The STOKE thread
But I have put no money in? You have!
What have I put money into?? I’ve done nothing out of the ordinary but save (which a mortgage really is just a forced savings account where they charge you interest on)
But right now I get more money from my flat than the mortgage - the only thing that makes me negatively gear is the costs associated. (which i am still very close to breaking even)
Without asking how much you have saved it is hard to say
But lets say you have $30k (exactly the cash I would have if I sold today)
And you put no more “extra” cash in each week. I wonder who would have more assets/cash in 10 years?
And the fact of the matter in Australia the banks like my equity vs your cash any day (for future buying power - are you never going to buy?)
Buying a place is pretty high on my agenda right now, straight after my last credit card is paid off I will be dumping money into a high interest savings account for all I’m worth. An added bonus for me is the ability to earn commission, learn to live off your base and when you get paid comms you put it in the bank and pretend it’s not even there. Cords I’m kinda struggling to understand the lack of motivation to get ahead financially, maybe I’m reading your comment wrong but it comes across that way.
Everyone is different and I understand that some people aren’t motivated in that regard but living hand to mouth does get old and it would be nice to have some security. Sometimes those attitudes are just a way of justifying someone’s financial position to themselves. I used to think I would probably be dead before 30 and would worry about it when/if I made it as a way of justifying me spending every pay on frivolous shit, alcohol was a major percentage of my outgoings. I’m 33 now and don’t regret it but I see my attitude now for what it was.
i think that is what you call living the life.
we all did that spend money if not on alcohol then its on something else eg cars. i have wasted and wasted money on cars and now i dont even have that car lol ... but its what life is all about .
I think all investments have merits and diversifying in the key. But simply believing that property is the only answer and the key to financial success is very outdated.
100% agree.
I never said that it was the only answer!
Right now it is what i choose and I don’t have any spare cash to diversify - but I will have a lot more options in 10 years than you IMO (I am not a financial adviser and just doing the best with my knowledge as are you 
)
But I have put no money in? You have!
What have I put money into?? I’ve done nothing out of the ordinary but save (which a mortgage really is just a forced savings account where they charge you interest on)
But right now I get more money from my flat than the mortgage - the only thing that makes me negatively gear is the costs associated. (which i am still very close to breaking even)
Without asking how much you have saved it is hard to say
But lets say you have $30k (exactly the cash I would have if I sold today)
And you put no more “extra” cash in each week. I wonder who would have more assets/cash in 10 years?
And the fact of the matter in Australia the banks like my equity vs your cash any day (for future buying power - are you never going to buy?)
So the interest you paid in the years before you became neutral/positive geared are completely ignored (while I was making profit in each of those years?)
Risk return ratio starts to come into effect with the sharemarket and some of the other avenues of diversified investment holdings. The leverage of bricks and mortar is another factor for home/investment property ownership, once you have the first one leveraging the equity is easier. Home ownership IMO isn’t a short term option, it should be viewed in a longer 7-10 year strategy, over this time period bricks and mortar has basically never ever gone backwards. A lot of people are quite risk averse and property in the long term provides this. You might say that thinking is outdated but personally when it comes to the share market I treat it like gambling, don’t put in more than you’re prepared to lose.
i think its personal decision what you do with you money, personally i do not believe in high interest accounts and that they would make you money, for it to make money you really need to have lots of money saved before you get something back from interest.
There’s nothing to believe in this isn’t a religion or santa clause.
If I removed the tags of saving/property/shares and named them option a/b/c it would be a lot less clouded.
Simple equation I can put all my money “X” into
A: Which will earn me 6% on top of whats just sitting there, I also have the ability to buy B’s or C’s when I believe they offer good value
B: I’ll own a B but have nothing else which will earn me 3%
C: Could earn me heaps or lose me heapsI think all investments have merits and diversifying in the key. But simply believing that property is the only answer and the key to financial success is very outdated.
and you failed to read rest of my post where i clearly say its personal thing, i never said its wrong what you doing i just simply believe ( and when i say believe i don’t mean in in religion or santa cluse ) its just something that works for me and makes money well knock the wood so far i have made all right decisions.
But I have put no money in? You have!
What have I put money into?? I’ve done nothing out of the ordinary but save (which a mortgage really is just a forced savings account where they charge you interest on)
But right now I get more money from my flat than the mortgage - the only thing that makes me negatively gear is the costs associated. (which i am still very close to breaking even)
Without asking how much you have saved it is hard to say
But lets say you have $30k (exactly the cash I would have if I sold today)
And you put no more “extra” cash in each week. I wonder who would have more assets/cash in 10 years?
And the fact of the matter in Australia the banks like my equity vs your cash any day (for future buying power - are you never going to buy?)
So the interest you paid in the years before you became neutral/positive geared are completely ignored (while I was making profit in each of those years?)
Yes because I wasn’t paying some else mortgage/interest!
Unless you were living rent free you can’t compare.
(I would love to know what percentage the combination rent & cash savings was of your income vs mine. Thats the only way we can compare apples with apples IMO)
As I said in 10 years I think I will still be better off and the banks will look more favorably to my assets to your cash nest egg.
