How will you retire on property? - POLL

[impala67]

What is your property investment methodology?

The majority of SS'ers are investing in property to provide themselves with financial independence at retirement. Reading the forum, some have specific plans and stick to them, others chop and change or evolve their ideas. Others are vague on how they will be able to derive an income stream from their assets once they have reached that stage in their lives.

It would be interesting to see what the most popular idea is on SS currently.

Please vote, feel free to comment.

 

[punterncollect]

only problem with the question is I have no intention of retiring; but if i did I would develop & hold & lease

 

[perthguy]

I have two development sites I partly own, 50% of one and 80% of the other.

The plan is to build 2 townhouses on one and 3 on the other. At that point the portfolio would be positively geared. However, at first I want all interest only except one, which will be variable with an offset in case of further IP purchases.

There is also a SMSF and the plan is to purchase 3 or 4 resi dwellings that need renos done, renovate, rent and hold. I know I would not be able to borrow to renovate a property that is subject to a limited recourse loan. Anyway, the prelim research I have done indicates the right property at the right price after reno's should be positively geared. These would be paid down and held.

By the end of this there should be a nice income stream from outside the super fund and a nice income stream inside the super fund.

If everything goes well, I would like to be educated about commercial property and also diversify into that... but there is a lot that needs to happen before then.

 

[oracle]

What about retiring from dividends aka sharemarket?

Cheers,
Oracle.

 

[impala67]

What about retiring from dividends aka sharemarket?

Cheers,
Oracle.

"Business or other income generating ventures"

 

[wategos]

What about retiring from dividends aka sharemarket?

Yeah, that's what I'm in the process of doing (as would many retiring investors I'd expect). Should be an option for this, "business" is ambiguous.

Screw living off rent, doesn't pay enough.

 

[spludgey]

Mine is mainly "Residential - don't pay down & live off rent", but that wasn't an option.

 

[Rolf Latham]

Yeah, that's what I'm in the process of doing (as would many retiring investors I'd expect). Should be an option for this, "business" is ambiguous.

Screw living off rent, doesn't pay enough.

I have a few clients that earn 6 figures nett rent, and a couple with 7 figures, so it has or be enough for some surely?

Ta

Rolf

 

[Singo]

Pay down some loans, sell some properties and live off rents and equity.

 

[wategos]

I have a few clients that earn 6 figures nett rent, and a couple with 7 figures, so it has or be enough for some surely?

Yeah I'm sure it's enough for some but the net income from dividends is generally much better. I can stop working with dividends, but not with the same equity in residential real estate with all the costs and hassle associated with that.

Real estate has been good to build up capital but I don't see the same growth continuing in the medium term in Australia to the same extent as the last 20 years. It's the share market for me for income.

 

[hobo]

Well, "THE PLAN" is to retire on a combination of the following:

- income from RIP/s (fully paid off, or very close to, across the portfolio);
- income from CIP/s (fully paid off, or very close to, across the portfolio);
- other investments' income (inc business, super & shares);
- future (at this stage) development project incomes.

We are open to flexibility of "THE PLAN", however. So we will see how things pan out.

.

 

[see_change]

Combination of selling to pay down debt and paying down debt with future income ( rental and work ) .

My job is one where it's easy to work part time and have long periods of time off work for OS holidays or doing the grey nomad thing .

I enjoy work and intend to do that for as long as I want to rather than need to.

Cliff

 

[Ace in the Hole]

Goal is to semi retire on 300k net rents from resi property next year by having excess funds parked in offsets.
Then to increase income further, will do a combination of JV's, private funding, self funded developments, business start ups, and the stock market (maybe use Super play money for this), and maybe get into commercial property.

 

[impala67]

Early days for me. There's a few purchases to come this year, 1 possibly 2.

I'm leaning towards the idea of living off equity. Will try my hand at small development in several years and also want to get into commerical at some point. I have evolved my plan(s) year to year and I will evaluate again later in the year.

It looks like a good poll so far with lots of variety and opinions and methods.

Good Poll - keep 'em coming.

 

[chrispy]

I have been living off residential rent and income from selling down

It provides a very good lifestyle

Chris

 

[baby blue eyes]

Still evolving, however a combination of paying down debt and selling a few to assist with paying down debt. So the aim is to continue purchasing shares and property both in and outside of super.

Aiming for 150 gross income outside as well as 50-100 tax free super income. That should be a comfy retirement for two.

 

[skater]

Planning on making the shift soon. Will be selling some to pay down debt on others.

 

[Richard Feynman]

Attain LVR of <50% on a few $mil of (mostly) resi IPs then live off equity.

 

[D.T.]

Attain LVR of <50% on a few $mil of (mostly) resi IPs then live off equity.

Not concerned about a few banks having a 'no cash out' type policy?

 

[alexlee]

Having a plan doesn't mean it's achieveable or realistic. Just because you plan on buying commercial or developing or LOE or whatever doesn't mean you have the means or the aptitude for it, nor does it mean you've actually thought it through.