How much property is enough for you?
Has anybody already got enough?
Has anybody already got enough?
When will you stop?
- Thread starter Ace in the Hole
- Start date
I may be overly ambitious (especially considering I'm only just starting this journey) but I want to earn as much as possible. Once I become financially free, I will then do the same for those closest to me. After those closest to me, I plan on starting a charity for those I feel I can help in a big way.
The more money I earn means the more people I can help.
The more money I earn means the more people I can help.
Hi
How much property is enough for me?
Well for me it wouldn't be how much property is enough for me but more an annual income amount that I can earn from my investment properties. I won't stop till I am earning the equivalent of $250,000 per year in today's money as rent and totally debt free.
I have a while to go!
Regards,
alicudi
How much property is enough for me?
Well for me it wouldn't be how much property is enough for me but more an annual income amount that I can earn from my investment properties. I won't stop till I am earning the equivalent of $250,000 per year in today's money as rent and totally debt free.
I have a while to go!
Regards,
alicudi
I have stopped. I might be the odd one out on the forum. Used to want to have 10, had 3, now 2 and i think it will be enough for us with having passive income from rental, share, super in the future. But i will be working for as long as i still feel satisfied and challenged. I would have liked more money less stress but usually risk vs reward, and our priorities have changed too.
Great topic to discuss.
Ta
Anne
Great topic to discuss.
Ta
Anne
I don't feel property is the only worthy asset class but in terms of stopping investing etc if you're having fun along the way I don't see why you'd ever completely stop.
I was mostly referring to resi property accumulation to hold long term in these questions.
We have 13 now and a lot of debt, but they don't cost us any cashflow to hold.
If they were paid off they'd be returning 400k at current rents.
I don't see any point in selling any to pay down debt as we don't need the higher cash flow and it would restrict future capital growth by holding less assets.
So it seems like this is enough for us as far as resi goes, just hold and wait, which unfortunately is not very exciting at all.
We have 6 and a moderate level of debt. Working out when to stop is a tough one for some of us obviously. I did a bit of forward thinking and imagined myself in your situation with a lot of debt, lots of lovely houses but where next? If I get to that stage I thought I'd probably look to sell off one/some of the older cheapies, or 2 beddies. The value of some of these are catching up with some of my bigger ones now, so that would make life interesting, sell some to reduce some debt and give me greater cashflow. Like you, I don't need more cash flow just now but nice option for the future.
Hi Anne, you and me both. When I started my investing journey, I was the same as everyone else. I was aiming for 100K p.a. passive income. Nowadays, I figure 40K p.a. is more than enough. That is enough to cover my expenses plus extra to sock away for a rainy day.
The wake up call for me was realising that to get to 'enough' meant I could achieve independence in a significantly reduced amount of time than would be required to get to 100K passive income.
The one thing in life I can never get back is time. I would much rather get to 'enough' then look at my options for building from there than spend X amount of years working to get a higher income which in reality I don't need anyway.
Property I have now is sufficient in income.
Next is the strategy to pay down debt. I have a five year timeframe in mind to extinguish the debt. That will involve more purchases and maybe development, with the aim to profit and sell.
Next is the strategy to pay down debt. I have a five year timeframe in mind to extinguish the debt. That will involve more purchases and maybe development, with the aim to profit and sell.
Depends on my mood on any given day. Some days I am happy with the 9 we have and then I start trolling real estate websites and want more!
Now we have a few more grey hairs we are thing of ditching a couple of slack performers and maybe ramp up investment in other areas.
My first love will always be property though as it changed the direction of our lives completely and, for all the whining I may do about tenants, I have loved the journey so far.
Now we have a few more grey hairs we are thing of ditching a couple of slack performers and maybe ramp up investment in other areas.
My first love will always be property though as it changed the direction of our lives completely and, for all the whining I may do about tenants, I have loved the journey so far.
I had 6, then realised that even if I borrowed more to buy another 6 and eventually paid down the loans with savings or by selling off a few, it still wouldn't give me the kind of hassle-free and predictable passive income I require in the long-term.
So to me I already had enough property and perhaps too much, so I sold 2 (an under-performing one and a well-performing but high maintenance one), kept my PPOR and the 3 best IPs, and reduced my PPOR loan with the proceeds.
The 3 remaining IPs serve a dual purpose, as well as for long-term capital growth, any one of them can be used for lifestyle purposes eg. 1 to downsize into later in life, 1 to help fund an early inheritance for future kids, and 1 to sell and help eliminate my PPOR loan.
I aim to keep these at <80% LVR and neutral to positively geared.
