Please help with he next step...

Discussion in 'Investment Strategy' started by Scottydogg, 6th Mar, 2020.

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  1. Scottydogg

    Scottydogg Member

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    Hi, its my first post after spending a long time reading and absorbing information from you all.
    Im hoping for input into the next step to take as ive hit my brains limit. I started the journey late as ive always been a traveller and spent what I earned.
    In the last few years ive paid off all my personal loans and credit cards, bought a house on the Sunshine Coast, did a renovation and rented the house out (can't believe ive been so grown up).
    I rent and work in Sydney.
    Im not a real money orientated person so if you could keep the lingo basic that would be great.
    Where im at -
    • Salary $90,000
    • Personal/credit card debts $0
    • Super $160,000
    • dependents 0
    • IP mortgage $435,000
    • IP value approx $550,000
    • IP rental income $520 week
    • My rent in Sydney $430 week (I have the luxury of moving where and when I like)
    • Age 47
    • single
    Where I want to be -
    • I would like to have a small house up north near the beach (I figure this will be around the $800k mark) when I travel im not apposed to air B and B
    • have a minimum disposable income of $1000 a week for living and travel. Most things in my life that I value arnt expensive.
    My problem is do I just repeat what ive done over and over ? Do I speed up the process somehow ? I don't mind a bit of risk but im getting too old to start again if it goes pear shaped.
    Sorry if its a vague simple situation but my life is very uncomplicated. Id appreciate anything anyone could contribute.
     
    Lindsay_W likes this.
  2. croseks

    croseks Well-Known Member

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    This is all well and good, but one thing you forgot to mention is how much are you saving per week/month/year?

    For a $800k house to live in, you will need about 25% for deposit + costs, so approx $200k cash.

    You are on the right track, but you will need more savings to get that house near the beach
     
  3. Scottydogg

    Scottydogg Member

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    Thanks for the input Croseks, I spoke to the bank and roughly I can buy again for $380k. My dilemma was how to get from where I am to that end result. I know I'm not in a position yet to buy it.
    Sorry I should have added ive got $10k sitting in savings, but this is slow going with Sydneys cost of living.
     
    ellejay likes this.
  4. croseks

    croseks Well-Known Member

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    Is there any way to increase your income? or decrease your expenses? or both?

    If you have a long term outlook then you can definitely get there but you will have to compromise as without some equity/savings behind you it will be difficult to invest further.
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    i.e. you can't put anything aside at present?

    The Y-man
     
  6. PandS

    PandS Well-Known Member

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    You really need to increase your income to get to that 800K PPOR
    and your asset has to grow a lot in the next 10-15 years

    or aim high, stick to the plan and keep going but settle for lower if you can't get there
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    Have you thought about getting some financial advice?
     
  8. PandS

    PandS Well-Known Member

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    what can financial adviser do? probably rewrite the number in different ink and draw some what if graphs and charge money for it?

    his income is 90K, there ins't a lot of wiggle room and god forbid some financial adviser like to advise you to move super and and get some money out of it and I bet you that one thing they target.

    There is only a few choices if he to borrow more and invest
    1. Increase income
    2. cut back a lot on his living cost

    and even then it not a sure thing when it comes to debt on a single income and little buffer, it has risk and at 47 he need to get 100% right or he will end up working for a long long time before retirement
     
    ellejay likes this.
  9. Lindsay_W

    Lindsay_W Well-Known Member

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    I'm talking about getting some financial advice in regard to a strategy to get to where he wants to be - you seem to think all financial planners are ineffective and that's just not true. You also mention they might target his super, purchasing property within an SMSF MIGHT be a good strategy, due to limited serviceability outside of SMSF lending, why not? Or putting additional money into the existing Superannuation now
    It pays to be open to ideas, not just "borrow more money to invest in property" having some diversification helps
     
  10. Scottydogg

    Scottydogg Member

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    Hi Y man, I can put a bit away each year (about $5k - $10k), and im studying for a promotion which is an extra $20k per year. I guess its more a question of "what do I do now" ? What do I put my energy into right now ? Do i buy another IP as a another stepping stone and do what ive already done ? Its the next practical step in the journey that im having trouble with
     
  11. Scottydogg

    Scottydogg Member

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    Thanks for your thoughts, I always thought this forum was the best financial advisor :)
     
  12. Scottydogg

    Scottydogg Member

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    Thanks PandS, I work in emergency services so our salaries are huge and our working lives can be cut short sometimes. Having one income makes it hard but rather than whinge im just trying to push on and make something for when im an old man and can't get on a firetruck anymore.
     
  13. PandS

    PandS Well-Known Member

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    You know how risky it is to have 160K in SMSF and buy properties and that the stuff I am afraid of for him

    SMSF required a lot work, and you got to have plenty of buffer to meet all on going obligations and god forbid if you cant meet it and force to close up game over.
     
  14. Lindsay_W

    Lindsay_W Well-Known Member

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    That was NOT my advice at all you clearly misunderstand and cherry picked one bit of my comment.
    I simply suggested getting some financial advice is not a bad idea and doesn't mean you must go with the strategy an adviser suggests. Fact is you don't know and cannot recommend what the best strategy and outcome for the OP is.
    Any investment comes with risk
     
    Last edited: 6th Mar, 2020
  15. Lindsay_W

    Lindsay_W Well-Known Member

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    Truly wish you all the best, hope you find a way to get where you want to be.
     
  16. PandS

    PandS Well-Known Member

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    Well we are not license to provide advice what I say there is just general comments in nature
    I usually don't give any specific advise and I am not qualified to do so just some random person on the internet
     
  17. PandS

    PandS Well-Known Member

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    I am not having a go at you, I know a few folks who has been burned badly listen to FA and has very similar dilemma to Scott, there ins't any magic they can do but you end up giving away more money you don't have.

    the number and simple maths usually speaks for itself

    money and finance is actually that dead simple, spend less than you earned, save and invest wisely the more you earn and the less you spend and save more and invest the richer you get

    no fancy formulas, no fancy or complicated strategy
    if you try to be fancy and try for the impossible odds the odds will be against you.

    Warren Buffet advice people 10 days ago before the market crash, don't chase the market for that extra yield, if you like to preserve your capital and the banks offer you 1%, try to live on 1%
     
  18. Lindsay_W

    Lindsay_W Well-Known Member

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    And I know people in exactly the same situation as OP who received great Financial Advice and have done better than most other investors based on that advice.
    But if that's what you think then I'm not going to try to change your mind.
    There's a bunch of other things to be considered, if it was so simple like you say then everyone would be rich. If Financial Planners are so worthless why do lots of successful and wealthy people use them.
    Anyway good luck to the OP
     
    Last edited: 6th Mar, 2020
  19. Archaon

    Archaon Well-Known Member

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    What council in Gold Coast?
    Might be an option for a granny flat?
    I'm not all up on SEQ granny flat areas or requirements but others might.
     
  20. PandS

    PandS Well-Known Member

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    Ok I better stop :D