Can or Will you retire on property alone?

So the question is who will vote Labor in, and what age group ..No one I know over 50 with investment's over or under 5mill unencumbered none working know full well from brutal experience --some ex union bureaucrats like media forecasters cause more damage to society then criminals..

 

Probably working class employees that don't have investments.

 

Nobody, but lots will vote Libs out.

It is an unfortunate state of politics. I can't remember the last time I voted FOR something. They all suck, some just suck more than others.

Why is everyone (and by "everyone", it probably really means media trying to sell page clicks) so polarised? Where is the compromise in the middle ground?

Cheers,
Inertia.

 

Remember that 80%? of Australians don't have investment property and direct share ownership is also lower than historical levels. Labor only need ~50% of the vote to get elected. Also, the LibNats only hold a 1 seat majority in the lower house, so pretty much if they lose 2 steats at the next election they are out. Early polling indicates they could lose up 16 seats, but it's early days and anything could happen.

Personally, I have been disappointed by the performance of the governments of late. They have overpromised and underdelivered.

It's disappointing but that's life.

A Labor government will make investing more difficult in some regards but there will always be opportunities.

 

Re-read this thread, what a read.

1. The climate always changes, those that survive and prosper are those that can adapt with the times. The only constant is the need for GRIT. A questionable second need, is the ability to read the numbers.

There's a lot of terrible strategies flying around out there (may have been great at one time or another), and those that don't run the numbers and adjust will be in for a rude shock down the track.

2. I keep reading these posts where advice is given on how to achieve results, and the the responses are along the lines of 'it's easy for you because you have xyz advantage...'

Everyone has an xyz advantage over another. I've met DINKS who are hyper consumers with minimal assets, and at least 1 stay at home mum who has created business empires from their kitchens whilst raising 3 kids.

I have a high income. But I didn't always. I worked to create a high income.
I have fairly crappy business skills, yet a little less crappy than 5 years ago, so can now turn a good profit. The business didn't fall out of the sky.
I have a small yet profitable investment portfolio, but I didn't always. I purchased 1 at a time.
I have no kids, though plan to in the future. 'WELL THAT'S WHY YOU CAN DO WHAT YOU DID'. Well... unless you went through a pretty horrendous ordeal, it was somewhat planned. So find someone with kids who has gotten good results and ask them how they managed with kids.

Slight edge your way to success. It very rarely comes in the form of a lottery win.

I have met investors who have had some real serious hardships come and hit them during their journey, and I would never want to be in their position. Yet I've met others who faced the same ordeal and managed to keep going. Only difference I can see between the two, is one kept going, and the other stopped. Unstoppable... all it means is you don't stop.

Plan your work. Work your plan.

If you keep reading the person hitting the goals has a better job behind them. Then find a way to get the better job. Stop pointing at the other kids and cry in the corner.

Some here have hit that $100k passive and keep spouting their version of how they got there. No, it won't always make sense, because there's a million little things they have done which they haven't mentioned.

'Earn more money' can be broken down to, do odd jobs, drive a car with a hole in the roof whilst raising 2 kids, sleeping in peoples garages because you can't afford a hotel room. BUT that's how THEY did it, how you do it is up to you.

'Get a mentor' might be researching developers in the area, knocking on doors, learning the lingo so you actually can communicate with them. Cold calling. Paying to join investment communities. It's entirely up to you how you do it.

If you're 55 with 3 kids, and no assets. Well...

 

Damn. Wanted to delete that rant. Option is gone. Slow work day...

Only people I've met who have retired on real estate rents only, at a young age, had either a business somewhere in the mix, or inherited.

Realistically most wouldn't need that much anyways. More likely $50k and under.

I don't think hitting $100k passive is tricky. At least if you're an active investor. It's hitting $100k passive in today's dollars.

If rents double and you've hit the elusive $100k 30 years from now, chances are so have the price of bananas.

As per my previous post. Getting that result at a younger age requires a higher degree of thought out effort. Yes you will need a higher income, sophisticated strategy and a tighter budget. Can't get extraordinary results doing the ordinary.

 

60k nett would mean 90k gross which is close to the 100k and thats without any savings.

 

I went to a public school. Didnt disadvantage me one bit. Didnt have guitar lessons, piano lessons, soccer schools, overseas trips. Things have turned out just fine.

