Have you had enough? Ready to sell the portfolio?

Yep, done this a number of times keep the loans and sell the property. It is what the game is about . Have 2 or 3 separate lines of loans and cycle through each one about every 5 years or 10 years.

 

Thanks for answering the debt recycling questions.

So, on this front, what's your excuse @Terry_w ?

There is also the problem that sitting on the beach gets boring while the kids are at school...

The main lesson I took from Shane Warne was to look after my diet / physical health and that would certainly be a lot better without the day job. I see no attraction in the smoking and drinking personally but that's just me...

@Lacrim - the biggest problem for me is the CGT - deferring it is the best way of avoiding it after all... but I find myself looking past that a bit these days. I didn't get into this to be chained to my IPs after all. Gotta pay the piper.

 

I'm lucky enough that my job's not overly demanding and I WFH 5 days a week. I def have balance. And bc kids are still in school, I'm wedded to travelling during school holidays only. So retirement NOW looks much the same as my daily routine, minus a nice paycheck.

I get the benefits of avoiding CGT but what did you mean by deferring CGT?

 

Same thing. The only way to (legally) avoid CGT is to never sell. Deferring CGT is just deferring selling.

 

What yield are you getting on the property? Taking into account land tax, management fees etc. You could easily more than double your income, even after taking into account CGT.

Strategy: Selling Property on Retirement to buy shares Strategy: Selling Property on Retirement to buy shares

 

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If you have 10 properties just 10% rent increase will more than make up for lost rent. And if you do sell you would probably sell one that has had yield compression or one that is not making money or is making the least money and reducing your service ability. You can leave the funds in LOC to reduce interest payments and take years to spend it, The best return is buying growth shares sell down overweight postions offset with losses to give low tax income while retaining most of the gains, to top up LOC. You share portfolio can grow to be multiples of the loan, which inflation will take care off any way.

 

I have been slowly selling property and am trying to convince my wife to move to Thailand. We will be going in May to look for property.

 

Bc its cheaper in Thailand?

 

It is cheaper for most things, but its the whole package that appeals to me not just the price.

 

I think this is a very important point.

So many people come onto this forum and say they want to invest in property so they can retire early, leave the rat race etc., but I can say from personal experience its bloody tough to leave a job(s) you've held all your working life.

I'm 57 and hate my job (accounting), but it pays well and if i'm honest, it's not overly stressful, just long hours and I work in an SME (actually cricket related and I work for someone who worked in VERY close partnership with Shane for many years) so its hard to take annual leave as I'm invariably contacted for something whilst away. Having done pretty well with my IP's over the last few years, I know I could sell and retire reasonable comfortably but something in the back of my head stops me and I don't know how to overcome it despite Terry's perfectly logical response that you can always find another job if early retirement doesn't work out.

I'll work it out and hearing someone dying of a heart attack at 52 years of age certainly shakes you up a bit, but trust me, making the decision to retire early is not as easy as someone younger might think.

 

I think Hubby was 49, when I told him he could retire from a job he hated. He did so, and all was good, then he got head hunted for a temp role with a pay packet that he couldn't refuse, so he accepted it. I think he quit around 3 months later, when I told him that we don't actually NEED the income from the job, so if you don't like it, don't do it.

 

Yes, my Wife says that to me regularly!

 

Congratulations! Great to hear from someone making this type of move. It's good to think back to why we all started on this journey...

Our problem is that most of the things we look forward to doing and want to do can't be done while our kids are still at school. Retiring just to wait around for them at home doesn't have quite the same ring to it and I'm WFH anyway for now. May as well build up a bigger asset base in the meantime, particularly when that now happens so much faster than it used to... but I still wonder...

 

same.

 

This is an interesting subject because doing at least some work is good for you in many ways. It's not just about the money. Good point though Terry!

 

Hopefully you are not retiring from PropertyChat! Your contributions are most appreciated!

 

Back to the topic: After renting out our former PPOR for 13 years and having 12 sets of tenants, I'm out of the landlord role now the house has been sold. Although the house was a very nice home in a premium location (Sydney lower north shore) there were endless issues with tenants. I should write a book about it - we saw it all. The messy divorce, the bankruptcy, children's drug use, home used as a brothel, home used as an illegal day care, tenant not leaving when they should, bonfire in the lounge room, damage, rent unpaid, unauthorized pets, incompetent PM, the list goes on. All tenants were properly checked, our experience shows that things can go wrong even with the best qualified and vetted tenants. LICs and ETFs are so much easier!

 

I would not bother to be frank, unless you really get along well with other half and have funds to travel all the time etc

I ended up with no work & it has continued & am far, far busier than I ever was, and everyone knows you do not go to a "job" so you get a pile more chores and requests to help others & they expect it cause you now have nothing to do, right ?

If you have a good job that you like, keep doing it if it does not prevent you doing other things you are itching to do.