What would you do to become debt free?

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smile0784
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Re: What would you do to become debt free?

Postby smile0784 » Wed Jun 13, 2018 12:03 pm

bowl wrote:
phil1818 wrote:
rb85 wrote:Without going down the path of personally talking about anyones individual circumstances it's got me stumped why people are in debt to not only have their primary place of residence but then another investment property or 3 on the side. Being in so much debt must not be good for peoples stress levels etc.

Any decision to relocate is obviously a personal one with many factors to consider but little to no mortgage is always a plus lets face it life is for living as much as you can.


Having investment properties is how you get ahead, it cost bugger all more because you have a tenant in them paying most of the mortgage then years down the track when you sell them and have more money then you know what to do with then it’s well worth it

Agree. If your investment rent is covering most of the repayments then keep it....

Regret selling mine....now looking for another one....
I'm looking at a block of land that will be released to build on in 2020....


ideally the rent is to cover the rent and expenses.
expenses run about 350 permonth plus any maintaince.
so depending on how much your interest only loan is plus expenses come close.



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smile0784
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Re: What would you do to become debt free?

Postby smile0784 » Wed Jun 13, 2018 12:05 pm

Nude up wrote:
Lightningx wrote:
phil1818 wrote:
rb85 wrote:
phil1818 wrote:
Having investment properties is how you get ahead, it cost bugger all more because you have a tenant in them paying most of the mortgage then years down the track when you sell them and have more money then you know what to do with then it’s well worth it


In all due respect Phil I don’t think it’s the best place to be debating investment strategies going to agree to disagree and opt out of this one. As without calculating all the cost factors and comparing it to other investments we won’t be proving anything.


In all due respect you brought it up by saying it’s got you stumped, iam not wanting to debate it at all just my opinion that’s its worked out very very well for me that’s all

Not just for you, it has for me as well. Very well :)


Me too never lost money on bricks and mortar


exactly
just cashing in the hard work lately

smile0784
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Re: What would you do to become debt free?

Postby smile0784 » Wed Jun 13, 2018 12:07 pm

phil1818 wrote:
rb85 wrote:
Nude up wrote:
Lightningx wrote:
phil1818 wrote:
In all due respect you brought it up by saying it’s got you stumped, iam not wanting to debate it at all just my opinion that’s its worked out very very well for me that’s all

Not just for you, it has for me as well. Very well :)


Me too never lost money on bricks and mortar


Let me guess all Baby Boomers?
How’s the prospect of buying a house now for people starting out in life?
Circumstances change so it’s still got me stumped Phil just because it worked for a generation who enjoyed unprecedented growth doesn’t mean it will for the next.

I’ll enjoy owning my own home and make positive geared investments.


Wrong again mate iam 30 years old own my own place out right already off the back of investment property no help from Mum and dad all self made.. worked for a number of generations now and always will


no one every helped me out and i did it all from hard work also so why not reep some rewards now

smile0784
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Re: What would you do to become debt free?

Postby smile0784 » Wed Jun 13, 2018 12:10 pm

one2three wrote:
smile0784 wrote:Just been thinking with the current houses prices.up mite.be worth selling up both houses and moving some where.
With out going into really detailed financials ill say i would be able.to sell 2.houses and but a block of land at lakes enterence 3000sqare meters which is 5.times what i got now and build a new 5bedroom house with what i get.

Or with just a 50k mortage compared to the 10x that i got now lol.

Considering mortgage will.be less ill wont have to work full time unless i want too lol

The question is should i?
Pros and cons?
Major con leaving friends and family behind
Pro dont have to pay 3500 a month in mortages.



What does your partner want to do, do they want to relocate?

Think about the children future needs and employment.

My mate said his Super was gone once he hit divorce so he was looking at using that to pay off all debts and now has a bigger debt than before.

my wife works in childcare and is happy to relocate .
my super isnt that good and wont me so trying to reduce dept now so anymoney we make isnt going to pay the banks in nterest.

You work to live, life is for living and for me enjoy what you have while you can.

:-D

smile0784
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Re: What would you do to become debt free?