 

Kangaroo Edward

 

Been re-reading this post. Interesting to look back.

I'm well overdue to act with my predominantly Syd/Bris portfolio in this post APRA world. I thought I could wing it with the banks but so far no joy. I'll admit I was an LOE kind of guy for a years but that dream ended abruptly a couple of years ago. So here we are in 2019/2020 - I will have to sell a few, well maybe more than a few in the next couple of years. That's the bad news.

The good news is I have enough equity to pull in over the magical $100K for living expenses but it does involve selling down a lot more than I'd like and dumping the proceeds in the stock market. I'm not comfortable with that approach but LOR isn't gonna happen. The returns are just too low after expenses, land tax, Govt tinkering, cyclical oversupply, etc. Having said that, I think a significant rental spike is looming round the corner. But will it be enough, and if so, will it come fast enough? I need minimum 20-30% increases. Implausible but not impossible.

Unless that happens within the next say, 3-4 years, I don't think I can hold on with the number of loans I have reverting to P&I. FWIW, I think the cliff, despite interest rates at 3%, still exists for portfolio investors. I'm evidence of that.

Back to this thread, the primary reason for holding on to the property portfolio ad infinitum was not for my personal financial freedom but essentially for my kid's - thus trading my fast forwarded financial freedom for their benefit. Stupid I know. Would be good to know how much is too much to leave per kid in today's dollars - a few hundred grand, a million, $2 million, etc?? At what point am I encouraging them to be lazy and worst case scenario, be counting down the days of my own demise so they can cruise straight into a comfortable lifestyle?

Anyway, for me, working out that answer will assist in deciding how much to keep and how much to dispose.

 

Kids tend to get jobs eventually and support themselves. People generally don't need to worry about providing for them unless one parent dies while they are young, and that is what life insurance is for.

 

Financial education is very lacking nowadays. U could educate them first.

How old are ur kids. Get them involved in ur property investments and management. Let them manage a property or two. Just like fishing, gotta start em young

Pretty sure when ur kids have created their portfolio of properties they wont need urs anymore.

 

All under 15 - they know about the IPs but haven't quite fully grasped the importance of saving and the value of money. But yeah I get your point, maybe I should.

 

It is harder for someone starting now I think given where property prices are at and restrictions on credit. I'm not talking about them lunching on lobster post inheritance...but maybe, an amount equivalent to a mortgage perhaps. Leaving a sizable chunk of your wealth to your kids is unfortunately a symptom of unconditional love...unless you're Warren Buffett haha.

 

Very interesting

One of the things I have read about people with lot of wealth do to educate their kids/grand kids about investing which I am keen to try myself.

This is much easier to do with shares than property is instead of buying them gifts or handing them money on their birthday/Christmas is to gift them parcel of shares which they are not allowed to sell but any dividends they get they are free to spend it however they want but are encouraged to reinvest.

I like this strategy as it gives them real experience of seeing differences between what an asset can do vs say liabilities. The magic of compounding etc

Cheers
Oracle

 

When it comes to “educating” your kids, it is the life you live that gives them the best lessons rather than trying to “instruct” them.

Kids watch everything you do, and it is amazing how much they absorb. My ”kids” (37, 40, 42) often say things to their children that we said to them, though at the time I would swear they were not listening.

Things like
We can’t afford that at the moment
We will save up for our holiday
That’s nice, but we don’t really need it
No, you can’t have those trendy sneakers, there is nothing wrong with the ones you have
When you have a part time job, you have to put some money into savings
When you have a full time job, you have to pay board
Etc

 

But sometimes you see examples where parents worked hard, lived frugally accumulated decent wealth to only see their kids totally opposite with money and no drive to accumulate wealth

Do you think parents actually didn't set a good example or taught their kids about different life priorities and values to which they lived their lives in such situations?

Cheers
Oracle

 

As always, free will prevails. And in the example you give, “decent” wealth sometimes generates an attitude in kids that there is no need to work hard or save as family wealth is available. That is not necessarily a case that the kids did not learn from their parents, maybe they see no need to follow the example set.

I cannot live my children’s lives for them, nor can you.

As for any parent, I can only do my best. Maybe we just got lucky our kids did learn from our example.