My wife and I are contemplating selling up and hitting the road but have a number of concerns and would appreciate feedback from people who have been in a similar position and took the plunge.
I am 59 and wify is 57 both still working but had enough, two weddings in the next 6 months and then decision time
We will never have sufficient funds to support a long term caravan lifestyle based on super or savings. Built our house in 1981 and is now our castle, which we are proud of and worked bloody hard for.
The big trip around the country has always been our dream but I have concerns that if we leave it for too long we may not have our health to achieve this.
If we sell up and cash in our super we would have approximately $700k to play with, but need to be careful not to spend too much capital and then have insufficient funds when we decide to buy back into the housing market
Concerns
Travelling for two years expect we need approximately $700/week to live on?
Return on capital approximately $400/week, is centrelink an option? is there work to be had along the way
Once we decide to buy back into the housing market say $500k and have no employment other than $200k in the bank if our capital has not been depleted is centrelink an option?
Not eligible for the pension until 67
Will capital housing growth erode our capital making it difficult to re-enter the market, is renting our home a better option rather than selling?
I'm sure there are plenty of people who are, or have been in our position and I would appreciate any positive and or negative feedback from fellow travelers about the do's and don'ts
3. Let your home. You will never catch up to re enter the housing market.
4. The exit fees and re-entry (stamp duty) alone will fix you.
5. Your home will not be accessed, when it comes time to apply for a pension.
6. Consider if one or both need to be close to medical. Does your wife want to live / tow your home around.
7. If you sell, where do you call home if living on the road full time, things can and do change.
8.( Never sell your Castle If you live near capital cities.) Rental income + capital gains on your home year after year, way out other forms of return. regardless of the temtation of all the instant cash. It will fall through your fingers and break a bond that the two of you have taken to build in a life time.
9. Become smarter. KNOWLEDGE = POWER. The more power you both have, you both together will enjoy a great retirement.
Welcome to the gang Peter Anschau, enjoy here and out in the playground.
I sold everything and now live full time in my van towed by a good tug. I have no regrets and prepared to see out my days in the van. I won't go into anymore detail for now and let others have their say, the only thing I will say is, it is your call and only you can decide.
Enjoy and keep safe.
__________________
Live Life On Your Terms
DOUGChief One Feather (Losing feathers with age)
TUG.......2014 Holden LT Colorado Twin Cab Ute with Canopy
DEN....... 2014 "Chief" Arrow CV (with some changes)
Hi Peter, If you decide to sell up and hit the road full time, just remember, don't camp in rest only areas. You will lose all your money in fines and court costs.
Hey Jim's advice is good advice because you are both relatively young and if you do wish to go back to owning your own home you will be struggling to get back into the market, at least in an area where you would want to live.
My wife and I are for the larger part through most of the process of organizing to do the grey nomad thing for a while, but then we are both in our very early seventies and have no interest in ever owning a house again.
We have just sold our house paid a deposit on the tow vehicle and have also paid a deposit on a van that we believe will do what we need for at least the next twelve months. We have also made the decision to not worry about having our own house again, and to rent wherever we would like to live when our traveling is done.
Yes there was a lot of agonizing in the first place over that decision, and there has been a lot of agonizing since having to get rid of most our stuff. But for us it was the right decision, particularly with all our kids now living interstate and having problems being able to afford to travel there to go and see them and our grand kids.
About another month and a half and we will be able to hit the road, and we can't wait to go.
Cheers,
Tom
-- Edited by greyhoundtom on Tuesday 9th of June 2015 08:02:28 PM
__________________
I had a thought but it got run over as it crossed my mind.
we also took the plunge and sold our house and all the furniture (what was left after the kids had picked over it = very little left lol)
We've been on the road full time now for over a year now. We have given money to our kids for their houses and the deal is we can go stay there whenever we want to (stayed at our sons place in Perth last Xmas for 3 months and worked).
Only you can make the call about selling or not selling. We have previously rented our house out due to working inter-State and paid to have if managed by Property Managers - each time we have had to spend lots of money and hard work for the damage done and the house just not being maintained (yes, we had land lords insurance which is critical if you go that way).
