What would you do in this situation?
- wanting cashflow for retirement
- have property with $4mil net ($6mil property with $2mil borrowings)
Currently the gross return is around 4% - out of that I have to pay rates etc.
So if I sold down enough property to be mortgage free I'd have an income of $160k minus the rates, insurance, maintenance etc.
I also have the risk of tenants.
An alternative would be to invest the $4mil in shares.
Easy enough to buy a diverse portfolio returning 6-9% dividend + capital growth to at least keep up with inflation (plenty of good utilities out there).
That would be an income of $240k to $360k, no expenses and no tenants.
Obviously there is still risk.
Why do I keep on with property at this stage?
What am I missing here?
- wanting cashflow for retirement
- have property with $4mil net ($6mil property with $2mil borrowings)
Currently the gross return is around 4% - out of that I have to pay rates etc.
So if I sold down enough property to be mortgage free I'd have an income of $160k minus the rates, insurance, maintenance etc.
I also have the risk of tenants.
An alternative would be to invest the $4mil in shares.
Easy enough to buy a diverse portfolio returning 6-9% dividend + capital growth to at least keep up with inflation (plenty of good utilities out there).
That would be an income of $240k to $360k, no expenses and no tenants.
Obviously there is still risk.
Why do I keep on with property at this stage?
What am I missing here?
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