How much income do you need to live the dream?

Wise words!
If you find yourself just spinning the wheels, waiting for the one day...
...you might just get there and think "where did the time go?"
Enjoy the journey.

 

I thought may be timely to post this thread which I started on SS some time ago.

The nut and bolts of this thread is that basically according to Superguru, you only need $58,444 to retire (couple), around $500,000 invested in Super.
http://somersoft.com/forums/showthread.php?t=104848

Reading the many posts here is obvious some people do this very well, all to their own.

One thing I do know for sure if you are trying to retire on property alone unless you can do something outside the square or continually time the markets correctly and by this mean invest Australia wide, I expect it will be a long and slow journey to achieve anywhere close to $100K pa.

http://somersoft.com/forums/showthread.php?t=104848

MTR

 

It can be done but minimum around 15-20 years for people on average incomes and even then that is by being smart and playing your cards rights.

 

That is about right...it took me 15 years to pretty much replace my income....most people want to do it in 5-7 years...probably not realistic unless you really have a very high income and have a very high risk tolerance.

 

but Sash you are high income earner and you invest Australia wide, how many investors do this, some see this high risk and wont do this??? Imagine if you are only investing in your own backyard?? Count the cycles you have jumped into that many would have missed, no growth??

 

Yes, a lot can be said of the Tortoise and the Hare story!

 

High income yes...but single income.....if it was on this basis it would a great upper middle class income compared to well to two income family.

Nothing stopping people from getting on a plane and doing the ground work in other states and buying. Just mind set....these same people see their jobs are more secure...far from it....

I agree with you about cycles...the people who are laughing in Sydney might be in for a time of no growth soon....that is why I use 4-5% growth across my entire portfolio as a norm..not 7% as not all markets will grow at the same time.

 

Ok, single income, but looking at Mr and Mrs average on 2 incomes with on average 2 children, It costs hundreds of thousands to raise one child, there are stats on this.

There will be perhaps some early years where there will only be 1 income due to age of children etc

Upgrading family home required to accommodate family.

My guess is you will still be way ahead even on 1 wage. Children bleed you, that's it, stop breeding everyone.

MTR

 

Aa ha....Now I know what those two fingers on your Avatar are doing...snipping reproductive tubes...

 

Too funny, Have another avatar in mind that I quite like another Mona Lisa with a very nasty rude salute...but Sim may not be too pleased

 

So long as the Mona Lisa does not have a very short mustache and hands extended at a 45 degree angle for the salute..all is good.

..yes..yes...I know... you have told me that I am a rat bag already....

 

May come down to mindset for just how much you need and the location once you read about different people..
http://www.dailymail.co.uk/news/art...n-opts-live-trailer-park-instead-mansion.html

 

Which is why I'm getting Hubby OUT now, and not chasing all the riches in other markets which I would SO very much like to be doing right now, but realise that doing this would just be greed. We've got plenty NOW. Time to throw away the shackles of his job and let him do what he WANTS to do, not what he NEEDS to do.

We also invest Australia wide....well not NT or WA, but Qld, NSW, Vic & SA. Have previously had property in Tassie too. Pretty sure our income isn't (wasn't) as high as Sash though.

We've mostly been on only one income, raised two kids, spent hundreds of thousands on sport AND invested. It can be done, but you've got to be focused and stick to a budget.

 

I would not quit my job. If I hit my passive income target, if I won lotto, if my rich uncle died and left me everything.... I keep my job. I would consider cutting back to 4 days a week though

 

If I had to rely soley on rental income in my retirement, I would not feel very secure. Both my rental properties were vacant at the same time recently for an extended period. One for 8 weeks and one for 12 weeks. That is not ideal if it was my only source of income.

 

BUT...if you have a diversified portfolio well into the double digits, across several states with a low LVR, you might see things differently.

 

At 2, you're not going to see the magic of it. Especially if they're both in the same place suffering from the same market conditions.

 

Nah...Skater you are rolling in mullah with all those houses you are getting top dollar in Druie...couldn't afford ice cream last night....might have to live on bread and dripping tonight...

 

I don't consider residential investment property to be a diversified portfolio. I we were just sticking to IP for income, throw in a CIP and I might consider it!

Naa, I can't do it. I won't concentrate all my risk in one asset class.

 

I prefer to stick to one asset class, obtain a competitive advantage and become very good at it.