When is your "time to spend"?

Agreed.

Curious... where is your ideal house and suburb China? Got a pic of a place that would meet your satisfaction?

Me, I tend to live very frugally as I am saving for retirement. This means that I tend to have a modest PPOR. But if I hit the jackpot, I would like something with access to the water, sweeping views of Sydney Harbour, modern and close to the city. With high end houses, there isn't much difference between a 20m or 30m house. Whereas, there is a sharp difference between a 5m and 2m house.
 
Me, I tend to live very frugally as I am saving for retirement. This means that I tend to have a modest PPOR. But if I hit the jackpot, I would like something with access to the water, sweeping views of Sydney Harbour, modern and close to the city. With high end houses, there isn't much difference between a 20m or 30m house. Whereas, there is a sharp difference between a 5m and 2m house.

I'd bet if you asked someone who owned a 30mil house how and why theirs is better than a 20mil house, I'm sure they'd be able to come up with plenty of reasons.
 
Tavel is my bane, so I got a job out west then I could have 17 holidays a year. I believe its pointless saving 90% of your cashflow just to let it provide for you in a future you may not have. People pass away every day and we are not immortal so you have to strike a harmony in life. My personal situation was a 40% now 50% future 10% buffer, and I haven't had to sacrifice my now for the my future that way.
 
The only problem with expensive PPOR is that you cannot really access it to buy cars, flights to Europe and groceries without incurring significant interest costs. So if a person's net worth is all tied up in their 5mil PPOR and there were no other assets nor income, their lifestyle would be significantly impaired. In fact, they would qualify for the age pension. Selling to downgrade to a 2mil ppor to free up funds for living would mean immediate downgrade of lifesyle.
You're probably referring to the retiree teacher who has lived in their Hawthorn home on one acre since 1930.

It's very much not the norm to be in this situation for most folk. It does exist, I know.

So, what many of these folk do is sell off the house and go to a smaller, cheaper and easier to maintain townhouse or something similar, or maybe their own holiday house down in Dromana. ;)

Someone who owns a $5mill house can usually drum up a few bucks for most of the above (holidays and flights, etc)....unless they just bought it with an 80% or more loan.

But they may also have bought it with cash.

The nett worth doesn't always match the income and cashflow.

There are plenty of folk who own their $350k home outright with tons of cashflow for activities and vice versa.
 
My dream home is around the $2M mark. It is likely my first home will only be around $200k. I would only buy such an expensive PPOR with cash (well... 80% with a very rich offset.)

My mate (27) just bought his first home, $800k. That is about $3k/month non-deductible interest on 80% LVR. I don’t see the logic in putting the cart before the horse. His wife also owns a heavily negative geared apartment.

With that sort of interest saved, it would have been easy to save, purchase IPs, develop and buy that house outright in 5-10 years (a strategy he is fully aware of, being in development). The Jones' are very expensive friends to have. To each their own.
 
Good on you for getting the car you want - and under a novated lease then it doesn't cost much more ... although we went off novated after a few years and worked out it was cheaper to just buy with cash and hold.

Personally a car is a means to get from A to B and nothing more (although I do like to do it in moderate comfort and reliability) ... but I didn't hesitate to buy a new rug I liked yesterday - although it was marked down by 70% in a sale ... and bought a horse float the other week - although was worth around $5 and we managed to score it for $2k ... and we don't hesitate to now head out to dinner once a month where a posh restaurant has "locals night" on Sundays for half price ... to me, financial freedom means being able to take advantage of opportunities when they arise without having to think about it.

Oh ... and bought a new puppy last week from rescuepet ...
 

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Well done lizzie, im sure that sooky lil guy will give you more enjoyment than anything else in the world!

He is an absolute cutie - when sleeping - when awake we've named him Destructa "Spot"-Destroya ... his name is Spot due to the one and only large black spot right in the centre of his back.
 
:D
Good on you for getting the car you want - and under a novated lease then it doesn't cost much more ... although we went off novated after a few years and worked out it was cheaper to just buy with cash and hold.

