Retirement strategy

[afshinrein]

<H3 class="post-title entry-title">Home investment strategy 5-70-90 </H3>Strategy for comfortable retirementI call this strategy 5-70-90 technique and this is how it works. You determine your expected hypothetical deceasing age, let`s say you like to live till 90. Then you like to retire by the age of 70. This technique recommend that you start buying at least 5 residential rental properties until the age of 70 and pay them off. Once you reach 70 then start selling one house at a time for every 4 years. For the next 20 years you have 5 houses to sell and to enjoy their returns. This is, believing that each house worth $400,000. The idea is to start selling from the oldest house that is paid off. 5-70-90 is just a strategy, but you can very well start it at any age. You can enjoy their rent as well, buy any number of houses and perhaps start your retirement earlier.

Afshin Ekbatani - 647-407-4049
Investor real estate agent - Toronto and Toronto west
http://www.uniquehomesforyou.com/

 

[Nir]

4-40-400 would be nice.

 

[Thomas Beyer]

Complex problems have simple, easy to understand, wrong answers.

I think life is a bit more complicated and varied than boiling it down to one simple strategy.

Of course it makes sense to accumulate assets so you can "retire" of their proceeds .. and real estate is a good strategy for it. But there are other asset classes too. Others never "retire" and decide to work part-time or take mini-retirements every 5 years or annually. Also, once the last house is sold @ 90 .. and they guy now is fit as a fiddle .. then what do you do ?

Many a baby boomers in their 60`s and 70`s today realize that 100 is the new 80 !

What is the fastest growing age group (in the US) ?

Those over 100 !!

 

[housingrental]

True... but if your realtor looking for a reason to create a topic all the good ones have already been done!

QUOTE (ThomasBeyer @ Oct 16 2010, 12:26 PM) Complex problems have simple, easy to understand, wrong answers.

I think life is a bit more complicated and varied than boiling it down to one simple strategy.

Of course it makes sense to accumulate assets so you can "retire" of their proceeds .. and real estate is a good strategy for it. But there are other asset classes too. Others never "retire" and decide to work part-time or take mini-retirements every 5 years or annually. Also, once the last house is sold @ 90 .. and they guy now is fit as a fiddle .. then what do you do ?

Many a baby boomers in their 60`s and 70`s today realize that 100 is the new 80 !

What is the fastest growing age group (in the US) ?

Those over 100 !!

 

[nubiwan]

Man, if I sell a $400K house, what kind of gain am I going to pay on that baby? CRA would be licking their lips. Assuming, as a good investor, I bought it for at least half that amount 20 years earlier, or much less, one would hope.

If you did own 20-30 houses (and own them outright), you could potentially be netting 20-30 grand a month just renting them out. That`s over $200k a year. Now, that is something I could live on for a long time without ever selling a house. Shoot, that makes the tax implications even worse if I also sold a place.

$200K per annum buys an awful lot of Big Macs and Disney tickets for my kids. I think I`ll set myself up to own the 20-30 units and hold `em thanks.

 

[housingrental]

True. But if you aren`t selling them how is he as a realtor making money off of you?
QUOTE (nubiwan @ Oct 21 2010, 10:46 PM) Man, if I sell a $400K house, what kind of gain am I going to pay on that baby? CRA would be licking their lips. Assuming, as a good investor, I bought it for at least half that amount 20 years earlier, or much less, one would hope.

If you did own 20-30 houses (and own them outright), you could potentially be netting 20-30 grand a month just renting them out. That`s over $200k a year. Now, that is something I could live on for a long time without ever selling a house. Shoot, that makes the tax implications even worse if I also sold a place.

$200K per annum buys an awful lot of Big Macs and Disney tickets for my kids. I think I`ll set myself up to own the 20-30 units and hold `em thanks.

 

[afshinrein]

QUOTE (housingrental @ Oct 22 2010, 07:19 AM) True. But if you aren`t selling them how is he as a realtor making money off of you?


The concept is easy. To have enough capital (either thru. rent or selling off) to enjoy your retirment. If you have a plan, you can have more than 5 houses. My point here is to draw a practical picture of what we can have. The choice is yours.
Also, as a dentist makes money out off our own teeth, or a contractor, a realtor deserve its bread. To hire one, therefore is one`s choice.

 

[housingrental]

You have not presented a particularly helpful or thought out plan.
The posts above weren`t about the desireability of a realtor or if they should be compensated for their work - and to be clear realtor`s can add value to certain transactions and deserve to be paid appropriately for services rendered.

The issue is you posting a quasi advertisement as an investment strategy that ultimately resluts in you profiting off the process potentially at the expense of the investor.

QUOTE (afshinrein @ Oct 23 2010, 11:19 PM) The concept is easy. To have enough capital (either thru. rent or selling off) to enjoy your retirment. If you have a plan, you can have more than 5 houses. My point here is to draw a practical picture of what we can have. The choice is yours.
Also, as a dentist makes money out off our own teeth, or a contractor, a realtor deserve its bread. To hire one, therefore is one`s choice.