Wasteful expenditure

BayView said:
A bit of heated discussion recently about what is /isn't a wasteful expenditure...

Everyone has their own examples of it...

What are yours; if any?

Of course; I expect this to be a very short thread, because we are all committed property investors who are single-minded in our pursuit of an early exit from the rat race, and all the various sacrifices and delayed grats we can think of to get us there; right? :D

I'll go first.

At the moment, we are so close to broke it isn't funny, so we are quite easily able to spend no money on anything.

But we still do, on some things we don't need.

*Mine is a glass or 3 of wine every night with the wife to restore sanity briefly.
*We still run our reverse cycle heaters/air cons while this cr@p Melb weather persists instead of turning them off at night (getting up to kids).
*IQ Foxtel connection (for sanity - not having to watch ads).

That's about it; we spend pretty much nothing on ourselves (wife had her hair cut and dyed for $60 - occasional spend) - almost all spending is for groceries or the kids, and clothes etc are second hand, or given from other parents who don't need their kids' stuff, down to one car (could have bought a cheaper one than we own, but safety for 3 kids is paramount).
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Mate why are you living in a million dollar house when you can't afford clothes or to use your heater? Crazy stuff, sell it for your own sanity. Downsize/downgrade even $250k or so and you'll still have a nice place and some financial breathing space.
 
Orks said:
Mate why are you living in a million dollar house when you can't afford clothes or to use your heater? Crazy stuff, sell it for your own sanity. Downsize/downgrade even $250k or so and you'll still have a nice place and some financial breathing space.
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$250k for a nice place? I'd like to see that...down our way that's maybe a major doer-upper, or a mobile home in the trailer park out near the freeway.

Land starts at that figure and higher down here...and that's in the "war-torn Beirut" section with all the druggies, ferals and skanks with the car-wreck and pit-bull front yards.

Sounds simple; sell and downsize. That is the obvious and easy way out right now, and every couple of months we talk about it again, and both can't bring ourselves to do it.

It's been covered in another thread, but briefly; we are in a dilemma between immediate financial peace if we sell, and - if we sell right now - we will miss this next supposed wave of value increases that everyone is talking about lately..

To sell (for me) will signify a really big failure from all I've strived and worked so hard for, and gone without for.

To do that AND see the place maybe double in value the next 5-10 years...and miss out on that....I reckon I'd become like Michael Douglas in "Falling Down".

Now that we finally have a tenant (moved in yesterday supposedly), and with the wife back at work after maternity leave for a year, things might ease up once we are able to turn a deficit into a surplus.

Working on improving the business too, of course.
 
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The Fence said:
So will you sell then, and if so where will you go then?
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No; won't sell.

Will use the increased equity to fund more investments...not Resi IP's as such.

Probably commercial IP, another business or more hopefully - for cashflow, and then do a few buy/subdivide and sell projects - most of our suburb is zoned for that down nearer the beach.

If we did sell; it would involve a move to a warmer climate...these Melb winters are doing my head in....I had 4 layers on in the workshop on Friday, and as I type it is hosing down outside....again.

Global warming is here, I tell ya.
 
I like to spend money on getting pampered - massage, manicure & pedicure :eek:
Good books too. Or iBooks... And coffee.
Oh and I just splurged on 3pcs of Zumba outfit! Paid $150... before I even got out of bed!
 
The Fence said:
How will you fund more investments with the obvious predicament you are in now? Cash flow, servicing etc...
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The banks will look at the overall financial position before lending, and any investment rent or business income will be factored into the mix.

Buying another business that shows strong after tax profits is a plus, or a pos geared IP of some sort, etc.

We still have the Kalgoorlie IP, which is very positive geared, so now that it is rented we are already starting to turn the ship around.

I don't expect to be in any sort of financial position to borrow within the next 12 months or more, and it may be that long before any significant cap growth occurs in our neck of the woods to be able to access any sort of useable equity as well.

It's often an exponential thing, TF; once the funds turn from deficit to surplus, the decrease in debt and interest and increase in serviceability and equIty is/can be amazingly fast.
 
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BayView said:
.

If we did sell; it would involve a move to a warmer climate...these Melb winters are doing my head in....I had 4 layers on in the workshop on Friday, and as I type it is hosing down outside....again.

