Early retirement without a fortune
- Thread starter oracle
- Start date
I may be wrong but where you live you may be able to get it taken away as wood? Contact a firewood supplier. Provided access it not too bad they may but up and take for free?
Leaves the branches usually but hire a chipper and then you have free mulch.
Peter 14.7
Now we are being a bit mean.
IMO I dont blame anyone for not wanting to advise thier job in detail on a public forum. Would you?
I know some think China may be having lend of us and if so, so be it as it is his time being wasted as well and in the end, like everyone here, he/she has to look at them selves in the mirror each day.
I could be some sad, lonely man in some 2012 bunker with guns for all we know. Hang on,... of yeah, I am.
Seriously, China sounds like a very, very, high IQ educated person , a perfectionist with a limited world view due to time constraints or choice. A Geek. Thats ok. We are all not perfect. Thats why we come here to learn from others. At least that my reason....
Regards Peter 14.7
Already did.
What's the biggie?
It doesn't have to be in any form of detail; just state the profession/department etc.
I think if you are going to be a regular participant of a forum, it would help if you answer that type of question with slightly more info; just to keep/establish yer cred.
I mean; how can everyone hang sheet on me about golf and car tyres if they don't know the background?
Imagine how boring it would be if we all went; "I have a job".
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Investors living in low cost housing in low cost suburbs must not be very successful investors or are very cheap people. Not people to emulate.
Let me substantiate my assertion that almost 10% of Australian first home buyers buy their home with cash, outright, no mortgage. This has been the case in Australia for almost the past twenty years. Please refer to the link from the Australian Bureau of Statistics regarding housing finance.
http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/4102.0Chapter9102008
Not many people know this fact and choose to believe that everyone must necessarily have a mortgage to finance their first PPOR.
Skater, I respect your choice to indulge in a mortgage for a PPOR and live in a low cost suburb in a low cost home. However, I think that it is unreasonable to imply that this is the best course of action for others.
I choose not to service a loan for my PPOR as I think that buying on credit is not a good thing and would erode my quality of life. The value of my PPOR like many Australians is only a small part of my net wealth/worth. If you cannot afford to buy a ppor with cash, you should reconsider your decision. Otherwise, it would delay your time to early retirement.
I have seen these figures and feel that they underestimate the cost of living in Sydney. On food alone, I may well spend up to 15k per year as I eat out regularly.
Already did.
What's the biggie?
It doesn't have to be in any form of detail; just state the profession/department etc.
I think if you are going to be a regular participant of a forum, it would help if you answer that type of question with slightly more info; just to keep/establish yer cred.
I mean; how can everyone hang sheet on me about golf and car tyres if they don't know the background?
Imagine how boring it would be if we all went; "I have a job".
Depends where you work. If I was to give details of my job it would potentially be a breach of our code of conduct. My job is not secret in any way, just there may be a perception that my personal comments may be construed as professional comments.
Depends where they are on the investing clock.
A young adult in their early twenties or late teens who is in their first few years as an investor would be the above in the majority of cases.
Outwardly, they might appear to be unsuccessful (to you) but they've only been doing it for 5 minutes. Come back and see them in 10 years.
But, many folk also start investing much later (me for one example) and in the early years will have not much (in investments).
They may even have reached 40 and be still renting a dog-box and have no other material trimmings to show for their life to that point, all of a sudden have a light bulb moment and get stuck into investing in a big way.
That person in the first few years would also outwardly appear to be someone "not to emulate".
To me; they are someone to emulate, because they are having a crack from a very low base of finance, limited investing years to be successful. (I started at aged 40 with a nice but modest PPoR which was paid off, so I had a way better head start than the 40 year old renter, so for me it was not a big achievement).
They are someone to emulate moreso than the person who has the decent finance base, a decent income, outwardly appears to be swisho-o in a decent suburb, but sits around for 20 years deciding what to do.
So, if you blurt out here; "I am a ........... consultant/officer" etc, that could be construed as professional comment?
So, a doctor who works as an employee for a wage in a large private clinic can't say he/she is that here on SS because it is professional comment and the Directors might ping him/her for giving out medical advice which they don't get an income from?
Or; substitute that for a lawyer or an accountant in the same scenario.
As I said; we don't need details; just the tag.
Anyway, it doesn't matter; we already know that about 98% of folk on this site are IT employees.
I think we all need to get over ourselves a bit. sheesh.
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Why thankyou very much for not only insulting me, but also many other good people.
It may come as a surprise that there are many VERY nice homes in the outter suburbs. A person is not measured by the value of their PPOR, nor the suburb they live in. Not that it's any of your business, we live in a very nice suburb that has average very nice homes. No, not new, but nice. It just does not come with the $700k price tag.
I could think of nothing worse than living closer to the city.
