A little cheer amongst the gloom.

[Arkay]

Hi everyone,

Been a while since I posted and tend not to read too much these days as it does my head in reading all the doom and gloom.

Just wanted to say that it ain't all bad. The Mr's and I put a debt recycling strategy in place about 18 months ago. By our calculation we'd worked out that we'd have our PPOR paid out in full by around November this year.

Just got our tax cheques back today and WHOHOOO! We're there!!!!!

8 months ahead of schedule and a definite affirmation of why you need to set goals.

Even though we still have basically as much debt it feels absolutely wonderful to have 0 (zero, zip, nada, zilch), consumer and/or non deductible debt!

Onwards and upwards I say!

Cheers,

Arkay.

 

[auror]

Congrats Arkay!

I hadn't heard of debt recycling before so I just googled it:
http://www.moneymanager.com.au/articles/2009/03/13/1236447436994.html

I assume this is what you are referring to?

Nice work

 

[Collector]

Congratulations, I know the feeling We became debt free in August/08.


What are your plans/goals now?

 

[skater]

Congratulations!

We have already been there, done that, but just bought a new PPOR & have to do it all again.

 

[Arkay]

Congrats Arkay!

I hadn't heard of debt recycling before so I just googled it:
http://www.moneymanager.com.au/articles/2009/03/13/1236447436994.html

I assume this is what you are referring to?

Nice work

Yes. That's a very brief explanation but in essence that's what it is

Cheers,

Arkay.

 

[Arkay]

Thanks Collector/Skater/auror,

Still re-evaluating the current goals. Short term though I think it may involve some purchasing. Long term they stay the same. Be financially independent as soon as is realistically possible Really need to flesh it all out a bit better as my goal setting skills still suck

Cheers,

Arkay.

 

[lisag]

more info please

Hi everyone,

Been a while since I posted and tend not to read too much these days as it does my head in reading all the doom and gloom.

Just wanted to say that it ain't all bad. The Mr's and I put a debt recycling strategy in place about 18 months ago. By our calculation we'd worked out that we'd have our PPOR paid out in full by around November this year.

Just got our tax cheques back today and WHOHOOO! We're there!!!!!

8 months ahead of schedule and a definite affirmation of why you need to set goals.

Even though we still have basically as much debt it feels absolutely wonderful to have 0 (zero, zip, nada, zilch), consumer and/or non deductible debt!

Onwards and upwards I say!

Cheers,

Arkay.

Did you achieve this with shares or property??
I saw a F.Advisor last year who want me / hubby to buy in to marginal shares and then put that money back into our Home loan etc. We may have reduced PPOR but had ever so increased to debt on the shares. I became to cold feet once started reading about "marginal calls" etc.

 

[Arkay]

This was done via property, not shares.

Cheers,

Arkay.

 

[steveadl]

Well done Arkay!

Hoping to do that ourselves one day.

 

[Gools]

Congrats Arkay, that's great news to hear.

Did you sell any property along the way to do it or did it from just buying more negatively geared property?

Gools

 

[Dazz]

Goodonya arkay. You are now part of that top 35% of folks who own the house they live in with no mortgage against it.

Did you get to see the duplicate title deed ??

I bet you are just itching to re-mortgage it again for good debt.

 

[Petal]

Congrats Arkay!

I hadn't heard of debt recycling before so I just googled it:
http://www.moneymanager.com.au/articles/2009/03/13/1236447436994.html

I assume this is what you are referring to?

Nice work

Where does this legal debt recycling fit in with the Hart's case????

 

[Arkay]

Congrats Arkay, that's great news to hear.

Did you sell any property along the way to do it or did it from just buying more negatively geared property?

Gools

Nothing sold. Only bought

Cheers,

Arkay.

 

[Arkay]

Goodonya arkay. You are now part of that top 35% of folks who own the house they live in with no mortgage against it.

Thanks

Did you get to see the duplicate title deed ??

I bet you are just itching to re-mortgage it again for good debt.

Hehe. Wish it were that simple. The mortgage still exists but is 100% fully offset. The whole plan was to build a cash buffer in the offset that has the effect of paying out the mortgage whilst still keeping the money at call should we decide there are better things to do with it. In the current climate it provides a nice safety blanket and there's no good reason to pay it out.

There's no better loan than:

a) One that has a low home mortgage rate for non deductible emergency and
b) You don't have to fill out paperwork or pass criteria to get

It already has a LOC secured against it but given the economic crisis was coming we decided there was/is no valid reason to actually pay it to the bank and then plead with them to re-borrow (not that they'd likely disallow it), but with it all in the offset it's still ours, so to speak.

Cheers,

Arkay.

 

[Arkay]

Well done Arkay!

Hoping to do that ourselves one day.

Thanks Steve

Cheers,

Arkay.

 

[Arkay]

Where does this legal debt recycling fit in with the Hart's case????

Hmmm. Could write a thesis on this one. All I can say is to read Corsa's posts on the subject.

Harts case was a very different thing that seems on the surface to be similar.

At best I'd say talk to your accountant about it well BEFORE entering into it but I also have to add that YOU need to understand it fully in order to explain it properly to your accountant. It's a grey area and subject to interpretation so you need to be able to back up your ideas.

Unless you have a "property savvy" accountant but I'm also of the opinion that anyone calling themselves "property savvy" are best avoided as you actually want a tax accountant Doesn't matter if it's property, shares or goats milk. Someone who knows their stuff doesn't need to attract customers with advertised savviness.

Cheers,

Arkay.