how will i go? early retirement or dreaming?

Discussion in 'Investment Strategy' started by Mr Properties, 23rd Feb, 2020.

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  1. Mr Properties

    Mr Properties Member

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    Location:
    sydney
    just after some opinions if you think i’m dreaming?
    really keen to retire. always hated work, never enjoyed it. just like getting paid. i’m going to sell a house in sydney which should allow me to have 3 properties paid off, one of which is a dual occ on the mid nth coast nsw. (right on the coast!) so ppor has rental income.
    reality is tho i havnt really taken tax into account.
    hopping some deductions can get the tax bill low after the 18k tax free limit.
    also like to fish most days so
    always fresh fish to eat and i have 7 avocado trees
    and veggie garden on free bore water to help.
    done a budget below...
    oh single 40 no wife no kids...

    Retirement plan/budget

    Rental incomes - 3 properties

    unit 1
    Rent - $260 x 52 weeks =
    $13,520 per year

    Yearly Expenses
    Rates - $1200
    Water - $1200
    Strata - $1920
    Insurance - $355

    Total net rental income left -
    $8843year \ 52 weeks =
    $170 per week
    ------------------------

    qld town house
    Rent (after pm fee) - $314 x 52 weeks =
    $16,328 per year

    Yearly Expenses
    Rates/water $3500
    Insurance $355
    Strata - $2406

    Total net rental income left-
    $9721 \ 52 weeks =
    $193 per week
    ------------------------

    Total net rental income from 2 properties -
    qld town house - $191 per week
    unit 1 - $160 per week
    $361per week
    ------------------------
    mid north coast nsw / dual
    occ front house rental income -
    $280 x 52 weeks = $14560per year
    -------------------------

    3 rentals yearly net $31,928pa
    Or $626 per week

    Weekly budget

    Groceries - $100
    Eating out - $30
    home brew- $50
    Petrol (boat and car) - $50
    Electric - $50
    Internet - $17
    Kayo/netflix $9
    Mobile - $13

    Total weekly expenses $319
    $319 x 52weeks = $16,588
    -------------------------



    Yearly expenses
    ppor rates $2137 (inc water)
    Property Insurance $714
    Pest control- $352
    Car Rego $1650
    Car insurance $ 900
    Boat/trailer rego $180
    Car service $130 x 3 = $390
    tyres - $200
    Boat service/parts $1000
    Property matinance - $1000
    Fishing tackle - $2040
    Fishing reels servicing - $1000
    Possible tennant Vacancies - $600
    Medical/vitamins - $150
    New clothes - $200
    UFC ppv’s = $210
    Gifts - $250
    Gas bottle re-fills $40
    New car savings - $2500
    thailand or exmouth Holidays- $3000 per year

    Total yearly expenses - $17,452

    Total budget cost aprox 33k?

    didn’t mention i have a another qld townhouse
    with 185k on mortgage which pays for itself on principle and interest so i could work for few more years and snowball rents to pay off that one so i have a bit more $. also am a tradie so could do the odd job but not so keen on that as i would have to budget another $150 per month to keep work insurances current. just really want to going fishing and bum on the coast for the rest of my life.

    u will see budget is low for eating out - reason is i’m single and don’t like sitting in restaurant/pub /cafe alone, just prefer to cook

    and budget low for fuel- everything i need is here and 4 stroke outboard motor runs on fumes it’s ridiculous. can get 3 fishing trips out of a tank easy but more like 5.

    holiday budget is low, i don’t really like
    overseas. only thailand as its cheap and love the spicy food. so odd trip there and maybe fishing holidays
    for somewhere different.

    am i dreaming?
    tear me apart....
     
    Last edited: 23rd Feb, 2020
  2. spider

    spider Well-Known Member

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    Thailand isn't as cheap as it used to be. Last time I checked the Baht was about 19 compared to 30+ a few years ago.....Thais are encouraging rich Chinese/Indian expats
     
  3. ellejay

    ellejay Well-Known Member

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    Why not just give it a try for a trial period? The trouble with living off rents is a maintenance issue or two can wipe out your whole months income or several months. Even though you say you hate working the odd job here and there won't kill you and will help to top up your slush fund for repairs and maintenance or holidays etc. You've got nothing to lose so go for it.

     
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  4. kierank

    kierank Well-Known Member

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    Good luck doing that for the next 40 to 50 years.

    That would be as boring as *******. Probably won’t last 12 months before you start going crazy.

    Find something meaning to do with the next 40 to 50 years. Maybe volunteer work?
     
