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  1. #1

    Default Can you help me develop a rough 5-7 year plan after 7 years serious illness?

    Ok, so Ive been ill, reall ill. But ive beaten it, aside from the tummy which is next, I was bed bound mostly for about 5 years.

    I come from IT where I earnt between $150-200k AU plus 10% super. But dont have a lot of super, maybe $100k.

    I have a partner, she is a double doctorate, earns a measily $75k in NZ, word to the wise dont study science in NZ. Well she studied in Wales and the US, more dont settle for science jobs in NZ, thats very broad, and she is 8 years younger, but still shes under paid where she is at.

    She knows too well I dont want to work passed 50, 55max. Im 44yo and aside from some super have spent my life savings on being ill. No point crying and wanting to die, time to jump back on the horse and give it a flogging (she better not read that shes a horsie person).

    My long term is to live in somewhere like Whangarei Heads, New Plymouth, Mangawhai Heads or possibly Kerri Kerri. Somewhere that has fringe work and ocasionally the right IT work for me to contract for 6 months ans then back to fishing.

    Id like to if possible keep buying but perhaps a mix of buy and sell buy and keep. Depends how badly China takes our market down given we borrowed so much during the GFC but Mr English didnt say be careful, we are still sitting on the US Bubble are yet to pay for it. So we have a Double Bouble that will burst at some point, to what extent, Im drawing lines based on my economics skills from Uni, and I get we are about 40% over valued in Auck, so I can se a 25-30% correction then a 10 year plateau. But hey anything could happen, or not happen at all. Has everyone watched the Netflix Doco "The China Hustle", basically Americans finding a way to make the same msitakes they made in pre 08, very very scary, unless you act like 99% of kiwis and just dont look at the economics section of the news hehe. Head in Sand is often good for keeping a nice exfoliated happy face.

    So my plan is to go back to Aus for 5-7 years, Im not sure whether to buy there or invest in managed funds or bonds, or give doing what I did well in Australia another crack which was buying really crappy houses in middle class suburbs, using my project management skills and speccing out the costs to make a profit and walking away if its not going to. The buy and flip is viable in any market (almost) which is one of its benefits, the other is I am cash asset VERY poor. But Im knowledge and experience Asset high.

    Im not a cowboy, there are somethings people spent a 4 year apprenticeship learning for a reason. I am a damn good landscaper though if Im being modest lol. Im pretty good at interior design for sale. Outside that I get most of the big stuff, tiling, paving (I will take on small paving), decks, joist removal and extension, foundation stump packing etc etc, I like to get a good crew together and Ive still got some mates from those early 2000s years I can pull together.

    I prefer to get early entry late payment, but given I take on real crappers with good bones, usually Ill go over, but I budget for it.

    Im thinking Bris as thats where most my mates and family are, its the market I know, its also much less over inflated than Auck or at least is much cheaper for what you get. There are currently 230 jobs in what I do there and 83 in Auck, Auck pays about 75% and thats not including super and currency exchange.

    The thing term goal would be to come back to NZ in 5-7 years, likely 7, I want $1mill equity to set me up and to pay for my Bertie 28 and new engine. I think based on our salaries alone thats acheivable, but if I can make 10-15% per project, 2 per year, I should have a fair bit more? The real question is flip or keep. Im thinking unless the market is terrible there, housing is as good as anything else to leave my money in? And sell when Im ready to leave. I should have $240k super which I can withdraw at 55yo as well. So lets say 7 years. $350k x 15% = 52500 x 2pa = $105kpa, x7 = $735000x 4% as its a short time frame for capital gains 29400, so about $764000k, plys $300k super for the both of us although she wont get to withdraw hers yet. Thats just shy of $1mill AU, but have to also add in our income savings of 50%. Which given she knows shes worth $140k there, works out about $1190000 x 5% in bonds = 41600, so $1.26 for rounding up sake. Thats about $2.26 mill. Now if the Aussie/Kiwi currency gods do their usual thing hopefully the cyclic will start again and get close to the 72% I move there with, lets just say for fun sake 80c to the dollar. We are looking at a tad over $2.6mill. Unless Ive made a total balls up, which is possible as Im on a drip writing this.

    If you moved to East Coast Far North, and your Mrs will still be working for another 20 years, $2.6mill should be enough to get my dream boat and have some spending money for IP's?

    Sorry if that was really long winded. If just felt really sad sack and lonely for a long time and its nice to have something to focus on.

