Forum Replies Created
Very helpful redom thanks. Yes Helen collier kogtevs makes this point about credit cards. People are stupid enough to hold them blank. People also misuse them. I used to, but I have a $1000 limit card I keep. $5000 is unlikely to make or break a deal.
Other things I’ve learnt are fixing a loan for 3 years reduces the bank’s buffer zone when assessing.
From what you’ve said though, it seems $1000 income helps more than $1000 debit hurts. It’s not evenly balanced. That’s a bit funny. Sorta like the bank expects you to have some credit cards so they’re a bit lenient. Kinda like that stupid friend you have who says dumb stuff all the time but you forgive easier because you just accept them that way.
Mathematically is have expected it to be more even, but i suppose there are other safety factors in place.
Personally, kill me I know, I still think pos cashflow is pretty expensive for roi, I could be better off setting up a shop on eBay and profiting $5000 a year. Depends on time and ability I suppose, or would that second income have another assessment that worked funny?
Great help thanks everyone.
Profit margins
Multi borrower mortgages, how they differ lvr, issues
How to find out you can subdivide before you buy
Advantages of using professional companies vs trying it alone
Minimum recommended project cost for 2 units 3 unit 4 units etc
Minimum recommend land size for same
Tax implications gst cgtThanks for your help everyone. I emailed my broker about having my cake and eating it too. We will see what he says.
http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php
Save $100 at 5% for 30 years
Or delay 5 years
Save $100 for 5% for 25 years
Notice the difference?
It’s massive.
Now, knowing when you borrow money for a house that your $20,000 deposit can be $200,000 enter $200,000 for 30 years at 5%
Have I convinced you?
Everyone feels afraid at the start. I listed here so everyone can learn from your question. Totally normal.
This is just the beginning. Keep asking. Keep learning. You can do it.
WTR
On this, in a similar scenario. If I got together with 9 friends and we borrowed 2 million and developed a site. If we could ever get the finance and ever develop somewhere, solely for the argument of CGT, would it matter if we waited a year after completion to reduce CGT? Or it’s all commercial because of subdividing?
+ 1 for video
I forgot to mention my partner earns about $70,000 a year and we live off her income and most pays have money from hers to save and save mine. I have an investment property. I live in a small rented house that all our European or city friends think is good but my family, parents and suburban friends always comment, it’s so small. I don’t care 15 minutes bike ride to work is better than 2 hours driving to work every day.
PHP thanks, I suppose I need to back up my claims. It was always my goal to earn $100,000 a year. One year I was about $99,000 with negatively geared property, then these last few years I made about $115,000 p.a. Recently i would be somewhere around $140,000 but I’m only working 6 months of this year. Getting married and travelling.
So, how did I do it? Well, in your opinion I may not be earning that much but from where I came from my parents were just above minimum wage blue collar so I feel pretty successful. I actually never talk about my job by name in public forums for personal and professional reasons, on Facebook it says Top Secret. The only other jobs I’ve seriously looked to upgrading to would have been air traffic control or train control. There is a clue for you.
Either way, to move jobs would mean a training period and pay reduction for several years. To change to studying medicine or other high paying field would mean years of study and low income. Right now although my pay sits somewhere around $40-45 an hour on average to earn a higher rate per hour would mean a lot of time enduring low pay that I would have to recoup. To move into air traffic it would take me about 7 years. With investment I’d be ahead staying where I am.
Soon I want to change my shifts so I will earn about $45-50 an hour. I work about 60 hours plus per week. I cant fit any more hours in. So, I found a good paying job, I got promoted twice and I am dependable and do as much overtime as I can. I don’t know if I want the next promotion it’s more money but hard to crack and at the moment I like what I do. I love night shifts, I like my job (although not many people I work with) and I’m happy to ride this one out until I can go part time.
Sure, other people may do sales or be a higher qualified professional. I studied something else at uni and this pays better and I prefer it to what I studied.
On the other hand I spend no money. Here’s how
Plan an overseas holiday
Realise that you need to save
You can’t buy anything because you won’t have a home to keep it in. The only thing I remember buying was a caffetiera because mine broke.
Because you’re travelling you need to sell as much stuff as you can so you don’t need to store it. Suddenly you realise just how much stuff you don’t need. I fully recommend the minimalists blog.With all that money you have to spend it on your wedding and holiday. Ok, this one isn’t what I have been preaching but it’s a life stage for me. I know I can do it for investment just as well though. We just had a plan. When I say save too, I mean almost 10 months of travel. Credit free. A wedding. Budget of $400 per day plus.
So, I don’t have a car, i ride my bike, my biggest costs are martial arts classes and piano lessons. We keep a budget for clothes and entertainment of $200 a fortnight and I pay for martial arts and gym out of that. I was very overweight and now I’m much healthier. For you maybe your spending is on cars, or maybe it is on entertainment. Either way most of us have a personality and interest so you gotta give somewhere.
