buying my first property in cash. am I missing anything?

I am single in my mid 30s and have about 600k in my stock portfolio.
I have always wanted to buy a property for myself and not have to worry about paying rent or monthly mortgage.
The reason I started investing in stocks was only because I wanted to buy my home in cash because I have always wanted to live a rent-free and debt-free life.
I am thinking of selling 500k of my stock and buy a 1 or 2 bed room apartment to live in. (I don't care about capital growth or anything like that as I am looking for a place to live in for the next 10 or so years.)

However, now that I have enough cash to buy a property I want, I am not sure if it will be a wise decision to sell 90% of my stock and to buy a property in cash to live in.

what do you guys all think?

 

What about CGT?

What if you want to borrow to buy shares again in the future?
What if you want to move out and rent the property?

Strategy for Share investors involving Property Strategy for Share investors involving Property

 

Do you have enough on top of this to retire?

You should care about capital growth, unless you have another way to reach your financial goals.

if you honestly dont like debt, think about what would happen if you bought this and lost your job. Compared to taking a 80% loan and fully offset it.

zero debt doesnt equal safe.

 

I have 1 year worth of expenses saved up in my bank and my job is pretty stable so I am not really worrying about losing a job. even if I do, I think I can find a job before using up all of my savings in the bank.

my next goal is trying to increase my superannuation to 1m and I think this should cover for my retirement.

Given my present circumstances, would it be wise to buy home outright?

 

Not in my opinion, but your thoughts are alien to me.

 

IF you never lose your job, your goal is $1m at 60 and live in a smaller unit for life?

But if you ever have a family, want a bigger place, want more for retirement, want to retire earlier?

 

What happens after 10 years when you want to upgrade? If you haven't had CG, will you have saved enough in the meanwhile?

 

Do you really want to be selling 90% of a stock portfolio in a major downturn?

 

If you dont think your shares will earn you more than a 2 % p/a sell them. Remembering you may only have 400 k instead of 500 k after CGT. You could take a loan and only pay 3%, and use opportune times to sell some shares to pay the loan, or pay the home off over 4 or 10 years so that you get your capital at a lower tax rate and $ value of your share portfolio is some what maintained. Alternatively you could sell your shares buy a house unconditionally and perhaps get a discount, then take a loan and buy some shares again with a tax deductable loan which may some what negate CGT on the sale, the taxed saved could buy more shares.

 

Probably lose money though

 

In some places in Asia you can cash out up to 50-60% LVR no questions asked on serviceability ever

 

In Aust? Crap I was in uni. Omg I’m so angry