Alex, are you married/partner?
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Pffft, mortgage stress..
80% of my pay goes toward investments.
let me know what the splits are .(loan amounts and rental return on IP).Hi
Anyone else in mortgage stress?
50% of my salary is going into ppor & ip mortgage repayments. I make $1547 net a fortnight.
I'm struggling atm and my bank balance has been going down! I'm down to $1600 now. I'll get paid tomorrow though. I'll be ok and have some breathing space once I get my $3,500 tax return back in August, but in the meantime just to stay afloat I've had to open a new credit card with my anz account for a limit of $3000 set to min payments. Also instead of paying off my nab credit card in full each month i'm going to start paying just half the amount.
I'm using the credit card as a short term back up and once I get my tax return I'll be paying off the credit cards. I'll be using the credit card to pay for expenses such as food, petrol, accountant fee, yearly water bill, rate bill. Because I have to make sure I have enough money to make my mortgage repayments. Other living expenses for the next 2-3 months will have to be on credit.
In January I'll be increasing the rent from $230 pw to $245 pw. For it to become neutral it needs to get to $270 per week. So as I increase the rent that will make it easier to handle for me!
I'm thinking I may have to get a 2nd job but I really dont want to have to do it due to health reasons of which i'm not going into on this forum. 1 full time job is enough for me as it is.
I really need to be extra frugal now. Pretend to live like a pensioner and be so careful. The next 2 years I think will be tough but If I'm careful I can get through it.
Any tips encouragement or advice would be great!
Anyone else struggling too? People usually go quite when they struggle dont they and dont want to say anything.
80%, that's nothing.....
We're putting about 97% of our income/profits towards IP's.
But no stress encountered so far.
Well I wouldn't say it's 'nothing'
It's only 12% less than you. It also depends on other factors.
Although i must say that I feel like a douschebag when I compare myself to Nathan.. Every new copy of API I get he's on the front cover again making three times my annual wage in a month!!
It gets me thinking in a good way but it seems I'm too busy working for semebody else to have time to do anything about it. It feels like I don't even have the time to think in depth and head more in the same direction. I will have to try and find some time soon to just sit and think. There is obdviously more I could be doing but at the same time I feel I am doing quite well just working in a guaranteed pay/job to pump income into investments.
I'd like to have a large buffer before setting out and taking bigger risks such as leaving work to persue full time investing.
Thanks for your input Tom, although I'm not sure where you get those figures from?
I make a tiny bit more than you per week, in the 30% tax bracket for what it's worth. So I basically leave $10,000p/a for food, petrol, closthes and car maintenance. Unless I wish to dig into my LOE cash, but I prefer not to for the time being, the more the merrier!
I assumed it would be impossible for someone (Ace) to save 97% of their income without earning at least that. Indeed you have to assume after tax or it does not work.
Alex, how are your finances/loans structured? Where does all your income and rents sit before you pay off the nab card each month? Where do your loans get paid from?
If I read correctly you are about $40 off being neutral on the IP so I assume the bulk of your outgoings are on your PPOR.
Is moving out and renting a cheaper property an option. This would make your loan payments,insurance,rates etc tax deductible while hopefully achieving a lower rent than you are currently paying on mortgage repayments.
Nah mate. At these LOW interest rates, it's a walk in the park if you don't overextend in the first place. Tip. Factor in 10-12% interest rates when you next purchase (ie, a substantial buffer). This way when they are a very low 7% like now, you can sleep easy
Wow, level 3. Suppose it means something in your workplace. Perhaps also move jobs. I never do understand people who sit for 10yrs with the same company waiting for measily pay increases. Take control of your career. I'm 8yrs in a career, and $3300 net fortnight
It just means it will take me longer to acquire and retire from property because of my lower income but thats fine by me