Need Recommendations to Retire in Bali/India at 45 Years of Age

yourflights on 09/08/2023 - 15:38

Hi, I am 40 year old and living with wife and 1 high school kid in Sydney. Owns a home (1.4 mil) with only 100K loan left on it. Thinking to retire after 5 years, preferably in Bali and India (6 months at each location every year). Currently earning 100K + 80K as family income and approx. 160K super between me and wife. Has good web/freelancing skills and easily earn $500-$1000 per month by working remotely (few hours a week) from anywhere in the World. Has parked that skill for retirement and not utilizing it much while currently working as full time employee.

Thinking to retire after 5 years when the high school boy finishes his study and goes to Uni and leave with the friends. Please advice what do you think about this plan. Really tired of same 9 to 5 life. Also, not expecting to leave up to100 years like most Aussies as coming from a country with average life expectancy of only up to 70 or so.

Really confused if I should take some money from home loan now and buy villa in Bali/India or rent there if I retire after 5 years. If I rent my existing home after 5 years (loan will be fully paid at that time), can get rent of approximately 50K AUD each year.

Financial

Comments

    • yourflights on 09/08/2023 - 15:48
      +1

      Thanks. I will read that forum soon. Just had a quick look and look similar. Only difference is the guy is already moved to Vietnam and working as teacher there whereas I dont want to work at all where I have to wake up with alarm and sleep early to wake up early. Thanks though for pointing me to that forum post as I can see that it is very active.

      • ATTS on 03/12/2024 - 15:51

        Just curious with the spare 8 hours every day not needing to work ( 10 with travel) what do you plan to do?

        Clubbing everyday? Sleeping in?

  • rambutann on 09/08/2023 - 15:43
    +7

    Hell yeah, sell the house - live off the interest + freelance income - live yo best life.

    • yourflights on 09/08/2023 - 15:51
      +1

      Thanks mate. Would you recommend selling the home and live off interest (max interest on 1.5 million as of today is $60K in savings account (4%?)) OR renting it and living on the rent which will be less as compared to interest as of today. Really do not want any high risk investment as has been badly burnt in stock market in the past. Just need to live on safest way to earn modest interest in savings accounts.

      • hdus002 on 09/08/2023 - 16:05
        +2

        One thing to consider is that if you are living overseas and have rented out your Australian house, then you are not considered a tax resident of Australia. So, your tax slabs will be different, and you will pay taxes on every dollar earned in Australia (ie no exemptions).

        ps: I have similar plans too, though looking at a longer timeframe.

        • yourflights on 09/08/2023 - 16:07
          +1

          Thanks for sharing this. Didnt now this so really thankful to you for mentioning this to me so I can do more research. Are you saying $17K tax free threshold doesnt apply if you are not a resident for tax purpose?

          • hdus002 on 09/08/2023 - 16:08
            +1

            @yourflights: Correct. Quick google search shows the lowest slab is 32.5% ($0-$120,000)

            • yourflights on 15/08/2023 - 09:57

              @hdus002: Thank you. I am still not sure if I will be considered non-resident for tax purpose even if I am AU citizen? I am planning to call the ATO later this week and ask them if I will be considered non-resident if I move overseas and also you are right that no exemption available for non-resident when it comes to tax.

              • hdus002 on 15/08/2023 - 11:55
                +1

                @yourflights: Tax residency is separate from citizenship.

                It's determined by the amount of time you spend in Australia that financial year, whether or not you have immediate family living in Australia, whether or not you have a place of residence in Australia etc (a property rented out doesn't count). However, the laws are a bit gray, so worth checking in with a tax specialist.

              • hdus002 on 15/08/2023 - 12:41

                @yourflights: Some documentation, and an online test here: https://www.ato.gov.au/Individuals/Coming-to-Australia-or-go…

                • yourflights on 15/08/2023 - 13:08

                  @hdus002: Thank you. I will check it soon but looks like (as many said), I will be considered non-resident if I leave Australia permanently. In that case, I may not be able to claim tax free threshold on the rental income also there may be consequences in terms of CGT if I dont get tax free profit if I sell the home after moving from Australia. May be then, I will have to sell the home before I move out so I dont pay any CGT on the profit and then I decide if its worth keeping money in Australian savings account or moved it overseas (depending upon fees, interest rate, fees, tax bracket etc. )

                  However, it may be a good idea to get a loan on the property before I move (while I am still working and has sufficient borrowing capacity) and offset the rental income with loan interest and then use the equity to invest overseas. This is indeed a area to explore further and get professional advice.

