Thinking- retirement!

[bbruham]

G'day all,
The other day the penny dropped! Next year I can retire, if I want.
Government super in my pocket.$350,000 to spend. There's no way I could retire. I would die of boredam in no time flat.
But why not "retire" until the super cheque lands on my door step? This way I don't have "them" keep the "preserved" amount
until I hit 65years. I get it all in one lump sum.
What do you do with $350,000? Invest it in deposits in country
town properties? Positive geared- just love that idea.
Ten percent deposit on thirty- five properties. No don't be too greedy. Maybe fifteen percent on fifteen houses. The other
monies to do some renos.
As for work, the company (state government) are looking for
casual employees.
Could even drive my taxi full time.
Five months to decide.
Bruce G(Sydney).

Have the courage to take your own advice.

 

[asy]

WOW!!! How fantastic!!!

I was just wondering, though,

How will you go for serviceability on the loans to buy these??

ROLF???

Can this be done??


asy

 

[bbruham]

G'day Asy,
If they're positively geared, no money out of my pocket.
Just needing a very understanding bank manager.
Or perhaps our super hero ROLF to the rescue!
Justs thoughts, and lots of them for the next five months.
Bruce G(Sydney).

A plan without action is a daydream.

 

[Rolf Latham]

Hiya

Super hero, me thinkest not.

Your biggest challenge will not be serviceability BUT getting a loan from a standard lender.

Once you are "retired" they get a bit funny with you taking on loans, positive cashflow or not.

10 % deposit wont do it on most regional areas unless you can can qualify for the dreaded (but much maliged) Lenders Mortgage Insurance.

Not much is impossible.

There is much to commend such a "retirement" strategy BUT it needs to be carefully evaluated and a lending solution put into place with the end in mind before you start heading in that direction, as I am sure you would do anyway.

ta

Rolf

 

[Macca]

Well Rolf,

If BB wishes to invest in property with his $350k what is the best way to finance? LoDoc loans LOC?
Should he put larger deposits and positive gear?

Macca

 

[Rolf Latham]

Hi macca

I will use my cop out here

How long is a piece of string. Without knowing many other issues such as what his super entitlements are, if he is going to tip some into a complying income stream etc etc its hard to comment.

I can say he would be looking at 20 to 25 % deposits with no doc loans as a worst case scenario.

Ta

Rolf

 

[Kevmeister]

Bruce,

I wonder if there are any laws that permit this to be done. Feigning retirement and then returning to work might attract the attention of someone - ATO perhaps?

Apart from that, I can't see a problem with the strategy, assuming you can get the borrowings. Using your 350,000 as 20% deposit give you roughly 1.7 million of property working for you. Every 1% yield after all expenses represents $17,000 per annum of income for you!

And that's excluding any potential capital growth - also probably less of a factor if buying into regional towns.

Good luck!

Cheers

Kevin.

 

[bbruham]

G'day Rolf and Kevin,
Firstly Rolf, you are the website super hero, without your input
this web site would have fallen over long ago. That's the truth!
I don't really think I'm going to retire.My masters (state gov't)
will insist on me completing the entrance exams for the public service again. Plus I have an agressive nature when it comes to
my job, trod on too many toes.
Driving my taxi full time is the pitts! Rising at 2.30am is really tough. Going to bed at 9.pm is just as tough. Only on Saturday and Sunday is enough torture.
I don't know how the taxation dept looks on pretending retirements. I will investigage that one further.
The sums to how many properties one can afford on 350k is mind
boggling. Size of deposits etc etc.
I should imagine you would try and buy a couple of blocks of units. Perhaps in Lismore or Armadale. Six - nine units to a block
Who knows.
Bruce G(sydney)

 

[fredo]

Bruce, Are you allowing for the 15% Tax on the lump sum

Regards Fredo

 

[PIppety]

Hi Bruce,

I don't have any wisdom or advice I can share with you but would just like to say best of luck with whatever you decide and congratulations on reaching such a milestone.

PIppety