Is profit the goal?..

but you are already doing this.

I have similar goal, hoping to get my daughters involved and create passive income for them, I have a long way to go. head down, bum up...

 

I would say choice is the goal. When you can base your life on your terms, and do what you want to do, not what you have to do - that's the goal.

There was a saying I liked 'Going to bed on Sunday night, looking forward to waking up on Monday morning' - I know that's all I wanted so badly when I was at my corporate job.

Cheers,
Michael

 

Yep choice. If I want to work less, I can work less.

But as a couple of side effects of this obsession.... I went and found an amazing place to live elsewhere interstate.

But also last Saturday I happened to see an amazing PPOR and I made an offer to buy that amazing PPOR. I think its out of the price range for many people so I may be able to scoop it up under market value to the tune of ~$1mill as other people who would love the place don't have that money.

It won't ruin my financial situation too badly as it my situation is pretty damned good.

Anyway, waiting to hear if my offer will be accepted.

 

Sounds great - but just checking.

Is it :

a)your offer for the new PPORT is ~$1mill or

b)your offer for the new PPOR is ~1mill under market value.

I wasn't sure from your phrasing and, of course, there is a big difference between the two.

 

B.

 

Wow - that must be some place (and some price !).

I don't think I've ever heard of someone paying that much under market value.

Good luck - next meetup at your place if you get it !

 

are you buying in Point Piper?

 

Point piper?

 

ahh good ol PP... my dream location. I often stalk Frank Lowy's home for inspiration...I'm only 2 suburbs away..... but unfortunately 30mil too short...

 

I've been to a few seminars over the years and the majority of speakers say that you only need 4 unencumbered properties in retirement to live comfortably. So rather than buying and holding all of my portfolio, I'm considering selling the ones I am developing (one into two lots). All going well on my current development, the potential profit will pay off one of my western Sydney IPs. If I do this once every 18 months I'll have 4 fully paid off IPs in 6 years. I'd effectively be able to retire in my mid 40s, even though retirement for me would mean not having to work for someone else, rather than buying a Toyota Corolla big enough to fit the clubs in the boot and spending the rest of my life trying to reduce my handicap.

The other short-mid term way of taking advantage of buy and hold is to hold for one property cycle and then sell off half of your portfolio. I didn't go hard enough in 2011-13 in Sydney but a few others on the forum did and are making some pretty awesome life changes now.

 

@beachgurl There are lots of strategies to retire comfortably - as long as you accept the assumption that every development is going to be profitable and every buy and hold is going to increase significantly in value. The challenge is making the reality match the assumption.

For us it was a bit like that in Sydney recently - do we sell up, pay tax and take some very nice (maybe even enough ?) profit - or do you accept the assumption that Sydney will have nearly doubled again by 2025 ? We rolled the dice again - the spreadsheet just looked so much better !

 

Goal: Have enough in passive income to sustainably fund a regional animal sanctuary (have the land), rather than needing to rely on charity as the majority seem to do. We want to be able to be on it full time by the time we retire and not be stressed about money, particularly as ex-livestock/battery farm hens/greyhounds/etc regularly need expensive vet treatment. We also need to fund the infrastructure/paddocks/home etc (so far have funded the land through salary and will fund some of the build that way too).

Would like to do this with rental income, plus possibly have enough to sell some down for big cash injection before bringing the animals in.

Big dreams! Long way to go. At least time is on our side...