We don't miss our home - the painting, the lawn mowing, the pool cleaning, the constant maintenance.
You will not get a dime from Centrelink with all the savings you have - if it is in your names in a Bank account - if you want to get around this - you need to speak to an Accountant to find out about how to avoid being assessed on your savings.
House prices will come down !! We are on Newstart benefit through our Accountants assistance, work part time when we need to (you don't loose the benefit - they just don't pay you while you are working) to top up the $900 a fortnight the two of us are paid.
Don't always free camp - especially when new to nomading - do spend most of your time in caravan parks to start with till you settle into nomading. Then you can mix free camping.
When we get too old to travel, we have already priced to buy a country house in W.A (a 3x1) which will cost us about $20K and will be in good enough nick to outsee us. Many country towns have very good hospital facilities with dedicated surgical and general doctors and if they cant look after you, you get taken by ambulance or copter to a major hospital.
__________________
Cheers Bruce
The amazing things you see when nomading Australia
Your comments align with our thoughts but I guess we were looking for that government support after 45 years of paying taxes.
I would anticipate a rental return of around $550/week less expenses say $500/week. This could be topped up with $200/week from our cash account, is $700 enough to live on while on the road?
Yes we sold up and hit the road fulltime, have been for nearly 12 months. We are in the worry about it later group for when we can not travel anymore. We have a plan to either pull up in a van park that has permanents, either that or as others have said just rent in a place we like. We are in it to see as much as we can before we cant and if I can get some work will we travel then its a bonus. My wife is on a disability pension and I am new start disability. Which is a pain because I have to report to centrelink monthly and have to go to disability employment groups.
We are lucky we sold our house 4 years ago after paying out all our loans etc. we were left with a modest amount in the bank, we down sized and move into a rental unit.
I have recently retired and spent a lot of time over the last 3 months looking for a reasonable 2nd hand van, after receiving lump sum payment for LSL and unused leave along with cashing in my super, we have sufficient funds to buy a new van and have a reasonable amount still in the bank, but I cannot see the value in purchasing a new van at this stage I would rather run a 2nd hand van for the 1st year or 2 to see what we actually want in a van, and if we are still in love with our nomadic lifestyle, we may consider a custom build later.
But the overriding view is if we brought new and decided the nomadic lifestyle was not for us or our health precluded us from continuing and had to go back to a house wherever we would loose too much in the resale value (have recently experienced that a 3 year old $22000 car we were only offered $6000 trade in)
It may come to the point that you may never want to live in suburbia again and find that little piece of paradise somewhere else in Oz, ultimately we will end up in a small country town either in a small house or living in the caravan park.
We agreed to purchase a 2nd hand van privately today, I offered the seller 6k under his asking price and that was accepted, we pick it up next week, we have bitten the bullet notified the agent we are moving out on 10th July went we start our great adventure.
Now we have to start getting rid of all the furniture etc. in our unit.
We get approximately $675 per week on the pension, I see that a plenty to live on in our declining years.
Do not sell your house before you start travelling.
It sounds as though you can get a reasonable rental return on it. With a really good agent you should get good tenants.
If, after about 3 years on the road, you both believe you can live in the van for the rest of your lives, then you could consider selling the house if you need to. At your ages you should have a long time to live, so the decisions you make need to be the right long term ones. Recovering from something like a hip replacement or triple bypass whilst living in a caravan is not ideal.
There is plenty of seasonal work to be had up north - in tourist operations for their busy time, harvest picking or packing, remote roadhouses, supermarkets in tourist towns - depending on your skills. Some of these include keep as part of the deal, so although the pay may not be huge, most of it can be saved. There are also more favourable tax rates for remote areas, if there 6 months or more; these then apply to all your income not just that earned in the job.
We retired at ages 52 and 57, travelled full time for 3 years, then for much of each year for the next 10 or 11 years. Some of that time we worked in the sorts of jobs listed above - which were not at all related to our previous lives. Had more jobs offered than we could do. Kept our house, but had the youngest offspring and partner living in it rather than rented, then a series of house sitters. The Driver is now 74 and health issues over the past 5 years have made us very glad to have that home base in a big city with relatively easy access to specialist medical services.
