had 3IP but sold 2 and paid down debt.

Congrats to them Brady. Will they live off that rental income until they can access their Super?

 

[WillG]

I started investing in 2010 as a 27 year old and set my goal as being able to retire in 2022 (on my 40th birthday) with a $100k pre tax income from properties.

How long do you think it will take you (and what are your goals)?
Or if you have sufficient passive income to retire already, how long did it take you?

Do you have a family - partner & kids yet? That may well change your plans.

Where did you get the $100k pre tax income amount from? Is that in todays dollars? Do you plan on only rental income to provide that?

 

[spludgey]

Do you have a family - partner & kids yet? That may well change your plans.

Where did you get the $100k pre tax income amount from? Is that in todays dollars? Do you plan on only rental income to provide that?

I do have a partner, but I don't have children yet. While having children will make the acquisition a bit more difficult, I'm hoping that the portfolio itself will be able to fund further purchases with less of my money going into it.

The $100k is the money I calculated that I would need for a family of four to live comfortably without having to work. It's in 2010 dollars, as that?s when I set that goal. All of it will be rental income, but not all of that might be residential, I'm thinking of eventually using the equity in my residential portfolio to start purchasing commercial properties.

 

[Deltaberry]

Depends how much passive and reserve capital I want. Realistically, today.

 

[Brady]

Congrats to them Brady. Will they live off that rental income until they can access their Super?

I believe they have spoke with a financial planner about accessing some super earlier via TTR (transition to retirement) drawing down a pension, although it will incur some tax from my understanding.

I personally believed they had enough to not access super til 60. Through IP rental, the cash + super. But didn't go too much into it with them.

Dad's been hitting the spread sheets hard with 5 years + 10 year plans.

 

[BLTN]

I started investing in 2010 as a 27 year old and set my goal as being able to retire in 2022 (on my 40th birthday) with a $100k pre tax income from properties.
At the time I only had around $50k to my name, which was just enough to get me started.

Now I'm just over four years into my 12 year journey and have 5 IPs and I'm looking at getting another two or three cheapies later this month.
While the money I make out of it so far is little, I can start seeing how my deposits seem to accumulate a bit quicker now. Plus using the equity that I gained in some of my other properties helps a great deal too.

I've made similar mistakes to most people, including one of my five IPs being a bit of a dud, but even with that it's looking to me that I might just be able to surpass my goals.


How long do you think it will take you (and what are your goals)?
Or if you have sufficient passive income to retire already, how long did it take you?

I started at the exact same age and the exact same goals as you. Only difference is I had saved about $300K.

My goal is $100K in today's dollars though. Also, given my higher savings, I'd say that 40 would be a conservative goal, and it is quite possible that I could retire at say 35 if I wanted to.

 

[D.T.]

My goal is $100K in today's dollars though. Also, given my higher savings, I'd say that 40 would be a conservative goal, and it is quite possible that I could retire at say 35 if I wanted to.

Ditto and ditto

 

[Ace in the Hole]

First PPOR was 12 years ago and first IP was 7 years ago.
Can retire on a few hundred passive now just prior to 40.
Started a biz from scratch at 30yo to provide cashflow to fund property accumulation.

I believe the period of time before you reach the level required for optional retirement is largely determined by how passive or active you wish to be.
The passive method is the slow way.
Being active is the fast way.

I have not made much money from property investing/developing as we have not experienced a complete growth cycle yet, but it's been the driver for all my efforts elsewhere. Just like a little kid putting money in a bank savings account and watching and willing it grow week by week.

My tips are increase all sources of income wherever you can, really take advantage of opportunities whenever they arise as the door may close soon, and add value wherever you can.

 

[china]

Can retire on a few hundred passive now just prior to 40.

Ace, what size of asset base do you use to generate a few hundred passive ?

Me, I base it on 3% yield to be safe and hence to generate 100k, I need a tad over 3mil.

 

[mikezen]

Took us 6 years from the time we started purchasing rentals until we started to live on our rental income.

This is great but how much cash did you have to start? Starting from 20k and starting from 300k obviously will result in different timelines ( if you were investing in similar stock that is)

If I had 300 k when I started I would be done in 3 years, 6 years total

If you retired in 6 years with just one small deposit then you should write a book

 

[travelbug]

This is great but how much cash did you have to start? Starting from 20k and starting from 300k obviously will result in different timelines ( if you were investing in similar stock that is)

If I had 300 k when I started I would be done in 3 years, 6 years total

If you retired in 6 years with just one small deposit then you should write a book

Also Kathryn lives on a very small income. Not many on here could retire on that amount of cash flow. I know I couldn't.
One person may retire and live comfortably on half the amount someone else could.

 

[Terry_w]

Also Kathryn lives on a very small income. Not many on here could retire on that amount of cash flow.

All could retire on a small income, but most choose not to.

See this show on some aussies living comfortable on $12k per year in Thailand.

 

[china]

All could retire on a small income, but most choose not to.

True the government can provide everyone with something at all stages and ages in life. In Australia, no one can be truly free from an income.