The Money Mustache Community
Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: Gockie on February 28, 2015, 11:08:11 PM
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Hi,
I just wanted to share. I have a friend. She got me and another friend of hers to go to a property investor seminar. I'd heard this person talk before, and anyway, I think she gives good advice. So far, so good. In the seminar, the presenter asks, "how much do you need (per annum) to retire on?" We all had to write down our figures. I wrote down AUD $30k. Her other friend wrote AUD $40k. She herself wrote, AUD $200k. I go, what the?!? I seriously doubt she has that kind of salary right now (maybe she's on $100k) but I was thinking, how the heck did she come up with that figure? I can only guess maybe she's thinking of 25 years down the track with inflation.... Whereas I am thinking in today's dollars? Anyway, with the way i'm tracking, I should have no more interest on my home mortgage to pay by my next birthday (beginning November) which takes up half my take home salary (we have been very aggressively paying down that debt), and, by Sydney Australia standards, next to no remaining home debt (average houses are now about AUD $1mill), & mine is above the Sydney average and that would be quite easy to pay off. Living on $30k would be quite doable as long as the home is paid off.
Btw the presenter said to everybody to double the figure which you came up with... You need a buffer. If that was the case, my friend would need to find a passive $400k per annum, I'd need to get $60k per annum.
Hahaha.
Go frugality!
Anyway, I could go retire in a lower cost of living country right now with no probs. If I moved overseas I'd be getting substantial rental income from the PPOR, plus I have plenty of equity in other investments should the s*#t hit the fan. I believe I would have more money by the end of the year than what I started with I reckon.
Happy days! :)
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I seriously doubt she has that kind of salary right now (maybe she's on $100k) but I was thinking, how the heck did she come up with that figure? I can only guess maybe she's thinking of 25 years down the track with inflation.... Whereas I am thinking in today's dollars?
Alternatively, she thought about how much money she spends now and then multiplied it by the extra free time she will have. Because the only way to use free time is to blow money, right? ;P
Pre-emptive congrats on paying down the mortgage. Go frugality, indeed!
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Thanks NykkiC!
I have to say, my younger sister and her husband managed to fully pay off their first home at the age of 30. So jealous! They did really well. They ended up buying a big new place when the market was very quiet. Then sold their first place during a boom!
What did they decide to do then? They decided to spend buckets load of money (ballpark ~150k) renovating their new place which was completely functional. Oh well. Their money. And it would have brought the value of the new place up.... Still rather unnecessary though.
On a positive note, I'm sure they can quickly pay this new place off if their results on the first property is anything to go by....