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

            • Cheapskate Paul on 15/08/2023 - 11:11
              +1

              @yourflights: An Australian citizen could not be denied access to return to Australia or recieve less favourable treatment.

              • onegpt on 01/10/2023 - 10:33

                @Cheapskate Paul: well even though it is a democracy it is probably the only major democratic country in the world with kind of restrictions on movement of citizens. May be I am wrong but I think practically government powers are closer to china then they are to free countries.

  • Lunarboogie on 09/08/2023 - 18:36
    +2

    You can rent your house for 6 years and still sell it CGT free. I'd do that. This way you get rent for a few years and then benefit from the enormous capital growth that is predicted over the next few years. That $1.4m could close to double based on 10 per cent growth which is not outside the realm of possibility.

    • JimmyF on 09/08/2023 - 19:14
      +3

      LOL houses are not going to double in the next 10 years. That ship has sailed.

      • Lunarboogie on 09/08/2023 - 19:27
        +2

        If I had a dollar each time I heard this, I could retire in Bali and India!

        • JimmyF on 09/08/2023 - 20:42

          Past history is not indicative of future performance. Sure houses have been doubling for good reason, interest rates going down, they are near the floor, so that lever is tapped out. Wages also haven't been keeping up to allow people to 'borrow' the money needed.

          So as I said, that ship has sailed, it won't double in 10 years time from todays prices like it has been.

          • Lunarboogie on 10/08/2023 - 06:48
            +1

            @JimmyF: You're assuming the housing market is tied to economic fundamentals. Unfortunately, it's not been the case here since the turn of this century when prices jumped the firewall.

            There is a housing shortage. Supply will not meet demand. And 2 million migrants will pour into this place before OP turns 45. If you want to talk economic fundamentals - scarcity means higher prices.

            • JimmyF on 10/08/2023 - 09:37

              @Lunarboogie:

              There is a housing shortage. Supply will not meet demand. And 2 million migrants will pour into this place before OP turns 45. If you want to talk economic fundamentals

              Just because there is a shortage and migrants flowing in doesn't change the fundamentals required to buy housing. Increased immigration waters down wage growth as there is more 'supply' of workers.

              In the OP case when it doubles like you claim, what is required for a deposit and servicing of a $3m loan will be out of most people's reach without massive inflation to wages.

              scarcity means higher prices.

              Only if there are enough people who can afford to pay those prices or want to pay those prices.

              Past performance is not indicative of future performance, prices sky rocketed up as interest rates came down, plus people buying based on speculative growth in the market. Will that continue? its purely speculative in my books, it is not a given!

            • JimmyF on 10/08/2023 - 16:44

              @Lunarboogie: Oh here is one of those 2 million migrants coming to save the property market……

              https://www.ozbargain.com.au/node/793087

              Too bad they won't be up for a $3m house.

              • Lunarboogie on 10/08/2023 - 21:44

                @JimmyF: That chap isn't representative of the entire migrant community. In fact, by the sounds of his post, I'm not sure he is representative of anything.

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

                  @Lunarboogie: Yes, I am not representative of anything however I am an individual and thinking to take this big move so need an independent advice irrespective of any representation or bias e.g. I am Indian living in OZ or I am Australian with Indian heritage etc. etc.

            • onegpt on 01/10/2023 - 10:36

              @Lunarboogie: if things continue the way it is people hesitate to come in and more people might move out. So while it is a tightly government controlled market, it doesnt mean it will always go up. Also AUD risks a devaluation as well. I heard so many people government will not raise interest rates when they were buying overpriced properties in australia but i guess they learnt now future is unpredictable and does not have to be like past.

    • yourflights on 10/08/2023 - 09:36

      Wow. Do you think it will go that high in next 10 year?

  • Malik Nasser on 09/08/2023 - 20:11
    +1

    See a financial advisor, preferably someone with experience with living overseas and potentially earning income in Australia (from property, rent, shares/dividends/distributions, bonds, term deposits, etc…)
    They will be able to advise you on what options you have available, and how to structure your assets, tax implications, and so forth…

    • yourflights on 10/08/2023 - 09:40

      Do financial advisors really provide neutral advice? i am hearing horror stories that they are interested in their own commissions sometimes. I dont have any experience so not blaming anyone in particular but just sharing whats there on internet.

      • Malik Nasser on 10/08/2023 - 15:08
        +1

        As with all industries, there are good and bad people out there. A good financial advisor will explain it to you in terms that you understand.
        The things you read on the internet only tell one side of the story. Only the stand out bad stuff makes it to the internet. Just like all the media/news sites.
        The good, run of the mill stuff is not exceptional, so there is no story there to tell (nothing to sell). Don't rely on the internet to give you unbiased information.
        If you don't understand what or why a financial advisor is suggesting you a particular product, asset, or strategy, then likely you have not found a good financial advisor. A good financial advisor first needs to understand you, your current position, what type of lifestyle you live, and where you want to be in the future. As such they will need to a lot of information before they recommend a product.
        You don't have to rush into anything. If what they say makes you uncomfortable/unsure, then move on to a different advisor. You need to find someone that clicks with you, and that you are comfortable with.

