
Case Studies
Case study – retire comfortably at 55
Here’s how they plan to use investment properties to replace their current income before they hit early retirement.
Property Investment
3 min read
Author: Lance Jensen
15 years’ experience in the industry. Active property investor with $6 million+ portfolio. Financial adviser at Opes Partners.
Reviewed by: Laine Moger
Journalist and Property Educator, holds a Bachelor of Communication (Honours) from Massey University.
Lynne and Darren are a pair of motorsport-loving adventurers. They spent years chasing thrills around the world.
And while doing that, they’ve also quietly made over half a million dollars investing in property.
But before they invested, Lynne couldn't shake a sinking feeling. That while they were having lots of holidays … their money wasn't working hard enough for the future.
One day Lynne thought: "We're just burning through cash. Surely we can do better with it."
Here’s their story (in their own words) about how they made around $660,000 for their retirement. And how Opes Partners helped them invest in property.
When Andrew visited us, he showed us a whole portfolio of properties, Darren said.
"We were trying to decide: What's a good investment?
"It boiled down to two properties:
"We couldn't make up our minds. So we went boots and all and said: 'Bugger it, we'll get both of them'."
The couple became property investors overnight.
Like many couples, Lynne was the more eager investor. Darren was a little more cautious.
While it wasn't keeping him up at night, he did wonder if they were making the right choice.
His main concerns were bad tenants and whether the properties would stay rented.
Lynne had a different view: "To me, the scary part wasn't investing, it was frittering our money away. Investing was what we should be doing, and we knew it."
"For me, if someone knows what they're talking about ... you listen and just jump in and do it".
Looking back, Darren admits it's been a "reasonably easy" exercise.
"A lot easier than I thought. We just haven't looked back," he said.
When you've got one half that wants to save, and one half that wants to spend, you have to find a middle ground.
They both agreed it was about finding room for both.
"When we move into what I call frittering, then we have that conversation," Lynne says.
"I just see the bigger picture, and I just don't like spending money that is not going anywhere".
"On the other side, Darren's more the spender", she says.
"And so we get to do some cool things that I probably wouldn't do if he didn't put his foot down.
“So it's about balance and us both giving in a little bit and coming to some middle ground".
Darren agrees: "We both compromise with each other.
"And we end up living a really good life. And we're gonna live a really good retirement life.
After the initial two properties, Darren and Lynne decided to invest in a third.
At that point there was only 1 unit left in the development they were looking at.
"So we just thought: 'No, it's gotta be good'. So we purchased that one. And to me that's a really good buy".
Between all three properties, the values have gone up somewhere to the tune of $660,000.
Property #1 – bought for $550k now worth $800k
Property #2 – bought for $575, now worth $850k
Property #3 – bought for $600k, now worth $740k
"It's not money for jam either," Darren says.
"It's us looking at the right property to buy, which is going to be in a good area and increase value.
"It was with direction from Opes, the right advice at the right time, and we acted on it".
Could they have saved that same $660k?
Lynne jokes that she could have saved that kind of money. But she wouldn't have had nearly as much fun.
Lynne has made it very clear: "There's no way I'm working a day after 65."
"We've never had children, so I've worked my entire life and I am counting the sleeps down 65," she said.
Darren fully supports this plan.
"She decided to work until she was 65 so we could continue our lifestyle. Then, at 65, we'll start looking into the retirement side of life.
When Lynen retires, we will sell one property, reduce the debt on the others, so then we get a passive income.
The plan is to live off the rental income.
"So then we could say that's Lynne's income with me carrying on working, we could still be living the life that we are doing now".
"We are so glad we jumped in and just got into it," Lynne says.
"Jump in, take a risk … as long as it's calculated, go for it".
15 years’ experience in the industry. Active property investor with $6 million+ portfolio. Financial adviser at Opes Partners.
Lance has over 15 years’ experience in the property industry. He became a property investor at 22, and has since built a personal portfolio worth over $6 million.