    What Ive learnt from being ill, is life is tooooo short to keep working. My Mrs loves her job so if she wants to work to 60 odd thats her choice. But I want to be doing the things Im passionate about, boating, spearing, fishing, sailing, and ultimately getting my private pilots license would be the cherry on top. Even if Im 55. Providing no other health issues that leaves plenty of time to enjoy life....... right?

    Oh I forgot to mention as its kind of tacky, but her parents are European and they have this house that is tripical glazed and you clap your hands and they go black, they have this fancy pellet automatic central heating system, lights go on with a clap and the TV rises out of its stand, looks very James Bond like. Everything is high quality italian marble. He did have a new Ferrari and one of those i8 (is it?) BMWs with the batwing doors. Hes downgraded dramatically to a modest M4, which does them as their is just the 2 and his days of super cars are over being 73, he enjoys the M4 still.

    Anyway the house was valued last at 2.3M Euro, so at some stage she will have half of that if need it, if not we might see how well her sister is doing and what her parents wish. Her partner is greek and is a brilliant Artist but doesnt work as such, I keep telling them to move to Surfers as he would love the Sun like Greece (not quite lol) but there is a massive market for his work in Aus, my friend does it for a hobby and she is raking it in.

    I really have felt depressed, like at turning 45, life is over for me, having to start a again. The shame of it all.

    But If I look at it as a challenge, life can be quite fun?

    As long as I have a boat at all times of some size and shape hehe. The Mrs wants a horse so likely for our personal home we will end up with a small lifestyle block at some stage.

    Thanks for listening.

  2. #2
    Join Date
    May 2004
    Posts
    2,454

    Default

    Thanks for your interesting story, and I wish you well with the new journey. Sounds like you have goals, most people who have goals get there over time. Those without goals get there too, even faster!

    Can't suggest much but maybe consider the sharemarket alongside other work. You mentioned managed funds etc, but the advantage of direct investing is smart people can use their brainpower to get to know a sector or two and a company or two.

    There is also the global gig economy for in between jobs, sites like upwork.com. Often don't pay much until a rep is built up but can be quite lucrative for specialists with a good rep.

  3. #3

    Default

    Quote Originally Posted by artemis View Post
    Thanks for your interesting story, and I wish you well with the new journey. Sounds like you have goals, most people who have goals get there over time. Those without goals get there too, even faster!
    Thank you it was scary putting all that out there but it was my first step to getting out of bed and back into life.

    Its hard, ive felt so alone for so long.

    The only thing is the mrs would like one child. I know its a huge cost, but its her happiness too.

    Life can be short, its got to be lived with happiness.

  4. #4

    Default

    Get yourself a copy of "The Barefoot Investor" by Scott Pape. The general premise is fantastic and the specifics are for the Australian tax & super regime so you down to the ground.

  5. #5

    Default

    Quote Originally Posted by MargVan View Post
    Get yourself a copy of "The Barefoot Investor" by Scott Pape. The general premise is fantastic and the specifics are for the Australian tax & super regime so you down to the ground.
    That sounds intriguing. Sounds like me, Im so far from being up myself. Im googling now to see if I can find an Audio copy as I struggle to retain reading. Taught myself Pascal language on the computer age 6 without a manual, but struggled at school due to reading. GRRRRR. So I ended up representing my school in shed loads of sports instead haha.

    Another concept I had in mind is retaining a holiday rental in Australia, contracting their in Winter and living here in Summer. That was the goal a long time back before I got ill. It could be fiddly, but I do know lots of kiwis who enjoy the warm weather of both places all year around.

  6. #6
    Join Date
    Apr 2004
    Posts
    671

    Default

    Thanks for sharing mate.. rough last several years that'd for sure ...as they say what doesn't kill u makes u stronger

    I'm sure you and ya partner have the right ingredients to make some savvy investment moves to reach the goals going forward..

    Have been investing in NZ Property and shares ASX/NZX over the last 18yrs I agree with Artemis that some investment in the sharemarket should give you guys a good kick in the right direction esp.as property has really run its race to the peak and should flatline to pullbackover over the next decade ..yes you can go and pay top dollar and reno ..but really your most likely just doing extra work for low wages in the current enviroment (unless you find the gem)

    Sadly for some reason, I cannot add attachments but if I could i would put up a chart showing that commodities GSCI Vs S&P500 has reached its bottom histrionically .. so IMHO investing in well run high demand commodities will do very well over the next several years ..

    The ASX sharemarket is full of brilliant primary producers trending in the right direction >> I've had a good few returns over the last couple of years in the space ..and think it has more upside than property speculation currently
    Last edited by JBM; 21-04-2018 at 10:07 PM.


 

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