Global warming is here, I tell ya.
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I can agree with that !!
Rob's mum doesn't live too far from you, and she is always turning the heat on when I'm there. She doesn't find it cold, but she knows I'm freezing.

I have told Rob, if we ever decide to buy, it won't be in a cold region.
My first choice would be Maryborough, Qld region.
 
kathryn d said:
I can agree with that !!
Rob's mum doesn't live too far from you, and she is always turning the heat on when I'm there. She doesn't find it cold, but she knows I'm freezing.

I have told Rob, if we ever decide to buy, it won't be in a cold region.
My first choice would be Maryborough, Qld region.
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I love Perth; a fair bit north of Melb, and milder in winter.

Hot in summer - which I love.

Also areas such as Byron Bay...not really cold, not too hot....lots more warmer periods overall.

I always reckon that Melb winter starts on Anzac Day, and ends on Melb Cup day.
 
kathryn d said:
I can agree with that !!
Rob's mum doesn't live too far from you, and she is always turning the heat on when I'm there. She doesn't find it cold, but she knows I'm freezing.

I have told Rob, if we ever decide to buy, it won't be in a cold region.
My first choice would be Maryborough, Qld region.
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You'd think being from ns you'd be predisposed/tolerant to cold?
 
dtraeger said:
You'd think being from ns you'd be predisposed/tolerant to cold?
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You'd think, wouldn't you.
I hate the cold.

I think it may be also the humidity in Victoria. It always seems to be rainy,windy, dismall weather when we leave at the end of April, and arrive back mid Sept.
 
BayView said:
We still have the Kalgoorlie IP, which is very positive geared, so now that it is rented we are already starting to turn the ship around.

Great to hear that !:)

It's often an exponential thing, TF; once the funds turn from deficit to surplus, the decrease in debt and interest and increase in serviceability and equIty is/can be amazingly fast.
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Great to hear you have clung onto that glass half full mate. keep it up !;)
 
kathryn d said:
I can agree with that !!
Rob's mum doesn't live too far from you, and she is always turning the heat on when I'm there. She doesn't find it cold, but she knows I'm freezing.

I have told Rob, if we ever decide to buy, it won't be in a cold region.
My first choice would be Maryborough, Qld region.
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Should have a chat to Rowena then, she lives in the Borough. It's a pleasant town with a fair bit of heritage, but not much happening on the economic front.
 
norwoodman said:
Should have a chat to Rowena then, she lives in the Borough. It's a pleasant town with a fair bit of heritage, but not much happening on the economic front.
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We did the heritage walk last year, with the tour guy.It was very interesting.
I also found the gravesite of my grandmother's grandmother and cousin.
 
This is not something I'm proud of but at the moment we're spending far too much money on things that bring me no real pleasure and just make my life worse. Think cigarettes, alcohol, takeaway. Not in a good headspace.

When not feeling so crap and unmotivated - expenses are:

  • furniture - I will happily spend 1k on an item if it's solid and I think I'll have it until I die
  • knick-knacks, homewares, plants/garden stuff
  • hairdresser (this is a new addition since I've decided I really like being blonde)
  • cats - will gladly buy them a scratching post for $500 and we're having a portrait of the boy kitty commissioned to honour his 10th birthday
  • annual inter-city or interstate holidays for a few days
  • a day out every few months - circus, shows, etc.
  • books for both of us
  • husband likes video games, goes for occasional lunch/drinks with work people
  • stupid purchases like when my husband bought a very nice electric guitar he played twice or when I had an antique mirror shipped all the way from Europe only to decide it 'didn't look like it did in the photos'

Oh, and we'll be buying our very first car next month. It's a necessity for us but we are splurging on a new rather than secondhand car. 18k ish

We used to save more when we were on a much lower income - we're now middle income as opposed to low income yet we save so much less. We suck right now...

The biggest thing we scrimp on is our PPOR - about as modest (read:ghetto) as could be and holidays (most people don't even think our getaways constitute holidays). And we're not into gadgets.
 
I don't mind 'wasting' money to be blonde. I look fugly as a brunette - when your grandmother tells you in no uncertain terms that, 'I hate it! Dark hair really doesn't suit you, love', you realise the cold, harsh reality that money is going to have to be invested on peroxide and a qualified hand is going to have to apply it. So, I spend between $50 to $150 every month in my desperate attempt to be a blonde bombshell and keep my old Nan happy :D.
 
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