Personally a car is a means to get from A to B and nothing more (although I do like to do it in moderate comfort and reliability) ... but I didn't hesitate to buy a new rug I liked yesterday - although it was marked down by 70% in a sale ... and bought a horse float the other week - although was worth around $5 and we managed to score it for $2k ... and we don't hesitate to now head out to dinner once a month where a posh restaurant has "locals night" on Sundays for half price ... to me, financial freedom means being able to take advantage of opportunities when they arise without having to think about it.

Oh ... and bought a new puppy last week from rescuepet ...

Too cute, so glad you got it from rescuepet...... hooray
 
I've just bought my first "nice car". Audi a4 avant. Sat here thinking it over for weeks. Should I shan't I ? Then decided its now or never! At what time in our lives do we decide to go for the little luxury s ? What's the point in all this investing and saving if we're going to get to 70 years old and finally discover we can now afford to get that soft top Merc or the boat or whatever? Will we be too old to appreciate them?

I managed to salary package it. I could have gone for the new falcon or such like but thought what the hell! It's not going to hinder my investing in the near future too much so I went for it.

I think there might be a few better options than the Novated lease system out there but at the moment this suits me.

So! At what point do we say its time to cash in a bit?

The "old chestnut".... comes up from time to time.

I believe in living in the moment. If you don't enjoy money today you probably wont enjoy it tomorrow. Does not mean you can not still have goals and plan for the future. Its not a crime to want to enjoy some nice toys along the way, on the contrary it makes for a great balance in life.

The poverty mentality is really a disease, penny pinching, I can't stand being around people like this, who needs it, don't shoot me:p

I would rather spend money on a nice bottle of wine than something that tastes like vinegar, or a good cut of steak than something that tastes like cardboard.

Well done on your new car, enjoy.

MTR
 
I would rather spend money on a nice bottle of wine than something that tastes like vinegar,

Hmmm - and on the subject of Corolla Hatchback (the other thread) ... the wine sales are starting in our neck of the woods so thought I'd start restocking the wine cellar.

Average $5.50/bottle and tastes blimin' good too! Glad we can financially afford to take advantage - and hence drink the good stuff for 1/4 (or less) of the normal price
 

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Hmmm - and on the subject of Corolla Hatchback (the other thread) ... the wine sales are starting in our neck of the woods so thought I'd start restocking the wine cellar.

Average $5.50/bottle and tastes blimin' good too! Glad we can financially afford to take advantage - and hence drink the good stuff for 1/4 (or less) of the normal price

Or drink more:p
 
T

The poverty mentality is really a disease, penny pinching, I can't stand being around people like this, who needs it, don't shoot me:p

I would rather spend money on a nice bottle of wine than something that tastes like vinegar, or a good cut of steak than something that tastes like cardboard.


MTR

I guess I'm a penny pincher but still enjoy nice stuff, such as my fully paid off 2+m ppor. I just know that every penny makes a difference so now days I have to justify every expense
 
Hmmm - and on the subject of Corolla Hatchback (the other thread) ... the wine sales are starting in our neck of the woods so thought I'd start restocking the wine cellar.

Average $5.50/bottle and tastes blimin' good too! Glad we can financially afford to take advantage - and hence drink the good stuff for 1/4 (or less) of the normal price

or get to drink more..... :p
 
Hmmm - and on the subject of Corolla Hatchback (the other thread) ... the wine sales are starting in our neck of the woods so thought I'd start restocking the wine cellar.

Average $5.50/bottle and tastes blimin' good too! Glad we can financially afford to take advantage - and hence drink the good stuff for 1/4 (or less) of the normal price

I vote lizzie the chairperson of the Somersoft Wine Society, she can arrange the deals and I can arrange the courier :)
 
Cute puppy Lizzie..is it a pitbull?


I think we are enjoying our retirement.
Yesterday, we camped down by a river. Watching a family with their boats. The young fellow (about 8) excitedly telling us about the big fish he caught.
It was free camping, so we had to supply our own power.

Not everything has a price tag.
 
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