$900 000 windfall - enough to retire now?

Yep, don't forget Westfield America Trust as well (to form Westfield Group), the story evolved in later years with Westfield Retail Group, Westfield Corporation, Scentre Group enough to make your head spin

 

Thanks mate. Very educational, as always.

Would you mind sharing your thoughts on AFI?

I think you mentioned somewhere that you might write your overview on the most commonly discussed LICs. I think that would be a great contribution to this community and especially us beginners.

 

Hi Y-man. Thanks for taking the time to weigh in. The sell the PPOR scenario was what we originally thought. Buy a sea-change option somewhere and invest the rest. Initially, we will probably rent out the PPOR for $750 a week and travel in our caravan to find where we would like to sea change/tree change to. We may do a small property development on our travels as well to top up our cash...

 

I see so many people that are doing that when i go camping outside the Brisbane area...The link below is for all the free camps enjoy the freedom you have in front of you..imho..
Camping at Heifer Creek - QLD

 

Good idea, you are good at this.

 

Thanks Willair. Some great inspiration.

 

Hi mate, no, no overview from me. I see very little difference between any AFI/ARG/MLT/BKI as far as seperating their forward return expectation. There is more than enough discussion over in the LIC threads!

 

yet!

 

Personally I believe the degree of risk an instrument holds is directly related to who is utilising the instrument and their knowledge, experience and overall financial position. Much of the degree of risk with investing lies not with the instrument itself but rather resides with the user of the instrument.

Just my opinion.

 

@Butterfly88

Just wondering what you wound up doing?

 

27 Red, to be precise.

 

Simple easy plan;

Pay out all debt, then use the remainder of cash as a 50% deposit on another IP...Pos Geared from Day 1.

Use all rents from both IP's to pay down 2nd IP loan asap, then both IP's are unencumbered and mostly passive income your way.

Possibly then redirect some of the incoming rents into dividend paying shares as well.

With no PPoR loan or IP loans, it should be quite easy to live off just those rents....

 

Hi there.

We are still sitting tight as the funds are not yet ours. Going to look into other asset classes more closely in the meantime so we are educated. Will update this thread when more progress has been made in a certain direction. Meanwhile have just taken a brilliant holiday in Italy which has fired up our wanderlust...sigh.

 

Thanks Bayview. Love your part of the world, especially Mount Martha..

 

So @Redwing @Gockie just to update. Have just read Michael Homes Super Smart Money book. Apparently he has changed his strategy slightly since 2014 and is about to release a new version which he promised to send me a copy of.

About to start reading the Thornhill thread now that I have the overall picture of this investment strategy. We have paid out all our loans now so the investment property is fully cash flow now. We will update our PPOR using cash only. Basically, we are not jumping into anything. I also have $800 000 of my parent's money to do something with on their behalf...

 

C'mon people, where're the suggestions to buy residential investment property?!

I'm off to the wooden sailboat forum where they stick to their subject

While first rule is not to lose the money, I would gear up to some level say 50%-70% and buy good quality resi investments.

 

@New Town yes. It's all gone rather quiet...

 

Maybe educate yourself with the stock market if you want hassle free income
there is some extremely good reliable yield business that own lands, properties and industrial real estate, wait, time and buy them cheap during a crisis and keep getting a hassle-free dividend for life and in time those under-lying asset will rise along with rental income.

 

Why do you think moving from property to shares will make you better off but also say it will put you in trouble if the share market crashes? I think it's much riskier having 80%+ of your assets in shares which can easily tank like we've seen with past blue chips. With property even if it burns down you still have land and the insurance covers a lot too. Better than losing more than 50% on your shares which can happen.

 

The yields for shares tend to be better. No outgoings, plus you get franked dividends.

If share prices plummet, the dividends won't have dropped anywhere near as much as the share price has. So in this circumstance you should go and buy more shares as the shares are now cheaper, and are better yielding. If that happened right now, (with really low interest rates), it would even be worth using a LOC on your home to buy more shares (and that's tax deductible too). Over the long term, the share market has always tended upwards.

And if you want to protect yourself from fluctuations in individual stock price movements... buy ETFs and/or LICs . Still get the growth but you aren't tied to the performance of just a few individual companies.