As Wendyv has said getting past 70 and the health issues you accumulate around that age can put a dint in travel plans.
At the same time these issues can also act as a spur to get you out of that comfortable rut, and make you get up and get out for a bit more adventure regardless of the outcome.
In my own case having had seven medical procedures in the past three years have made me realize that it is now or never. Or as they say in the classics "You're a long time dead".
Cheers, Tom
-- Edited by greyhoundtom on Wednesday 10th of June 2015 06:12:40 AM
__________________
I had a thought but it got run over as it crossed my mind.
As Wendyv has said getting past 70 and the health issues you accumulate around that age can put a dint in travel plans.
At the same time these issues can also act as a spur to get you out of that comfortable rut, and make you get up and get out for a bit more adventure regardless of the outcome.
In my own case having had seven medical procedures in the past three years have made me realize that it is now or never. Or as they say in the classics "You're a long time dead".
Cheers, Tom
-- Edited by greyhoundtom on Wednesday 10th of June 2015 06:12:40 AM
gee. my medical issues started in my 50.s. regards. rocket
We finished paying our house off in 1984. We have no debts & both have a reasonable amount of super that we've been living off since retiring. We both turn 65 this year & will be eligible for a part pension which is all you really need in our opinion. We've been retired for 4 years & spend around 6 months of every year away in our van on trips spread throughout the year. It's great going away & it's great coming home. We wouldn't consider selling up even though real estate prices in our area have gone sky high. We love catching up with our family particularly our 4 grandchildren aged between 1 & 9. We spend very little money while we're away as we average about 1 day per week in a CP, the rest of the time free camping mostly in the bush doing nature photography. We occasionally stay at small community CP's some of which look like ghettos, full of people permanently on the road, bored stiff & looking like survivors of a holocaust with nowhere to go but stay in a cheap venue. If your going to sit in a van all day watching TV stay at home & do it. Living permanently on the road holds no interest for us but each to their own. LOL. Best thing about super is as you use it, it earns interest keeping the balance topped up but going down slowly. Personally my balance has gone down $38,000 in 4 years & I've been maintaining a very good standard of living wanting for nothing. Our advice would be to rent your house out not sell it. It's your anchor.
-- Edited by Desert Dweller on Wednesday 10th of June 2015 09:07:39 AM
-- Edited by Desert Dweller on Wednesday 10th of June 2015 09:09:31 AM
__________________
Cheers Desert Dweller.
Our land abounds in Natures gifts. Of beauty rich and rare.
I suggest you rent your house before selling, to ensure you make the right choice for the future.
Health: You're still spring chickens, I hear there's numerous nomads 15 or so years older than you. Don't stress about what may or never happen, enjoy each day you're healthy.
When I travelled, centrelink deemed me "homeless", and your rent is income.
Our advice would be to rent your house out not sell it. It's your anchor.
I see it in a different light, Keep your house and it becomes a millstone, you still have rates, insurance rent and property, on going maintaince.
Getting good tenants is about 1 good one in 10 and if you have a couple of bad ones it can cost you a lot of money, there's a house just near us the owner was telling me they have had 5 tenants in 3 years, renting is a bit of a crap shoot with tenants.
Hi Peter my take on your situation (how I'm doing it)
1. You own your home. Hold on to it.
2. Buy a van that will last 10 years (borrow the money) Aim to pay it off before you retire. Use your super after you retire
3. Go on lots of small trips closer to home. Be ready to go straight after work (I often take van to work and meet wife in carpark)
4. Find 1 or 2 48hr stop overs(or caravan parks) in towns close to home and go and explore. (You will see these towns like you have never seen before) I do this for about 6 months each year and I get a 3 day weekend every 3 weeks.