                  • onegpt on 01/10/2023 - 10:22
                    +1

                    @yourflights: there are much better ways to invest money then in aussie real estate which is good as long as government can control it.

                    • yourflights on 03/10/2023 - 10:40

                      @onegpt: Any specific examples ? Are you referring to ETF or Gold or something else that can do better than RE in Australia? Thanks

        • ddhar on 09/08/2023 - 16:33
          +1

          Also beware on land tax surcharge (on top of regular land tax) you would be paying annually as a non-resident, australian property owner. Currently it's 4% of your three-year averaged land value.

          https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties…

          • yourflights on 09/08/2023 - 16:35

            @ddhar: Thanks. Do Australian citizens consider foreign owner ? I think they are not. I will still read your link to reconfirm.

            • yourflights on 09/08/2023 - 16:37
              +1

              @yourflights: You’re generally considered a foreign person, unless:

              you're an Australian citizen; or
              you've lived in Australia for 200 days or more in the 12 months prior to the taxing date of 31 December, and you're a permanent resident of Australia.

        • leiiv on 10/08/2023 - 11:24
          +1

          Is it not that simple. The ATO can't have their cake and eat it too.
          https://www.ato.gov.au/Individuals/Coming-to-Australia-or-go…

          The main problem is with this part: https://www.ato.gov.au/Individuals/Coming-to-Australia-or-go…

          There are no 'hard and fast' rules that can be used to determine your permanent place of abode

          which is unfair because it is unclear.

          For example: A legal decision in 2013 shows that a person who fails to cut their connection with Australia will be treated as an Australian resident.
          http://www8.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/aat/…

      • brandt on 09/08/2023 - 16:06
        +1

        60k less tax. Once the savings interest rate settles to down to half of what it is today - that's 30k less tax.

        • yourflights on 09/08/2023 - 16:08
          +1

          I am not sure if interest rate will go half than today.. If so, renting the home may be better than. Isnt it? Because rent will not go that low at all. In fact, rent will keep increasing every year due to shortage of homes..

        • onegpt on 10/12/2024 - 17:10

          Interest return should not be counted as a return as it's roughly about the inflation rate and your $ is actually going down which should be adjusted. In reality the interest is less then inflation. You need investment income

      • rambutann on 09/08/2023 - 16:32
        +2

        You can achieve +5% today from a savings account (ubank at 5%, others at more), but i'd guess you'd be able to achieve 4% in a few years time.

        Even if you weren't - a low risk share portfolio will generate similar returns - not individual shares - i'd be investing specifically in a diverse portfolio like VAS which averages around 4.3% per annum - but even in this situation i'd be putting my money in the bank until bank interest dips below 3.5% when the risk is worth the reward.

        The beauty is that you have enough money to get a decent annual return from a bank account - no need to go risky. Even at 2% you'd get $30k per annum - plus whatever you make freelancing will be plenty to live off in the countries mentioned.

        And if you ever decide you want to move back to Australia - you can because you have the money.. probably not to Sydney at that point but definitely somewhere in Australia haha

        • yourflights on 09/08/2023 - 16:38

          Thank you so much. Exactly what I am thinking.. Not sure about VAS so will give it a go. My experience with individual stocks is worst so far. May be I am too emotional when it comes to trading so made that resolution last year that under no circumstances I will invest single dollar in stocks

          • Malik Nasser on 09/08/2023 - 21:25
            +1

            @yourflights: For stocks, unless you have a robust trading strategy, then trading is not the way to go (it takes a special type of person to be successful - as you have found out).
            You are better off purchasing ETF's (such as VAS), and just hold it (do not sell). It covers Australia's top 300 listed companies, so you have instant diversification (only to Australia though). The ETF will increase in value over time and will also pay out dividends (its price will vary from year to year, sometimes up, sometimes down, but over the long term it will trend up). See its performance here (click 20yr on the chart):
            https://www.marketindex.com.au/asx/vas

            You can also get exposure to US stock ETF, such as VTS. It doesn't pay out much of a dividend compared to VAS, buts its growth has been much higher. See its performance here (click 20yr on the chart):
            https://www.marketindex.com.au/asx/vts

        • brad1-8tsi on 09/08/2023 - 17:03

          Bank interest you pay tax on. VAS is almost 100% franked and therefore taxed differently and also gets capital growth. You can't compare returns on the 2 investments.

