澳洲Australia property Glad you stuck it out? | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi all,

Recently some friends and some people at work have upgraded to bigger and better homes. My partner and I live in a nice home that he bought, which is close to our dream home and in a great location but it's not our absolute dream home. We have an IP portfolio because I bought a lot of IPs while we were dating and he bought a couple but my CF is crap!

I see these people buying their dream homes and living their life and wonder wtf I am doing holding my IPs. When the market was doing well I had so much faith in my investing and financial future but now I just wonder why I shouldn't sell them all and buy my dream home. It will still give me CG and with RIPs not offering very good CF they may not offer me much for retirement anyway.

Have you had second thoughts about your investing over the years seeing your friends seemingly make progress while feeling like you're stuck yourself? Were you glad that you stuck it out and delayed gratification?

Thanks :)  

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EsplanFreedom said: ↑
..... which is close to our dream home and in a great location but it's not our absolute dream home.Click to expand...
So what's the diference betwen the near-dream and absolute-dream $ wise?
Does it require the sale of your entire portfolio or just a portion?

If it's a matter of selling a few out of many, why not?

Caution though - dreams change. We live in what one time would have been our dream home - if we had time over, would have got something different...



The Y-man  

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You have a big house. But once you stop working you have no cashflow........what's the point?  

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I suspect your friends might look at you and (if they knew you had several IPs) would actually be envious of your position.

Don't compare yourself to your friends. There is always someone with a nicer home, a nicer car and always someone who has less.

And like Y-man says, our dream home has changed from when the kids were little.

If you are happy in your current house, do you think you will be happier in a more expensive one? Food for thought...  

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wylie said: ↑
I suspect your friends might look at you and (if they knew you had several IPs) would actually be envious of your position.

Don't compare yourself to your friends. There is always someone with a nicer home, a nicer car and always someone who has less.Click to expand...
Personaly, I always did prefer quantity over quality :D

***********************************

Person A: "Hey I just bought this gorgeous 6 bedroom dream home with 6 burner BBQ, 2 pools and a 7 car garage!"

Person B: "Holy wow. Really envious of you. We have to make do wth our 10 crappy apartments and units spread all over the place...."

***********************************

Person A: "Hey we're going on a holiday to <wherever>!"

Person B: "Oh crap, you guys are just sooo lucky. Have a great time! We'll be thinking of you while we hav to go to our quarterly <some trip/seminar/meeting directly related to your investment activities preferably on a tropical island somewhere that you will talk to accountant to see if you can claim tax deduction>"

etc



The Y-man  

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10 years on ....

Person A: Gee I would love to retire next year, at aged 65, but have to keep working to pay off this darn PPOR mortgage, and the jet ski, and the wife's credit card, and the ...

Person B: Gee, that a pity. I retired five years ago and am just about to go on another holiday to (insert fav country) for six months while my passive investments keep rolling the cash in.  

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EsplanFreedom said: ↑
Hi all,

Recently some friends and some people at work have upgraded to bigger and better homes. My partner and I live in a nice home that he bought, which is close to our dream home and in a great location but it's not our absolute dream home. We have an IP portfolio because I bought a lot of IPs while we were dating and he bought a couple but my CF is crap!

I see these people buying their dream homes and living their life and wonder wtf I am doing holding my IPs. When the market was doing well I had so much faith in my investing and financial future but now I just wonder why I shouldn't sell them all and buy my dream home. It will still give me CG and with RIPs not offering very good CF they may not offer me much for retirement anyway.

Have you had second thoughts about your investing over the years seeing your friends seemingly make progress while feeling like you're stuck yourself? Were you glad that you stuck it out and delayed gratification?

Thanks :)Click to expand...
Hi Esplan,

Sounds as though you are doing very well - you have a nice PPOR that, as you say, is close to your dream home in terms of quality and size, as well as a large IP portfolio. I'd say you are miles ahead of your friends.

I guess it is working out what you really want. If you really want to upgrade your home, then selling some of your IP's may make sense.

I often toy with the idea of selling down and upgrading our PPOR. But Y-Man and Lizzie's scenarios tend to hit home. I have a friend who has a beautiful PPOR - much better than our own. However, she doesn't know when she will be able to pay it off let alone fund her retirement. She is 50 now. She is also entitled to Long Service Leave and wants to travel - but lack of funds are preventing her taking her Long Service Leave....

At least those of us with IP's can sell them down to either pay off existing debt on our PPOR's as well as to fund our retirements/travel plans.

Regards Jason.  

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EsplanFreedom said: ↑
Have you had second thoughts about your investing over the years seeing your friends seemingly make progress while feeling like you're stuck yourself? Were you glad that you stuck it out and delayed gratification?Click to expand...
I've just got to look at a couple guys at work. Pushing 60 and working in a trade because they have to. I've talked to 2 and know that most of their super was in shares thus about 50% gone in GFC. Even then what they had I would not consider a decent retirement figure.

At the same time I've always been a nerd and don't care about having a flash car, fancy house etc.
Things may change but I hope to be able to go to working when I feel like it by 40.  

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you could also just rent your dream home for a song. As your dream's change, you move on to something else.  

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I'm doing this whole investment thing to help out my parents who both lost well over half of their super in the gfc. I can't quit now, can't leave them without money.  

