$3009 (1250 GBP) average monthly mortgage
#91
Re: $3009 (1250 GBP) average monthly mortgage
ha ha I remeber living of 2p Aldi beans, talk about regular
#92
Re: $3009 (1250 GBP) average monthly mortgage
That was luxury ! I remember living off apples from the orchard next to the hospital social club because I had spent all my student nurse wages on beer and fags !
#93
Re: $3009 (1250 GBP) average monthly mortgage
We pay $3500 a month and on a 30 year total debt 510K - took all this out four years ago. just to afford the place we wanted in Sydney burbs. Bigger mortgage than we had in the UK. At the time it was tight, but we did plan on getting better paid jobs etc. I remember people getting cross when I said it was expensive here....telling me to move to another area. My job and hubbys pays us enough to be able to consider this mortgage high and hard but managable.
We also bought one old four year car rather than two and motorbike we had in the UK - we are only now considering the 2nd car five years in. We knew the percentage income we used to work on. It has taken five years to build back to were we where in the UK.
When I tell people in the UK the real cost of living in a nice area in Aus....they think I am lying!
We also bought one old four year car rather than two and motorbike we had in the UK - we are only now considering the 2nd car five years in. We knew the percentage income we used to work on. It has taken five years to build back to were we where in the UK.
When I tell people in the UK the real cost of living in a nice area in Aus....they think I am lying!
#94
Joined: May 2007
Posts: 5,133
Re: $3009 (1250 GBP) average monthly mortgage
That, my friend, is admirable stuff. Frugal (good) living is a healthy thing ... now, excuse me while I get back to my wine and the Rugby ... how ARE those taffys doing? ...
#95
Joined: May 2007
Posts: 5,133
Re: $3009 (1250 GBP) average monthly mortgage
Used to spice those up too ... ceyenne pepper, curry sauce, you name it ... we grow our our chillis now such is the grown-up luxurous life that I lead.
OCCASIONAL I used to splash out on a 'Big Soup' and to hell with the expense ... happy days.
OCCASIONAL I used to splash out on a 'Big Soup' and to hell with the expense ... happy days.
#96
Re: $3009 (1250 GBP) average monthly mortgage
Its so grown up to smile benevently at the younger generation and chuckle to oneself as you pour yourself another large glass of red
#97
BE Enthusiast
Joined: Jan 2006
Posts: 413
Re: $3009 (1250 GBP) average monthly mortgage
I agree. No one knows when it will happen, but happen it will and it's not just about house prices, it's the Australian addiction to debt.
I've admitted I'm not a sophisticated investor but I'd never heard of "leveraged investing" 'till I came to Oz.
So many people here do it - borrow money to invest. It makes no sense to me, you invest your surplus, not money you haven't got
So when the debt chickens come home to roost they will do so big time and we won't hear the end of it, there will be endless stories on Today Tonight about "battlers" forced to sell their jetskis and V8 utes .
It happened before with Keating's "recession we had to have" and will happen again IMO.
I've admitted I'm not a sophisticated investor but I'd never heard of "leveraged investing" 'till I came to Oz.
So many people here do it - borrow money to invest. It makes no sense to me, you invest your surplus, not money you haven't got
So when the debt chickens come home to roost they will do so big time and we won't hear the end of it, there will be endless stories on Today Tonight about "battlers" forced to sell their jetskis and V8 utes .
It happened before with Keating's "recession we had to have" and will happen again IMO.
If you are buying a house then you are using leverage(gearing).Say you put down a 20% deposit and borrow 80%,you are leveraged (geared) to 80% (debt/asset ratio) .Should you wish to become financially secure it is silly not to use leverage,it is also virtually impossible to become wealthy without using leverage.
As an example use CBA (commonwealth bank)
Borrow $110,000 to buy 2000 shares,you are geared 100% and equity in your property will cover the deposit on the loan.The interest cost is say 7.5%, so for the year you need to find $8250. The dividends from the shares over the coming 12 months should be around $2.60 a share,so your income is $5200.
Make it a round number and call it a $3000 shortfall,you meet that from your income.That $3000 buys you all capital gain (or loss ) on those shares for the next 12 months.
Run the model for 5 years and the rising dividends after yr 3 or 4 should pay for the loan.On average CBA stock doubles every 5 or 6 yrs.
In round numbers we'll say you pay 3K for 4 yrs.5th yr is free,the dividends pay for it.Say the stock does double in 5 yrs.Your outlay of 12K (4 x 3K) has provided you with 110k profit.
To put it a different way,you have borrowed money at 7.5%,sent it off to work for you, and it has averaged a return of around 14.5%.The average return over 15 yrs is around the 17% mark.
The high and low prices for 2002 (5 yrs ago) are $35 as a high,and a low of $25.That was the run up to the 2003 crash,say you bought at a mid range price of $30 then you are running close to doubling your money in 5 yrs.
After the crash the high for 2003 was $33 and the low was $23.If you bought somewhere around low to mid then, you have doubled your money in 4 yrs.
Nothing sophisticated in investing,99% of it is common sense.