          Out of interest, where will the child be educated?

          • yourflights on 10/08/2023 - 09:22

            @brad1-8tsi: Thanks. I agree. We cant compare two different streams of investment however I need 0% risk even though it comes at a less income so I am thinking to choose savings account.

            Regarding the child, most probably in any of the Sydney Uni. I am sure he can get his HECS to support his study.

            • brad1-8tsi on 10/08/2023 - 10:35

              @yourflights: 0% risk is nuts. You just go backwards against inflation and pay tax as well.

              My main account based pension just follows a diversified index. It's up 11% since I started it last November. I only draw down 5% so there's more $$ there now than when I started.

              From what you've written your financial knowledge isn't great and I find folks like that either want no risk or too much risk. There is a happy medium.

              I also find your attitude to your children a bit odd but it takes all kinds I guess.

              • yourflights on 10/08/2023 - 10:58
                +2

                @brad1-8tsi: Thanks for your comment. I had a very high risk investments over the last 10 years and made some great profit and also some loss. I am actually tired of this investment thing altogether. I used to check my commsec and coinspot account multiple times a day for years now however I am now tired of that and just dont want to waste my time doing all those things. I know its not a good attitude however just want to leave a good and simple life where I dont have to see whats happening with my investment. How about getting a rent of 50K and living on it forever in those countries. If inflation increases, so will be the rent so it will balance. Also, I dont mind if I have to sell the home and start eating the equity itself for next 30 years or so if I live that long and die at the end without any equity or bank balance left in the account. Of course, if something goes wrong in the meanwhile, life insurance is sufficient for my wife to live a queen like life. I am very happy and healthy at this time but want to make it better. Just dont like wake up, go to work, come home, watch TV and sleep and wake up again next morning with alarm.

                Regarding the child, he is bright and very capable of finishing his study with great ATAR and I am very confident he will start at a salary which I am earning now (100K). As I said, I will help him for the deposit if he wants to buy a home but I am not expecting (like many parents) to continue working up to the age that I then go straight to aged care and then I am at a mercy of my son and health care professionals and then not do anything for myself. Why not, retire at 45 and live for next 20-25 years and use whatever I have earned over this years and then end this beautiful journey (of course naturally when its due) with zero balance in the account. Is it too bad to think that way?

                • onegpt on 10/12/2024 - 17:14

                  @yourflights: You need to invest In Financial education. Sorry about the play of words. All you need is time there are plenty of resources. A low cost index fund is the best way and doesn't require much time.

              • yourflights on 10/08/2023 - 11:03

                @brad1-8tsi: Not sure how you concluded that my financial knowledge isnt great (still respect your opinion though) I mentioned below in other comment that I only have max. 11 years work history in Australia and started a job at 55K and reached to 100K in these 11 years so not a great salary in comparison to what many people earn. Wife also earns around 50-60K each year since these years however I have made great profits in real estate, crypto investment and some losses in stock trading to reach to this situation to even think about retiring at 40 years.

                As you said, your index gone up 11% which is great but my whole point is I dont want to see increase of my return each year or even think about that. If I can survive in whatever income I have for next 20-25 years, I am perfectly fine with that.

            • onegpt on 01/10/2023 - 10:25

              @yourflights: that is pretty risky when you factor in inflation. basically inflation is the real value of your AUD going down.

      • coffeeinmyveins on 10/08/2023 - 12:06
        -1

        Live off the interest but lose money due to inflation?

        Lol

        • yourflights on 10/08/2023 - 12:37

          Thanks. But as I said, I am happy to use the money I have until next 20-25 years and I am also willing to eat in my equity to keep using until I have last penny used. Simply speaking, is 1.4 million AUD enough (either by getting interest on saving account or renting the home) for two people to survive for next 20-25 years in one of those countries?

