I’m about to return to Australia after 20+ years of expat living, working, and investing. My wife and I have two properties unencumbered in Australia. We plan to live in one and sell the other, as we don’t want the headaches associated with being a landlord.

My question is what to do with the proceeds of the sale of the second property? After CGT, we will have roughly $1.2 million. I am in my early 50s, and I am looking to wind down from work when I return, hence the desire for that $1.2 million to generously supplement any future income I attain upon my return.

Being a landlord can be a headache, but choosing where to invest your proceeds can also be challenging.Credit: Simon Letch

I’d be keen to understand whether in addition to requiring income from these proceeds, you are also after capital growth or at least preservation.

If the clear priority is income generation, then I would set up an investment portfolio using a wrap facility with a mix of US, and Australian share exposure, perhaps combined with some infrastructure and listed property holdings. US shares would make up the largest exposure, as historically, they have produced the best long-term growth outcome.

I would then set the wrap facility up to distribute out to you a fixed amount each month, with it automating the required sell-downs based on predetermined proportions across the different assets.

With this approach, you can draw down the precise amount of income that you require, on a consistent and dependable basis.

Potentially, however, this may not work for you if capital preservation and/or growth is a priority, as the drawings will occur irrespective of what the investment earnings are.

If an unstated requirement is that your capital is preserved, then you would likely go with an Australian share portfolio, with a bias towards high-yielding investments, such as the banks.

QOSHE - I don’t want to be a landlord, so what do I do with my property proceeds? - Paul Benson
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I don’t want to be a landlord, so what do I do with my property proceeds?

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13.04.2024

I’m about to return to Australia after 20 years of expat living, working, and investing. My wife and I have two properties unencumbered in Australia. We plan to live in one and sell the other, as we don’t want the headaches associated with being a landlord.

My question is what to do with the proceeds of the sale of the second property? After CGT, we will have roughly $1.2 million. I am in my early 50s, and I am looking to wind down from work when I........

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