justifying selling an IP

[natedog]

Hey Wunder,

watcha mean??

Nathan

 

[myoung]

I did what you are doing back in 2002. Sold an IP to minimise my mortgage on PPOR we were building.
I dont regret the action, more regret not owning the IP i sold due to the development potential.
That being said PPOR was paid off in approx 5 yrs after moving in, and wouldn't be if i hadnt have sold the IP. It is a great feeling when you have no debt that isnt 100% tax deductable

Sold another IP last year, thought it had reached it's peak in terms of value, and was at tipping point for throwing a fiar bit of money at it, without a worthwhile return on it. Paid down the others a bit more, sort of a reload to go again when the right opportunities arise. IMHO some are worth hanging on to for a long time, others hold for while and move on.

There is no point living like scrooge and having millions, could get hit by a bus tomorrow.
As John Lennon once said " Life is what happens whilst you're busy making other plans".

You have to enjoy some of the spoils of your hardwork and delayed gratification along the way.

 

[natedog]

"Life is what happens when you are making other plans"

I like that line...live in the present, cherish the moment....i think now having children, i have realised that every moment is precious.

i wont give up planning and taking action toward a more secure financial future....it just isnt my one and only focus like it was in the past...

balance...

 

[Wunderbar]

Hey Wunder,

watcha mean??

Nathan

As in - you're selling your house, yet you say that you need a roof over your head.....

 

[Intrinsic_Value]

Hi all,

just thought id ramble on and see if anyone else can see where im coming from. Since buying our first property back in 2002 and getting a few more since then i have always stuck to the "we will never sell anything" mantra.

Couple weeks back the idea of cashing in by selling one to help fund a new build project which will be our nice new ppor went from being a definite no no to now the property is on the market.

Initially I felt like it was wrong to even consider selling it to help fund a lifestyle choice to upgrade the ppor....but giving it more thought and consideration...the idea started to grow on me to now be at the point where ive justified it to myself as a good thing to do.

I have always found it hard to balance focusing on the long term financial freedom goal, with living for now....maybe i am learning to do this a little better now.

Anyway, its interesting to self analyse and re assess goals and timeframes....ultimately i am in a much stronger financial position than i was 9 years ago...due to investing inIPs....maybe it is time to live more for now....after all life is a precious gift we are given....and it doesnt last forever.

Does anyone else grapple with the balance of plan for the future vs live for now?

nathan

Do i grapple with a plan of the future vs now? no.
But i strongly believe that the decision to 'hold and never sell' only is valid so long as
(a) the growth rate of the underlying asset is sustainable at CURRENT prices
(b) if (a) above doesnt apply then does the yield provide adequate compensation to provide me with a hedge against the risk that the growth rate will be inadequate in the medium term.