          • Crow K on 10/08/2023 - 16:11

            @yourflights: Have you sat down and drawn up a spreadsheet that would list your expected income and expenses for the next 20-25 years and compared that with known data on rents, cost of living etc in the areas you're interested in?

            Then factored in slightly different models about 'what if interest rates halved', 'what if my temporary work ability halved' etc?

            25 years is a long time, and there's a lot of variables. I feel like the people trying to decide which keyboard to buy on these forums have done more detailed research before asking questions at this stage.

            • yourflights on 11/08/2023 - 09:13

              @Crow K: Thank you. Yes, I am currently working on a spreadsheet for projection with few variables e.g. interest rate, rent, property price (going up or down), tax etc. It is indeed giving me some really good insight. Yet to complete it but I realised that it is a good way to do projection.

  • DashCam AKA Rolts on 09/08/2023 - 15:56
    +2

    Check Bali expats Facebook etc for first hand info.

    • yourflights on 09/08/2023 - 16:04

      Thanks. Will give it a go now. I been to Bali few times and really loved it though.

  • Pecan on 09/08/2023 - 16:01
    +2

    What happens when your kid starts a family, are you coming back to support them?

    • yourflights on 09/08/2023 - 16:05
      +4

      I will support him little bit (deposit if he wants to buy home or something) but not much. I think he should be independent and earn his life himself. I am currently doing anything possible to give him best possible education so I assume he will be able to live his life with very little support from me.

      • Pecan on 09/08/2023 - 16:09
        +6

        I was thinking more along the lines of spending time with grandkids, rather than financial assistance.

        • yourflights on 09/08/2023 - 16:23

          I see. Thanks for clarifying. I think they would be happy to come and visit us in Bali or India and spend some quality time in a villa rather than we coming here and trying to squeeze in their one bedroom unit in Sydney CBD.

          • [Deactivated] on 09/08/2023 - 16:27

            @yourflights: huh? You've got a crystal ball as to where your kid's going to be living in x years time?

            • yourflights on 09/08/2023 - 16:41
              +3

              @[Deactivated]: Ha ha.. I think he wants to live in Sydney and looking at the young professionals life in Sydney now a days,.. 1 bed room rented apartment (paying higher rent than a three bedroom home in Western Sydney) in Sydney is what my crystall ball is seeing..

          • Pecan on 09/08/2023 - 16:42
            +2

            @yourflights: That would be a once in a blue moon visit though. I also have one child, so assuming I have grandkids, I can’t imagine living so far away in another country, missing out on being with them, watching them grow up etc. There is just no way I would be ok with what you’ve described, but to each their own I guess.

            • yourflights on 09/08/2023 - 16:47

              @Pecan: I respect your view completely and as you correctly said.. its individual choice - how far they want to help their children and grandchildren. I must say I have seen many elderly people here who do so much for their children and grand children and when they really need help for their health, they are in aged care facility and those children and grandchildren do come to meet them once every month. My wife was telling me yesterday that she see all these aged people in aged care facilities continuously watching towards the door throughout the day hoping someone will come and talk to them.. but it only happens few times a month

              • lgacb08 on 11/08/2023 - 08:51
                +5

                @yourflights:

                all these aged people in aged care facilities continuously watching towards the door throughout the day hoping someone will come and talk to them.

                If you're looking forward to having the time of your life and your son can come over to Bali/India with family to visit at anytime as he wishes without even considering how he's gonna squeeze in 2 weeks of holiday left, balancing it against those school holiday, kid's sick day where no helping hand around you might as well end up with the same fate after 25 years.
                you undoubtedly doing great with your current situation but probably need a reassessment of happiness in life. If you only see your life now as 9-5, watching TV after, bed and repeat the next morning then I guarantee you will struggle with the spare time by that time. Happiness is a journey not a destination and you have to find the joy in reaching for it.

                • yourflights on 11/08/2023 - 09:14
                  +1

                  @lgacb08: Thanks for the balanced answer. Really appreciate it.

