What is your end strategy?

[Rixter]

Yes, I understand that may be the case in your situation. But not everyone is as well positioned as you are in this instance. You DID say you had 10 years of drawings & then another 10 you can access through super, didn't you? By that time, your rents should well & truly be sufficient to keep you going.

Yep. Sorry I was meaning for MIW.

With the funds quoted as being available she could possibly secure 20+ years of lifestyle costs prior to rat race exit providing she can service the progressive drawings.

If she doesnt want 20, then do 10 and purely LOR like yourself.

Same LOR option I also have up my sleeve post 10-20 years.

 

[MIW]

Yep. Sorry I was meaning for MIW.

With the funds quoted as being available she could possibly secure 20+ years of lifestyle costs prior to rat race exit providing she can service the progressive drawings.

If she doesnt want 20, then do 10 and purely LOR like yourself.

Same LOR option I also have up my sleeve post 10-20 years.

You are right Rixter, I could secure at least 20 years (perhaps more) at this stage, the portfolio is beyond 8 digits, even with pulling out more than I stated as this stage with serviceability. Also, in 5 years spouse could access SMSF so lots of IPs there, and if rules do not change CGT free if then still able to sell or liquidate assets. So lots of choices there.
One of my mentor's did mention that if one had a large asset base, of course with well bought CG IPs then 50% LVR can make it work, there's even a calculator I think I copied from SS about it.

The rest of IPs would be self sustaining and even providing surplus at end of each month.
So, yes it must be my mindset that just is not comfortable to do it at this stage!
Thank you for your insight though.

 

[Rixter]

So, yes it must be my mindset that just is not comfortable to do it at this stage!
Thank you for your insight though.

Yes, success is 80% Mindset x 20% applied strategy.

In other words how you think is 4 times more important than how you do it.

Glad to help.

 

[natedog]

It's good to see you guys talking about "8 figure" portfolios and drawing out $2 mil equity.....it sounds so nice.... MIW care to share your story???

Makes me think we shoulda bought more properties than we have in the last 10 years, but then again I think we have been fairly aggressive based on our circumstances and mindset at the time.

Based on what we've done, our exit strategy will be a combination of collecting rent and having available $$$ in cash and redraw available prior to leaving PAYG in approx 12 years time, around 50 years old, this should get us through to 60 and my super by that stage should be enough to clear all property debt "if we want to" and quite comfortably live off rent, with a heap off equity to access IF required.

Very long term plan for some, get rich slow

 

[MIW]

It's good to see you guys talking about "8 figure" portfolios and drawing out $2 mil equity.....it sounds so nice.... MIW care to share your story???

Very long term plan for some, get rich slow

Thanks to this SS forum, since inception in year 2000 and 8 years of accumulating a large asset base, and having a break for 5 years, we decided to invest again, so basically added to portfolio.
In addition, added renovation to strategy, bought few IPs with large land component for future redevelopment, and now decided for the first time to access the equity!
Paying at least 20% deposit on each IPs early in accumulation stage, doing it the hard way as compared to most, allows now for the equity draw down...
Also, having invested into IPs in SMSF, having spouse close to access TTR or SMSF within few years allows other choices too.
Just set a strategy to accumulate within say 10 years time, with buffers in place for unexpected occurrences, then let the market do it's thing for the next 10 years and then the following 10 years will permit great retirement....
I hope this works as the past history did for most RE investors!
Also, continue to grow and learn!
Having a large asset base helps with any increase in valuations, rents, thus equity draw down too, so let the market time do its thing!

 

[Deltaberry]

Makes me think we shoulda bought more properties than we have in the last 10 years, but then again I think we have been fairly aggressive based on our circumstances and mindset at the time.

Be happy with what you've done. Too easy to say wish we should've bought more - because you wouldn't say that if it crashed.

 

[MIW]

Be happy with what you've done. Too easy to say wish we should've bought more - because you wouldn't say that if it crashed.

+1. Exactly!