How much income do you need to live the dream?

Discussion in 'Investment Strategy' started by sash, 20th Jul, 2015.

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Who NET income do you need to live the dream?

  1. Less than $35k

    5 vote(s)
    3.3%

  2. 35k to 60k

    15 vote(s)
    9.9%

  3. 60k to 80k

    18 vote(s)
    11.8%

  4. 80k to 100k

    18 vote(s)
    11.8%

  5. 100k to 120k

    35 vote(s)
    23.0%

  6. 120k to 150k

    14 vote(s)
    9.2%

  7. 150k to 180k

    10 vote(s)
    6.6%

  8. 180k to 200k

    2 vote(s)
    1.3%

  9. 200k plus..

    35 vote(s)
    23.0%
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  1. sash

    sash Well-Known Member

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    Hi there....yes that old chestnut....I would love to hear what amount of net income people would like out of their investments (property, shares, etc.) to live the dream!

    I voted 120k net..
     
    sash, 20th Jul, 2015
    #1
  2. KDP

    KDP Well-Known Member

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    What's "the dream" sash?
     
    KDP, 20th Jul, 2015
    #2
  3. D.T.

    D.T. Specialist Property Manager Business Member

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    I don't like putting a number on it. If I say $X and then I reach that, then what do I do? Go for $X + 1 ?

    My goal is to keep forever increasing
     
    D.T., 20th Jul, 2015
    #3
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  4. Singo

    Singo Well-Known Member

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    For a single person, isn't it? Less than 35k is enough :)
     
    Singo, 20th Jul, 2015
    #4
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  5. jaybean

    jaybean Well-Known Member

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    Everyone is different. And everyone is different at different stages in life. At one point I would have been able to live the dream on 50k a year. Now it's probably more like 100-120k. I honestly believe (no joke) that I could also find ways to spend 100m a year. You know those people who say what's the point of billions of you could never even spend that much in a lifetime? After watching that show Entourage I really see how it's possible now. Seriously. I completely get how people like Mike Tyson could blow it all. And I could definitely see myself doing that if I wanted to (I don't think I want to, but my point is people who say "more than anyone could spend in a lifetime" just lack imagination).
     
    Last edited: 20th Jul, 2015
    jaybean, 20th Jul, 2015
    #5
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  6. wombat777

    wombat777 Well-Known Member

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    Initially I would have said $80k to $100k, however with a down AUD $100k to $120k would be better for extended periods of travel. Nominally 3 to 4 months a year.
     
    wombat777, 20th Jul, 2015
    #6
  7. sash

    sash Well-Known Member

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    It all depends...it is very individual...for a Rastaman..it might only be 35k.....;)

     
    sash, 20th Jul, 2015
    #7
  8. OC1

    OC1 Well-Known Member

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    I find this question lacking a key component, and that is whether debt is involved. Someone with $70k net income with no debt is going to feel more secure when compared to someone with $70k net income AND debt (generally 7 figures). The latter may hesitate to say pull the pin as they would be susceptible to interest rate rises. The former has no such issue.
     
    OC1, 20th Jul, 2015
    #8
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  9. sash

    sash Well-Known Member

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    Maybe...but most of the people I know who own property have debt by choice for deduction purposes - mostly LOCs and Offsets.

    As for being susceptible to an interest rate rise...there are options around that also.

    If sold down to get no debt.....I would have more than double the required income. So horses for courses...

     
    sash, 20th Jul, 2015
    #9
  10. OC1

    OC1 Well-Known Member

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    Debt by choice for deduction purposes? What does that even mean??? Of course you would set up a LOC against at least one encumbered property (assuming here you have a debt free portfolio). You don't go and create a loan just to create a deduction though.
     
    OC1, 20th Jul, 2015
    #10
  11. JDP1

    JDP1 Well-Known Member

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    Lol...
    All u will need then is some weed, a guitar, some cold ones and a surfboard.
     
    JDP1, 20th Jul, 2015
    #11
  12. sash

    sash Well-Known Member

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    Well it is a question of LVR....if you have a low LVR (ideally 40% or less) then you have no issues assuming your income requirements are met.

    The reason you would keep you entire portfolio is over time the debt will look small as it grows. For example ...as I have said before...

    1) 10m portfolio with $5m debt or 50 LVR
    2) 7 years later $15m portfolio with $5m debt would be at 33% LVR
    3) 15 years later $22m portfolio with $5m debt.....would leave LVR of 21%...leaving you to enjoy retirement!!

     
    sash, 20th Jul, 2015
    #12
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  13. sash

    sash Well-Known Member

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    Yeah mon!....

     
    sash, 20th Jul, 2015
    #13
  14. OC1

    OC1 Well-Known Member

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    Why would I wait 15 more years when I have a portfolio like that?

    You're missing the point here.
     
    OC1, 20th Jul, 2015
    #14
  15. sash

    sash Well-Known Member

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    Question of if you like your job. ;)

    Too young to do nothing....but too old too much. ;) A question of priorties...have been asked this question a lot.

    The other issue is loans...very hard now with out a income source...have noticed this on my last 3 purchases...they are crawling up your backside even with a large bank balance....

    By the way....my target is getting out in 4-6 years not 15....that would give time for my properties in Qld, Outer Melb, and SA to take off!

    What is your plan??

     
    sash, 20th Jul, 2015
    #15
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  16. Casteller

    Casteller Well-Known Member

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    Depends where you live, in Spain 60k aud is more than enough, and I've got 2 small kids. Australia is a different story.
    Also depends on what your "dream" is, mine is pretty simple and cheap, not working is the main component.
     
    Casteller, 20th Jul, 2015
    #16
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  17. sash

    sash Well-Known Member

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    Donde esta usted? Barcelona...Madrid....Sevilla?

     
    sash, 20th Jul, 2015
    #17
  18. JDP1

    JDP1 Well-Known Member

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    What's my plan you ask? I actually like my job amd have no real desire to retire before 67 or whatever the retirement age is..by then sure I'd like to have 2-3 properties fully paid off.
     
    JDP1, 20th Jul, 2015
    #18
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  19. sash

    sash Well-Known Member

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    Thats not a plan ....that is cruise.... ;):D

     
    sash, 20th Jul, 2015
    #19
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  20. Pistonbroke

    Pistonbroke Well-Known Member

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    I know several pensioners who live the life just because they own their own home. It goes to show that you don't need to earn truckloads.
     
    Last edited: 22nd Jul, 2015
    Pistonbroke, 20th Jul, 2015
    #20
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