Struggling on 300k income?

Came across this article today.

Father-of-one says he still ‘struggles’ on $300k


Is he on this forum by any chance?

What do you guys think about living off 300k a year. Is it enough to support the family?

 

Don't ask me. I don't spend a tenth of that

 

Oh look another media article, let me get my expectations ready so that I'm not at any risk of being surprised by something credible.

Ok I tried. Sorry I don't understand the math.

Is that $300K PAYG income? They've stated it as independent income. Round numbers thats $25K per month or $12,500 nett per month. Their claimed living expenses excluding the mortgage repayments are $6800 per month (I won't comment on the "allowance" he provides his wife. What are we in the 30s? Good to see he spends $50pm on beauty treatments though)

You've got 8 investment properties costing you $8K per month. What income do these generate? Are they saying the portfolio generates no income?

What vomit. Who at news.com.au do I send an invoice to for wasting 10 minutes of my time?

 

LOL

 

O NO. Now the sheeples will think we are all like Phil.

More investor-hate coming.........

Dont be like Phil.

 

Total vomit, but I find this quote interesting.

What an age of entitlement we live in, when people on large incomes feel they need welfare. Oh, & who buys $600 earrings for a 6 month old?

 

An idiot.

 

Who doesn't? Why? So most people buy them earlier or is it because he has boys?

 

8k repayments for 8 properties sounds about right if P+I or with a third tier lender. It would cost u that after rents come in if they are melb properties

 

I wonder if he would be interested in a swap, with my 65k income and 4 IPs

 

I looked at that and instantly thought 'Slum Lord'. What sort of property can you get with a $1000/mth mortgage?

 

Properties would be under the 250k i presume

 

I thought that it meant that he was out of pocket $1000/mth per mortgage. Meaning that's what he's paying out after the rents came in.

 

300k would be gross (better sensationalist headline) so about 185k net. Now take out the 8k /mth in investment costs & you get 89k /year for living expenses which is not too far out of the ordinary.

These stories are merely clickbait "news". Utter drivel IMO.

 

Maybe we can offer him some better investment tips.
Such as:
sell off some of his Victorian properties, thereby reducing his out of pocket mortgage costs each month. Instant $4000 per month increase in disposable income.
Put the maximum amount he can into his Super, top up his wife's Super.
Enjoy.

 

One thing I would say as someone with somewhat similar incomings (but much lower outgoings) on the government benefits thing.

Im happy to pay the tax. It’s a little bit of a kick in the nuts though if you pay 130k in tax which covers the childcare rebate for many other families, but you don’t get it yourself. Especially because you need the childcare to make the income.

Not a woe is me thing. Just interesting that you basically pay Twice kinda.

On the rest of it. The guy is an idiot.

And for those wondering. I’m not a conservative.

 

I don’t understand all the hate? He can obviously afford it for now so what’s wrong with him thinking about the future? If he didn’t have the IPs what would you want him to do with the extra 8k a month? I think it was a fair article and I don’t see an issue with it at all

 

Some of the younger ones I know, who built the flashest McMansions I have seen, well if you saw what the 2 yrs old kids bedrooms were decked out like, well, lets just say, it is going to be very hard to keep up with expectations like that,,,,,

Why people ruin kids like that is beyond me....total brats before they even get too school.

 

Ditto....very insightly....pretty easy to judge...but you are correct with 89k after mortgage and paying for car loans he would not have much.

A couple of things which this person (I looked at details of the spend):

1. It looks like he has negatively geared property
2. He is paying 18k for cars per year...probably not fancy cars

I see this all the time in my job ...lots of IT Sales Execs earning 300-400k...but still struggling. A lot of times they have not managed their CF and get themselves into the lifestyle trap.

The other whammy is once over 250k...they pay 30% tax on super....instead of 15%

 

Also keep in mind - there is a lot of bad sales people around not making their numbers. Or at least not consistently.

So if his company every had troubles his lifestyle would fluctuate.