The STOKE thread
sounds like a massive pain the butt to me! I don’t understand that stuff at all & am fairly happy to not earn much, not have a house and not even have to think about half that stuff. I’ll just hang over here and remain blissfully ignorant, I think!
Cords putting your head in the sand isn’t real smart when it comes to educating yourself about money and tax and how you can make it work best for you. For the last 6-7 years up until this year my tax return has been in excess of $10K, sounds great but I had to spend the money making my living to be able to claim it back on my car as a tool of trade.
well said…
sounds like a massive pain the butt to me! I don’t understand that stuff at all & am fairly happy to not earn much, not have a house and not even have to think about half that stuff. I’ll just hang over here and remain blissfully ignorant, I think!
Cords putting your head in the sand isn’t real smart when it comes to educating yourself about money and tax and how you can make it work best for you. For the last 6-7 years up until this year my tax return has been in excess of $10K, sounds great but I had to spend the money making my living to be able to claim it back on my car as a tool of trade.
well said…
I agree - whilst I don’t 100% agree with DRC at least he has made an educated decision that is right for him.
People still look at me confused when I tell them that financially renting is better for me than buying at this stage.
hmmmm whilst I agree to some degree, while property is still going up I am in a good position.
The only time it is better to rent than buy is if you live somewhere you can’t afford to buy. I sucked it up and lived in a less desirable location (to me) and bought a place got the first home buyers grant stayed slightly longer than required then got the hell out!
Hmm ok I don’t agree with that being the only case.
You are completely ignoring the opportunity cost of having money locked up in a mortgage.
If you are a good saver (I am) you can make your savings work for you and out-earn capital growth on property. For the past couple of years property has been declining/flat or in rare cases growing slowly let’s say 3% (I could be way off haven’t looked into it recently). Currently with my liquid money I’m able to invest it in something as simple as a high interest savings account which will return me ~6% whilst compounding. I haven’t even scratched the surface of diversifying investments into other sectors shares/precious metals/business etc.
With my money working for me it is earning more than I pay for rent and I get to live in a desirable area.
The ability to remain liquid as well offers me peace of mind. I also have the ability to quickly get into the property market if I believe it bottoms out.
sounds like a massive pain the butt to me! I don’t understand that stuff at all & am fairly happy to not earn much, not have a house and not even have to think about half that stuff. I’ll just hang over here and remain blissfully ignorant, I think!
Cords putting your head in the sand isn’t real smart when it comes to educating yourself about money and tax and how you can make it work best for you. For the last 6-7 years up until this year my tax return has been in excess of $10K, sounds great but I had to spend the money making my living to be able to claim it back on my car as a tool of trade.
I’m pretty sure I’ve got it about as sorted as I can for the situation we are currently in. Earning the amount we currently earn and getting back what we did on tax is pretty good and I’m perfectly happy to continue in the current mode for a while. When/if I work full-time later on, depending where we are living, we might want to buy a house at which point I spose I’ll learn what I have to learn. Not understanding the ins and outs of negative gearing now has no effect on my current situation, so I’m happy to let it stay that way until it does!
Each to their own I suppose. But at least you have made an educated choice.
I just don’t like the idea of paying someone else investment off (yes I do it but only cause it works for me and I am making a profit elsewhere).
And the fact of the matter is I have paid barely nothing off my mortgage and my money has grown. I am no more out of pocket than I was before i bought the house.
ie I have money now and did not “save”
you had to pay rent AND put extra away.
And since i bought my place ($225k) in 2007 it is now worth (last professionally valued over 18mths ago) at $270k
Some else do the maths on the growth….
Oh and all i did when i bought the place was paint and add new carpet and add built in robes x2 (so hardly any improvements made!)
Each to their own I suppose. But at least you have made an educated choice.
I just don’t like the idea of paying someone else investment off (yes I do it but only cause it works for me and I am making a profit elsewhere).
