How much property do you REALLY need???

"Cut by more than $1k" per what time frame?
Did their spouse die and they are no longer a couple? What makes the govt a mongrel; what is a little super to one person is a lot of super to another. It's complicated, hey

 

How much is enough?.....Oh dear..... the number of variables that significantly affect the answer are quite numerous.

Where you live, # of dependents, school age kids, health insurance needs, number of vehicles etc...

Here is a "hypothetical" example:

3 Adults
Rural City (commutable to a state capital)
No PPOR mortgage
No fancy PPOR
No consumer debt
Pets (2 cats & 2 dogs)
3 registered & fully insured vehicles
1 other lifestyle property (non-income producing & owned outright)
unlimited NBN, 3 Mobiles, Netflix, no utilities limits etc...

Cost to maintain (without wants): ~30k /yr
Just to cloth, feed, house & operate household as above

Cost to maintain (with daily wants): ~60k /yr
With entertainment, eating out regularly, gadgets etc...

Cost to maintain (with luxurious wants): ~90k /yr
With international travel, larger consumer purchases etc...

Over ~90k /yr net is getting towards living large territory due to the large discretionary spending.

That is one example... there are literally millions more... BTW, this is how one might determine if they want to work part-time or not. Simply by asking how much time they are willing to trade to move between or above the lifestyle levels & how much they really "want" that.

So, 100k net /yr, with no un-deductible debt, is IMHO, a lifestyle far over & above what most would enjoy in their working years. If during your working years you already holiday internationally more than twice a year (& I don't mean Bali.... we're talking Europe & the Americas here), drive fancy cars (i.e. you pay luxury car tax), accustomed to Business Class travel, live in a PPOR worth >$1+M, eat lobster for dinner regularly & you are a designer label convert.... then you might want to double or triple the figures above.

Enjoy the journey,

Indi

 

Compared to the previous year.
Single, no change in circumstances. Government screwing the poor people.

 

@beachgurl

It can work the other way as well, the more you make the more you spend.... ouch

 

Depends on the property asset quality...income growth...and age of the assets.

From my perspective....income from property can be notriously unreliable as maintenance can all in at once. Thus why the need for greater income for certainty.

From where I sit...the top 10 shares offer reliable income via dividends...this along with rent and super later on will provide a reliable income.

If one has net 10m...there should be no issues getting 200-300k in income with certainty with debt levels of 25%-35%. Most people are very poor at numbers so can't work out that a taxable income of `120k per annum is equivalent to a steady income of 90k with 90k worth of deductions via depreciation.

From my personal opinion...50k for a couple will not be good lifestyle as it is only 7k more than recommended amount required for a comfortable liestyle by financial planners.

One would could easily do that in retirement by having 200k per person (400k k for 2)...and qualify for the full pension at 65 and live on about 50k.

I guess...it is time you buy from work.....

The other things to remember that 9m in networth will go up and down with markets...I know people who held $5m networth in the last boom and then it went down 10-15%. If you have to sell that will hurt also...so CF planning is paramount...

 

So, $1000 less over a year, i.e. $19.something per week, right?

 

That is a good way of looking at it!

 

Can't remember exactly how much, more like $1,200-$1,400 I think.
Doesn't sound like much per week, but it's a lot for someone on the pension over a year.

 

Azazel ....It could be that her assets came under revaluation. It sounds like she owns other assets that have increased in value eg Sydney property other than her PPOR. If property in Sydney was revalued then this would affect her pension.

 

Nah, just the PPoR in a regional area.
I might have to look into it and see what's going on. Doesn't make sense to me.

 

@Azazel - could be income from interest eg. Deeming rate, filled in the wrong box on a form or you're not getting the whole story.

 

I'm hoping it's a mistake somewhere, it sounds pretty dodgy. I wouldn't put it past the scrooge government screwing the little people - again.

 

I am happy to share many things, but I do draw the line at revealing everything over the internet.

We have a fully paid off PPOR, own two cars and have no debts. We hold a portfolio of well into double digits with a low LVR. In fact, we have around half of our loans sitting with offset accounts sitting against them. The offsets are full.

 

I'm similar with the internet. It's not just the people you chat to on this forum, anyone can gather the information.

 

yes, beware of stalkers

 

Indeed.
There are some creepy people out there.

 

Not sure how much I need ???

 

Tree fiddy

 

Not more than risking losing what I want to keep to gain what I don't need!

 

It's inspirational reading about successful people such as @Handyandy , @skater , @Ace in the Hole , @Shahin_Afarin and others. These are people who back themselves to achieve their goals.

That's a practical lesson for everyone.