yes great idea with the food. i'm doing better at this. eating mostly sandwiches at work and less take aways. I need to constantly keep telling myself "what are my needs, what are my wants" so as to stop buying takeaway foods so much. there are these rice paper rolls at work that cost $7.50 each, if you buy 2 of these twice a week it adds up to something crazy like $60 a month. thanks yes i've lost heaps of weight. i need to cook more for myself too and more often! mum and dad enjoy having me for dinner too so I should make the most of it and visit.
Anyone else in Mortgage Stress ? 50% Pay ?
yes great idea with the food. i'm doing better at this. eating mostly sandwiches at work and less take aways. I need to constantly keep telling myself "what are my needs, what are my wants" so as to stop buying takeaway foods so much. there are these rice paper rolls at work that cost $7.50 each, if you buy 2 of these twice a week it adds up to something crazy like $60 a month. thanks yes i've lost heaps of weight. i need to cook more for myself too and more often! mum and dad enjoy having me for dinner too so I should make the most of it and visit.
yeah, thats what it has come down to unfortunately but i'll dig myself out. i'll be alright. btw i havent resorted to the cc yet. its in the mail. it'll come in a few days time. once i get my tax return i'll pay it off. it wont be more than around the $500 mark as well. i need to just keep constantly reminding myself of my needs versus my wants whenever i go to buy anything now!
yeah i have thought of that and thanks for the advice. i think i'd be scared though that i'd end up spending the money and not be any better off but maybe this could be an option. im seeing the accountant soon. i'll discuss. would it be too late to fill out a variation for this financial year though?
thanks
I have been giving this a lot of thought! Thanks because I hadn't though of this until you bought it up. I'm hoping both my properties have gone up $10,000 each since December 2009.
Atm I have my PPOR and IP cross collateralised at 80% LVR.
PPOR loan $177,000 = Valued at $260,000
IP loan $199,000 = Bought it for $210,000
I might wait until December and then talk to mb. I'll have owned my properties for 2 years then. If the values have gone up perhaps I'll be able make them stand alone loans and be able to access $10 K or $20 if I can go up to a higher LVR.
Finance brokers here: Any thoughts on this.
A renovated unit in my PPOR complex was on the market for $270 K and just recently came under offer. I will be very interested to see what it sold for. They valued mine at $260 K back in Dec 2009 so I'm hoping that the renovated unit sold for at least $270 K. This will help my cause.
Yes the extra funds in the offset will help to fund the rental shortfall and other ip expenses that pop up. It would reduce the pressure. It would just mean it will take a bit longer to buy #2.
Akex,
1/ Refinance PPOR from a property loan into a LOC with a 80% LVR credit limit.
2/ Close offset account.
3/ Close savings account.
4/ Close cheque book account.
5/ Keep Credit Card.
Monthly Cash flow....
1/ All wages & rents get deposited directly in your ppor LOC by your employer and property manager.
2/ Set up IP loan to be paid monthly by automatic debit from ppor LOC.
3/ Pay all your cost living expenses using your credit card.
4/ On the credit card due by date pay off the credit card balance from your ppor LOC by either online banking or automatic debt.
5/ Duplicate the above for each subsequent month.
By Using the above cash flow model ALL of your accessible income is sitting in ppor LOC reducing the interest payable whilst you live on the banks money (credit card) interest free. Also use a credit card that has a rewards point system attached. It doesnt take long to collect the bonuses when your entire cost of living is going through the credit card account, plus all your living costs are documented each month on the statement for budgeting purposes.
This is the model I used when starting out.
Food for thought
I hope this helps.
Nathan is earning big $$$ because he took a risk, has educated himself, put his knowledge to use, taken more risks, and now he is doing well.
Sorry to be the bearer of bad news but just because you've had enough of working for someone, doesn't mean going off by yourself will end in success, for every Nathan there may be 1000s of others who have gone out by themselves, and not only have they not made any $$$ out of it, but they may have lost their home in the process.
In reality, it is far from easy.but good luck to you,
i wouldn't make anything on it i dont think
Atm I have my PPOR and IP cross collateralised at 80% LVR.
PPOR loan $177,000 = Valued at $260,000
IP loan $199,000 = Bought it for $210,000
Rental return $750 per month
Repayments (IO) $1200 per month
= Shortfall approx $450 per month
Looking at the figures above I shouldn't really be having difficulties coping with these repayments. I think I just need to learn to manage my money better and be stricter on my needs versus wants especially when it comes to food.
Thanks Rixter. I'll print this out and discuss when i meet with my accountant and mb.
I'm feeling a bit more positive about things! I'm sure once i meet with accountant and mb a restructure of my finances may help as well as taking more responsiblity in tightening my belt. I can see a bit of light at the end of the tunnel now. I can see there are a few options for me.
Thanks to all the others I didn't get a chance/or didn't reply to on here. It has all helped. Very much appreciated!
I'm sure once i meet with accountant and mb a restructure of my finances may help as well as taking more responsiblity in tightening my belt. I can see a bit of light at the end of the tunnel now. I can see there are a few options for me.Thanks to all the others I didn't get a chance/or didn't reply to on here. It has all helped. Very much appreciated!
