Quote:
Originally Posted by Unregistered
My wife and I retired last year when I was 55 and she was 60. We sold our landed property for $2.5m. We then bought a one bedder condo for $900k. We invested $1.6m and we got $80k in dividends per year. We also have about $200k in cash. Since we no longer own a car, our annual expense is only $40k per year. My wife cooks while I help out in the house work. We enjoy relaxing by the pool. All this is possible due to my investment foresight to buy our landed 20 years ago. I forecasted that our landed price would go up a lot. My prediction came true. We are able to retire in a condo because of my investment wisdom.
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Actually you don't need to sell your home. I live in my $8m home which I bought for $2+m and which is paid off when I retired. I have borrowed about $4m from a bank to invest in REITS collateralized by the home at about 1% and get about $250K a year in dividends. I continue to live in the home, which continues to appreciate. The bank will lend me more, but I think $250K is enough to live on and why be greedy. I doubt housing prices with halve and the banker tells me that the house will have to fall significantly below $4m before they come after me to top up. My only issue currently is that the garden and the house require maintenance so I can't go on holiday for too long.