hello everyone! I am new to all this, so please bear with me My husband is nearing retirement and we need to accumulate some money to live comfortably. We own our home in the Sutherland Shire, Sydney. Can anyone help please or direct me to the right area? Thanks so much
Are you also retired? If you're thinking about investing in property then best to speak to broker about borrowings and serviceability. How far is he from retirement? Leveraging now could potentially be very risky. I think you need to provide us further information. Asset; Liabilities ; Salary ; Superannuation etc. Have you seen a financial planner lately? I'm sure others will have few questions and ideas.
I would be speaking to a financial planner and arranging a "succession to retirement" plan. @Corey Batt from Precision Funding & Precision Private Wealth could assist? When you say the house is owned outright do you still have access to redraw, if available?
Hi Curious K, and welcome. Property Chat is probably the friendliest and most helpful forum I've ever come across. Better late than never. How much money do you need to live comfortably? @larrylarry has raised some good questions. The more information you can share, the more people here will be able to help you.
As you progress closer to retirement it's definitely important to strategise how you're looking to meet your retirement expectations. This can include utilising your superannuation, transition to retirement strategies etc. Depending how close your retirement is - you might want to work out whether a long term investment horizon like property would be appropriate for you?
hi Corey husband wants to retire in 2 years. The bank has said yes to a short term loan (approx one year). Was wondering if building a a Granny Flat in the backyard would be a good idea to bring in some money in the form of rent. I have no idea about strategy. Really need some professional help.
Thanks, Phase2 I will have to work out how much money required to live comfortably. I am guessing approx 50,000 per year
Redraw is funds paid into the loan account above and beyond the minimum contractual requirements (P&I or IO) that appear as available funds within the home loan account and can be transferred to a transactional account.
Sorry you are speaking a language I don't understand. As I said in original post, I have no experience whatsoever in the world of property , finance and investment :/
hi Larry I saw the financial planner at my bank. They suggested paying off any debts and building a granny flat. I am not retired, but currently unemployed. Not really comfortable putting all that other info online in a public forum. I guess i want some general advice. I am talking low level investment to insure we have enough money to live on for the next 20 years or so of our lives. So you recommend a broker (mortgage broker)?
Now will have to google "risk profile" Am definitely educating myself, hence I ended up here. Have some books from the library as well, including "Armchair guide to property investing" Ben Kingsley and Bryce Holdaway. I see risk profile means willingness to take risks. OK I am not willing to take risks. Going as conservatively as possible
Do you still have a loan against your house in the Shire? I know that you said it's paid off, but has the bank released/discharged the mortgage? Or is the loan account still open with a near-$0 balance? If the loan account is still open, but the loan balance is paid down, you should have the ability to draw money back out of the loan account. That is what @Colin Rice meant by "Redraw".
You might also want to read up "Super Smart Money" by Michael Holmes. It's a very good read, and pretty simple to understand. He does advocate owning Australian shares (particularly in a SMSF) but only certain ones, and explains why they aren't "RISKY" as the average punter seems to think.