FWIW, I'm planning to one day leave a very substantial inheritence to my children. I'm hoping they'll be in their 60s when they receive it, but I should have amassed enough asset base that I can live out my retirement on yield alone, letting the underlying assets grow slowly over time.
I'm teaching my children about living within their means, saving and then investing. Ideally, they will be very well sorted before they ever get an inheritence, but when they do it will be enough that, when added to their own assets, their retirements will be very comfortable indeed. And they can then leave the assets to their own children, and so on and so forth.
The trick is not to spoil them young, not to make excuses about 'lifestyle', and to steadily build assets over the years.
I guess time will tell. The best laid plans and all that...
I am assuming my assets will live forever. If I only ever spend the yield they generate (net of costs and tax of course) then the assets themselves will never be consumed and can be left for the next generation.
Obviously I'll need a fair asset base to make this plan work. I reckon about $5M in assets generating a net return of 4-5% pa would be good, plus the home I live in of course.
Sorry miw - normally you're a sensible poster but you just seem to be talking shit here. Fuck me dead mate, we would struggle to afford the same little shoebox again if we were starting from scratch, despite the fact that our real household income is significantly higher and interest rates are a lot lower. And no, Gladstone did not boom ahead of the rest of the country due to LNG, it merely caught up with everywhere else.
You're talking about Gladstone and you aren't even giving a timeframe. A place that was a town of 6k in 1960, a slum of 20,000 in 1980 and a shrinking city of 32k in 2014. A place that went from being dirt cheap to fabulously expensive and is now on its way to being cheap(ish) again. Hardly an example that is typical of anything except Gladstone.
Let's take an example that is meaningful like comparing buying in Indooroopilly in 1980 vs buying in Brookfield or Jubilee in 2014.
Lef-tee
30 Sep 2014, 08:43 AM
Permanent, full-time stay at home mums are getting thinner on the ground these days. Unless you live where good public transport is available, a second car is a requirement for the second person having a job - which is itself a requirement of having any hope of owning a home unless one partner earns big $$$.
Or unless you can work from home.
In 1980 relatively few young couples had a second car in Brisbane, stay-at-home mum or not. Even with Brisbane's shitty public transport, people took the bus or the train or both to work. Things had changed a lot by the mid-90s though. It's sure shown up in the traffic. In 1984 I got from Toowong to the airport in 25 minutes once at about 4pm. Try doing that now, even with the new tunnel. We thought we had a traffic jam if there were 10 cars lined up at a red light.
n 1980 relatively few young couples had a second car in Brisbane, stay-at-home mum or not. Even with Brisbane's shitty public transport, people took the bus or the train or both to work. Things had changed a lot by the mid-90s though. It's sure shown up in the traffic. In 1984 I got from Toowong to the airport in 25 minutes once at about 4pm. Try doing that now, even with the new tunnel. We thought we had a traffic jam if there were 10 cars lined up at a red light.
That reminds of a a few business trips I made to Adelaide in the mid-90s. On more than one occassion I had taxi drivers apologise to me for the traffic, because we stopped at a couple of red lights behind maybe a dozen cars on the way from the airport to the city at peak hour.... Being from Sydney, I just sat there and trying not to laugh....
For Aussie property bears, "denial", is not just a long river in North Africa.....
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