It ain't rocket science!

Who are we really?

I am just about to retire after 35+ years within the carpet cleaning and mould remediation industry.
A long haired (dreadlocks) bum by all accounts who has managed to own (unencumbered) 3 IP's.
Did it by what is today considered "Old School" methods; actually saving a sizeable deposit, picking a place after considerable research and paying the debt down.

Unfortunately won't get to meet posters on the forum as I don't live near a city (by choice).

The point of my post is, that if I have done it, anybody can. It isn't rocket science! Lately I have read so many posts regarding the state of the Nation and so called economic understanding that I am left wondering what is their hidden agenda. Discussing economics is like piddling in the wind, the direction changes constantly.
I don't have a large property portfolio by any stretch of the imagination, but what I have, I now own.
3 IP's plus monies in 3 LIC's ,along with my Super pension will be more than adequate for my retirement years.

 

Nice work @TAJ Enjoy!

 

Isn't that how to "get some of your own back"?
Congrats btw on just doing it, instead of talking about it.

 

@TAJ hard truths. Well done. Talk less, do more gets you there. Congratulations!

 

When you look at all the negative value of information that's out there you seem to have by-passed everything quite well..
Next step is buy a second hand pop--top campervan and go on the missing persons list..

 

congrats, well done, you took multiple risks and they have paid off, you deserve it!

maybe im getting old, but everyday I turn the tv on or read the news and it seems to be full of people complaining how hard everything is, how they want it now, and how they dont want to work hard for it

 

Congrats and well done - totally agree with your philosophy and wish I'd realised it sooner rather than trying to get all fancy pants and losing a lot in a poorly timed development.

Like you, in around 18 months, we'll retire with fully paid PPOR and three (possibly 5) unencumbered, well paying IPs.

 

Well done!

We did things similarly, paid off our PPOR, saved a deposit, bought an IP, paid down the mortgage until we could afford to go again. Never more than 80% borrowing, always P & I. Along the way we picked up some shares. Dabbled in managed funds (then sold out), then in later years salary sacrificed to the max allowed/affordable into our superannuation.

Very boring. But the outcome is remarkable.

Sure, “things are different now” I hear the chorus. Things ARE different for every generation, you just have to take advantage of the conditions of the time. So many these days seem to be inundated with concerns about “strategy” and “how to” that they delay actually doing anything, sometimes for years, in the search for the “perfect” investment rather than a “good” investment.
Marg

 

Awesome. You're right - it doesn't need to be complex, and the more fancy we get, the more difficult we make it for ourselves in my experience!

 

So true Rolf. The bombardment of information prohibits many from taking the first step.

 

Thanks everyone for the kind words.
I have 2 major jobs to complete over the next three weeks; both in the agricultural sector.
Gassing out large poultry sheds and blueberry storage facilities.
Then I will be on the road heading north into the sunshine......
This is a great feeling!

 

Very remarkable, considering most won't get even close to this.

My only miff is that they keep changing the super rules which makes it extremely hard to plan.

We would love to either put a swag into super - or - sell one of our properties into the SMSF ... but nowadays neither is possible as max sacrifice allowable is now a piddly $25k without getting hit with a bucket load of "makes it not worthwhile" tax ... and some twat ruined the "sell into the super" opportunity by rorting the valuation system.

 

Sure, things are different today.

Things are always changing. My father was able to retire on an extraordinarily generous (by today’s standards) Commonwealth Government pension, indexed annually. Then my mother received 5/8ths of his pension after his death.

But we were able to take advantage of generous salary sacrifice limits in recognition of the fact that, for most of our working lives, our generation did not have access to superannuation unless working for government. And no “rollover” funds, so if you left a job your super, if you had any, was cashed out. We also made significant “after tax” contributions.

Yes, the rules do change, and some of the changes have not been to our advantage (abolition of the anti-detriment clause!). (Don’t bother to google it, it no longer exists.). Even more changes may occur during our lifetime, but it would be a mistake to use this possibility to avoid the advantages of superannuation.

My personal tip? I expect the tax-free status of an allocated pension to be wound back at some point.
Marg

 

I'm expecting the PPOR to be included as an asset in the pension test in the not to distant future - not that that will make any difference to us.

It's simply annoying when you're just over the apex of super changes - or any changes really - but we're working with it

 

Agree. Suspect there would have to be a threshold, as in the asset and income tests.

But it will be hard to implement - imagine having to value every PPOR for pension recipients and applicants.
Marg

 

Awesome stuff. Well done and enjoy the sunshine.

 

Agreed!!

Information overload harbours the idea of a "perfect" investment property which than leads people to analysis paralysis and inaction.

As a wise being who said..

“Do. Or do not. There is no try.”

 

It’s Australia wide leglislation so threshold would have to be one figure. It’s the monetary value that is assessed, not the size, position or location.

No matter where you live, no-one living in a $2.5-$3m+ (fully owned) home should get the full pension. There are options to borrow against the home if the person does not wish to move. The taxpayer should not be funding these people just so they can leave a huge tax-free inheritance to their family.

Just seems wrong that we could cash in our investments, buy a riverfront mansion, retaining enough cash to fall below the threshold then go on the full age pension, and get all the extra benefits. Whereas now, we get nothing, not even the Senior health card.
Marg