justifying selling an IP

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
 
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
Nathan
Good on you mate.
Having a balance and enjoying life before we are too old is very important.
We don't need a PPOR upgrade but we've decided to sell 1 house and use the proceeds to reduce our PPOR debt. The savings in land tax plus non tax deductible interest will allow us to travel every year.
cheers
 
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?

While we are still aquiring for now (or will be again in 2013), we are definately balancing planning for the future with enjoying today.
Major travel every year, and then some smaller travel in between. Nice eating out.

I come across many people who have 5-10 properties in their 50's and 60's, but have become so fixated on saving every penny and continually growing wealth, that they rarely actually enjoy any of it.

As you say, life is precious, and it's also important to enjoy the now as well. What's important becomes even clearer when life throws you a curve ball.
 
There is no one mechanism that suits everyone and to assume there is overly simplistic.

Turning over an asset for whatever reason can be logical, financially astute and emotionally sensible.

ta
rolf
 
We have pretty much taken the same tack as BV and bluestorm's comments ring very true as well.

We settled last week on sale of an IP which showed fantastic capital gain over 11 years. We did this in order to allow hubby to stay "retired", reduce our debt and allow us to do what we have been doing, but without hubby's income.

I'm very relaxed and comfortable about it.

In the past, we have sold two other IPs at various times in order to allow me to stay home with the kids and reduce debt. I struggled somewhat with those decisions..... not the decision to sell and take the capital gain, but knowing we were giving up an asset that would (and has) continued to grow in value.

It is something I have just had to learn to live with and always have to remind myself WHY we sold what we did, when we did. I would do it again today, as it was sell the IP or go back to work or put the kids in childcare, two things that were a big compromise for me.

So, family always won out over "more money".

The observation by bluestorm of people so used to saving and accumulating that they cannot let go and "spend" is something that I don't want to happen to us.

We are trying to balance that line between having enough to buy us into a good retirement situation and living life well now.

I think we can do both.
 
The observation by bluestorm of people so used to saving and accumulating that they cannot let go and "spend" is something that I don't want to happen to us..


I think this is one adjustment to my thinking that i am slowly changing :)

My wife has asked me on quite a few occasions..."so if all this investing pays off and we do have some money to spend frivolously...will you actually spend it?"

its hard to say yes to that...i am just a saver by nature...i remember stuffing the old green $2 notes as a young kid in my piggy bank...never saved it up to spend on anything...just saved for the sake of saving!!!

old habits die hard :)
 
Hi Nathan,

We are doing something similar, upgrading our PPOR now, probably two years ahead of schedule. We chose this path mainly because a house came on the market, in our desired location, and we decided to go for it.

For us, the opportunity cost is that we won't buying another IP later this year, but our justification is that we will do so a couple of years down the track, and we have scope to add value ot our new PPOR. That's the plan, anyway.

I guess that circumstances and priorities change over the years, and our investing goals and choices change as well.
 
I sold an IP 18 months ago after much agonising. I always thought I would never sell it but I can look back now and honestly say it was the best move I've made. It allowed us to pay cash for a new car that we needed due to a growing family and has allowed us the freedom to enjoy life a bit more.

The best part is that it also allowed us to do two buy/subdivide PPOR projects as well.

The end result is a better life balance and a bigger property portfolio than we had before.

And all with lower debt.

RC
 
I know exactly were you coming from.

After about 8 mths of looking I bought a brand new BMW, 2 mths later i sold it to finance a project.

Lost a stack of $ on the car but made more with the deal.

Investing may just simply be in our nature.
 
Hi Nathan

Your last comment about "old habits die hard" really struck a chord with me when it comes to spending- I don't think it would matter how much money I had there are simply limits on what I would consider good value. No doubt it has much to do with the way I was raised and my current spending patterns.

Eg: womens shoes. I have a friend (very wealthy) who likes shoes. Her most recent purchase was a pair of $1500 heels :eek: When I picked my jaw up off the floor after she told me, all I could think about was how many pairs I could conceivably purchase for the same amount (not that I'm a heels type of gal really) - my most expensive and lavish spend on shoes was $290 for a pair of full length leather boots, and even then I agonized spending this :)

But I digress.... ;)
We've offloaded an IP (or two!) over the years to free up non tax deductible debt as we progressed from one PPOR to the next. As Rolf says so very well, it can well be an emotionally sensible decision. Best of luck attaining the maximum sale price :)
 
Hi all,

Accepted an offer on it already!

Really happy with it, as soon as the subject to finance clause expires, its time to start dancing

i think i am becoming comfortable with turning some equity on paper...into some real cash!!

cheers,

Nathan
 
Your last comment about "old habits die hard" really struck a chord with me when it comes to spending- I don't think it would matter how much money I had there are simply limits on what I would consider good value. No doubt it has much to do with the way I was raised and my current spending patterns.

I'm the same - there's limits that I won't cross, regardless of how 'good' something is. For example, I can't imagine spending $300 on a dinner out - it just doesn't work for me.
 
I'm the same - there's limits that I won't cross, regardless of how 'good' something is. For example, I can't imagine spending $300 on a dinner out - it just doesn't work for me.

I don't have a problem spending $300 on a meal out,two dozen oysters,and the works :D

In fact I do it quite regularly,sometimes I even shout the other table. :p

You only live once and if you can afford it,Why not ;)

10 years ago I would have hesitated,but god has been good to me :rolleyes:
 
Hi Nathan

We are in the same boat as you, many nights of thinking and soul searching if selling one IP is the right thing to do.
In the end we have decided to sell in order to nearly pay off our PPOR so that we can enjoy more in life, more travel, kids can studies musics and extra studies etc...

All the best with your selling process.
Regards BaoT
 
Update :)

first buyer couldn't get finance..relisted it.... accepted another offer 1 day later...gotta ride out another finance clause...fingers crossed again!!!

Nathan
 
Hi BV,

Got slightly more than i realistically thought it would go for when we listed it 2 and a half months ago, very happy with the result!

cheers,
Nathan
 
Hi BV,

Got slightly more than i realistically thought it would go for when we listed it 2 and a half months ago, very happy with the result!

cheers,
Nathan

Thats great, I didn't do too bad myself with the ones I sold.
Now let's pay down that PPOR debt and do it all again. ;)

cheers
Bill
 
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