            • TrustNoBody on 10/08/2023 - 23:09
              +1

              @Pecan: i have a grandson now who lives fairly close and i’m lucky to see him once a month ,mind you my daughter is a midwife so works different shifts so hard to get together

              • yourflights on 11/08/2023 - 09:19
                +1

                @TrustNoBody: Its great if you have your grandson nearby and also if you can enjoy your retirement life here. I am in this confusion state - staying with son and grandson in future and struggle here to enjoy good retirement life like many pensioners OR staying bit far from kid and grandkids but actually enjoying my retirement ??

                • TrustNoBody on 13/08/2023 - 20:54
                  +1

                  @yourflights: no i was just explaining that even though my grandson lives close i hardly get to see him so if your son and future family come visit you overseas once every 6-9 months i think that’s still ok same as family that live interstate would rarely see grandkids so you do what’s right for you ..i wish you all the best for the future ..life is short .my kids grandmother just passed away a few days ago aged only 68 and she worked all her life and retired at 63 on compo and didn’t even enjoy her life after work as we are aboriginal and generally pass away at average 20 years sooner then white australians ..

                  • yourflights on 14/08/2023 - 09:44
                    +1

                    @TrustNoBody: Thank you so much. That is exactly what I am thinking. I cant assume that I will go till the end of average life expectancy for my race and origin. If that doesnt happen (as it happened sadly for your relative), there is no point of working hard for entire life and not get to enjoy it.

          • Oneguyinmelb on 13/12/2023 - 14:00

            @yourflights: Even with a 'free' ticket for under 2yos, the stress of travelling with an infant makes it less attractive.

            We have relatives in NZ 3-4Hr flight and barely manage to visit once a year. Being in Bali (6 hours) or India (13 hours) would be even more difficult.

            Then you have the health care concerns if the infant gets sick during the trip.

            • yourflights on 13/12/2023 - 16:18

              @Oneguyinmelb: Thanks but I dont have any infant in my situation. I am sure an adult or senior (when I get old) will be able to manage 13 hours flight. Is that not true?

  • boomramada on 09/08/2023 - 16:16
    +4

    Retiring in such a destination is good in books but think about health care. It's not much of an issue for you since you are young in retirement age but later down the track, it will be. In both India and Fiji, you need decent savings for good private health.

    It's already been a issue for people in ACT retiring in Batemans bay when accessing medical services.

    • yourflights on 09/08/2023 - 16:34
      +4

      Thank you. I respectfully want to oppose you regarding healthcare. My wife works in aged care and is very firm that she would never want to get old and die in aged care in Australia.

      I think if you have money, you can get the best quality healthcare in those countries. A personal example.. I had chronic tonsillitis and was asked to wait for one year to get surgery done here. Took a flight to India next morning and got admitted and operated next day morning in the best (five star services) hospital in the town. Took rest in nearby five star hotel for 1 week after surgery and returned to Sydney after that. Total costed me $2300 inclusive of flights, accommodation, surgery all. This is before 6 years. Last year, my son got tonsils problem and I had top health insurance coverage here and still ended up paying $900 or so in excess/anaesthesia to get the surgery done..

      I agree that universal or govt healthcare is not good in those countries but if you have money, you can get quick and best treatment possible. BTW: It takes 2 weeks to get a GP appointment and 6 month to see a specialist in some parts of the Sydney as of today.

      • p1 ama on 09/08/2023 - 21:01
        +6

        I think if you have money, you can get the best quality healthcare in those countries. A personal example.. I had chronic tonsillitis and was asked to wait for one year to get surgery done here. Took a flight to India next morning and got admitted and operated next day morning in the best (five star services) hospital in the town. Took rest in nearby five star hotel for 1 week after surgery and returned to Sydney after that. Total costed me $2300 inclusive of flights, accommodation, surgery all. This is before 6 years. Last year, my son got tonsils problem and I had top health insurance coverage here and still ended up paying $900 or so in excess/anaesthesia to get the surgery done..

        You're talking about elective surgery. Yes, the public healthcare system in Australia triages its patients, so the most serious ones are seen first. You can also go through the private system in Australia. Anyway, this is all a different discussion.

        The issue is that for very serious illnesses, e.g. cancer, heart disease…etc. which require either major surgery or ongoing treatment, the bills are going to rack up overseas whereas they will not here. We're talking about bills in the neighbourhood of $100K+.