Now I put 100% of all my future investments into dividend-paying shares, in my family trust and SMSF, with some initial borrowed funds from property LOCs and a small margin loan.
I also stopped working full-time and started working part-time in the hours that suited me - seeing as I wasn't going to buy any more property or re-gear my existing ones endlessly, I no longer needed to seek bank finance and show a high income for this purpose.
If I did want to use some borrowings I could always cautiously use my margin loan where I had negotiated down the interest rate to below 6%, almost like residential rates, and with no loan applications or bank servicing requirements needed to do this.
I also decided that if I could always aim to have some form of enjoyable part-time occupation/business I can do during my days then my passive income requirements would be less and I would be less dependent on investment income to fund a retirement.
Adding the above to leading a simple lifestyle which doesn't require a lot of consumption helped me gain better control of my time and focus more on what matters to me.
So to me I already had enough property and perhaps too much, so I sold 2 (an under-performing one and a well-performing but high maintenance one), kept my PPOR and the 3 best IPs, and reduced my PPOR loan with the proceeds.
The 3 remaining IPs serve a dual purpose, as well as for long-term capital growth, any one of them can be used for lifestyle purposes eg. 1 to downsize into later in life, 1 to help fund an early inheritance for future kids, and 1 to sell and help eliminate my PPOR loan.
I aim to keep these at <80% LVR and neutral to positively geared.
Now I put 100% of all my future investments into dividend-paying shares, in my family trust and SMSF, with some initial borrowed funds from property LOCs and a small margin loan.
I also stopped working full-time and started working part-time in the hours that suited me - seeing as I wasn't going to buy any more property or re-gear my existing ones endlessly, I no longer needed to seek bank finance and show a high income for this purpose.
If I did want to use some borrowings I could always cautiously use my margin loan where I had negotiated down the interest rate to below 6%, almost like residential rates, and with no loan applications or bank servicing requirements needed to do this.
I also decided that if I could always aim to have some form of enjoyable part-time occupation/business I can do during my days then my passive income requirements would be less and I would be less dependent on investment income to fund a retirement.
Adding the above to leading a simple lifestyle which doesn't require a lot of consumption helped me gain better control of my time and focus more on what matters to me.
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Four fully paid off properties would be enough for us. One as PPOR, two covering our living expenses and one for charitable purposes. We have four with 85% LVR. To pay them off, we may buy more to capture CG and/or build a couple granny flats to increase cashflow. As I don't mind buying and selling, we may not end up with the current four but with some other four. No specific plans for now. Focusing on the family side now 
We are planning to travel extensively overseas once our kids have grown up and left home, then with one rental with really good cash-flow and low maintenance/good depreciation and renting our our PPOR will be enough to cover our living expenses overseas. When we stop travelling, our super will be plenty by then too and we won't need to touch super until maybe 70s-80s, plus from now on until then we will be accumulating enough shares to provide enough income for us.
I totally agree with Mr Fabulous on this:
"The wake up call for me was realising that to get to 'enough' meant I could achieve independence in a significantly reduced amount of time than would be required to get to 100K passive income.
The one thing in life I can never get back is time. I would much rather get to 'enough' then look at my options for building from there than spend X amount of years working to get a higher income which in reality I don't need anyway"
I have come to realise that instead of running so fast at high speed for a few years, and trying to get to i.e. $100k/pa, why not run a bit fast but enough to enjoy the journey a long the way.
Agree with TPI on "Adding the above to leading a simple lifestyle which doesn't require a lot of consumption helped me gain better control of my time and focus more on what matters to me."
I have also adjusted the level of 'enough', and aiming to live a simple life, as we don't want much, we don't need a big house, don't need expensive car, enjoy travelling on a budget, don'd go to expensive restaurants etc..
Also i have learnt from a few SSers ( Keithij, Brenda Irvin) that resi properties are good for accumulate wealth in the early years and shares will be good for income, no maintenance in the later years.
Every now and then i am still tempted to think about buying another property but then i have to rethink, as the running costs+ maintenance for resi ip in my limited experience is about 1-1.5% /pa which is higher than index funds/ETFs.
7 years ago i had enough with working as i no longer enjoyed work, which prompted the 10 year goal of having enough passive income to stop working via resi properties, but now as we will be achieving our goal in a few years, for some reasons ( maybe i have found what i enjoy doing and no pressure of working for the money) i actually quite enjoy working, earn a good income and hopefully be able to help others at work in their career, i start to question whether or not i should stop working, or even going part time.
Great contributions from every one on the forum, thank you all. I have learnt a lot.
Ta
Anne
