Tell me it can't be done

Buying a house ppor for cash

Meet the couple who bought their house with cash and other fanatical savers

Doesn't sound like a first home to me though.

 

I met a staunch catholic who was on a similar course. Trouble was it was back in the early 2000s and Perth has had a few cycles since then and the first cycle was a double bubble. Wonder how he went?

 

I knew an Italian family who's kids grew up and lived at home. They all pooled their incomes and when each child reached around 28 there was enough for each one to buy an affordable first dwelling. It worked really well for them.

 

Article mentions a small mortgage on a property in Sydney....and negotiating mortgage rates.
Marg

 

With the religious fanaticism or the investing?

All's good until a g/f or b/f comes into the picture and jealousy reigns.

 

I have had several old clients in 60s buy a first home in the past 5 years. Drawing their super, using first home buyer incentives means they qualify for pension and no rent has to be paid.

But I dont get people who save for thirty years to amass a huge deposit because they fear a mortgage greater than $100K. They just moan about prices rising faster than they can save and never act.

 

How is Twiggy ?

 

Sounds like they lived liked misers to do it.

Reminds me of the kid at school who wore hand me downs. Copped a wedgy ever day.

Years later when I saw him walking through Kmart with his family I snuck up and gave another wedgy lol.

 

Religion was once an interest of mine but then I learnt a little thing called critical thinking so lets say investing

 

"The couple and their young child almost never eat out and buy mostly second-hand rather than new. They collect and use discount vouchers, they don't have the internet connected at home (only using the data on their phones) and even turn off appliances at the power point.

"We also negotiate interest rates with the banks on our small mortgage in Sydney."
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This is newsworthy now? I do all this and a lot more. This only gets them to level 1 frugal.

 

All's good un

A choc wedge?

 

I was raised in a religion/cult that taught critical thinking. Put it this way, it hasn't done well

 

The best FHOG story I heard (and I assume it was true) was back in the days when it was $14,000.

Apparently, there was a "house" for sale in Broken Hill for $14,000. This guy bought it, qualified for FHOG and received the full purchase price. I assume he had the cash or borrowed for legal, etc.

The house was missing a few mod-cons. For example, it had an earthen floor, ...

As they say, there are many ways to get on the property merry-go-round .

 

You can if you are an NBA star.
Hakeem Olajuwon built a highly successful portfolio (in Texas) purely from cash- due to his strong religious beliefs about interest, etc after his basketball career. He is said to have made as much from his (100% cash funded) real estate plays as from his entire playing career (in the order of $100 million for each)


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A Slam-Dunk in Houston Real Estate

 

I lived next door to a family that all pooled their money and bought a house for each child. There were 5 boys and over a period of years they all had a house freehold. Early crowdfunding, or should I say familyfunding.

 

Nothing too special about this... I see this mainly as the difference between going as far as your savings gets you (family in the article) and going as far as savings+finance gets you (PCers)

Pretty sure most of us could liquidate our portfolios and buy a reasonable PPOR without debt, but what good does that do you besides being able to say "I have no debt"? The cashflow and strategy position would be severely compromised.

 

What if you could sell one I.P. and clear all your debt? The catch is that it is your highest yielding I.P. I may be in this position soon and not sure what I will do.

 

Great situation to be in, congrats

Personally though I wouldn't sell the IP, but rather retain the security for topups which buy liquid investments which then fill up offset accounts for each IP loan, and become pseudo-debt-free that way.

 

I am keeping my options open but leaning towards keeping it. My only concern is hitting max borrowing capacity but then I haven't ever had a project where I couldn't secure finding. I guess if it was stopping me moving forward, I would sell. Other than that, I will hold.