Redwing made a really good point earlier: If we all Watched every dollar we spent, we’d be a whole lot better off. The silly things which we don’t even think about become the items we lose the most money to. These are the things which (If we saved the money) would become the cash for the next deposit. That’s one thing I make sure I keep in mind when purchasing any luxury… “Will buying this draw out the time between the purchase of a property which would bring in enough returns to buy ten of this product???”[
]Can only concur with Alexander2. I am a Purchasing Manager and I know how closely we analyse and scrutinise costs. The time spent in ensuring an optimal value proposition for the organisation.
I have caught myself many times, for personal expenses being on the flippant side…yes, I’ll buy this, yes I’ll take that. Now, I don’t think you can live a decent lifestyle if I was to adopt the same approach as I do at work for home expenses, but there is much to be learnt about applying it logically to your personal budget.
James
Props,Instead of pazing $300 rent, I´d rent in wollongong and commute- rents are much cheaper in wollongong. I´d even live in engadine … groan… $300 a week is such dead money- how could you save for a deposit?
kay henry
ok My friends are paying $300+ rent because they are living in Manly and Milson point.
I think it’s better to pay a bit extra rent than wasting hours in train, bus or car!
Cheers
[]
PropertyGuRu
I want to be billionaire! [] Sometimes I wonder about people who pay heaps in rent. Why not just buy a place. Well, that’s what friends of mine eventually did.
They paid (for 5 years) $530 per week. Not even a particularly nice house. Finally they decided they should buy a house to live in. They had to sell a block of land they owned to do it. Their repayments are slightly less than their rent was (the house is excellent), and they’re wondering what they could have done with all that rent money for the past five years.
Don’t discouragerenters PLEASE. We get $420 a week for one of our IP’s. I would hate to have to find that each week![
]‘Eat rich food, barbeque a yuppie’
Originally posted by Leswon:WOW!!
These people must be on MASSIVE wages to be able to afford this kind of rent. I’m probably talking more then, about the people on an “average” or should I say “Low” wage. Many people only bring in around $400 pw as a wage!
Les[]I live in Malvern Vic
rents for a 3br house start at about $400 pw
and go up to $800pw !!!!!!!!!!Originally posted by Leswon:Hi James,
Yes, well that certainly is a question worth asking. But my actual point is that many people seem to be struggling just to pay rent. So, this makes me wonder how they will ever get a loan to own their own property, let alone an IP. I guess I can see that Wraps are going to become very popular.
Les []What I can not understand is If they can not pay
their normal noal HOW are they going to pay
off wraps which are on average 3%+ above
normal interst rates??Rent or buy?
We pay $400 a week for a $800k+ house.
$800 per f/n and have a life and invest or $2400 per f/n and eat baked beans, never leave the house, don’t invest for 30 years?
The choice becomes clear [
]Why start with a house at $880k in Malvern, why not start in Oakleigh at $350k. Buy an investment property, then work towards the $800k Malvern place. It may take 5-10 yrs but at least you are not renting.
Originally posted by kaloni:Originally posted by Leswon:WOW!!
These people must be on MASSIVE wages to be able to afford this kind of rent. I’m probably talking more then, about the people on an “average” or should I say “Low” wage. Many people only bring in around $400 pw as a wage!
Les[]I live in Malvern Vic
rents for a 3br house start at about $400 pw
and go up to $800pw !!!!!!!!!!Dead right, $300 ow seems small for the amount rental rates have gone up in the past few years. In Concord, Sydney and surrounding areas such as Breakfast point and Cabarita, which a few years ago were industrial on the water, now fetch $600 pw for 3br appartment. Just depends on where you’re putting your money and whether you budget affectively to be able to continue with your daily life and investing.[^]
I can’t afford it at the moment, though with the fantastic scenic views along the beach (Bronte or Tammaramma) if at some stage I can financially justuify it, I’ll make the move.[]Originally posted by yack:Why start with a house at $880k in Malvern, why not start in Oakleigh at $350k. Buy an investment property, then work towards the $800k Malvern place. It may take 5-10 yrs but at least you are not renting.
I dont rent luckily
I own there
BUT a lot of my neibours rent there
so they can sent their kids to one
of the local primary schoolsrents near me are $200 to 600 and this is west syd.
