Jack Peterson Posted December 12, 2013 Posted December 12, 2013 a retiree should shoot for at least $4000/month to live out his dreams in the philippines... OK, That's the funnies out of the way, Lets get on with the Story :hystery: 2 Link to comment Share on other sites More sharing options...
Forum Support Old55 Posted December 12, 2013 Forum Support Posted December 12, 2013 Everyone has their own budget needs. 1K may be fine for some 4K for others there is no right answer and we should respect those choices. 4 Link to comment Share on other sites More sharing options...
Curley Posted December 12, 2013 Posted December 12, 2013 (edited) but would also add be careful about purchasing a property in the UK as a rental, as i understand things the UK Govt are going to tax expats who have UK property. http://www.telegraph.co.uk/expat/expatnews/10458673/Thousands-of-Britons-caught-up-in-tax-raid-on-wealthy-foreigners.html Thanks John, I would have to look at putting the property in the name of my son I guess. WHY, WHY, Why do people think that investing in rental property is a good proposition for an absentee landlord? What happens if your tenants trash the place? What happens if they have kids and don't pay the rent? Will the courts throw them out on the streets straight away? Do your sums properly it is not a good investment. Put your money into a selection of blue chip stocks and be happy with the small SAFE return and feel happy in the knowledge that should you want to liquidate some or all of your funds it's a simple process that takes 4 to 6 weeks..... very different from having to sell a property quickly. Putting it in your sons name? What would happen if he were to suddenly die? Who would inherit the house? An Aussie friend in Thailand rented his house to a tenant with the local government guaranteeing his rent. Fine for three years, the local council now want him to spend $15,000 to bring the place up to standard so that he can rent it out again.. Investing in stocks, especially when one is decumilating one's assests during retirment poses greaters risks than long distance property management. Just imagine what would happen if a equity rich retiree experienced a market similar to 2008? It would wipe out 50% of his assets. But I am not saying stocks are bad... I firmly you believe you should always be invested in stocks (index funds)... at all times... but it is not an all or nothing situation. Diversifying some risks, by investing in rental income (especially where the real estate market is stable) is a good choice for sustaining regular monthy income. Will there be headaches? maybe.. but the times are dfferent now.. no longer are the days where you can park your capital in CD and bonds - sit back and gurantee a decent monthly income... IMHO, a retiree should shoot for at least $4000/month to live out his dreams in the philippines... As you say "Diversifying SOME risks by investing in rental income" can make sense but to put all available capital into rental property is NOT a good idea in my opinion. Edit. The stock markets quickly recovered from their 2008 losses......... quicker than the property maket. Edited December 12, 2013 by Curley 1 Link to comment Share on other sites More sharing options...
BrettGC Posted December 12, 2013 Posted December 12, 2013 As you say "Diversifying SOME risks by investing in rental income" can make sense but to put all available capital into rental property is NOT a good idea in my opinion. As the man said, each to their own :D 2 Link to comment Share on other sites More sharing options...
JMEL Posted December 13, 2013 Posted December 13, 2013 Wowzers... I live like a king compared to USA on about $1200/mo. What would I do with that excess? Man, I would not settle down but travel all over from condo tocondo. Wowzers... I live like a king compared to USA on about $1200/mo. What would I do with that excess? Man, I would not settle down but travel all over from condo tocondo. Link to comment Share on other sites More sharing options...
Jollygoodfellow Posted December 13, 2013 Posted December 13, 2013 IMHO, a retiree should shoot for at least $4000/month to live out his dreams in the philippines... Guys some people shot this statement down but put it in perspective please. Some live on a $1000; some need much more but as the statement says (to live out his dreams) You might live on 1 to 2000 now but to live out your dreams in 10 years time it might be over $5000 because things are not getting cheaper are they? You retire to the Philippines relatively young and healthy, you are now aging and find you now need lots of medication, more home help and the damage from the 2020 earthquake wrecked your car and left your home in a pile of rubble.Electric cost skyrocket and food is scarce..............2020? will your current budget cater for that? Hypothetically of course but it will cost more than you are living on now. 1 Link to comment Share on other sites More sharing options...
