Hi. I'm 42 yrs old and still working - currently earning about $80k, as is my partner. We are both sick of working and are pretty keen to go traveling on the cheap (rv).
We have the distinct advantage of being in Australia. We both own houses which have gone up 50% in the last four years. If I sold our homes and cleared all debt we would have $900k to $1M.
We figure we need about $35k to $40 k pa to fulfill our dream of travel. So it all seems doable in my mind. I'm still new to investing having never done any. I've just bought a house and the market did the rest! Ive got about $100k in my pension plan but won't get that until I'm 55 yrs old. SS is means tested here so probably won't factor that in. Have got a couple of probable inheritances to look forward to (approx $500k) but again I wont factor them in. It'll be a nice bonus if it happens.
I guess my question is what to do. I was going to just rent out both properties but I wont be able to pay the mortgage and live on the rent. I can keep it very simple for a few years by just sticking the sales proceeds in the bank. I can get 7%, paid monthly with no fees for 5 years, or 6.8% for 4 years. I figure that gets me my $35-$40 k pa plus inflation cover for the capital with next to no risk.
Am I missing something obvious?
We have the distinct advantage of being in Australia. We both own houses which have gone up 50% in the last four years. If I sold our homes and cleared all debt we would have $900k to $1M.
We figure we need about $35k to $40 k pa to fulfill our dream of travel. So it all seems doable in my mind. I'm still new to investing having never done any. I've just bought a house and the market did the rest! Ive got about $100k in my pension plan but won't get that until I'm 55 yrs old. SS is means tested here so probably won't factor that in. Have got a couple of probable inheritances to look forward to (approx $500k) but again I wont factor them in. It'll be a nice bonus if it happens.
I guess my question is what to do. I was going to just rent out both properties but I wont be able to pay the mortgage and live on the rent. I can keep it very simple for a few years by just sticking the sales proceeds in the bank. I can get 7%, paid monthly with no fees for 5 years, or 6.8% for 4 years. I figure that gets me my $35-$40 k pa plus inflation cover for the capital with next to no risk.
Am I missing something obvious?