My financial Plan for the next 10 years

[RumpledElf]

Anyhow, 2 years seems a long time to wait without making an investment decision, or rather conciously staying out of the market. What are you doing with the cash you save? I assume it will go on the mortgage if you move into one of your rentals.

Nothing wrong with staying out of the market ... we have no plans to get back into the property market any time soon unless we can do it cash. Its just too hard to get a loan.

Interestingly our repayments are the same as Alex's but our loan is under half what she has. But then we have 8 years remaining on our loan. I still don't quite get how our loan structure works ...

 

[Sunfish]

Been repaying P & I Elf? Must be nice to see the end in sight. I've always been sceptical of IO.

 

[RumpledElf]

We've had the loan for 6 months - we sold our old house about 10 minutes after getting the loan, and of course neither potential rental income on the old house nor the fact that it was saleable came into the application for the new loan. It doesn't come with an offset account so we've just got $X0,000 in the loan as redraw and another $X0,000 in a high interest account. And since we can't refinance to any other bank, this is as good as it gets.

Talk to me again when we've got 2 years of consistent BAS statements instead of 6 months and I'll tell a different story. Yay for returning to work freelance work-from-home after several years off to breed, eh?

 

[HiEquity]

Think bigger.

Get a FIFO job on the mines for example, even if it's just driving trucks to start with. Get to live away from the parents for decent stretches at a time, get to use all the free fitness gear and free meals and board. And the income boost will give you investing options you can only dream of right now, if you save the increase and put it to work. And you might even meet some nice men, or not so nice ones if that takes your fancy!

Set stretch goals for how your income is going to increase dramatically and then do everything you can to achieve them. You've proven you can do it with your weight and health (which I applaud you greatly for - a fantastic achievement and the most important priority!). Now it's time to do it financially - your investing options and your eventual results in 27 years time (and all along the way) vary exponentially with your income, so do whatever it takes to get a higher income! And I don't mean umpiring!

You sound very much to have imposed a heap of unnecessary assumptions and constraints on yourself and your future. You have no real ties and no limits other than those. So my 2c worth is to do whatever you can to break free of them and think bigger! The worst thing that can happen is that you just stay where you are now so there is really nothing to lose...

Hope this helps!

 

[RumpledElf]

And you might even meet some nice men, or not so nice ones if that takes your fancy!

Haha those places are crawling with blokes - good incentive right there!

 

[redwing]

I hope you are doing more around the house than my stay at home son. If not you may find your choices suddenly limited.

If you DO help, both physically and financially, your parents may have grown used to having you around [they must be "of an age" now] and appreciate some help. It may not be too long before you have to do the maintenance etc anyway, even if you don't live there. Could you just do a "bachelor pad" improvement to gain a little privacy and separation?

ps Don't talk incessantly about your properties if they aren't investors themselves. Be polite and let them know but leave it at that.

Apparently kids are now living with their parents well into their 20's

I suggest sending them down to the shops and changing the locks in their abscence, when they knock on the door to be let in...tell them to call first before they visit

 

[investor2009]

Yea like all my bloody neighbours.. Three homes in a row (including the one we bought) in a very quiet rural streey have all been bought by single couples with no kids, all really nice n quiet, the two houses left have like.. 10 cars each, three kids and god knows who else coming and going. These kids are like.. 22 odd. I was out of home very early on and am a ( I believe) better person for it and learned much responsibility early on so I believe in some ways I had a head start. My freinds and Wife all say they're amazed I turned out as well as I did considering my parents and Family situation.. And I take that as a compliment

Anywho, what I'm trying to say is: Kids. Stop being such Mummy's boys!
I'm suprised some of them aren't still wearing nappies to be honest.
Grow a pair and move out. It might even be fun.

Or not, I'm just sayin' it how I feel. Others take a different view.

And Bayview: What I mean is, considering such a looong timeline the OP has to achieve their goals, I think it's a little bit wasteful to 'conciously' stay away from the property market for a good two years. Thats all. No more, no less.

 

[Alex P Keaton]

Think bigger.

Get a FIFO job on the mines for example, even if it's just driving trucks to start with. Get to live away from the parents for decent stretches at a time, get to use all the free fitness gear and free meals and board. And the income boost will give you investing options you can only dream of right now, if you save the increase and put it to work. And you might even meet some nice men, or not so nice ones if that takes your fancy!

Set stretch goals for how your income is going to increase dramatically and then do everything you can to achieve them. You've proven you can do it with your weight and health (which I applaud you greatly for - a fantastic achievement and the most important priority!). Now it's time to do it financially - your investing options and your eventual results in 27 years time (and all along the way) vary exponentially with your income, so do whatever it takes to get a higher income! And I don't mean umpiring!

You sound very much to have imposed a heap of unnecessary assumptions and constraints on yourself and your future. You have no real ties and no limits other than those. So my 2c worth is to do whatever you can to break free of them and think bigger! The worst thing that can happen is that you just stay where you are now so there is really nothing to lose...

Hope this helps!

I've been thinking about this ever since I read your post the other day! I'll do a bit of research into fifo mining jobs. Perhaps as an office worker! Could be an option. Also as a backup plan I could go on leave without pay for 12 months then if I didn't like it I could go back to my public service job. Thanks for the idea. I'm definately going to look into it! Sounds like there is good money in it although I hear its hard to get the work. Even if I were to do this just for 1 year I'd be able to save a large amount and use it as my deposit on ip #3!!

Yeah I guess I have imposed some constraints on myself! I need to take care of my stress levels more than anything and keep mentally healthy and balanced. I am a driven person but I have to watch my stress and SANF. So on the one hand i'm all for it and gung ho at investing but on the other hand I'm wanting to be quite conservative too. I guess though the more I become a regular investor I'll have less stress as I get used to it.

The more I think about I dont think NG is for me on this salary i'm on. If I do stay on this salary I'm thinking about buying something close to positive cashflow as possible with hopefully some reasonable CG. Then later on if I wanted to I could sell it and then I'd have a nice big deposit for a villa that I want to live in as my new PPOR. I dont want a large mortgage on my ppor. Maybe something outer suburbs or regional. I may use a buyers agent because i'm not familiar with properties outside of a few select suburbs.

Thanks! Yes I have lost a lot of weight. Its been hard work and I know that once I set my mind to something I am driven to succeed. I know I can become a successful pi I just need to keep a balanced life. Also I have to be careful not to overstretch myself financially as I made this mistake 1st time around.

The 2 properties I have are under 50 sqm so I'm thinking to be able get a 90% loan I'll need something larger than 50 sqm and I'm going to un collateralise my 2 ips.

 

[Alex P Keaton]

What about if you meet a boyfriend/girlfriend and move in with them or buy something together?

I like it how you phrased this sentence boyfriend/girlfriend!