JMEL Posted December 13, 2013 Posted December 13, 2013 Good point, Jolly, but dreams and needs are subjective. Link to comment Share on other sites More sharing options...
bows00 Posted December 14, 2013 Posted December 14, 2013 but would also add be careful about purchasing a property in the UK as a rental, as i understand things the UK Govt are going to tax expats who have UK property. http://www.telegraph.co.uk/expat/expatnews/10458673/Thousands-of-Britons-caught-up-in-tax-raid-on-wealthy-foreigners.html Thanks John, I would have to look at putting the property in the name of my son I guess. WHY, WHY, Why do people think that investing in rental property is a good proposition for an absentee landlord? What happens if your tenants trash the place? What happens if they have kids and don't pay the rent? Will the courts throw them out on the streets straight away? Do your sums properly it is not a good investment. Put your money into a selection of blue chip stocks and be happy with the small SAFE return and feel happy in the knowledge that should you want to liquidate some or all of your funds it's a simple process that takes 4 to 6 weeks..... very different from having to sell a property quickly. Putting it in your sons name? What would happen if he were to suddenly die? Who would inherit the house? An Aussie friend in Thailand rented his house to a tenant with the local government guaranteeing his rent. Fine for three years, the local council now want him to spend $15,000 to bring the place up to standard so that he can rent it out again.. Investing in stocks, especially when one is decumilating one's assests during retirment poses greaters risks than long distance property management. Just imagine what would happen if a equity rich retiree experienced a market similar to 2008? It would wipe out 50% of his assets. But I am not saying stocks are bad... I firmly you believe you should always be invested in stocks (index funds)... at all times... but it is not an all or nothing situation. Diversifying some risks, by investing in rental income (especially where the real estate market is stable) is a good choice for sustaining regular monthy income. Will there be headaches? maybe.. but the times are dfferent now.. no longer are the days where you can park your capital in CD and bonds - sit back and gurantee a decent monthly income... IMHO, a retiree should shoot for at least $4000/month to live out his dreams in the philippines... As you say "Diversifying SOME risks by investing in rental income" can make sense but to put all available capital into rental property is NOT a good idea in my opinion. Edit. The stock markets quickly recovered from their 2008 losses......... quicker than the property maket. This response might be a bit late, but ... investing all of ones asset into any one sector is always a bad idea... be it real estate or stocks.. I have done my share of studying here and firmly believe you have to be diverisfied... in all of the indexes... stocks, real estate, cash, oil, commodities, and even... the dreaded bonds... just a little in short and medium term bonds only of course ... And you have to learn how to balance your accounts... to sell high and buy low... and nothing is as secure as a monthly income coming in from a paid for piece of real estate! And I cannot wait to retire there... 4 years and counting... still single too... cannot wait... 3 Link to comment Share on other sites More sharing options...
russellmania Posted December 14, 2013 Posted December 14, 2013 WHY, WHY, Why do people think that investing in rental property is a good proposition for an absentee landlord? What happens if your tenants trash the place? What happens if they have kids and don't pay the rent? Will the courts throw them out on the streets straight away? Do your sums properly it is not a good investment. Put your money into a selection of blue chip stocks and be happy with the small SAFE return and feel happy in the knowledge that should you want to liquidate some or all of your funds it's a simple process that takes 4 to 6 weeks..... very different from having to sell a property quickly. Putting it in your sons name? What would happen if he were to suddenly die? Who would inherit the house? An Aussie friend in Thailand rented his house to a tenant with the local government guaranteeing his rent. Fine for three years, the local council now want him to spend $15,000 to bring the place up to standard so that he can rent it out again.. I've lived interstate from my property for many years, never had a problem. Key to success is having a good property manager who can act on your behalf in all respects with regards to the lease and upkeep of the property. I've been lucky the last few years, had the same tenants for 7 years and they're great. Like owning an investment property anywhere, it does has it's ups and downs but you have to ask yourself why it is such a popular and for the most part successful option, here in Australia at least. As you stated......"I've been lucky" I used to think along the same lines but now that I'm retired I want my money to be flexible as well as safe. I have been lucky also with my rental. I retired this summer on my government pension,but I knew a couple of years ago I wanted to invest in real estate during the housing crunch. I found a turnkey foreclosure home for 85k and with my 30k down payment my mortgage is $841.00 per month for 15yrs..I charge $1275 per month and I found a flat rate property mgmnt co. for $50.00 per month. Thats a $385 per month cash flow and housing is on the up swing here and now my rental property is worth 120K now.My home that I live in here was paid off in 2007 so I will rent this one also whenever I decide to move to Phils on a more permanent basis. I prefer a more solid safer investment then gambling on the stocks! 1 Link to comment Share on other sites More sharing options...
bows00 Posted December 14, 2013 Posted December 14, 2013 I would get rid of that $841 per month mortgage before I make the move. There is a big difference in having a paid for house when you obt for long distance landlording... 1 Link to comment Share on other sites More sharing options...
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