The last time I ploughed through a wal mart annual report they had a debt of around US$26 billion,all started from a debt of 25K when old Sam got started.
The leveraged buyout activity at the moment (LBO),is all based on that principle.Should the Qantas takeover have gone ahead then the company would have had a debt of around 80% of $11 billion,the income from the airline would have paid the interest on that debt.Tart the company up a bit and then offload it for a good profit .Some of those big resource companies are ripe for such takeovers, with the profits they are generating and cash flows expected to increase.
#98
Lost in BE Cyberspace
Joined: Oct 2005
Location: Hill overlooking the SE Melbourne suburbs
Posts: 16,622
Re: $3009 (1250 GBP) average monthly mortgage
If you are buying a house then you are using leverage(gearing).Say you put down a 20% deposit and borrow 80%,you are leveraged (geared) to 80% (debt/asset ratio) .Should you wish to become financially secure it is silly not to use leverage,it is also virtually impossible to become wealthy without using leverage..
The premise also assumes the house price rising and the ability to write off expenses or losses and sustain the interest payments.
For some people, it has been quite simple, but it has to be questionable now.
But if people have a lot of equity and theý're in their investment in the long term then it is still sensible.
#99
BE Forum Addict
Joined: Jul 2003
Location: Cairns
Posts: 3,918
Re: $3009 (1250 GBP) average monthly mortgage
If you are buying a house then you are using leverage(gearing).Say you put down a 20% deposit and borrow 80%,you are leveraged (geared) to 80% (debt/asset ratio) .Should you wish to become financially secure it is silly not to use leverage,it is also virtually impossible to become wealthy without using leverage.
As an example use CBA (commonwealth bank)
Borrow $110,000 to buy 2000 shares,you are geared 100% and equity in your property will cover the deposit on the loan.The interest cost is say 7.5%, so for the year you need to find $8250. The dividends from the shares over the coming 12 months should be around $2.60 a share,so your income is $5200.
Make it a round number and call it a $3000 shortfall,you meet that from your income.That $3000 buys you all capital gain (or loss ) on those shares for the next 12 months.
Run the model for 5 years and the rising dividends after yr 3 or 4 should pay for the loan.On average CBA stock doubles every 5 or 6 yrs.
In round numbers we'll say you pay 3K for 4 yrs.5th yr is free,the dividends pay for it.Say the stock does double in 5 yrs.Your outlay of 12K (4 x 3K) has provided you with 110k profit.
To put it a different way,you have borrowed money at 7.5%,sent it off to work for you, and it has averaged a return of around 14.5%.The average return over 15 yrs is around the 17% mark.
The high and low prices for 2002 (5 yrs ago) are $35 as a high,and a low of $25.That was the run up to the 2003 crash,say you bought at a mid range price of $30 then you are running close to doubling your money in 5 yrs.
After the crash the high for 2003 was $33 and the low was $23.If you bought somewhere around low to mid then, you have doubled your money in 4 yrs.
Nothing sophisticated in investing,99% of it is common sense.
The last time I ploughed through a wal mart annual report they had a debt of around US$26 billion,all started from a debt of 25K when old Sam got started.
The leveraged buyout activity at the moment (LBO),is all based on that principle.Should the Qantas takeover have gone ahead then the company would have had a debt of around 80% of $11 billion,the income from the airline would have paid the interest on that debt.Tart the company up a bit and then offload it for a good profit .Some of those big resource companies are ripe for such takeovers, with the profits they are generating and cash flows expected to increase.
As an example use CBA (commonwealth bank)
Borrow $110,000 to buy 2000 shares,you are geared 100% and equity in your property will cover the deposit on the loan.The interest cost is say 7.5%, so for the year you need to find $8250. The dividends from the shares over the coming 12 months should be around $2.60 a share,so your income is $5200.
Make it a round number and call it a $3000 shortfall,you meet that from your income.That $3000 buys you all capital gain (or loss ) on those shares for the next 12 months.
Run the model for 5 years and the rising dividends after yr 3 or 4 should pay for the loan.On average CBA stock doubles every 5 or 6 yrs.
In round numbers we'll say you pay 3K for 4 yrs.5th yr is free,the dividends pay for it.Say the stock does double in 5 yrs.Your outlay of 12K (4 x 3K) has provided you with 110k profit.
To put it a different way,you have borrowed money at 7.5%,sent it off to work for you, and it has averaged a return of around 14.5%.The average return over 15 yrs is around the 17% mark.
The high and low prices for 2002 (5 yrs ago) are $35 as a high,and a low of $25.That was the run up to the 2003 crash,say you bought at a mid range price of $30 then you are running close to doubling your money in 5 yrs.
After the crash the high for 2003 was $33 and the low was $23.If you bought somewhere around low to mid then, you have doubled your money in 4 yrs.
Nothing sophisticated in investing,99% of it is common sense.
The last time I ploughed through a wal mart annual report they had a debt of around US$26 billion,all started from a debt of 25K when old Sam got started.
The leveraged buyout activity at the moment (LBO),is all based on that principle.Should the Qantas takeover have gone ahead then the company would have had a debt of around 80% of $11 billion,the income from the airline would have paid the interest on that debt.Tart the company up a bit and then offload it for a good profit .Some of those big resource companies are ripe for such takeovers, with the profits they are generating and cash flows expected to increase.