My rents in the mts were 210 a week 5 years agoProblem is the rental trap, pay too much rent, cant save, plus most people havent a clue what they spend money on, they say they cant manage.
I tell them dont get your hair done, the nail polish put on, avoid buying lunches, bring your own. Forget coffees and cokes…buy from supermarket if you must and put in a fridge then take to work!
Dont withdraw money, I dont carry cash, that way I dont spend it and forget what it went on. Started friends on that and boy they cleared their credit debts pretty quickly!
My houses rent BTW for $220 a week each
Originally posted by kaloni:
I live in Malvern Vic
rents for a 3br house start at about $400 pw
and go up to $800pw !!!!!!!!!!Just a couple of kilometres away in Carnegie 1 br flats normally start at $140pw ($7k pa approx).
Assume a single person on $30k/yr. After tax somewhere near $24k. Food is around $80pw ($4k) and bills+fares+misc around $120pw ($6k pa). Total expenditure = $17k.
Surplus = $7k pa or over $600 per month.
A couple on the same income each living in a 2br place could possibly save over $15k pa or $1250/mth.
Increase their income to $40-50k each and the $2k per month Redwing mentions should be doable.
Peter
>>leasing is becoming more readily available than having your property just simply up for rent…<<
What is the difference between leasing and renting S.I.S. ?
Pisces
i think something that hasn’t been mentioned but explains why people would pay, for example $200pw rent, is lifestyle.
lets say someone wants to live in a nice, near city, cafe strip townhouse in perth, they pay $250pw. the place is new, very nice.
if they wanted to buy the same place it would sell for approximately $350000+. So, because i don’t know the exact sums to work out principle and interest, lets look at interest only payments… thats $403pw at 6% interest.now, this obviously isn’t going to be close to +ve cashflow, but there are investors out there that don’t look for the properties we look for, or are investing for CG.
$250 or $400pw to live where you want, it’s a lifestyle and personal choice.
Most of the people who I am talking about have two or three kids as well (also a lifestyle choice, some may say!), and only one ft wage and some casual hours. Another example is a family who has two adults and one child. This week they brought home around $450 for the week. They are renting a unit for $130 per week,(quite cheap in todays “rent” talk) food approx $120 pw, Car Loan $100pw, General bills $50 pw, say misc. $50. That leaves $0. So, I can’t see how they will save for a deposit (until they get rid of the car loan – which, by then they may have to extend as they may well need a “better car”- as everything else is a “living expense”.) This estimate isn’t even including money for their car services (or breakdowns, or general expenditure on those everyday “things” that need repairing, replacing, etc. See, my point is aimed at those people who are obviously on the other end of the “income scale” We are on a higher wage than this, pay no rent and no mortgage – AND STILL SEEM TO STRUGGLE!
[]Les[]Originally posted by Pisces:>>leasing is becoming more readily available than having your property just simply up for rent…<<
What is the difference between leasing and renting S.I.S. ?
Pisces
Sorry Pisces, meant to say, a Leasing Option
Cheers,
sisLive is a burden, my three kids school fees $1700 pm , it’s nearly killing me!
Julain
THERE IS ALWAYS A BETTER WAY!
We all have choice in what we spend our money on. Some sacrifices may need to be made in order to get ahead. If you plan your shopping in advance, and don’t have takeaways, or ‘packaged’ meals, then you can cut your bills quite a bit.
For some tips on how to cut down your discretionary spending, without actually losing your ‘quality of life’, check out John Burley’s Money Secrets of the Rich.
It’s also a well known ‘fact’ that the more you get paid, the more you spend. There are people ‘struggling’ on $200K per annum.
A Dilbert comment that I have literally just recieved in my email
‘After any salary raise, you will have less money at the end of the month than you did before.’
Cheers
MelI forgot to add, $200 pw is considered ‘cheap’ in Canberra, and my lowest is $180 (it’s a friend, and I haven’t yet worked out how to raise the rent[
]), next is $240, then it goes up to $400+.In today’s market, these rents are definitely a lot cheaper than it would cost to buy the same house.
Cheers
Mel
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]Les[
]), next is $240, then it goes up to $400+.You must be logged in to reply to this topic. If you don't have an account, you can register here.
