I first posted 7 years ago and took the plunge to FIRE 5 years ago..
I have lived with multiple mortgages in high interest rate environment these past years mostly unscathed. I have given time for my 2 properties and shares to appreciate in value . I live most of the year overseas but am able to stay at the family home when in Sydney with elderly mother.
I just sold one Investment Property (regional house) as it is getting old and I thought it a good point in time to be better capitalised, to take the capital gain and pay off most of my debt (though I am leaving one of the mortgages of $420,000 with cash offset of around $290,000). I am more comfortable having the capital on tap if in the case of emergency or to take advantage of share investment opportunities. The other motivation to sell IP is that I am able to make a Concessional Superannuation Contribution, as I meet the conditions with super balance <500k and no contribution to super in past 5 years. By doing this I can negate the Capital Gains tax on the IP and shares for FY25. I am in the process of working out from accountant how much I need to contribute to reduce my taxable income to zero.
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My assets and liabilities as follows:
ASSETS:
Investment Property unit in Sydney $1,600,000 earns $35,000 pa net expenses
Share portfolio 1 $300,000
Share portfolio 2 $200,000
Share portfolio 3 $60,000
Superannuation $340,000
Cash in OFFSET (after exchange sale of IP regional house) $440,000
LIABILITIES:
Mortgage Loans $420,000 (P&Int paid monthly from cash offset)
Margin Loan $100,000
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Once I make concessional contribution (roughly $150,000) , my cash OFFSET will be reduced to $290,000 and my Super will increase to $490,000.
I usually make some capital gain and dividends from share investments in the year. This current year has been a good one (an outlier) , I have made $36,000 in gains so far this financial year. Usually dividends $6,000+ pa with franking credits $2,000+.
I am posting here (again after many years) so a fresh set of eyes (and brains) can shed some light on my path. It becomes a little daunting at times to have the financial independence but not sure if I am doing as well as I should be or if whether I can improve on my strategy . So any feedback on the above (including my Super strategy) will be eagerly read and considered.
I am a 54 years old Australian and am FIRE and not looking back .....!
