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Exit strategy poll

Discussion in 'General Property Chat' started by Leo2413, 30th Jul, 2015.

?

Which catgegory would you put yourself into when the time comes.

Poll closed 30th Jul, 2016.
  1. Never Sell and Never Pay Down Debt

    8.7%
  2. Never Sell but Pay Down Debt

    20.4%
  3. Never Sell and Increase Debt

    4.9%
  4. Sell Some Properties to Pay Down Debt

    40.8%
  5. Sell Some Properties and Live Off the Profit

    4.9%
  6. Sell All of Your Properties and live off profit

    3.9%
  7. Have no bloody idea

    16.5%
  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Was reading an article and took the headings from there and thought it would be interesting to see where people put themselves into. I'm sure there are other options but hopefully this captures most.
     
  2. AusMover

    AusMover Well-Known Member

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    Hi Leo,

    "....when the time comes." .... I guess this needs more elaboration before an option can be selected for the poll ....

    Does that refer to a time when the person goes bankrupt or primary earner loses job or something else.... like in general day-to-day?

    The action someone would take would vary on the exact "time" situation we are referring to here....
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    Yeah, I thought it had something to do with "when your time is up" :eek:

    The Y-man
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    haha.. never thought of it like that Y man...:D
     
  5. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    I'll vote for:

    "I'll do what makes sense, when the time comes".

    So much will change in the coming decades that calling it now would be a bit silly.

    Though generally, I like the idea of holding on to the largest asset base I can (and maybe nuking a few IPs to wipe out some debt if necessary).
     
    Angel likes this.
  6. Charlotte30

    Charlotte30 Well-Known Member

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    I voted never sell and pay down debt. The idea being to have enough rental income for living expenses and continue to get Capital Growth by keeping the properties.
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hi AusMover,

    Yeah there are so many different variables. I guess I just mean kind of like an exit strategy.
     
  8. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I can't ever see myself going backwards, so it's never sell and increase debt for me.
    The time is nigh.
    The question is, if this is my strategy, what am I actually exiting from?
     
  9. EN710

    EN710 Well-Known Member

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    Either never sell and pay down debt or sell some to pay down debt, enough to live off rent.
     
  10. Rixter

    Rixter Well-Known Member

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    Having already exited, mine is, control the largest asset base possible to generate lifestyle income requirements whilst everyone else is paying its way.
     
    Last edited: 30th Jul, 2015
    C-mac and DanW like this.
  11. MTR

    MTR Well-Known Member Premium Member

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    I don't see this as an exit strategy bec

    How does this work, not trying to be smart? just trying to understand how much debt is paid off pa when most properties in Australia are negatively geared and I assume you are accumulating property you are just increasing debt right?

    MTR:)
     
  12. KDP

    KDP Well-Known Member

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    Mine is never sell, move equity into higher yielding assets.
     
  13. DanW

    DanW Well-Known Member

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    Probably sell a property every few years if need to, but won't be paying off debt. Besides this part, my idea is a bit more complex.

    Will be putting any sale profit in the offset and in high yielding shares for the dividends. Can live on property cashflow, plus dividends, and topup by selling shares if need to.

    This is in combination with positive cashflow, because the aim is to lean towards cashflow properties closer to the end game. Maybe commercial property, and semi commercial.

    IF the banks let us, will also be paying property expenses with a line of credit so that we have larger income available to us. Semi LOE strategy.. But will probably only be able to get 1 LOC approval before leaving job, so it won't last forever. However it should allow us to delay selling any property for a couple years and get a bit more gains.

    This is all theory because at the moment I have no desire to retire, and I have at least 5-10 years before its possible anyway.
     
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  14. Tonibell

    Tonibell Well-Known Member

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    Whatever is required to maintain a reasonable lifestyle.

    Either the capital generates enough return or you start eating in to the capital.
     
  15. MTR

    MTR Well-Known Member Premium Member

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    Exit strategy - "when the time comes" will not work for me, as you are not in control, if the "time comes" your only option may be to liquidate, to reduce debt and you will be at the mercy of the markets, worse still you may not be able to sell.

    Exit strategy for me is "sell some properties pay down debt".

    I don't care what I sell, cash flow/income is king for me, you can always buy properties that is not an issue, strategizing, managing the debt monster and enjoying a comfortable lifestyle today is very important to me.



    MTR:)
     
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  16. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I guess for me its selling some stock to pay down debt so I have a guaranteed certain level of net rental income coming in each week (regardless, that's the SANF), while continuing to build my asset base, but also selling some stock each build to reduce debt a little to continue to increase net rental income and then also living off some of the profits from each project. I guess never selling would increase my asset base even more but my goal is to be able to enjoy the wealth as soon as I can and not just build a super mega asset base for the hell of it. There may be better ways to do this but this just makes sense for me.
     
    Last edited: 30th Jul, 2015
  17. 2FAST4U

    2FAST4U Well-Known Member

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    I would try and hold onto my assetts for as long as possible and try and repay the debt (with whatever income I have left over). Hopefully by that time the properties I have acquired are all paying themselves off due to rental rises over time. If I'm forced to sell than I would sell but especially with property it's not something I would want to flip over the short term due to all the costs involved with buying and selling. Shares is a different story as they are easy to liquidate and the costs involved are minor.

    Edit- I answered this question assuming 'when the time comes' relates to a raise in interest rates or some type of financial hardship!

    If the case was 'when the time comes' meaning to retire it would be a different story. I'd sell off the majority of the properties and hopefully I'd have enough money just to live off the interest off a savings account + still have some money tied up in shares so I could also live off the dividends. My retirement will be 40 years away though haha.
     
  18. CatCafe

    CatCafe Well-Known Member

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    I voted "Sell Some Properties to Pay Down Debt" but really it's more like sell some properties to pay down some debt, and direct profits into a fully franked dividend income stream
     
  19. MTR

    MTR Well-Known Member Premium Member

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    Do you also use margin loans??
    Higher yielding assets, what % return ?

    Thanks
    MTR:)
     
  20. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Or could be exit strategy or anytime really.