        • yourflights on 10/08/2023 - 09:26

          Thanks. I have done some research and found that I can get local health insurance in those countries and get the top best coverage (to cover majority of major illnesses) and it cost around 3000- 4000 AUD max for two people. I am talking about the best of the best coverage to get any possible available treatment for major conditions like cancer and heart disease. I may be wrong as I havent actually done real deep research about conditions that are excluded but definitely will be doing it if I decide to make this move. Thanks again for your answer.

          • coffeeinmyveins on 10/08/2023 - 12:07
            +1

            @yourflights: What about ongoing treatments and change of life?

            • yourflights on 15/08/2023 - 10:07

              @coffeeinmyveins: I think I can have top quality healthcare in those countries at a reasonable cost. I havent done any quotes yet though. For major life changes like death or injury, I will rely on my life, TPD insurance.

              • hdus002 on 15/08/2023 - 17:45
                +1

                @yourflights: The one thing that makes me a bit wary of retiring in India is the healthcare costs. Not sure how much you've looked into this. The fancy luxury hospitals are known for fleecing patients by ordering unneeded treatments, scans etc. An illness that requires spending say a couple of weeks in intensive care can easily cost tens of thousands of dollars. Health insurance there will only cover a part of the costs. My parents live there now, so I am aware of some of the costs and concerns in this area. A major health incident even now could end up costing upwards of $50k. Wonder what that'll be in 25 years time. Ofcourse there are cheaper hospitals but facilities may not be up to your expectations if you're used to hospitals here.

                Another factor is the legal system - if something goes wrong, say an accident where you're at fault, or a neighbour encroaching into your land, dispute with landlords etc and you'd run into the full force of the beaurocracy.

                Wouuld'nt write it off though, my plan is to split time between here and there, Australia being the backup if/when things hit the fan, and secretly hoping I don't live till anywhere near the full life expectancy :)

                • yourflights on 16/08/2023 - 10:14

                  @hdus002: You have some really valid points. I agree about legal system and corruption etc. however it can also happen anywhere. Isn't it? You may be aware of an Accountant in Sydney who has gone broke last month and many Indians have lost millions of dollars. He is still enjoying his life freely and families are crying and stressed out including my friend who lost 300K just by keeping the trust and gave the money to this guy in exchange of a legal contract which has no value now as the firm (along with 10 other companies he had) are broke now.. People have lost hope now and we are talking about excess of 100 million altogether.. Just an example how legal system can be bad anywhere…Not saying its better in India but just putting my point here.

                  Isnt the Mediclaim covers lot of cost in India? You have to have top level coverage though to get covered 100%. My father in law has gone through knee replacement surgery last week and every penny is now paid by Mediclaim in the top hospital (with special room) in Gujarat. If you have less coverage, it will then definitely cost you out of pocket but if you have top coverage, I think you can be covered fully.

                  Thanks

    • onetwothreefour on 09/08/2023 - 16:36
      +2

      This is what puts me off doing the same. I know I will need to have a kidney transplant probably in my 60's (if I live that long!) if not I would seriously consider retiring somewhere like Bali or Thailand.

      • yourflights on 09/08/2023 - 16:43
        +2

        Thank you. Not sure how many years will it take to do anything special in terms of healthcare. I really started to think that the healthcare system in Australia is worst.. I know many members will not like my view but believe me or not, it is indeed difficult to see a GP or get a simple surgery done here.

      • TrustNoBody on 10/08/2023 - 23:17
        +1

        my kids grandmother is 68 now and has been doing kidney dialysis for about 8 years now it’s definitely not a nice way to live ..

    • onegpt on 01/10/2023 - 10:28
      +1

      health care in australia is a joke compared to india. You need to spend some time to find good doctors etc but there are many medicines which you cant get here. the quality of doctors are also so not as good as compared to good doctors in india which you can easily afford out of pocket.

      • yourflights on 03/10/2023 - 10:43

        Thanks. I think you are the first one in this forum who somehow agree to my point.. I have seen it and experienced it that India has top doctors (if you can afford) and world class medical facilities. BTW, India is one of the biggest exporter of health care professionals to Australia so it is very likely that we will be treated by an Indian trained doctor in any of the Australian hospital. I dont have number but I would say 40-50%% or may be more Health care professionals in Australia are overseas trained and majority from India and UK…

  • JimmyF on 09/08/2023 - 16:44
    +1

    If I rent my existing home after 5 years (loan will be fully paid at that time), can get rent of approximately 50K AUD each year.

