Hello Everyone and a very happy Easter to you all.
Just a quick note concerning my current mental state. I am wondering whether I have actually gone mad or not! Here is my story. You tell me … please.
Since the time I was 22 (a dozen or more years ago) I have bought, renovated and sold property in the best area that I could afford at the time. I have always done this as a hobby really, rather than as my main focus. I have done well on each property despite not knowing a great deal about the technical world of property investment. I have merely followed basic common sense principles I suppose and got good advise from gurus who know far more than me.
Over the last few years I have become increasingly aware that I am making significantly more $ from my ‘hobby’ than I am from my 9-5 job.
Currently, our home is worth around $550 and I have no out-standing debt. My husband and I have been OK’ed for a line of credit of $800K.
You know where this is going don’t you?
My job pays me $45K before tax and is keeping me poor! Worst of all it robs all my time that I could be researching & renovating. My husband makes around $60K currently and is about to receive a lump sum of $350K which could mean that he could retire early and join me in my venture.
I am not really sure what I am asking actually. I suppose it is as simple as ‘am I mad to be thinking such thoughts?
Any feedback would be greatly appreciated. Thank you all for this.Oh to be in your shoes! [^] It sounds like you may be in the enviable position of being able to contemplate retirement from your day job, and not have to worry about where the money is going to come from! Still it is wise to plan this carefully to ensure you don’t blow it so to speak. If you are able to invest in PCF properties with the proceeds of your lifetime of work and other investments, you should not have any concerns about keeping the wolves from the door. Renovating and selling can be great particularly if you do it in a rising market, because you can acheive a significant capital gain quickly. When things slow down it is a little different, but moeny can still be made. I’m sure you have more experience in this area than I anyway. I guess it really depends what you want to do with your life, and it appears that you have a measure of financial freedom to be able to advantage of numerous options.
While not insurmountable there are a couple of things you might want to consider before you move across. Your structure will be an important question to answer as you will want to protect yourselves and your assets, and insure the income your ventures generate remains ‘within the family’. Another thought is what type of investing do you want to be involved in – capital intensive or low capital outlay, high growth or high income related investments. Obviously each will have an impact on your cash flow levels and regularity. Another question about this situation you may want to investigate is the ability to borrow money to invest if you don’t have a ‘regular’ job. Obviously having access to low doc loans will help here. Nevertheless, what an exciting prospect to be able to contemplate such a lifestyle change. I wish you all the best.
Gus
“To reach new lands you must have the courage to leave the shore!”
Hey Flinders,
Sounds like you have it all working well. Maybe freedom is only just around the corner. How many properties has it taken you to get to where you are today ?Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinFlinders, all i can say is that your goal must be to maintain your income which is 45k + 60k= 105k
So to afford to retire you need to be able to produce 105k p/a. You have 900k in assets 550k for house and 350 k for the pay out. The way i see it is that you have a gareenteed income of 105 k p/a and a house that is increasing in value p/a by 10%. I would stay working and use the 350k to buy and renevate in spare time, which in time will build to be able to support your life style in retirement. I would sell from your area once retired and down grade to a cheaper house and use the left overs to fund your retirement.
I know that when i retired my standard of living didnt decrease, but alot of other profesionals whos income was around 100k p/a are now trying to live of 30k p/a in retirement. Not my idea of fun.
Hey Flinders,
Sounds like you have it all working well. Maybe freedom is only just around the corner. How many properties has it taken you to get to where you are today ?Enjoy
AD [:0)]
(Andrew)It has taken me six properties to get here AD. The first two were in quite poor suburbs of Brisbance which was all I could afford at the time but they got me started. The next two were the worst houses in great areas of inner city Brisbane and the last two have been beachfront properties on the Gold Coast. The last one was heavily a case of being in the right place at the right time during the Gold Coast beachfront property boom. All the properties needed a lot of cosmetic work except this last one which has been pure CG. Bless it!
“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
Oh to be in your shoes! [^] It sounds like you may be in the enviable position of being able to contemplate retirement from your day job, and not have to worry about where the money is going to come from! Still it is wise to plan this carefully to ensure you don’t blow it so to speak. If you are able to invest in PCF properties with the proceeds of your lifetime of work and other investments, you should not have any concerns about keeping the wolves from the door. Renovating and selling can be great particularly if you do it in a rising market, because you can acheive a significant capital gain quickly. When things slow down it is a little different, but moeny can still be made. I’m sure you have more experience in this area than I anyway. I guess it really depends what you want to do with your life, and it appears that you have a measure of financial freedom to be able to advantage of numerous options.While not insurmountable there are a couple of things you might want to consider before you move across. Your structure will be an important question to answer as you will want to protect yourselves and your assets, and insure the income your ventures generate remains ‘within the family’. Another thought is what type of investing do you want to be involved in – capital intensive or low capital outlay, high growth or high income related investments. Obviously each will have an impact on your cash flow levels and regularity. Another question about this situation you may want to investigate is the ability to borrow money to invest if you don’t have a ‘regular’ job. Obviously having access to low doc loans will help here. Nevertheless, what an exciting prospect to be able to contemplate such a lifestyle change. I wish you all the best.
Gus
“To reach new lands you must have the courage to leave the shore!”
Thank you so much for your input Gus. It is great to hear your positive feedback. Your ‘items to consider’ are very valid indeed and are the sorts of questions we are posing. Now just to find the answers, that is the question!!!No problemo.
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