Thoughts on the best course of action

Viewing 8 posts - 1 through 8 (of 8 total)

dougdot
Member
@dougdot
Join Date: 2003
Post Count: 5
December 6, 2003 - 8:21 am
My wife and I are both in our 50’s and four years back needed to sell everything to sort out a
negative business issue. Since then we have been subjected to rental conditions, plus moving a couple of times chasing work.
My question for comment is this. As we now are at the financial stage to purchase property again, plus have been following with great interest Steve McKnights passage to investing (along with others), should we now go for investment property (assuming it is priced right, positioned right etc) or go for an income producing property on which we can live eg an orchard or similar, considering age and lack of wilingness by lenders to run past age 65? We do have agricultural experience[
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
December 6, 2003 - 9:22 am
Most lenders no longer have an issue with age. I have got a 30 year loan for a 75 yr old fellow not so long ago.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Saskatoon
Participant
@saskatoon
Join Date: 2002
Post Count: 112
December 7, 2003 - 12:15 am
dougdot,
property investment is essentially passive, and doesm’t involve physical input from you (unless DIY renovation). Living on the income-producing propoerty e.g. an orchard and doing the work yourself might suit you now, but in 10yrs time will you still want to hop on the tractor at 6am? What if you develop health issues/injuries? Would the property still provide an income (sub-lease?).
Being of a similar age, I’m looking at passive incomes!
Terry
Terence McMahon
HomeWin
Finance
dougdot
Member
@dougdot
Join Date: 2003
Post Count: 5
December 11, 2003 - 10:47 am
Thanks for your input. Will consider your thoughts and get a decision underway real soon
Saskatoon
Participant
@saskatoon
Join Date: 2002
Post Count: 112
December 13, 2003 - 1:59 am
dougdot,
another way of looking at a strategy: if you work 50hrs per week in fruitgrowing what will the annual return be on that 2500hrs work?
If you worked 50hrs per week on property investing what will be your annual return?
Terry
Terence McMahon
HomeWin
Finance
Shirley_2
Member
@shirley_2
Join Date: 2003
Post Count: 87
December 22, 2003 - 7:57 am
Hi Dougdot – don’t write off the income-producing property idea. As well as our rental properties, we have a small mango farm but employ a manager to look after it. We helped pick some of the crop yesterday. It was very satisfying pulling ripe fruit off the trees although I wouldn’t want to do it for a living! A fruit orchard is probably one of the easier types of farming…don’t buy a dairy, whatever you do!
Cheers
Shirley
Melanie
Member
@melanie
Join Date: 2003
Post Count: 382
December 23, 2003 - 8:41 am
Hi dougdot,
Some lenders will want to see that you will have >70% equity in your PPOR at age 65, but provided you have sufficient superannuation funds or possibly verifiable income from the property (never tested that one myself) then you may be able to waive this requirement.
Good luck – my partner and I dream of owning a little orchard somewhere in the sunshine coast hinterland one day too, but still enjoying inner city too much at the mo’. [^] Cherries, peaches and avocados are personal favourites – not so keen on mango sap and you can’t wear the little plastic gloves because then you spread the sap and ruin the mango skins. Then of course there’s wine … dangerous! I couldn’t have animals, they’d all end up pets.
Have a very merry xmas!
[]
Mel
[email protected]
kay henry
Member
@kay-henry
Join Date: 2003
Post Count: 2,737
December 23, 2003 - 8:45 am
Melanie, you are such a softy :o) good to see a few “wets” in the property industry. Happy Xmas to you also
kay henry