I buy op shop books for 50 cents each. In one hour of work I can buy more books than I can read in a year. I really just don’t buy new things or gadgets. Something special I asked for was underwater earphones for swimming for a Christmas present a few years ago. I try to think of something I’d like but can’t justify and wait until birthdays or Christmas to ask. I finally have an iPad but I waited until now to get one and it was a present. I almost always buy second hand stuff.
I’ll be. Irving to a cheaper smaller place to rent next year. I’m happy to live like others refuse to. People I know buy a new $70,000 car because they gotta have it. i am using an iPhone 4s with a battery that barely lasts half a day and a broken home button. My watch battery died and I just stopped using it because I realised I don’t need my watch when I have a phone.
There is so much we have that we don’t need.
Next step enjoy holiday.
Step after that, save $40,000 per year or so and invest more.
Humble efforts, I’m not making mega bucks but I’m in my opinion going really well. Investment will make me rich and I’ll go part time and be family man. Working more for the rest of my life is not my plan.
Shaun welcome. I have read extensively on this. I’m at a stage where I cant earn more per hour and I’m working all the time, so I’m a little ahead. I feel a bit qualified on how money works but not very on investment.
The best book for me was from broke to multi millionaire in seven years. That got me really interested and motivated.
Next, the essence and not all the book was the millionaire next door. It has a lot of statistics but you can just skip over them. It’s the message. Big hat no cattle is a classic. It’s like nice car no money.If you are in debt that’s where to focus, I don’t mean an investment mortgage. If you are there like most people, read Dave ramsay total money makeover. The best comprehensive debt management repayment book I’ve read.
1. Start with debt being paid
2. Earn more money
3. Stop wasting money. Most stuff people buy isn’t needed. It’s not fun but have a small home buy nothing not needed. I don’t own a microwave. Be ruthless. I only ride a bike. This isn’t for everyone but spend minimum unless it’s really important. For me fitness is important so my diet is a little more elaborate than others. You’ll find a balance but realise most stuff we buy is rubbish.
4. Save and invest your ass off. this is where this forum excels. Basically, you invest until you make more money through investments than actually working.
5. Master cashflow and retire.That’s a very simplified summary on how money works. Those books will get you started. As far as earning more money goes, try to do something you like that pays well. Sometimes we don’t get that great combination but decide what’s more important to you.
Good luck.
Well thanks very much everyone,
Good to hear I’m walking in the footsteps of successful people before me.
I’d think like Richard. We should all know that money in property is usable. Doesn’t have to be in the bank, it’s just different. Selling I wouldnt worry. Servicing I would.
Thanks Terry. She’s not allowed to die!
Thanks Terry,
I think I may just scrape in without her income but a good option if we need it thanks. I’m just trying to be creative,min thinking maybe she should develop her own portfolio unaffected by my PPOR. I was hoping I could do something clever like somehow split her income and add it to mine through renting to her or income split tax wise. Basically I need to get back to neutral as soon as I can.
Thanks PHP,
that’s a forum worthy answer, you sound like someone who knows what they’re talking about now. Some great ideas there.Thanks terry for being the most helpful.
Any info links on where to find a debt recycling stratergy?
And what you described with IP offset is pretty much what I had in mind, just redraw on that when I need.
I guess I’m wondering mostly what I can do with my partner in a clever way to use her income in some way.
Thanks.
Michael,
Thanks, but also no thanks. My question is not should I get a PPOR my question is how to get one and reduce its impact. I. Not going to go into why, I’m not inexperienced with renting, I have been renting for about 18 years.
So, now that we understand I’m buying PPOR, good that you have worked out your strategy it is of course better an easier to do it that way. It’s also easier to earn double my income. But I dont.
So back to my question. What can I do with the scenario I’ve set in e original question.
Thanks PHP,
But I don’t think you’re listening to the whole question and focusing on just one part.Increasing my income stream? Yes, no kidding? This is what I’m talking about. Do YOU have a creative idea?
Forget the finance, how can I reduce the impact of taking on a PPOR mortgage?
Terry,
Say that again, property in my name but we can both be borrowers? Will that help for future loans or make little difference as I’m still 100% accountable for the loan?Hello PHP,
Thanks for your fast post. I suppose I didn’t write that so well and a bit vague. You are right and I will write to mine now, but it’s more the other questions I’m interested in. How to beat that mortgage problem when we buy our house.
For the sake of example, say I bought a $550,000 home with 5% down and LMI.
What clever ways can I get my borrowing power back up? I don’t care if my investments are $250,000 so long as I can new granted the loan.