Postby smile0784 » Wed Jun 13, 2018 12:18 pm

rb85 wrote:
smile0784 wrote:
rb85 wrote:Without going down the path of personally talking about anyones individual circumstances it's got me stumped why people are in debt to not only have their primary place of residence but then another investment property or 3 on the side. Being in so much debt must not be good for peoples stress levels etc.

Any decision to relocate is obviously a personal one with many factors to consider but little to no mortgage is always a plus lets face it life is for living as much as you can.


well if you had the chance for some else to pay off your debt would you!!

that's just smart thinking isn't it.
you could say that your helping out those less fortunate that are unable to buy a house so your giving them a chance live somewhere since public housing waiting list is shocking.

whats the alternative
add to the 110,000 homeless people that live on the street.


If your running at a loss your running at a loss going into debt to run at a loss?? For a small tax benefit?
Think over inflated property price and high rents to sustain the investment boom would be more of a contribution to homelessness.

i run at a 2000 loss over the year but get it back at tax time dure to negative gearing the benifite is the property is going up but 20 grand a year in property value so even if i couldnt negative gear tenically im still beter off by 16k a year in gross profit when selling.

piscateur
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Re: What would you do to become debt free?

Postby piscateur » Wed Jun 13, 2018 2:13 pm

Over the last 2 decades, property has been the go, I have done quite well with property, but I'm not about to brag about being clever, it was more that I was lucky with the property boom. My super on the other hand has been nothing short of disappointing.
The current property market is a little nervous and if we are up for a correction, there will be quite a few in trouble. My parents had to go through the "recession we had to have" of the late 80s and early 90s, and interest rates were crazy I believe around 12% or more.
For those saying that property is the way to go, I agree it was, but unsure of the short term future, especially with relations with China at a strain, and China having a slow down, may cause a drop in property prices.
Before shutting down others because you've been lucky with your investments riding the property boom. No one would have foreseen the sustained growth that we have witnessed over the last 20 years.

phil1818 wrote:worked for a number of generations now and always will


Just for some context I haven't checked but believe that the average wage in the 80s was around 20-30K and property prices in suburbs around 20-30kms from CBD $60-70K. the late nineties to early noughties average wage was around 40-50K and 200-250K and Now average wage is $80-90K and property in the same areas are around the million dollar mark. Cant really say that will work "for a number of generations now and always will"

At the end of the day we live in unprecedented times, so who knows what's best.

As for the OP check that your kids wont hate you for the move.



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Nude up
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Re: What would you do to become debt free?

Postby Nude up » Wed Jun 13, 2018 2:37 pm

smile0784 wrote:
rb85 wrote:
smile0784 wrote:
rb85 wrote:Without going down the path of personally talking about anyones individual circumstances it's got me stumped why people are in debt to not only have their primary place of residence but then another investment property or 3 on the side. Being in so much debt must not be good for peoples stress levels etc.

Any decision to relocate is obviously a personal one with many factors to consider but little to no mortgage is always a plus lets face it life is for living as much as you can.


well if you had the chance for some else to pay off your debt would you!!

that's just smart thinking isn't it.
you could say that your helping out those less fortunate that are unable to buy a house so your giving them a chance live somewhere since public housing waiting list is shocking.

whats the alternative
add to the 110,000 homeless people that live on the street.


If your running at a loss your running at a loss going into debt to run at a loss?? For a small tax benefit?
Think over inflated property price and high rents to sustain the investment boom would be more of a contribution to homelessness.

i run at a 2000 loss over the year but get it back at tax time dure to negative gearing the benifite is the property is going up but 20 grand a year in property value so even if i couldnt negative gear tenically im still beter off by 16k a year in gross profit when selling.


Except for capital gains tax I got hit 2 years ago a holiday house never rented only family use they now computer match all records land titles everything. I still made a good return but it would have been nice not to get hit

Bayrock
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Re: What would you do to become debt free?

Postby Bayrock » Wed Jun 13, 2018 4:48 pm

Of two things in life one can be certain - death and taxes

smile0784
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Re: What would you do to become debt free?

Postby smile0784 » Wed Jun 13, 2018 5:46 pm

True that. Either way you get screwed

Lightningx
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Re: What would you do to become debt free?

Postby Lightningx » Wed Jun 13, 2018 5:49 pm

Bayrock wrote:Of two things in life one can be certain - death and taxes

Yep, very true.cant be avoided...



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