    Is that after costs? Rates/Insurance/Agent fees/Repairs? Don't forget about these.

    You also have the chance/hope that house prices will continue to rise. So you'll be making some capital gains too.

    But if it was me, I would sell the home and spread the money into a bunch of things. Term deposit and/or High interest cash savings, this way you have access to cash if needed at the drop of a hat, and then buy 2 or 3 units to collect rent from to live on. This way you spread the income dips from empty places etc.

    should take some money from home loan now and buy villa in Bali/India or rent there if I retire after 5 years

    Unless you know what area you want to live in, I wouldn't be doing this now. Try the area first before you buy.

    The biggest issue I see for living in these countries is healthcare. Its not the same as Australia.

    • yourflights on 09/08/2023 - 16:53
      +1

      Thank you for some great suggestions. Worth considering. Rent from one big home vs rent from three units (same cost total). Regarding healthcare, I have put a detailed comment about my view/perception just above to respond another person. Thanks

    • Crow K on 09/08/2023 - 16:55
      +3

      The biggest issue I see for living in these countries is healthcare. Its not the same as Australia.

      Plot twist revealed in comments directly above, OP thinks healthcare in India/Bali/Thailand is better than Australia.

      • JimmyF on 09/08/2023 - 19:11
        +2

        OP thinks healthcare in India/Bali/Thailand is better than Australia.

        That is certainly a plot twist……

      • boomramada on 10/08/2023 - 08:44
        +2

        I think OP isn't telling the full story. Unless you have family and friends in there, you need to be stinky rich to have the same level of care just as here. For a person who wants to retire, some of the key things I would pick would be pollution, traffic, facilities, process (try to get a driving license and see how much headaches it would be), neighbourhood (to stay safe, it has to be gated community), health care (probably already cover that).
        It's an awesome place to visit but for retirement, nah.

        The second-highest immigrant community in Australia is from India, does that tell you anything?

        • yourflights on 10/08/2023 - 09:29

          I do have my roots in one of those country so you are correct. However being away from the country since more than 30 years, I am similar to any person who born in Australia and moving overseas. No property, no close relative there at this time. I am aware that India is biggest exporter of immigrants to overseas however I am putting myself in slightly better condition as I dont have to find work or make money while I am there as I have done that hard work here already.

          • boomramada on 10/08/2023 - 09:54
            +2

            @yourflights:

            However being away from the country since more than 30 years

            I strongly suggest you go live there for a year and re-evaluate the question. If you are away from a country for more than 10+ years, it's not the same as you thought it to be, things change, and people change. It's just your thoughts haven't changed both in good and bad ways. I have met people who attempt what you try to do and came back.

            • yourflights on 15/08/2023 - 10:10

              @boomramada: Good suggestion. I am aware that lot has changed in last 30 years so India may not be the same what I left before 30 years.

      • binti33 on 18/08/2023 - 07:57
        +2

        To be fair, Australian are a bit delusional about how “great” healthcare is in australia compared to the rest of the world. I was recently in Turkey and it was a one stop shop visiting a hospital to get testing and treatment done for your entire body incl. dentistry - it was high quality, and affordable.

        • Crow K on 18/08/2023 - 08:27

          That's interesting, would you say that the healthcare you received would be typically available to Turkey's citizens or was this more "as a tourist I got special treatment" style deal?

          • yourflights on 18/08/2023 - 09:09

            @Crow K: @CrowReally It wont make a huge difference if you go as private patient. Let me give you an example, knee replacement in India cost 4K AUD that includes surgery, anaesthesia, five star accomodation, food, recovery stay for a week etc.. I am talking about top care with an orthopaedic surgeon and latest technology. Same surgery will cost you probably 20-30K AUD here.. This is based on personal experience for my father in law last month.

            If you have top level BUPA cover here, you will only pay fraction of that cost and same in India if you have Mediclaim there. Premium you will be paying for BUPA here will be huge as compared to annual premium you will be paying in India for Mediclaim.

            Dental is another thing to compare. Massive difference in dental care in Australia vs overseas..

