I almost read every of the 42 pages, it takes longer than I realise! I'm looking for some advice, so I'll tell you a bit about myself...
I became interested in FIRE about a 1.5 years ago...soon after I had a health scare (all good now) and am now even more interested in FI!
Recently I’ve been going over the calculations and keep going backwards and forwards, I was wondering if anyone had any suggestions.
My situation, basically I’ve accumulated a few investment properties, and invested in Vanguard about a year ago (using equity in IP (Investment property) loans). I rent in Sydney. No kids or spouse. Properties valued just over a year ago.
a) Vanguard High Growth Index Fund: 340k (yes, I now realise that was silly because of fees)
b) IP1: Valued 400k, capital gain 240k
c) IP2: Valued 440k, capital gain 0 (would be a loss counting expenses)
f) IP3: Valued 600k, gain 288 (I could live in this one)
g) Super 220k
h) Cash = 80k
i) Income: lowish-mid 100k
j) Carried fwd losses 25k
k) Loan over properties: 1,066,000 (total property value 1,440,000)
l) Car 7k
Capital gains from Real estate if I sold as per values above = 528k (240k+288k)...(I'd pay about 92k tax if I sold them all in the same year with no other income).
Total surplus if I sold all properties: (1,440,000 - 1,066,000) = 374k
Basically, I could:
a) Retire in say a year
b) sell all property, pay 92k tax (with 92k cash I have by then)
c) Be debt free with 714k in Vanguard (340k currently + 374k properties less loan).
d) Be free to do work that I liked/be healthier, less stressed/work only some months/pursue my hobbies and interests more etc
I could alternatively keep the 600k rental property (currently producing 19k/yr net from agent each year). This is a rental property I could live in in Sydney (near the city). I currently rent myself and my tenant pays me more than I pay in rent.
I'm (a young) 43 year old, my job is just a job and I want to do something different and also want to take the slower road. I've recently started eating better/exercising more, enjoying life more (after health scare) and don't see the point of working any more, as I am happy with having fewer 'thing' these days. I have reduced my expenses a lot, and love the simple life, as opposed to the $25 cocktails life.
I wouldn't sell all properties in one year because of the capital gains, there would also be selling expenses, but I've put conservative prices, and I would sell my car. Spending a year in say Vietnam or Bali after I retire would be an option, in order to ease into it...
This is a rather long post so sorry! I understand that this is an investment thread, not a how should I sort out my finances thread, but thoughts would be appreciated, especially about incurring (some) capital gains on investment properties in order to be debt free with cash spare to invest in say VAS, VGS, VGE, wherever that takes me. I think I'll also get professional advice, but also think that forums are often just as good as the experts.
Also, I realise I could do all the above except keep working and sell a property a year for 3 years then retire with say $1m in vanguard. But I have the FIRE bug now and wonder if that extra time doing a job I'm not passionate about would be worth it.
Also, I could live in IP3, find a more satisfying job and sell IP1 and IP2 to significantly reduce my debt whilst still having a PPOR...this kind of appeals but I am left with only 340k in vanguard, still have debt/I haven't retired.
OK, time to stop writing now. Thanks in advance for any advice!