All Topics / Help Needed! / Best Way Forward

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  • Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344

    Hi all

    Not sure what area to put this in went with Help Needed

    I am at a cross road that i am not sure which way i should progress,  would like to hear from others if were in a similar position and with more experience than i have in these matters.

    Now 66years old and considering the road ahead.

    My situation is as follows:

    Without going into all the reason pros and cons etc.  All my loans have been Interest only since i bought the properties

    PPOR Mortgage $200,000……Bank Val $400000………………Have about half of that in Savings in Offset account

    Investment Property 1 Mortgage $200,000  Bank Val $580000  (This was my old PPOR then turned investment Val at time of change $350000) Rent is 380pw

    Investment Property 2 Mortgage $330,000  Bank Val $750,000 ( Increased refinanced to buy shares and bad advice and increased loan to that figure Unfortunately GFC came along. Rent is 530pw

    I still work full time take home about $55-65K a year net.  Don’t have dependents or spouse

    Have a modest Super amount

    I realize that somewhere along the line if i sell i am going to cop a significant CGT bill.  Have had some Losses in shares to off set but not substantial.

    Should i be waiting to stop work before i act?

    Should i be organizing my self now

    Someone may have ideas that i may not have thought off.

    Don’t have retirement in my sights in the immediate future but probably in the next 5 years, unless something goes wrong health wise etc.

    Open to all views

    Would appreciate any contribution

     

     

    Regards

    SG

     

     

     

    • This topic was modified 5 months, 2 weeks ago by Profile photo of stargazer stargazer.
    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Howdy Stargazer. Member since 2002 eh? Thanks for sticking with me :-)

    The problem here is that you are letting the asset lead the outcome. That is, you don’t know what to do because you don’t seem to have a clear picture in your head about what you want your assets to achieve.

    Here’s what I wrote in prep for a Money Magnet podcast yesterday:

    • If you don’t have a then, you won’t have a why
    • If you don’t have a why, when becomes based on urgency and you become reactive rather than proactive.
    • Without a why and when, what or how is unclear, and so you will gravitate back to your parental and societal programming
    • When it comes to investing, that is likely to be good assets, in good locations, in the hope of a good profit.

     

    • Set a ‘Then’
    • Identify ‘Why’
    • Clarify ‘When’
    • Let the Then, When and Why determine the What and How

    In summary, the right thing for you to do depends on what you want to achieve.

    Final comment – make sure you come to my upcoming 1-day seminar. I will explain more about this at the event in the context of ‘making your money count’.

    Bye,

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344

    Hi Steve

    Thank you for your taking the time to reply.  Yes 2002 wow how time goes by.

    I did start with a clearer vision to what i have now.  I did start the journey etc.  Then as life does it takes its turns

    with Marriage Break up / GFC / Some health issues at the time / Employment issues / Entrusting Financial Adviser (that was a major set back), i probably am lucky to be where i am asset wise, even though still carrying considerable debt.  Despite the set backs i was able to hold on to what i have described in my post.

    Looking forward i am probably looking for honest guidance.  Some people can see things i cant but once explained it then seems obvious, (Of course what couldn’t i see that).

    At my age and debt, borrowing capacity has dwindled with my current status.

    The only option at this stage that i can see is that i have to sell to reduce debt and start moving towards being debt free in retirement.  However i am open to ideas.

    Unfortunately unable to attend the Adelaide 14th October due to another commitment.  However there may be another opportunity.

    Thank you again for responding

    It just seems difficult to find someone to sit with, and start to work out best way forward.

    Regards

    SG

    PS i did buy the money magnet. Great Read.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Stargazer,

    As you said to Steve, ( “i probably am lucky to be where i am asset wise,” ) I think you have done pretty well to accumulate what you have despite the problems faced.  So, what now?  I guess that is your question, right?

    Straight off, I have one or two to ask you – if you provide answers, they might light your way somewhat……  here goes:-

    1.  Dates of purchase (roughly) of these properties, and dates of changes from PPOR to IP, etc.  These dates may be significant…..

    2.  “About half” in your Offset – was that half of val, or half of the mortgage owing?

    3.  From the few figures I see, these look to be positive geared today – is that right?  i.e. they don’t cost you to own any of them?

    An old saying heard in my earliest investing days – “If you don’t sell, you don’t owe CGT”   On the surface, perhaps that is you today ????  Can you hold these?  Are they covering maintenance, insurance, rates, RE fees, etc and still putting money in your pocket?

    I’ll leave it at that for now – interested to hear back from you, ;)

    Benny

    Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344

    Hi Benny

    Thank you for taking interest in this.  To answer your Questions (In Bold)

    1.  Dates of purchase (roughly) of these properties, and dates of changes from PPOR to IP, etc.  These dates may be significant…..

    •      Inv Prop 1.  Purchased 2002 Was PPOR / 2010 became INV PROP (Val at time 350,000)
    •      Inv Prop 2 Purchased 2000 bought as Inv property.
    •      PPOR Bought in 2016

    2.  “About half” in your Offset – was that half of val, or half of the mortgage owing?

    • Half Mortgage Owing

    3.  From the few figures I see, these look to be positive geared today – is that right?  i.e. they don’t cost you to own any of them?

    • Yes although with the interest rates moving as they have this has reduced and increases in expenses.

    The Investment Props at this stage don’t cost me but don’t provide enough income if i was relying on them for income.  The PPOR obviously I service the mortgage.

     

    Looking at the retirement aspect of this say in a few years time, i cant see these providing the necessary income with the current debt/rent ratios with the status remaining the same.  

    Regards

    SG

     

     

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Stargazer,

    I’ve been playing with the figures you provided.  I have sent you a Private Message with my findings.  As I am not an Adviser of any kind, I’d rather keep the results under wraps until you find out if my thoughts were largely correct, in which case I wouldn’t mind sharing them on here (if you are agreeable).

    For now, check your messages – you may find a nice surprise !!!   ;)
    Benny

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