    • onegpt on 01/10/2023 - 10:38

      just google what warren buffet says about financial advisers. things are probably even worse in australia if you saw the what royal commission said about them.

  • ihbh on 09/08/2023 - 21:56
    +3

    Where in India? I mean, what's the air quality like? If near a major city, you could shorten your life more than you expect!

    • yourflights on 10/08/2023 - 09:42

      Any medium to small town. Definitely not in Delhi or Mumbai

  • mannu0101 on 10/08/2023 - 07:56
    +2

    When living overseas, you are a foreigner in that country and will be paying different price especially in healthcare. I think you should always have a back up plan if things dont work out in India or Bali, can you come back to Australia and retire with what you have?

    • yourflights on 10/08/2023 - 09:43
      +2

      Being OZ citizen, i think I can come back anytime if things dont work out well.

  • Splitsicko on 10/08/2023 - 09:21
    +1

    There’s a few FB groups that delve into this topic. Take a look at F.I.R.E (Finacially Independent Retire Early) as well as The Barefoot Investors group.
    Good luck.

    • yourflights on 10/08/2023 - 09:43

      Wow. Thanks for sharing. I will check them now.

  • kusala on 10/08/2023 - 11:44

    When researching recently, I learned that foreigners cannot buy personal property in India. However, it is possible to do so via a business set up by oneself or by a third parties.

    • yourflights on 10/08/2023 - 12:39

      Thanks. I am not planning to buy property in India. Just renting a beautiful 3 bedroom house in $600 per month in majority of small to medium density towns. For Bali, buying a villa is possible if there is any good left in under $300K.

      • cimrak on 10/08/2023 - 20:19

        Last time I checked (7-8yrs ago) foreigners couldn't own property in Bali. You would have to do something similar to what kusala mentions above for India.

        • yourflights on 11/08/2023 - 10:59

          Australians can own the property for leasehold for long term e.g. 30 years, 40 years etc. To purchase property as freehold, it has to be done by setting up a business.

      • kusala on 11/08/2023 - 13:59

        Maybe Goa or Kerala in the the Indian winter or a mountain state such as Himachal Pradesh in the hot season?

        • yourflights on 11/08/2023 - 15:31

          Thanks for great suggestions. Love to be in Karala in winter and Himachal in hot season. Truly heavenly.

    • hdus002 on 11/08/2023 - 10:42

      You can if you can manage to get an OCI (Overseas Citizenship of India - a kind of limited lifelong visa), which I'm guessing the OP is eligible for.

      • yourflights on 11/08/2023 - 10:58

        Thanks. Yes, OCI for India and long term visa for Bali is what I am thinking.

    • onegpt on 01/10/2023 - 10:41

      you can buy property not just agricultural property. Although it helps quite a bit to be know about how local real estate works. it could be very different to Australia https://www.sobha.com/blog/can-foreigners-buy-property-in-in…

  • TiredKitty78 on 10/08/2023 - 17:33

    Has good web/freelancing skills

    Can ask what he does for work?

    I'm considering careers….

    • yourflights on 11/08/2023 - 10:30

      Hi, I have few ecommerce and job listing websites which makes some passive income since few years. They are on top of google search for some relevant keywords so bigger companies have offered to buy one of them in 25K last year. I know if I start promoting those sites, they will easily make 1000-2000 per month however I havent done any promotion as I am working full time now. Also, launched AI app in playstore last month and its downloaded in 2000 plus devices in less than 4 weeks. Yet to monetise that but expecting to do that after at least 10K downloads..

      For all my websites, I have facebook pages and groups and many of them have excess of 10K likes/members.

      • onegpt on 01/10/2023 - 10:42

        wow, would be happy to learn more from you. Thanks a lot

  • jrvb42 on 10/08/2023 - 22:40
    +1

    Good luck with it, wonderful plan.

  • Porker on 11/08/2023 - 09:02
    +1

    Any ideas on how/if you'll assist your kid?

    • yourflights on 11/08/2023 - 11:02

      Will be providing all emotional and parental support to my son. In terms of finance, will definitely be offering deposit if he wants to purchase a home. Of course not contributing to his day to day expenses as expecting him to earn his own livelihood by himself. I am sure he is capable of doing that

  • yourflights on 14/08/2023 - 11:23

    Thank you so much guys for giving me so many ideas and directions to think differently. Really appreciate it. Please continue to ask/criticise my decision with a logical arguments and it will really help me.

    Just another thought of Monday morning.. Please provide your feedback..

    1.4 million is roughly 70000000 INR (7 Crore INR) (if I sell the property and get the cash tax free as it is my PPOR). Can I conservatively expect 5% of interest on that amount forever? If so, it will be 3500000 INR each year. That means, I will have 291K INR per month which is lot more than a king size life in India. In this calculation, my amount (7 crore INR) is untouched forever which I can pass on to my son if I die and when I die.. 291K INR per month in India is definitely a huge amount and that too without touching my main money of 7 Crore INR..