While I've got better things to do than to sit & read that article in it's entirety, I noted this little snippet "In 2005-06, 5% of households who had recently bought their first home did not have a mortgage" Half your figure, and you will find that some of them had a silver spoon, and others inherited. There really is a small proportion that save their way to being able to purchase their first PPOR debt free.
No you don't! You just said, and I quote "Investors living in low cost housing in low cost suburbs must not be very successful investors or are very cheap people. Not people to emulate." It's obvious that you feel superior because you have a high income & don't have a mortgage. Well, sunny boy, I may have a PPOR mortgage in a suburb that is below your standards, but I can betcha my networth is a hell of a lot more than your's. You can go take your cash, go stick it in a bank & watch it depreciate. On the otherhand, this unseccessful investor will keep her large asset base and have a sustainable retirement.
Something about glass houses here buddy.
I agree that buying on credit for consumer purposes is going to erode your quality of life, but you simply HAVE to live somewhere. Unless you've been bludging off your parents while you save for your PPOR, you would have had to pay rent. Even you must admit that there is a break even point where it is cheaper to have a mortgage than to rent.
It is obvious that you have lived a pampered life & you are now on a high income. You're successfull! Bully for you.
But you know what, there are tons of people that don't have a large income & no matter what they do, will never, ever have one. They go about their lives & live within their means (well, most of them). They are not cheap people, just average, normal people. Take some time & stop belittling others. Normal, average people can not save their way to a PPOR. They save a deposit & get a mortgage.
Haven't you previously said you have hardly any furniture in your house because you can't afford it?
China, have you done the sums on the opportunity cost of saving for your home rather than having a mortgage?
What would your home have cost at the point you started saving for it?
You said it took 11 years to save $700 000 to pay cash so that's roughly 60k per year in savings. As over that time frame houses (on average) doubled your house would have been maybe $350k originally.
You could have paid that loan off in a record 6 years and then had an extra 5 years to save for your retirement adding another 350k to your retirement funds.
With the capacity that you obviously have for savings, maybe you made a poor investment choice to not have a mortgage.
Out of curiosity, where did you live for those 11 years? What were your costs there?
What would your home have cost at the point you started saving for it?
You said it took 11 years to save $700 000 to pay cash so that's roughly 60k per year in savings. As over that time frame houses (on average) doubled your house would have been maybe $350k originally.
You could have paid that loan off in a record 6 years and then had an extra 5 years to save for your retirement adding another 350k to your retirement funds.
With the capacity that you obviously have for savings, maybe you made a poor investment choice to not have a mortgage.
Out of curiosity, where did you live for those 11 years? What were your costs there?
Haha.
What I meant was that the pile of grass, now that it's been cut, is two metres high.
And she is attractive, but she's overseas and I'm by myself. Come over.
Is it just me or do others find China's post incredibly insulting to the majority of other forum members?
He has his point of view, fair enough. But there's a line that seems to get crossed in most posts.
China, I bought my first house at 18 years of age for $130,000. Does that make me some sort of peasant of undesireable person to you? I also watched the value of that property GROW over the next few years and was able to purchase not one, not two, but THREE properties over the next 7 years due to the fact that they were increasing in value. Each of the properties puts money in my pocket each and every week and I now control over $1,000,000 of property. Not too bad for someone on under $50,000/year. Yeah, i'm an unsuccessful investor that nobody would like to emulate.
Take your superiority complex somewhere else
/end rant
He has his point of view, fair enough. But there's a line that seems to get crossed in most posts.
China, I bought my first house at 18 years of age for $130,000. Does that make me some sort of peasant of undesireable person to you? I also watched the value of that property GROW over the next few years and was able to purchase not one, not two, but THREE properties over the next 7 years due to the fact that they were increasing in value. Each of the properties puts money in my pocket each and every week and I now control over $1,000,000 of property. Not too bad for someone on under $50,000/year. Yeah, i'm an unsuccessful investor that nobody would like to emulate.
Take your superiority complex somewhere else
/end rant
China, I would suggest you read the book "The Millionaire Next Door". Details the reality that the majority of millionaires and multi-millionaires do not live in the up market suburbs, do not have the expensive and flashy houses, do not drive the fancy cars, do not have all the "status symbols" or live the "millionaire" lifestyle that you seem to think they do.
I think the main problem is this is a thread about retiring early Without significant assets whereas China is focused on achieving a more comfortable lifestyle and hence why his posts may appear insulting to "some" of those who are attracted to the theme of this thread. Or maybe I've just got a thick hide or I'm just too stupid to know I'm being insulted
The retirement figure China aspires to is what a lot of investors would like to achieve but the discussion of such probably belongs under a different thread. Certainly 2 - 3 mil will provide a very comfortable lifestyle but many well payed white collar workers for example (and many not so well paid
) wanting to live like they do when working may well need this amount as a minimum to continue to live such a lifestyle in retirement. Again a topic for another appropriate thread.