Editted cause i didn’t word my question correctly
Buying a place is pretty high on my agenda right now, straight after my last credit card is paid off I will be dumping money into a high interest savings account for all I’m worth. An added bonus for me is the ability to earn commission, learn to live off your base and when you get paid comms you put it in the bank and pretend it’s not even there. Cords I’m kinda struggling to understand the lack of motivation to get ahead financially, maybe I’m reading your comment wrong but it comes across that way.
Everyone is different and I understand that some people aren’t motivated in that regard but living hand to mouth does get old and it would be nice to have some security. Sometimes those attitudes are just a way of justifying someone’s financial position to themselves. I used to think I would probably be dead before 30 and would worry about it when/if I made it as a way of justifying me spending every pay on frivolous shit, alcohol was a major percentage of my outgoings. I’m 33 now and don’t regret it but I see my attitude now for what it was.
i think that is what you call living the life.
we all did that spend money if not on alcohol then its on something else eg cars. i have wasted and wasted money on cars and now i dont even have that car lol ... but its what life is all about .
I think I have burned more then $100K on cars in the last 7-8 years all told as far I can account for roughly so you’re not Robbo there ha ha ha!
Home ownership IMO isn’t a short term option, it should be viewed in a longer 7-10 year strategy, over this time period bricks and mortar has basically never ever gone backwards. A lot of people are quite risk averse and property in the long term provides this. You might say that thinking is outdated but personally when it comes to the share market I treat it like gambling, don’t put in more than you’re prepared to lose.
Spot on!!
i think its personal decision what you do with you money, personally i do not believe in high interest accounts and that they would make you money, for it to make money you really need to have lots of money saved before you get something back from interest.
There’s nothing to believe in this isn’t a religion or santa clause.
If I removed the tags of saving/property/shares and named them option a/b/c it would be a lot less clouded.
Simple equation I can put all my money “X” into
A: Which will earn me 6% on top of whats just sitting there, I also have the ability to buy B’s or C’s when I believe they offer good value
B: I’ll own a B but have nothing else which will earn me 3%
C: Could earn me heaps or lose me heapsI think all investments have merits and diversifying in the key. But simply believing that property is the only answer and the key to financial success is very outdated.
and you failed to read rest of my post where i clearly say its personal thing, i never said its wrong what you doing i just simply believe ( and when i say believe i don’t mean in in religion or santa cluse ) its just something that works for me and makes money well knock the wood so far i have made all right decisions.
Even financial advisers can’t agree on a magic model for every one, each person is different!
Everyone is different and I understand that some people aren’t motivated in that regard but living hand to mouth does get old and it would be nice to have some security. Sometimes those attitudes are just a way of justifying someone’s financial position to themselves. I used to think I would probably be dead before 30 and would worry about it when/if I made it as a way of justifying me spending every pay on frivolous shit, alcohol was a major percentage of my outgoings. I’m 33 now and don’t regret it but I see my attitude now for what it was.
I’m 30 and I don’t spend my money on anything frivolous. I am pretty well traveled, educated and I have a bit of savings and no debt. I normally work a few days a week but this semester I am studying more than full-time, so will be lucky to work 1 day a week. In all honesty, my attitude and unwillingness to succumb to the daily grind is probably a reaction to my dad passing at age 58. (I was 21)
My parents worked their butts off to provide for us, buy a house and put us through school and uni and putting off all the fun stuff til they retired and they didn’t get to do any of it. We lived well within our means, and had nothing fancy. I appreciate their sacrifice more than they could know but that is not how I want my life to be. I am happy to only ever earn a little bit more than enough than I need to get by, work less than most, spend time with my kids (whenever and if they turn up) surf when the lineup is empty and have money left over to enjoy my time on this planet while I’ve got it! If I end up having money to buy a house at some point, that’d be great.
I think I have burned more then $100K on cars in the last 7-8 years all told as far I can account for roughly so you’re not Robbo there ha ha ha!
Oh god I don’t even want to calculate what money i have splashed on skiing/OS holidays and the like!!
If I had of just stayed home and never left the country I wonder how much better I would be or if I would have developed a clothing habit or something!
Not sure exactly where DRC has latched onto 3% gain on property year on year, historically speaking over 10 years most property in metropolitan Australia has doubled in value. Property in my suburb could be bought for $30K in the late 70’s, by the rationale I mentioned right about now that should mean it’s worth about $250K today, that figure is about $700K under the median house price in my area, go figure.
I think I have burned more then $100K on cars in the last 7-8 years all told as far I can account for roughly so you’re not Robbo there ha ha ha!
Oh god I don’t even want to calculate what money i have splashed on skiing/OS holidays and the like!!
If I had of just stayed home and never left the country I wonder how much better I would be or if I would have developed a clothing habit or something!
yeah but what for live the life, to your fullest do what you can and when you can i say. this days you dont know if you will alive in a week time…
I think I have burned more then $100K on cars in the last 7-8 years all told as far I can account for roughly so you’re not Robbo there ha ha ha!
Oh god I don’t even want to calculate what money i have splashed on skiing/OS holidays and the like!!
If I had of just stayed home and never left the country I wonder how much better I would be or if I would have developed a clothing habit or something!
I know what you mean on that front too, I think I would have done a large amount in domestic and OS travel in the last 10 years, I wouldn’t take that back either though!