Share your story if retired before 53 in Australia
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As much as I would like to retire now, i'm not in a position to. But reading what you guys have to write is quite inspiring and gives me something to aim for 
At this stage I'm taking a safer approach. I have IPs which I am hoping to have completely paid off in 15 years - All the properties are currently positively geared. If i hit that goal, then ill be able to retire on approximately $120k gross in today's dollars (combined amount between me and my wife).
Sounds rather boring in comparison to everyone else's story doesn't it
Maybe in the future, depending on zoning, I'll knock one of them down and build town houses - sell 1 (which I'm hoping will cover the cost of the entire build) and keep the remaining 3. If the numbers which I have plucked out of thin air are as expected, it should increase the LOR income to 165k (today's dollars).
At this stage I'm taking a safer approach. I have IPs which I am hoping to have completely paid off in 15 years - All the properties are currently positively geared. If i hit that goal, then ill be able to retire on approximately $120k gross in today's dollars (combined amount between me and my wife).
Sounds rather boring in comparison to everyone else's story doesn't it
Maybe in the future, depending on zoning, I'll knock one of them down and build town houses - sell 1 (which I'm hoping will cover the cost of the entire build) and keep the remaining 3. If the numbers which I have plucked out of thin air are as expected, it should increase the LOR income to 165k (today's dollars).
Sounds rather boring in comparison to everyone else's story doesn't it
Not at all! In reality everyone's story is equally boring.
The fact is that property investing isn't sexy, it doesn't bring fame or anything exciting like that. But that's what's good about it. It means that anyone who really wants to, can do it. Not everyone who really wants to, can be a movie star, race car driver, astronaut, or any one of a thousand different things, but they CAN do this.
Ordinary Millionaire's
Yes it's boring and isnt sexy. Anyone who is looking for it to be wont succeed. They tend to just flitter from one thing to another with no real road map to completion.
I'm happy with that title.Ordinary Millionaire's
I'm the same age as Ace with about half the passive income he mentions and 3 kids. "Retired" last year but now the wife wants a new PPOR so it's back to work I go! I would have preferred more time at home with the kids while they are still young but sometimes you can't have it all...
Our story is elsewhere on the forum - resi initially then commercial and shares courtesy of starting early with a decent salary. This time around the focus will be on being more entrepreneurial to make time at work more interesting!
Our story is elsewhere on the forum - resi initially then commercial and shares courtesy of starting early with a decent salary. This time around the focus will be on being more entrepreneurial to make time at work more interesting!
HE congrats. PPOR's are overrated - just rent a nice place and stay retired!
Do you mind elaborating on what type of commercial props - whether it was a warehouse, retail, freehold vs strata etc. Also what initial yield were you receiving and were they in Metro cities or regional? Understand if you don't want to divulge personal details and hopefully you won't have to.
Thanks! Yes, I know...
The main game is a medical centre bought in the wake of the GFC at circa 11%net - outer metro. Tenants pay all outgoings. Since then the income has only gone up and the market yield has gone the other way, alongside IRs - it's a nice combination.... The tenants don't look like going anywhere so if and when they renew we will probably refinance although I must admit it's tough finding investments that are good value out there right now... so not really sure what to do on that front. That's the other reason for getting into more active, business oriented investing...
Thanks HE - that's a fantastic yield - one or 2 of those and one won't have to wait long for retirement as long as the base CG portfolio has already been built up to a sizeable level. Food for thought.
I'm in a similar boat to Ace, but a few years younger. Currently at the tipping point to whether throw the towel in for work. Last few years have been a real pain dealing with difficult clients and politics.
By the end of this year, all planned developments will be complete. Will end up with a portfolio of about 20 properties, generating after-tax return of a few hundred k. More than enough to live on, though may be tight to put the kids through private school (they might have to make do with a good public school).
Planning to do a lot of charity work in developing nations. Might do a phD in a completely obscure field I've never been exposed to before, like quantum physics or nanotechnology. Biggest worry will be how to get loans from banks for future developments, without a formal "j.o.b". How do others overcome this?
I retired at 45 upon completion of 30 years in the ADF. I was fortunate to be under the older Defence retirement scheme where I got paid a pension (and a pot of gold) from the day I got out rather than waiting until 55/65. No TTR for me yet as I am too young. As I own my own home, my kids are financially self-sufficient and I was never big on consumerism, my living costs are low enough that I don't even spend all my pension on them so I am still actually saving. I have recently started to travel more though, having just got back from India/Nepal, however it is now much cheaper to do than when I was working due to having more time to plan and flexibility with arrangements. I have been retired 18 months now and do not miss work in the slightest.
It wont be a problem if you can show income, in other words if you continue developing you need to trade, as such it needs to operate as a business, selling some, keeping some to generate the required income.
A good accountant should be able to help you with structure, ie set up a project management business for your development projects, project management business invoices your trust for services. Bank will want 2 years - tax returns.
There are also many new products lo doc coming on the market, however they all have pros and cons, ie higher interest rate, lower LVR.
RAMS will do 80%LVR, but only upto $750K and you will require your accountant to sign off on the income. Perhaps this could be used in the early stages until you can provide tax returns (2 years).
At the end of the day it will come down to how much income you need to service developments. Banks will look at your rental income, but they shy away if this is the only income you have.
If you are planning to give away the day job and want to continue developing as a business, it may be a good idea to plan ahead like now, otherwise you will be up the creek without a paddle.
MTR
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A good accountant should be able to help you with structure, ie set up a project management business for your development projects, project management business invoices your trust for services. Bank will want 2 years - tax returns.
MTR
Interesting. Thanks MTR. I'll have a talk with my accountant. He has no qualms about creating more entities that he has to maintain for his clients.
If you're trading, then I guess you pay profit tax, and not cgt (I.e. no cgt discount)?
Rant...
/end rant
/end rant
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Did you buy? Don't like your missus get in the way
unless she's signing the loan docs I don't know why she'd say no! I'd say yes!
I was and still am way younger than 53 so plenty of time to make mistakes, as long as you learn from them
1st time was a break up, separated the assets, 1 around the world trip, learned digital audio recording, completed my manuscript, moved interstate. 2nd time 2 round the world trips, surgery, studied 2 different things, another move interstate. Both times I knew I was going back to work, it was just a matter of how long. Wouldn't change a thing - except in hindsight buying an investment property/ies earlier of course.
My plan is still to retire by 52 (hopefully earlier). When I say retire, I mean to be able to work in what I want, not what I have to. For realsies next time, hehe.
Still planning to be very active.
1st time was a break up, separated the assets, 1 around the world trip, learned digital audio recording, completed my manuscript, moved interstate. 2nd time 2 round the world trips, surgery, studied 2 different things, another move interstate. Both times I knew I was going back to work, it was just a matter of how long. Wouldn't change a thing - except in hindsight buying an investment property/ies earlier of course.
My plan is still to retire by 52 (hopefully earlier). When I say retire, I mean to be able to work in what I want, not what I have to. For realsies next time, hehe.
Still planning to be very active.
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