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and to answer your question directly - yes, I am very glad that we "stuck it out". Apart from some lean years in Sydney in 2004/5, the investments have grown nicely in CG and cash flow. We currently rent a spectacular home (paid by my employer), and enjoy a great lifestyle without financial guilt, as the wealth is already there as a foundation and growing. Just now getting involved in US investments and it has my heart racing again...

Good Luck..  

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Glad you stuck it out

I watched a friend on single income struggle to fund her cashflow negative properties (2). This was only about $50 pw. Accountant kept saying each year "this is costing you a lot of money". Over time they became positive cashflow. Now on retirement she has 2 almost freehold investment properties that give her a very nice income to top up her pension so she can travel. That's what it is all about. The point is keep your eye on the bigger picture.
Cheers
Charlotte30:)  

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1) earn more money
2) consider your portfolio's and see if you had bought differently would it be the same result  

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Doovalacky said: ↑
I've talked to 2 and know that most of their super was in shares thus about 50% gone in GFC.Click to expand...
luckyone said: ↑
I'm doing this whole investment thing to help out my parents who both lost well over half of their super in the gfc.Click to expand...
Regular investments in shares are still well ahead, no-one lost 50% in their super unless they bought at the exact peak and sold at the exact bottom (which super doesn't). I'm glad I ditched 2 properties, their value has gone down & shares have gone up over the last 2 years with higher returns to boot.  

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With the great property boom (1998 - 2011) probably over i guess the returns on property going forward wont be anything like that past.

So, realise some profits and buy your dream PPOR.  

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property investing is long term
(unless ur flipping etc)
yeah they might have a flash car and flash house and probably a big mortgage
and if they dont have a big mortgage they probably earn a *****load
so unless you have big debt or big salary you couldnt keep up anyway
whos going to be better off in the long run? most probably you
stick in there
obviously certain circumstances like how close to retirement etc you are will change your choices  

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EsplanFreedom said: ↑
Hi all,

Recently some friends and some people at work have upgraded to bigger and better homes. My partner and I live in a nice home that he bought, which is close to our dream home and in a great location but it's not our absolute dream home. We have an IP portfolio because I bought a lot of IPs while we were dating and he bought a couple but my CF is crap!
I see these people buying their dream homes and living their life and wonder wtf I am doing holding my IPs. When the market was doing well I had so much faith in my investing and financial future but now I just wonder why I shouldn't sell them all and buy my dream home. It will still give me CG and with RIPs not offering very good CF they may not offer me much for retirement anyway.
Have you had second thoughts about your investing over the years seeing your friends seemingly make progress while feeling like you're stuck yourself? Were you glad that you stuck it out and delayed gratification?

Thanks :)Click to expand...
I don't consider my life or dreams to have ever been 'stuck' on hold, 'investoro interruptus of life?' my life is full, I do what I choose, (and continue to..), also I certainly haven't delayed gratification. Perhaps my idea of a fulfilling life is not necessarily that of the next person. My property investing I initially started by seeking and building good returns so I wouldn't be encumbered by negative gearing, that has suited my goals, life and circumstance.

That friends or family might be doing/buying/acquiring 'stuff' is none of my business, nor am I a person who has any envy of [insert...it's bigger, perceived better, brighter...]. I've never been one for keeping up with Jones's? or is it the Brown's? I have other fish I fry.

I am doing and living the life I choose, achieving the goals I set, (while setting new goals), I travel the world when I want, I currently have decided to split part of my life living in Australia and part abroad. Materialistic wise, I can only use 'so much stuff', I have the things I need and want, interest wise again, I do the things I love, investing has never, nor is, a 'suffering I must endure' until such a time I call it a day, in fact I enjoy building wealth and assets, quite easily envisage myself always having a finger in the investing pie. My independent nature always was going to be self sufficient, (as much as possible anyway), but I also live by the motto life tenure is indeed fragile.

Investing is and always has been fun for me, and turns out I do okay from it.

Sincerely hope you find what you are looking for. All the best on what you decide.  

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We've just moved to a new estate, living in the smallest house in the street. Some of the houses across the road are very flash with all the bells and whistles and I can see the husband salivating at the thought of having all that. Lately he's been asking the question whether it's all worth it and why we shouldn't just have the best now.

To me, having a flash big house in the middle of suburbia isn't the dream home for me. I'd still want more and by having investments can open up opportunities in the future to live somewhere we'd really like to live, rather than having the best in the suburb we currently live.

We are one of the only houses not to have a BMW or two in the driveway. To me I just see house deposits, or in the case of some of my purchases, complete house purchases.  

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Dream home for me is a renovated Victorian Terrace with ~400 sqm of land with a house extension at the back and mickey mouse finishes all over. I don't think that'd ever change for the foreseeable future.  

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Dream home for me is currently (monetarily) downsizing ... movin 40mins out of town to an acreage, with a beautifully renovated 100yr old house on it.

Already found it - would leave us enough cash left over from current sale to put down 20% on three more IP's - just have to wait for the cards to fall into place.

So, yes - your dreams change as your family, situation and age changes. I have no regrets about investing and putting in hard yards ... but then again ... I am not materialistic. I prefer lifestyle (ie, acreage with horse, veges, chooks etc) and experiences.  

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