Can or Will you retire on property alone?

Not millions however sold one at the end of last year, about to put another on the market this month, and in July will list a third to spread CGT.

Already have property in QLD which I want to hold as I believe Sydney is almost done. Also don't want my backside hanging in the wind as on some loans I can't extended IO or refinance.

 

Yes...very nice..but if you are only exposed to one market now might be a good time to think about diversification.

As I said have been out and about in Sydney....ominous signs are there similar to 2003....do ya get the feeling I am related to this bloke....



Any case your point of having a cool head is paramount.... as you said @See Change got out in 2015 ...... some others are selling just not posting about it....

I am holding....rain hail or shine in Sydney....will sell on other markets but not so much in Sydney and Melbourne...

 

And understand their strategy/approach - either keep active and time the markets as best they can, or hold, and ride the lows with the highs. As you say, keep a cool head and don't react (so easily said)

 

HUSH!

Sunshine Coast is doing just fine thanks.

 

back to work now mr dellemc!

 

As @kierank mentioned let me charge GST on my income (rent) as my expenses I pay include GST.

In the last couple of day I would of paid 1k in gst for one property.

NG makes sense to me and if you don't like the rules either change them (good luck) or learn to play with them.

The last property I purchased was on the market for over a year and I paid 18k more the house than a guy up the road did for land yet my property would still be negatively geared even after the vendors spent about 100k doing it up in the last 2 years. This is. It a property in Sydney or Melbourne but is actually in Brisbane.

If I could get it to be CF+ I would but this would require my purchase to be less than the land sale, less than what the vendors paid 2 years ago and before their Reno cost... it just ain't going to happen...

 

I'm by no means any expert but it might be an idea to use property for capital growth and sell rather than to sit there trying to live off the rent?


-Frank

 

Not necessarily, I think a few got burnt focusing on cash flow but wrong product, wrong location, ie mining towns, regionals - 1 horse and a dog

I think you can definately retire on property but perhaps the but and hold just got a little harder.

 

I reckon if you can take advantage of a couple of boom cycles, go hard and buy as many as you can then sell half prior to peak that would work well. Its like taking out insurance

 

We focused on cashflow from day 1. Not mining towns, but cashflow was always our focus.

 

That is HOW you live off the rent. We went hard & bought heaps, then sold off several to retire and live off the rents.

 

It worked

 

I like your story so much, it just resonates with me, no one has a crystal ball what the future holds, and we have been through so many economic challenges whether here or abroad (all that noise - I now call that), yet the property prices are still what they are?
I am like a hare now too, just plotting along in time with buffers in my investing journey, 17 years on looking forward to being 30 years invested in 13 years time, making decisions as I choose. The only regret is wish I started earlier.... but we live and learn!
We set low goals, of replacing our incomes, then at $50K each, now surpassed that, who knew?
MTR your example is quite valid and I am a living example it worked for me, for us, surpassing it to beyond 8 digit asset base (without PPOR). This is not to boast, but like so many new novices I had doubts too, I am quite risk adverse, I find IP boring (yes it requires work, a lot of work unlike shares, but boring if you stick to a strategy and just let the funds and time do its thing!).
Like a lot of people on this forum, like you say, "go-getters", I too think I am quite the opposite and resonate to your description of being "incidental millionaires" (love the description, as we started as passive investors only understanding the concept!).
I have plan for the next 10-13 years yet I doubt I will quit what we do as if you 'love' what you do than it does not seem like work, really...

 

Great thread! Me personally think 100 K is doable to live off! It all depends on life choices and what is happening personally! I am aiming for property is each city would be cool to say you have property in each major city in Australia! What are people's thoughts on the above?

 

Great to diversify, however not so great if you get the timing wrong abd buy in the wrong State.

 

True @MTR i guess you need to pick your timing! You would need experts on the ground in all capital cities or people who know multiple areas. Which all could be tricky!

 

Not trying to be harsh just being honest. Diversification is important imo especially if you want to grow a portfolio quicker, though I'd forget the whole 'cool to say you have a property in each major city" sentiment. All your decisions should be based on the numbers, market cycle at the time, your strategy and risk profile. Each purchase should be strategic in that, it helps you get closer to your goals.

 

Totally understand that @Leo2413 . Would if it would be possible to invest in multiple markets and still come out on top ie with the end goal still in focus.. Would be interesting to see. Pretty difficult I would think, with different cities in different cycles etc

 

You can become the expert, it takes time and persistence and just keep learning

 

Absolutely possible and many on here including myself have done just that. When a particular market starts to look opportunistic, you can purchase in that market. Then when other markets around Australia start to look opportunistic, you can if you wish buy in those markets too. The underlying principle is that with greater exposure to different markets at least a part of your portfolio is always growing as the markets move through their different phases and also your risk is spread out across different markets.