I would have thought that being single would be seen as advantageous by lenders. Without dependents, you have far less liabilities and less constraints on cash flow.
Share your investing goal
- Thread starter spludgey
- Start date
I would have thought that being single would be seen as advantageous by lenders. Without dependents, you have far less liabilities and less constraints on cash flow.
Yes I agree with these numbers and the rationale behind them. I think that an indexed 100k p.a. does require a capital base of 3m in unencumbered holdings of shares, IPs, bonds and cash. Plus fully paid off PPOR. And hopefully, one doesnt have to downgrade the PPOR at the point of retirement. Then one can comfortably retire. I hope to achieve this by 45.
I'm planning for $3M in equity generating 5% return, in 2005 dollar terms.
Dependents as in kids do affect your borrowing capacity in the way that you're talking about. He's talking about a girlfriend / wife instead though, which would normally improve one's capacity as they'd have income of their own to contribute to the house hold.
Hopefully girlfriends / wife leads on to kids otherwise, he may as well be clapping with one hand.
Disagree entirely, but is the subject of a different thread. FYI I don't ever want kids and want to meet a woman of the same opinion.
Yea, similar to what i wrote http://somersoft.com/forums/showthread.php?p=1108343#post1108343 3M seems to be about the ticket
Ok, I'll bite. My goal is net position of $7.2m by the age of 46.
This will look like ;
1. PPOR owned outright, $2.1m
2. Stock in unlisted business $2.8m
3. SMSF $1.2m
4. Family Trust $1.1m
Notes;
- on course to have PPOR debt paid off in 7 years. Growth at 3% pa.
- only need 7% growth PA to achieve required valuation in unlisted business stock. Valuation based on 5 x net earnings which is middle range for private businesses in this industry. Currently experiencing +30% growth pa.
- SMSF Max salary sacrifice spouse and I. Focus on Australian equities (80%) due to tax treatment of dividends - franking credits. 7% pa total return required.
- Family Trust has LOC against PPOR, employing debt recycling approx 50/50 AU and US equities. Slightly negatively geared initially. Australian equities are yield focused to assist with holding costs and US equities growth focused, ie. Berkshire Hathaway, Markel and Alleghany and broad market ETFs. Family trust has significant income from stock in private business, so slightly neg gearing not a concern, franked dividends are distributed to spouse. Total rate of return required is LOC +2.5% pa initially. Once PPOR is paid off will make the call to pay down LOC with excess income or just invest more in family trust.
- Not factored in to target net position number is the intention of buying a Sydney Blue chip area resi IP to $1.5m in 2017-18 depending on market conditions/cycle. Deposit will be taken from PPOR LOC. I will be watching the market closely and have a fair idea of what type of property I will be looking for.
So far, everything is in place and going along quite ok. Wish me well.
This will look like ;
1. PPOR owned outright, $2.1m
2. Stock in unlisted business $2.8m
3. SMSF $1.2m
4. Family Trust $1.1m
Notes;
- on course to have PPOR debt paid off in 7 years. Growth at 3% pa.
- only need 7% growth PA to achieve required valuation in unlisted business stock. Valuation based on 5 x net earnings which is middle range for private businesses in this industry. Currently experiencing +30% growth pa.
- SMSF Max salary sacrifice spouse and I. Focus on Australian equities (80%) due to tax treatment of dividends - franking credits. 7% pa total return required.
- Family Trust has LOC against PPOR, employing debt recycling approx 50/50 AU and US equities. Slightly negatively geared initially. Australian equities are yield focused to assist with holding costs and US equities growth focused, ie. Berkshire Hathaway, Markel and Alleghany and broad market ETFs. Family trust has significant income from stock in private business, so slightly neg gearing not a concern, franked dividends are distributed to spouse. Total rate of return required is LOC +2.5% pa initially. Once PPOR is paid off will make the call to pay down LOC with excess income or just invest more in family trust.
- Not factored in to target net position number is the intention of buying a Sydney Blue chip area resi IP to $1.5m in 2017-18 depending on market conditions/cycle. Deposit will be taken from PPOR LOC. I will be watching the market closely and have a fair idea of what type of property I will be looking for.
So far, everything is in place and going along quite ok. Wish me well.
wish you real well Erko - nice post.
My goal changes over time, but reading through some recent posts gave me reason to reflect.
I'd like to get off the corporate system in 3 years time.
As a conservative estimate by the time I reach 52 (3 years from now), net worth will be $7 million. This assumes very little growth of my existing asset base and very moderate savings, so would be more than this but being ultra conservative.
The income from this asset base would be a nice balance between fully paid off IP's in Sydney and Atlanta, Australian shares and commercial property trusts. At age 60 another big boost in capital/income from a very healthy Super fund would be at hand.
So the conservative income goal would be $350K per year split somewhat evenly between wife and I to minimise tax. With no kids this should provide a very reasonable lifestyle.
With my annual income just on 7 figures it will always be a difficult decision to leave full time work but thats the plan for this morning.
My goal changes over time, but reading through some recent posts gave me reason to reflect.
I'd like to get off the corporate system in 3 years time.
As a conservative estimate by the time I reach 52 (3 years from now), net worth will be $7 million. This assumes very little growth of my existing asset base and very moderate savings, so would be more than this but being ultra conservative.
The income from this asset base would be a nice balance between fully paid off IP's in Sydney and Atlanta, Australian shares and commercial property trusts. At age 60 another big boost in capital/income from a very healthy Super fund would be at hand.
So the conservative income goal would be $350K per year split somewhat evenly between wife and I to minimise tax. With no kids this should provide a very reasonable lifestyle.
With my annual income just on 7 figures it will always be a difficult decision to leave full time work but thats the plan for this morning.
And hopefully you're closer to goal?
I was going for an update and then accidentally posted it before I finised it, then tried to edit it and realised that that the vbulletin code that I was trying to use wasn't working. So I got the ***** and deleted it.
But yes, a little bit closer to my goal! I settled on IP #8 yesterday (queue "Why would you buy a semi?"
). Loans have now dropped to around the 80% LVR mark with capital gains and the interest rates have dropped, so things are looking good.
As I posted in the other thread, I was unsuccessful in negotiating a deal on the property next to mine that I wanted to build the townhouses on. But I'll give it another go next year.
My goal has remained the same. $100k net pre tax cashflow in 2010 dollars.
I now have 7.5 years left to get this done.
Next step: Not sure yet, but I'm considering building a granny flat at one of my properties, which should add around $300 per week to my cashflow.
Oscar, you will be living the dream mate. I look forward to hearing about how it all goes...it looks done and dusted from where I sit
Too young to remember the Paul Hogan show.
Wow, that would be an impressive achievement !!!
That should afford you a half decent PPOR in Sydney with those funds available.
