Hi there,

I was hoping for some advice from some people that already have their plans set out for retirement or investors with a clear set of plans!

I need some help making sure I know where I am going!

I think I need to provide some background, so please bare with me.

I am 31 & married with 2 kids. I fortunately have a high paying job and this enables my wife to be at home with the kids. We started investing in property a few years back (2007), and have put together a small portfolio. I have a goal that I have plucked form the air, and that is to retire on my 40th birthday, occuring in 2020. Hence the title of this post!

I am trying to calculate what else we need to do and what position we need to be in in order for us to retire with an income of around $75K per annum.

The current situation is as follows:

Using some basic calculations*, in 2020 I think it will be more like:

So using the rough calculations above, in 2020 I would have equity of 1.8Mill with cashflow of $22K per annum from rents.

My questions are:

1. Does the above 2020 projections seems somewhat plausible?

2. Would an asset base this size be ok for a sustainable retirement? I have used some calculators and spreadsheets online and it seems ok?

3. Any advice or ideas on other thing I can do over the period to shore all of this up? Should I look to add more property as LVR allows?

I am aware that if the above doesn't happen - I just keep working. But worth a shot I think at having such a goal!

Thanks for taking the time to review!

Chasing.

I was hoping for some advice from some people that already have their plans set out for retirement or investors with a clear set of plans!

I need some help making sure I know where I am going!

I think I need to provide some background, so please bare with me.

I am 31 & married with 2 kids. I fortunately have a high paying job and this enables my wife to be at home with the kids. We started investing in property a few years back (2007), and have put together a small portfolio. I have a goal that I have plucked form the air, and that is to retire on my 40th birthday, occuring in 2020. Hence the title of this post!

I am trying to calculate what else we need to do and what position we need to be in in order for us to retire with an income of around $75K per annum.

The current situation is as follows:

PPOR: Value 420K Owe $380K

Investment Properties (6): Value $1.4Mill Owe $1.2Mill

Superannuation (Combined): $70K

Investment Properties (6): Value $1.4Mill Owe $1.2Mill

Superannuation (Combined): $70K

Using some basic calculations*, in 2020 I think it will be more like:

PPOR: Value 800K Owe $240K

Investment Properties (6): Value $2.2Mill Owe $1.2Mill

Extra Cashflow after costs from rents on the above: $20K per annum

Superannuation (Combined): $240K

(*Some basic numbers I used to calculate this - I used a 5% average annual growth rate for capital growth & rents. I presumed I am keeping investment loans on Interest only. I allowed an average Interest rate of 7.47% over the period for the loans. I pay down PPOR with an extra 450 per month on top of P&I currently paid. I've also rounded everything down or up to be cautious).

Investment Properties (6): Value $2.2Mill Owe $1.2Mill

Extra Cashflow after costs from rents on the above: $20K per annum

Superannuation (Combined): $240K

(*Some basic numbers I used to calculate this - I used a 5% average annual growth rate for capital growth & rents. I presumed I am keeping investment loans on Interest only. I allowed an average Interest rate of 7.47% over the period for the loans. I pay down PPOR with an extra 450 per month on top of P&I currently paid. I've also rounded everything down or up to be cautious).

So using the rough calculations above, in 2020 I would have equity of 1.8Mill with cashflow of $22K per annum from rents.

My questions are:

1. Does the above 2020 projections seems somewhat plausible?

2. Would an asset base this size be ok for a sustainable retirement? I have used some calculators and spreadsheets online and it seems ok?

3. Any advice or ideas on other thing I can do over the period to shore all of this up? Should I look to add more property as LVR allows?

I am aware that if the above doesn't happen - I just keep working. But worth a shot I think at having such a goal!

Thanks for taking the time to review!

Chasing.

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