And the fact of the matter is I have paid barely nothing off my mortgage and my money has grown. I am no more out of pocket than I was before i bought the house.
ie I have money now and did not “save”
you had to pay rent AND put extra away.
And since i bought my place ($225k) in 2007 it is now worth (last professionally valued over 18mths ago) at $270k
Some else do the maths on the growth….
Oh and all i did when i bought the place was paint and add new carpet and add built in robes x2 (so hardly any improvements made!)
Haha can’t believe after commenting on having this discussion with other’s I’m now having it with you! 
I’m no more out of pocket either instead of having rent coming into my pockets from tenants I have profit coming in from investments and in many cases this profit outdoes what I would have earnt if I owned an investment property. I don’t have to actively “save” any more than you have to make mortgage repayments. Where your pay goes into paying off the investment mine goes into high interest or other sectors.
Keep in mind your 225k which is now valued at 270k hasn’t been adjusted for inflation. Inflation accounts for your “gains” at roughly 3% p/a
But I have put no money in? You have!
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)
This simple saving returns 6% vs 3% if I owned property
I could diversify and have substantially higher returns but also up the risk in doing so
I know a few couples with mortgages, and the whole of one half of the couple’s fortnightly salary goes straight to the mortgage and they never see it…and they are only paying off interest and they don’t have money to go anywhere or do anything fun on the other half’s salary.
I’d rather be in my position to theirs! Sure I’m too poor to do fun stuff all the time, but I don’t work that often and I still do more travelling and fun stuff than most of the people I know with full-time jobs, let alone full-time jobs + a mortgage.
People still look at me confused when I tell them that financially renting is better for me than buying at this stage.
hmmmm whilst I agree to some degree, while property is still going up I am in a good position.
The only time it is better to rent than buy is if you live somewhere you can’t afford to buy. I sucked it up and lived in a less desirable location (to me) and bought a place got the first home buyers grant stayed slightly longer than required then got the hell out!
Hmm ok I don’t agree with that being the only case.
You are completely ignoring the opportunity cost of having money locked up in a mortgage.
If you are a good saver (I am) you can make your savings work for you and out-earn capital growth on property. For the past couple of years property has been declining/flat or in rare cases growing slowly let’s say 3% (I could be way off haven’t looked into it recently). Currently with my liquid money I’m able to invest it in something as simple as a high interest savings account which will return me ~6% whilst compounding. I haven’t even scratched the surface of diversifying investments into other sectors shares/precious metals/business etc.
With my money working for me it is earning more than I pay for rent and I get to live in a desirable area.
The ability to remain liquid as well offers me peace of mind. I also have the ability to quickly get into the property market if I believe it bottoms out.
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.
i always say you got to spend money to make money and that is what i believe in, i spend money on share/properties. i don’t really have savings, no you might say that is wrong that you don’t have savings but when you have money tight up in things you can always take money out so in essence you still have money if you need it.
i mean that is what works for me and that doesn’t means that it will work for you.
I know a few couples with mortgages, and the whole of one half of the couple’s fortnightly salary goes straight to the mortgage and they never see it…and they are only paying off interest and they don’t have money to go anywhere or do anything fun on the other half’s salary.
I wouldn’t do that - they are living beyond their means IMO
I know a few couples with mortgages, and the whole of one half of the couple’s fortnightly salary goes straight to the mortgage and they never see it…and they are only paying off interest and they don’t have money to go anywhere or do anything fun on the other half’s salary.
I’d rather be in my position to theirs! Sure I’m too poor to do fun stuff all the time, but I don’t work that often and I still do more travelling and fun stuff than most of the people I know with full-time jobs, let alone full-time jobs + a mortgage.
cords that is just stupidity on they behalf you never get you self in more dept that you can handle, if people want to stretch them self to the max that is what happens.
i mean i have mortgage and few other things and shares and i travel every year so, where my wife picks destination and then i go to japan so its really all falls down to how you manage your finance.
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.
but like i said everyone has they ways, and what you do does not necessarily mean its wrong, compere to what someone else does.
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 heaps
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.