            BTW: You may know that 50% of Australian GPs are overseas trained so that means, we do rely on those same high quality doctors who were trained overseas.

          • binti33 on 18/08/2023 - 13:14
            +1

            @Crow K: Yes. It’s not a tourist thing it’s available for all Turks. In fact, we met with a dentist who said there were so many dentists graduating in Turkey atm that each dentist is assigned to 9 families (or something along those lines) so everyone has really easy access and regular check ups.

        • yourflights on 18/08/2023 - 09:04

          Great to hear that. I totally agree. Many of us are delusional here that its great healthcare here but in reality its not. I would expect the same treatment in India too. Of course, pubic healthcare system is not great however if you go to private healthcare and spend fraction of the money you would have spent in Australia, you will get the top treatment.

        • BusMan247 on 01/10/2023 - 10:35

          I will agree, but I really respect our healthcare and hospitals in Australia. We've all heard of the various horror stories but generally, I'm impressed by the service the nurses and doctors provide to us here in Sydney (RHNS and Randwick).

          In saying that, when visiting France years ago with my family and before I had kids, my sister got I'll in Paris. The hospital was world class, looked like a brand new corporate powerhouse of a building, and it was all free cause we were travelling. Incredibly nice doctors and so many staff.

          The absolute opposite of NYC, in my experience. That place was like the movies, a nightmare.

          • yourflights on 03/10/2023 - 10:39
            +1

            @BusMan247: Thanks for sharing your personal experiences in Paris and NYC.

    • onegpt on 01/10/2023 - 10:29
      +1

      low cost index fund is the way to do. thats not what i say, thats what buffett says

      • yourflights on 03/10/2023 - 10:39

        Any examples? Thanks

  • mshanann on 09/08/2023 - 17:32
    +2

    You may want to look at fostering the kid out now and heading O/S early. Bali is supposedly getting very expensive due to all the displaced Russians and Ukrainians.

    • [Deactivated] on 09/08/2023 - 17:49
      +3

      The Russians there aren't displaced in the traditional sense of the word ….. they know what is coming & simply moved out.

    • yourflights on 15/08/2023 - 10:11

      Yes, I noted that. Villas are almost 20% expensive what it used to be last year.. rent or buy.. both ways.

  • Drakesy on 09/08/2023 - 17:44
    +1

    Geez thats a nice nest egg to be on.

    Kid and a house worth $1.4 mill.

    • HardQuiz on 09/08/2023 - 18:28
      +7

      Some would argue the kid is a liability.

      • JimmyF on 09/08/2023 - 19:13
        +2

        You can part them out overseas and profit…..

      • Drakesy on 09/08/2023 - 20:37
        +1

        True, OP could have a $2 million house!

  • mskeggs on 09/08/2023 - 18:01
    +5

    I had planned to spend a few years in a similar way - not expressly retire, but no full time work for a few years.
    But I'm a bit older now, about when I was planning to go, and I don't feel the same attraction.
    A big part of it is I have a better, more interesting job now, more financial capacity, and I have started to miss my kids as they left home, and would miss them a lot if I was permanently in another country.
    Worse if they have their own little ones.

    I might still do a year or two abroad for a bit of adventure, but I realize I am quite happy in Australia and it was the financial and work pressures leading me to think about leaving a lot, and with those largely gone, living permanently in a developing country away from my family has less attraction.

    • [Deactivated] on 09/08/2023 - 18:21

      …. realize ….

      What ……is …..happening …… here?

      • mskeggs on 09/08/2023 - 21:03

        phone spelling autocorrect.

        • [Deactivated] on 10/08/2023 - 00:15

          Sheesh …… Mulder was right!

  • Downvoter on 09/08/2023 - 18:03

    Where’s the rest of your superannuation??

    • Cheapskate Paul on 09/08/2023 - 21:14

      The OP is planning to retire at age 45. Far too young to access super.

      • Downvoter on 09/08/2023 - 22:13

        Obviously. I’m saying how can they only have 160k super between them both at age 40.

        • yourflights on 10/08/2023 - 09:33

          Great question. You are correct. Its less as compared to average 40 year old OZ couple. Please note that we only immigrated to Australia before 12 years and only have 11 years of work history in Australia so thats the only super we accumulated.

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