34 and retiring - Canberra focused portfolio highly CF+

Discussion in 'Investor Stories & Showcase' started by ads99, 25th Oct, 2020.

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  1. ads99

    ads99 Member

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    Would never touch the capital to cover my living expenses. As mentioned I'll keep one of the IPs which will return just under $1000wk net. With no debt or kids it will go a long way.

    Yea land tax in ACT is high, but not that high! In 2019-20 it was around $15k for the 6 properties. Rates were around $13k.
     
  2. ads99

    ads99 Member

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    I'd be curious to hear thoughts on asset protection, particularly to protect from a relationship breakdown, would it be best to purchase the QLD properties in some form of trust?
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    Stay single or be 1000% sure when you marry.....

    The Y-man
     
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  4. VanillaSlice

    VanillaSlice Well-Known Member

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    hi ads99,

    thanks for sharing. You have some great cash cows!
    Just wanted to ask are the rooms rented out inclusive of all bills ? or do the tenants pay for the bills ?
    how much roughly does it cost to cover all utility bills per week for one person (gas, electricity, water, internet etc)? given canberra has very cold weather, does energy bill eat into the cashflow much ?

     
  5. VanillaSlice

    VanillaSlice Well-Known Member

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    QLD offers a 350k land tax free threshold for each trust. Not sure about asset protection. Is this in case of a divorce ?

     
  6. Brendon

    Brendon Well-Known Member

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    @ads99 sounds like you’ve done very well!
    Thanks for sharing your story, it’s quite different to most on here.

    One thing I would add just as a consideration. I would try to keep as many loans as possible open during the sell down. It was mentioned earlier about keeping a loan against the one IP you’re keeping but seeing as you won’t qualify for any loans while you’re not working (a traditional job) I’d keep loans against any property that you have.

    This would take some planning but if you had 80% of your PPOR and 80% of the property for your mum and 80% of your IP in loans you could potentially have maybe $1.5m cash in offsets.

    This would give you so many more options moving forward. Especially as you seem like the sort of person who will find opportunities pop up and would like to jump on them when they do.

    I’m unsure of the logistics of making this happen but I’m sure it would be possible.
     
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  7. ads99

    ads99 Member

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    The tenants are responsible for all bills, but rather than give them a big bill every 3 months I take $15wk per person on top of the rent, and make any adjustments at the end of each quarter, up or down, based on the total of the actual bills. I have spreadsheets which calculate individual adjustments based on their actual contribution and their period of occupancy in each quarter. Ie if a tenant moves in halfway through a billing cycle they won't pay the same adjustment as someone who was there for the whole cycle. But generally the $15wk per person covers everything and the adjustments are minor. Given the properties are all relatively new they have high energy efficiency ratings. In the duplex I built which has 7.3 stars EER they sometimes get back a small refund. New builds in Canberra are required to have a minimum of 6 EER.

    @Brendon - great point!
     
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  8. Mcube

    Mcube Well-Known Member

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    @ads99 , great job! Just curious which suburb did you buy the land and build duplex? How big is the land? Is it easy to get approval to build duplex? Thanks!
     
  9. ads99

    ads99 Member

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    @Mcube I'll send you a DM
     
  10. Stoffo

    Stoffo Well-Known Member

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    20201029_160652.jpg
    Advertising at the local supermarket and a similar basis to the OP
    In the Shire
    Sounds like a good idea, but not for me
     
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  11. noneother

    noneother Well-Known Member

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    This is awesome. I'm the same age as you OP, but didn't go for cashflow. Instead I went for capital growth. I'm now nearly mortgage free close to $2m net. I want to get into your cashflow position. I've done the house hacking thing before too on my PPOR.
    I'm looking to get myself a group house for cashflow now.
     
    Last edited by a moderator: 6th Nov, 2020
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  12. aussieB

    aussieB Well-Known Member

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    Good on you for saving $80k in uni and that too in 2012. Were you doing many side jobs/businesses?
     
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  13. ads99

    ads99 Member

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    thanks mate, yea I had a drop shipping business on ebay which did pretty well and did a bit of casual work here and there
     
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  14. Ketsle

    Ketsle Well-Known Member

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    Fantastic story, thanks for sharing.
     
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  15. Seby643

    Seby643 Well-Known Member

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    Living the dream OP, definately my type of dream.
     
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  16. Reddy

    Reddy Well-Known Member

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    Good on you mate. Very good story. Thanks for sharing
     
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  17. GoldCoastBound

    GoldCoastBound Well-Known Member

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    thanks Y-man, good information.

    in Victoria, would it still be classified as a rooming house if i have a say 4 bedroom house that i can seperate into 2, that would each have their own kitchen, toilet, bedrooms etc ?....nothing shared, but would have only 1 meter on the block ?

    or called something else?

    thanks
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    Would still be a rooming house from what I understand.

    The Y-man
     
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  19. mickyyyy

    mickyyyy Well-Known Member

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    Nice work mate and thanks for sharing
     
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  20. Travelbug

    Travelbug Well-Known Member

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    Well done!!
    we looked at converting one of our places to shared housing but didn't want to do any work. Haha! as we are already retired.
    Come up to the Gold Coast, you won't regret it. We moved up earlier this year from Sydney. Just got back from breakfast by the beach.
    LOVE Burleigh.
     
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