How can I retire now I

Hi I really want to retire soon! I am 62 (single) and have a commercial property and a house on one block with a fairly good income that I own outright. But live in a house with a $200.000 mortgage, the Westpac bank wont let me extend the mortgage to 30 years or do interest only.
To retire I need a maximum repayment of $200 week. I am thinking of selling the investment property but would prefer to find another way until I am 67, is it possible? I have also looked at trading down my PPOR but its not worth enough to do I appreciate any advice thanks.

 

Are you saying you only need $200 pw to live on?

What does your commercial property give you?

 

There were incentives a few years back to downsize a PPOR, add that to the incentives to move to a regional area and you could be living very well !

Ok, people usually don't want to up stumps and move to tbe middle of no where......

 

Hi the commercial property income (including a house) brings in $50,000 (there is also operating expense income and outgoings separate to theses figures)
After expenses $43,000 which would give me enough to live on if I could drop my repayments to $200 week. Aim sell at 67 invest $545,000 (at 5%) get small pension and use $10,000pa capital pa. The commercial property is valued at around $770000

 

What's the repayments now?

 

I am working so pay off $2600 a month the plan was to pay it off before I retire, now to plan b...

 

Whats the mimimum repayments?

 

Thanks I already live halfway to the middle of nowhere about 300km from Perth a very nice small inland town, I still think about doing what you suggested..... I could buy a very run down old house here...

 

$2600 month

 

How much do you have in super? Would you have enough to payout PPOR?

 

I have a SMSF which owns the commercial property no other super thats it.

 

$2600 its a 7 year loan

 

Get professional financial advice to explore asset vehicle & structuring options such as getting capital into super & how else to minimise taxable income so that more of that CIP cash goes into your pocket instead of paying higher than necessary taxes. If you sell the CIP, surely using the 3 yr bring forward super rules is worth considering to get a chunk of capital into a more effective income producing environment.....

 

Thanks

 

That will be hard to reduce further unless you can refinance.
A potential solution might be to get a job again so you can extend the loan term.

 

You could take in a boarder, get a job, sell your old junk on Ebay, sell other peoples old junk on Ebay. If all you need is another $200 per week, there's lots of ways to do this.

 

A summary because it's sorta confusing.

@sue Casey is currently employed, and either needs to reduce her mortgage repayments to $200 per week, or find an extra $400 per week to retire.

CIP / SMSF
Value: $770,000
Mortgage: $0
Gross Income: $50,000 pa
Net Income: $43,000 pa / $826 pw

PPOR
Value: Unspecified
Mortgage: $200,000
Repayments: $2,600 pm / $600 pw

 

Thanks Skater great ideas

 

Thanks Geoff I like that idea haven't quite given up on it even though I am putting other property on market