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  5. Mr Properties

    Mr Properties Member

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    fishing is what i like doing with my time, each to there own. so many different species and different forms of fishing never gets boring- beach fishing/kayak fishing/rock fishing/ off shore boat fishing/river boat fishing- list goes on. love it.

    but not just fishing to keep busy, there’s looking after the world class lawn lol. looking after avo trees and veggies, house work, home brew, cooking and lying on the lounge
     
    Last edited: 23rd Feb, 2020
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  6. Mr Properties

    Mr Properties Member

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    yes it’s aprox 20thb to 1au but i normally get there with assistance from qantas points and get good clean 4 star accommodation for $45au per night and struggle to spend $50au per day drinking and eating, and that’s phuket i’ve never been to cheaper areas.
    i’d move there if it wasn’t so hot all the time and the lack good fishing. (compared to here anyway)
     
    Last edited: 23rd Feb, 2020
  7. MTR

    MTR Material Girl Premium Member

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    Yes my husband is a fishing nut
    Off for 4 days tomorrow fishing trip

    I look at a boat and get sea sick... lol

    All the best with what you are trying to achieve
     
  8. Mr Properties

    Mr Properties Member

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    yes your probably right, i allowed 1000 for maintenance but might not be enough. i can do basic stuff myself but one of my properties is in qld so bit far to go.
     
  9. Mr Properties

    Mr Properties Member

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    awesome he’s got i made, rents coming in and fishing.
    thanks for your well wishes
     
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  10. Joseph

    Joseph Well-Known Member

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    Sounds boring as (fishing has never interested me), but as you say, each to their own :)

    Could you turn the fishing passion into a small business of some kind? e.g. weekly fishing excursions provided to tourists, where you supply all the gear.

    This would be a low pressure way of boosting the income a little bit, with the benefit of making much of your gear tax deductible.
     
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  11. Yadreamin

    Yadreamin Member

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    Why not find a boat to live on and that would free up even more dollars.
    There is a lot of people that live on boats just like many live in caravans.
    A mate lives in a caravan he bought for 20 k. Its been made into a permanent site with solid annex etc. Does his own home brew as well.
    Its on the river he pays $58 per week for his site plus power and he goes fishing and crabbing everyday.
    Cheers Yadreamin
     
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  12. samiam

    samiam Well-Known Member

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    Expenses would change with kids, ill-health of family members, macroeconomy etc
    Having said that money is never enough so it’s you to decide when you want to stop comfortably For us, probably making more money but spending even a bit more, no chance of retiring early :(
     
  13. MTR

    MTR Material Girl Premium Member

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    His dream is to win a fishing trip with this bloke,
    Mark Berg's Fishing Addiction

    and golf today, his definately living the dream
     
    Last edited: 23rd Feb, 2020
  14. chindonly

    chindonly Well-Known Member

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  15. Squeakywheel

    Squeakywheel Well-Known Member

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    I'd probably build up a cash reserve, say 6 months income and then try it. If you decide you do need an income or you are bored then you could always look for an other job.
     
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  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    It's a dream until you put it in action and I don't see why you can't. Haven't factored tax into account, though it should be low. I would suggest you don't pay off the other houses though but offset the loans so you can use that money for living expenses if you need to.

    Is there anyway you could make some income on the side from say a small business?

    And if this doesn't work how hard would it be to return to a job?

    Thailand is great, I live there about 1/3 of a year and am here now.
     
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  17. ellejay

    ellejay Well-Known Member

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    I didn't know you were living part time in Thailand, that sounds very nice!

     
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  18. Angel

    Angel Well-Known Member Premium Member

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    It looks doable to me. As the Queen of Frugality on PC, I can see it working. Have you considered health expenses as you age? I agree with all the other comments - trial it and see how you go. You can always allow the plan to evolve as necessary upon future "reflection" and "evaluation".

    Serious management strategies include evaluation and adjustments as required ;)

    On another note, we used to have an amazing mature avocado tree on our first property, back before we ever took a liking to avo on toast. I used to collect laundry baskets full most weeks it was fruiting to swap for other fruit and vegies at our local store. If Woollies sells avos for $2 each, I'm sure you can sell yours for $1 each. Once you get bored being "retired", you will discover all kinds of interesting activities during the week that cost very little to participate in, and which can later become quite lucrative at the weekend tourist markets.
     
    Last edited: 24th Feb, 2020
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  19. kierank

    kierank Well-Known Member

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    Why “retire” and “work”!!!

    I would rather fully retire (never ever work again) and have more than enough money (including some serious cash reserves in case things go pear-shape) to do whatever I like.

    That’s retirement; otherwise, it is bat ****.
     
    Last edited by a moderator: 24th Feb, 2020
  20. Property101

    Property101 Well-Known Member

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    Just trying to understand your situation and give some insight if possible.

    From my understanding the ocean/river/fish/weather run there own show.. So

    What this means is there will be many days on standby.

    How are you going to handle this?

    Have you fished everyday before?