#100
Joined: May 2007
Posts: 5,133
Re: $3009 (1250 GBP) average monthly mortgage
I shall smile at my offspring soon as she sleeps soundly in her cot and hope TO CHRIST that she doesn't wake up until this verdelho has worn off
Vim
#101
BE Enthusiast
Joined: Jan 2006
Posts: 413
Re: $3009 (1250 GBP) average monthly mortgage
I am a time served welder,but for a number of years I have worked part time as a welding inspector.The day job.
The hobby has been investing, and using leverage ,for around 30 yrs now.I now have ASX/ASIC sophisticated investor status.Basically it means I can be a venture capitalist.
Under sophisticated status it means you have a nett worth of $X,should start up companies need money then qualified investors are invited to put up that money,in return for stock in that company.Should the company fail then you don't shit yourself over the loss.
Probably a good example would be Paul Keating and Lake technologies.They made those surround sound headphones and needed money to list on the ASX,and refine the technology.Keating put up a million and around 2 yrs later his stock in the company was worth around 19 million.I don't know if the company still exists or if they have been taken over,but there was a rumour it went under and he lost the lot while his stock was still in escrow.
I also have some qualifications in derivatives trading,but at heart I am still a bloody minded left wing shipyard welder.
The hobby has been investing, and using leverage ,for around 30 yrs now.I now have ASX/ASIC sophisticated investor status.Basically it means I can be a venture capitalist.
Under sophisticated status it means you have a nett worth of $X,should start up companies need money then qualified investors are invited to put up that money,in return for stock in that company.Should the company fail then you don't shit yourself over the loss.
Probably a good example would be Paul Keating and Lake technologies.They made those surround sound headphones and needed money to list on the ASX,and refine the technology.Keating put up a million and around 2 yrs later his stock in the company was worth around 19 million.I don't know if the company still exists or if they have been taken over,but there was a rumour it went under and he lost the lot while his stock was still in escrow.
I also have some qualifications in derivatives trading,but at heart I am still a bloody minded left wing shipyard welder.
#102
Re: $3009 (1250 GBP) average monthly mortgage
Student days.
I remember Ice land did a Sarah Lee chocolate cake for 99p and I would eat one frozen every Sunday kind of my Sunday lunch.
Funny I would penny pitch on food like that but still spend loads on beer .
I remember Ice land did a Sarah Lee chocolate cake for 99p and I would eat one frozen every Sunday kind of my Sunday lunch.
Funny I would penny pitch on food like that but still spend loads on beer .
#104
Re: $3009 (1250 GBP) average monthly mortgage
Yes! That's ours in Sydney, just sold the house though, hoping to half the mortgage very soon. We earn enough between us but want to do something different, maybe rent for a while while we decide what to do.
#105
BE Forum Addict
Joined: Jul 2003
Location: Cairns
Posts: 3,918
Re: $3009 (1250 GBP) average monthly mortgage
I am a time served welder,but for a number of years I have worked part time as a welding inspector.The day job.
The hobby has been investing, and using leverage ,for around 30 yrs now.I now have ASX/ASIC sophisticated investor status.Basically it means I can be a venture capitalist.
Under sophisticated status it means you have a nett worth of $X,should start up companies need money then qualified investors are invited to put up that money,in return for stock in that company.Should the company fail then you don't shit yourself over the loss.
Probably a good example would be Paul Keating and Lake technologies.They made those surround sound headphones and needed money to list on the ASX,and refine the technology.Keating put up a million and around 2 yrs later his stock in the company was worth around 19 million.I don't know if the company still exists or if they have been taken over,but there was a rumour it went under and he lost the lot while his stock was still in escrow.
I also have some qualifications in derivatives trading,but at heart I am still a bloody minded left wing shipyard welder.
The hobby has been investing, and using leverage ,for around 30 yrs now.I now have ASX/ASIC sophisticated investor status.Basically it means I can be a venture capitalist.
Under sophisticated status it means you have a nett worth of $X,should start up companies need money then qualified investors are invited to put up that money,in return for stock in that company.Should the company fail then you don't shit yourself over the loss.
Probably a good example would be Paul Keating and Lake technologies.They made those surround sound headphones and needed money to list on the ASX,and refine the technology.Keating put up a million and around 2 yrs later his stock in the company was worth around 19 million.I don't know if the company still exists or if they have been taken over,but there was a rumour it went under and he lost the lot while his stock was still in escrow.
I also have some qualifications in derivatives trading,but at heart I am still a bloody minded left wing shipyard welder.
I am intrigued! My father started life as an apprentice welder (structural steel) and has worked his way up to company director (but still predominantly goes to work in his 'scruffs', I reckon he just can't 'leave it alone') over 30+ years. Makes good money now but struggled for years when we were growing up, as he has never been a risk taker.
How did you get started on the investment trail and how much did you invest?
I ask because we are in a position to start investing soon (a bit of equity, plus a second decent income) but do not know where to start...were thinking about property....