    Similar calculation can be done for Bali. Its equivalent to AUD 5412 per month which is also a really great amount to spend in Bali..

    I am thinking this amount of AUD 5412 may be enough for a couple to live in rented apartment in many parts of Australia. Isnt it??

    SO basically, having AUD 5412 per month (based on 5% interest of 1.4 million) forever without touching the 1.4 million in the savings account or VAS (as advised by many here) for a couple to live anywhere in India, Bali or even in Australia (non Sydney, Melbourne, Brisbane areas)

    Please correct me if I am wrong in above calculation. I know 5% is bit too much however I am sure I can invest money in savings/etf and can earn that much. Also, if that is divided between me and my wife, total tax payable will be around 7K per year so our take home is still around 5K after paying that tax in Australia.

    • pyramid on 15/08/2023 - 09:34
      +1

      You forgot to include inflation so your $5412 will decrease it's buying power meaning you will need but more money

      • yourflights on 15/08/2023 - 09:54

        Thank you. You are correct. This $5412 will loose its buying power over the period. Do you think interest will go up at the same time in line with inflation? My understanding is if inflation keep increasing, govt will keep increasing the interest so I will get more interest on my money? Or if I decide to rely on rent (if I dont sell the property), rent will also increase in line with inflation?

        • pyramid on 15/08/2023 - 10:18
          +1

          Look at this in current Aussie rent market, my home loan repayment has been doubled but not rents. Ofcourse rent have increased but not inline with inflation or home loans…

          • yourflights on 15/08/2023 - 10:30

            @pyramid: So in that case, I may be better off relying on savings interest (by selling the property before I execute this plan) which I think goes in line with inflation. Rent may be bit behind in terms of catching up with inflation but interest rate (on savings account) catch up quickly. Isn't it?

  • MITM on 14/08/2023 - 15:34
    +2

    Midlife crisis. Just buy a Harley or why not just take a year off and go travelling to reinvigorate your perspective. At 45 you don't want to be sitting around in Bali watching Netflix till you die. Take your kid with you on his "gap year".

    • yourflights on 15/08/2023 - 09:10

      Thank you. If I leave the job and go for extended leave, wouldnt it be difficult to come back to workforce? You are right in saying that it might help me rejuvenate however if I come back with the same mindset (that I should retire early), will I not push my proposed retirement few years behind because I have used lot of money in this gap year??

      • MITM on 15/08/2023 - 14:36
        +1

        You seem to be obsessed with your apparent wealth. Maybe see a councillor first and then an accountant.

        • yourflights on 15/08/2023 - 14:41

          Not really. I am very well balanced and aware that this small wealth is nothing as compared to many other people in this group. I am just seriously exploring this move and doing honest discussion with the group here. Point me to any of my comment here that indicates I am obsessed. I mentioned to someone else here that I have burnt my hand in exploring high risk investments in last few years and that has pushed my plan of retirement little bit so dont want to do that again. Really seriously thinking about this and planning for it. My son knows it very well. Me and my wife are meeting financial advisor this Thursday for a free 30 min chat and will explore paid services if needed. Booked tickets to Bali in January for 10 days and idea is to explore areas where I will possibly be spending 6 months each year. Not visiting Bali this year for a tourist purpose.

  • [Deactivated] on 15/08/2023 - 13:19
    +1

    Perhaps looking at how older people are treated over there with and without money will be a good start. Money can be lost too.

    • yourflights on 15/08/2023 - 14:30

      Its a valid point. I agree that older people without money may not be receiving lot of care over there and I really feel for them. I have seen elder abuse around my area during my childhood in India so totally aware of it. I could not understand your second bit of 'Money can be lost too'. Are you saying you can be scammed being an elder in those country ? If so, I also agree that its possible however its also possible anywhere in the World including Australia.

      I am aware that having AUD in the account will put me in privilege situation as compared a local elder however I am exploring the plan with that assumption that I am privileged and how will I be able to enjoy a better life there.

  • [Deactivated] on 15/08/2023 - 14:44

    Which region of the world is India located?

    • yourflights on 15/08/2023 - 14:47

      Ha ha ha.. Good one. Ask Chat GPT please.. and it will give you a full assay on India.

      • [Deactivated] on 15/08/2023 - 14:48

        What will be your next creative writing post topic?

        • yourflights on 15/08/2023 - 14:49

          Not now mate. May be after 5 years.

          • [Deactivated] on 15/08/2023 - 14:50

            @yourflights: What is your favourite homeopathic remedy?

            • yourflights on 15/08/2023 - 16:09

              @[Deactivated]: The one which cures the routine of working from 9 to 5 five days a week.

              • [Deactivated] on 15/08/2023 - 16:58
                +1

                @yourflights: 'Lotto' remedy may work, however it's a matter of chance so no guarantee.

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