5. Do one or two trips a year and use your holiday leave.
6. Get a house sitter if you don't like leaving house empty.
7. If you don't like the life style you can always bail out and still have your house
8. Force yourself to stick to your plan, don't become complacent
9. Become smarter. KNOWLEDGE = POWER. The more power you both have, you both together will enjoy a great retirement.
I have done this for the last 4years and a 5year loan has 1 year to go. Being from Tassie, I must pay just under $2000 + fuel to find some warmer weather in Queensland. I only get holidays in July August, so must head north
G'day Peter
We live full time on the road and our budget is;
$150 we put aside for van and car insurance,servicing and repairs,
$50 for phone and wireless internet,
$300 for van parks and petrol,we free camp regularly which enables us to save some of this for special trips ie flight over the Bungle Bungles;
$200 for food;we live very well and travel with 2 dogs,and
$200 for spending money,i love my red.We have lived on the road full time for 2 1/2 years and never looked back.When and if we get too old we will camp up somewhere permanently where we like.
Hope this has helped you.
Les
G'day Peter We live full time on the road and our budget is; $150 we put aside for van and car insurance,servicing and repairs, $50 for phone and wireless internet, $300 for van parks and petrol,we free camp regularly which enables us to save some of this for special trips ie flight over the Bungle Bungles; $200 for food;we live very well and travel with 2 dogs,and $200 for spending money,i love my red.We have lived on the road full time for 2 1/2 years and never looked back.When and if we get too old we will camp up somewhere permanently where we like. Hope this has helped you. Les
Hi done dreaming,
That budget you have listed for what time span is it? Hopefully not your weekly spend.
cheers, Tom
__________________
I had a thought but it got run over as it crossed my mind.
I have 800k in super, take $1000 a week . Have two rentals . If you have melisious damage insurance on your property you can't go wrong.. In Citires the rent income well covers expenses .. We go away for 3 to 6 weeks at a time .. Next year we will be going around taking our time.. We won't be using too many camping grounds as we've leant to find recreation parks etc..
The hardest part with retiring is where and what to do with your assets as no one like to talk about it .. In fear of bragging or admitting your low savings .. Transferring super over to pension fund gave me nightmares for months . Then you listen to business news about how many schemes etc have gone broke .. Ahhhh !!! I kept my investment properties as I didn't want to put all my eggs in one basket.. Plus I've always had the thought of never changing too far from what you have done. Keep to the winning ways ..
I find I spend less on travels than at home ...
-- Edited by Aus-Kiwi on Thursday 11th of June 2015 02:19:38 AM
-- Edited by Aus-Kiwi on Thursday 11th of June 2015 01:25:49 PM
-- Edited by Aus-Kiwi on Thursday 11th of June 2015 01:26:59 PM
You and many others face this dilemma and my advice is that you need to seek the advice of a financial planner (or your accountant if you have one) regarding the best use of your assets and your options for maximising your income stream over the long term. That will help you make the decision about what to do with your house and what income options you have. There are too many rules and regulations to get your head around (and they keep changing!!!) while you are trying to plan a completely new lifestyle. There are some unsavoury financial planners around so ring the financial planning association and ask for a recommendation for a couple in your area to go and see. It will be money well spent and the first consultation is free. Your bank may have someone you can talk to but, whichever planners you speak with, do not sign up for any investment products!!!!!!! Your aim to get the information you need to make an informed decision, not to sign up for anything.
We are planning a similar adventure but we are selling our home on the south coast of NSW for a few reasons:
it is too good to put into the rental market in this area to be confident of returning to find it as we left it and getting reasonable rent!
we can buy back in here at a reasonable rate (very little movement in the market in the last 8 years) later on if we wish
we could (if we wanted) buy a smaller place to call 'home' and rent it out (for additional income) but that will depend on what we get for our house
we're not entirely sure if this is where we want to be long term (may find somewhere better on the road!)
we may be better off renting long term
if we decide to buy we can live in the caravan until we find something we like.
Good advice about financial issues is extremely important and should be sought from professionals. No doubt there may be a financial planner among us on this forum who can help you or at least point you to someone who can. Your assets are far too important to rely on just the experience of the generous people on this or any other website. Please don't take offence out there; I am not casting aspersions on any of you.
