Can or Will you retire on property alone?

To me 4 months is lightning fast!! Werribee took 7 months. I've got another one in at the moment with Bayside. Been in since April 2016! Madness.

 

This is a very solid start to an investment plan. This will deliver you capital and cashflow, the question is whether it will be enough. The concern is that you will run out of borrowing capacity before you accumulate enough assets. But that would not be the end of the world because you can always debt recycle using rent and dividends from the ETF. Your other option is to buy a higher cashflow property next time if you need to. @euro73's strategy does not account for dividends as income so his comments will not necessarily apply. A strategy designed for someone else won't necessarily shoe horn into an established strategy. So while your strategy may need fine tuning, it's a bit early to abandon it in my opinion.

 

I am not sitting on the side lines. I have 2 projects on the go and no spare capacity to do more. I have to complete these projects and get them rented out before I evaluate my options. If there is a correction in the stock market before then I will be scrambling to buy in

 

Good stuff...keep us informed on how things go

 

It all depends on your timeframe/goals and risk appetite I guess.

There are always deals/opportunities around, but whether one has the knowledge or skill set to take advantage of them is the limiting factor.

the good thing is it have made a start....you have actually done "something"....

Continue to learn and grow.... You'll be fine

 

different strokes f

Different strokes for different folks - if you have a few million dollars or more in equity, then you have many choices for converting into cashflow (& if you don't, you don't).

 

You as an individual making contributions to super to reduce your personal tax bill is a simple one, selling development sites or end product to your smsf, while possible if all right steps taken, is also fraught with danger.

The fact that you just mentioned in writing to anyone watching that you do so to save tax, instead of tfor the sole purpose/s allowed (simplistically to help the smsf members in retirement and not to help those members save tax fpayable from a development pre-development) means the risks are probably not fully understood.

Penalties can be severe if your smsf is found to be non compliant btw

 

I can think of myself as the reincarnation of christ, doesn't make it true. Property investment isn't a business, it's an investment. If you want to think of it as a business you'd have to get rid of. The cgt discount and also pay GST, keen?

Re removal of NG, those losses don't disappear btw, not sure I quite get why it's such a big deal.

 

Re read my post, its pretty clear I am not an accountant.

 

At least you've made a bucket load in that time...

Highett/HamptonEast?

 

Hey Sanj...you seem to be a Doppleganger .....didn't you move to Melbourne? Now you have reappeared in Perth...I can't keep up.....

Hey do you own any property at the moment....I thought you sold everything?

 

The last time I looked at my Bunnings receipt or my rental statement, I already pay GST.

How do you get away with not paying it?

It would be nice to charge it on our rents, be a bit like a 10% rent rise . Don't see any government allowing that.

 

Hampton, retain/reno and build, 10min walk to station. Council being a real pain though.

 

Yes bayside are notorious. But worth the wait. Good luck. I'm in highett but the Kingston side permit should be issued within 1 month. Total of 6 months inc Christmas.

 

Yes, agreed, why I started this thread...... back to the numbers.......also yields in Syd and Melb are currently around 3% and if you are chasing growth in these markets then think again, it becomes a higher proposition the longer the market has been booming.

Strategy of buying resi to retire will be hard, this is why we are now seeing investors jumping into the share market, but perhaps this is also close to peak??? no idea??


When you do the sums you’ll see that you need an unencumbered portfolio worth at least $4million to earn that $100,000 a year after tax. Not everyone needs $100,000 pa and I get this. But I need more

Remember that’s $4 million worth of property and no mortgage debt, otherwise your cash flow will be lower.

And of course you’ll also need to own your own home with no debt against it.

Here is an overview from January 2016, highest gross rental yields in Australia.

I expect these yields may be slightly lower today?

 

Depends which markets if ti is Sydney it is done....so is inner/middle Melbourne

Outer Melbourne has about 6-12 month, Brisbane/Adelaide/Hobart growth is just starting..even with capped lending these markets are still very affordable.

 

Be interested to know if anyone who has made millions on the Sydney market is cashing in their chips or thinking about doing this???and moving to another State, cheaper entry level and taking advantage of the win and perhaps settling into retirement or less stressful life?

Not a bad option, perhaps to the Sunshine Coast??

MTR

 

interesting times, lets see what happens with interest rates. Certainly lower entry levels in States you mentioned. However investors still need to meet serviceability??

MTR

 

There are people taking the profits out of Sydney and moving it to Brissie/Melbourne and even Adelaide/Hobart ... interesting times indeed.

The real issue...is there are a lot of smug Sydney investors who have made alot of coin...perhaps say $2m in profit...some are carry enormous land tax bills (North of 25k)...they will have an interesting conundrum when they see what happens when there is no growth.

If they get out now....CG on large numbers will take their 25% of their profits....if they stay they stay they will find their asset values after drops in values and land tax/lower rents/higher are factored in ...they wills still experience a cost of net wealth reduction probably even higher.

Interesting issue...but something to think about....this is where I see people who don't understand cycles get caught out.

Even worse if they get caught up on suddenly find their I/O 300k IP loan repayment jumpng from 13k to something like 19k..potentially higher if they have been I/O for 10 years or more....interesting times indeed......this something a lot people don't understand it can be a house of cards.

 

I see.
I would take a bet each way, making $2M would be pretty damn nice in a short time frame of 3 years, sell up half, and keep half, reduce tax liability, increase cash flow and ability to service debt etc. Just my thoughts, there are many ways to skin a cat.

I got caught out with the last Perth boom cycle from 2001-2007, similar to what is happening in Syd, no fun when the markets correct carrying too much debt. All to their own. Either way, I hope everyone keeps a cool head, its hard in boom times.

MTR