Can you move in with them for a couple of years?
Yes I agree this is an option! Thanks! I could rent something for around $250 a week then I wouldn't have to worry about the rates, strata and other PPOR expenses. The only thing is atm I'm not prepared to do this as I am quite happy where I am. I've been here for 3 years and I dont want the upheaval of moving again.
But later on in the future this could be a very smart move. Rents will increase even more and in a few years time I can see myself getting a nice little cashflow positive thing going on with my current PPOR when its rented. I wont discount this option though. I'll keep it in my thoughts thanks
How about sharing with a friend either at your current PPOR or moving out as you've said to rent, but again "share"?
yeah, thats what it has come down to unfortunately but i'll dig myself out. i'll be alright. btw i havent resorted to the cc yet. its in the mail. it'll come in a few days time. once i get my tax return i'll pay it off. it wont be more than around the $500 mark as well. i need to just keep constantly reminding myself of my needs versus my wants whenever i go to buy anything now!
I thought ITWV also
A good move but may impact socially, how about sharing with someone else? I've done it before and we've both saved money
1) Sell PPOR
2) Move into IP
3) make more cash
4) find life partner
5) start again
2) Move into IP
3) make more cash
4) find life partner
5) start again
Find partner who already has a PPOR ?
That's a large % - what is your take-home wage if you don't mind me asking?
here's a tip; DON"T BUY ANY TAKE-AWAY FOOD AT ALL...
If things are as tough as you are describing, there is no if's or but's...it's time for tough action.
You should only ever be taking home made lunches to work, and only be eating breakfast and dinner at home, and home made food.
No bottled drinks from the shops - take your own tap water. and so on.
Hard?
Bloody oath; but only at the start.
The next step as Peter said is to get rid of all the credit cards, and not use them AT ALL - for anything. CASH ONLY.
And, pay money into the CC every pay with whatever you save from your lunch expenditure that you are now saving
because if you are outside the interest free days, you are paying interest daily on that credit, which is slowing down your speed of recovery.I heard a cleaning lady mentioned? No need for a tip on that one; you know what to do.
My SIL and BIL are always crying how broke they are (not saying you are "crying" - you're asking for help unlike them), but they dress the kids in Pumpkin Patch, she spends about 2 hours a day on Ebay buying stuff, they both smoke, he drinks a slab per week at home, they have Foxtel, they spend their tax returns on motor bikes and other gadgets...you get the drift.
Do you know where you do spend all of your money once you have paid all your bills? It can be quite confronting sometimes when you add up all of the little things you buy.
Just a few things that might save a few bucks. No more take aways, at all. Do you pay for any beauty treatments, waxing, facials etc? You can save lots of money on cleaning products, do you use heaps of different things? Washing, do you use fabric softners etc, vinegar in the final rinse is much more enviromently friendly and much cheaper. Don't get your hair cut for ages, I saved a packet by not having my hair cut for six months recently, and I did not have an expensive hairdresser to begin with. Do you get your hair dyed, save heaps by not doing this. You have not answered previous question about that cleaner, please tell us you do not have them still? I would love a cleaner but it is a luxury item and when things are stretched it really is a no no.
Just a few thoughts that came off the top of my head.
Just a few things that might save a few bucks. No more take aways, at all. Do you pay for any beauty treatments, waxing, facials etc? You can save lots of money on cleaning products, do you use heaps of different things? Washing, do you use fabric softners etc, vinegar in the final rinse is much more enviromently friendly and much cheaper. Don't get your hair cut for ages, I saved a packet by not having my hair cut for six months recently, and I did not have an expensive hairdresser to begin with. Do you get your hair dyed, save heaps by not doing this. You have not answered previous question about that cleaner, please tell us you do not have them still? I would love a cleaner but it is a luxury item and when things are stretched it really is a no no.
Just a few thoughts that came off the top of my head.
More, lol. Do you buy newspapers and magazines? Go to the library if you do, or go without if you do not have the time to go there.
Makeup, if you use it, are there cheaper alternatives? Some of my girlfriends spend a fortune on basic stuff like moisturiser's whilst I use just a basic oil.
Makeup, if you use it, are there cheaper alternatives? Some of my girlfriends spend a fortune on basic stuff like moisturiser's whilst I use just a basic oil.
I'd dump the cleaner and give up the takeaway (BV you especially would know it's not hard - who are you kidding ), before getting a credit card.
It sounds like you aren't prepared to responsibly manage your income and outgoing expenses at this stage, when you are capable of doing so - you've done it before.
If you want a super yummy quick spring roll recipe, I have one and could pass it on - a big spring roll probably costs about 50 cents and is as quick as making a sandwich. You make a batch that last days.
Why pay for things you can very easily do yourself?
), before getting a credit card.It sounds like you aren't prepared to responsibly manage your income and outgoing expenses at this stage, when you are capable of doing so - you've done it before.
If you want a super yummy quick spring roll recipe, I have one and could pass it on - a big spring roll probably costs about 50 cents and is as quick as making a sandwich. You make a batch that last days.
Why pay for things you can very easily do yourself?
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