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  1. #21
    Join Date
    Jun 2004
    Posts
    10,675

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    Quote Originally Posted by simongu View Post
    For what its worth, my plan is to sell down "enough" but rather than invest in stocks etc directly will invest further into PIE funds - conservative funds from a quality provider currently return ~6% pa tax paid. No worries about selecting / following stocks, and having risks of insufficient diversification. No I am not a financial adviser / get commissions or anything like that, this is what I do now with part of my income, and plan to ramp it up with a capital injection - timing somewhat dependent on election result!
    Seems we are in similar positions and have come to similar conclusions.
    Stocks or direct - I'll choose later when I have sold.

  2. #22
    Join Date
    Mar 2007
    Location
    New Zealand
    Posts
    128

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    Simon, are you going to keep some of the rental property or just your home? If so, what is your reason to keep the properties, given the low returns? Well done to you as well!

  3. #23

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    Zor, will still keep some rentals despite the crap returns, partly for diversification of income stream, partly because I get satisfaction maintaining properties, partly for asset security (against eg stock market crash), and partly with a view to future capital gains, we may wish to 'swap' for an apt overseas somewhere we visit frequently

  4. #24
    Join Date
    Mar 2007
    Location
    New Zealand
    Posts
    128

    Default

    Fair enough, makes sense Simon. The relative ‘security’ of property is the main reason I hold on as well. The risk of the value eroding by 50% or more is very low but in stocks it’s much higher. Of course, natural disasters have added a whole new level of risk on both fronts. I have been burned by shares before, so am still wary but its going to have to be overcome to get some kind of reasonable income to live on..time to study me thinksJThe relative ‘security’ of property is the main reason I hold on as well. The risk of the value eroding by 50% or more is very low but in stocks it’s much higher. Of course, natural disinters have added a whole new level of risk on both fronts. I have been burned by shares before, so am still wary but its going to have to be overcome to get some kind of reasonable income to live on..time to study me thinksJ
    Last edited by cube; 17-09-2017 at 10:28 AM.

  5. #25
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    946

    Default

    Quote Originally Posted by simongu View Post
    Hi Wayne,

    Congratulations getting to your position. Very similar to ourselves ($8m rentals, $2m home, $3m debt, high earning but fallen out of love with it, looking to travel), and have been looking at how to convert this equity into "retirement" income, given the difference between the ~3% net yield on property (cf to ~7% when we started investing 20 years ago) and fairly safe alternatives out there.

    For what its worth, my plan is to sell down "enough" but rather than invest in stocks etc directly will invest further into PIE funds - conservative funds from a quality provider currently return ~6% pa tax paid. No worries about selecting / following stocks, and having risks of insufficient diversification. No I am not a financial adviser / get commissions or anything like that, this is what I do now with part of my income, and plan to ramp it up with a capital injection - timing somewhat dependent on election result!

    Good luck with whatever you do
    Great result $8m in rentals is not a easy achievement in a lifetime but to achieve that in 20 years is fantastic

  6. #26

    Default

    Thanks Beano. Of course it only happened due to "luck" and exploiting others, working my ass off overseas for 7 years to raise capital was completely irrelevant and hence what I get out of this is "unearned income", and anyone wanting to replicate what I have done should look to the Gummint for assistance


 

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