Doing the sums, what would you do?
Mar 21st 2004, 4:32 am
#1
Monaco here we!!! oh no
Thread Starter
Joined: Aug 2003
Location: Bexleyheath Kent
Posts: 411
Doing the sums, what would you do?
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
Mar 21st 2004, 4:45 am
#2
Up The Arse!!
Joined: May 2003
Location: Maslins
Posts: 3,425
Re: Doing the sums, what would you do?
Originally posted by ADELAIDE BOUND
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
Mar 21st 2004, 4:48 am
#3
Monaco here we!!! oh no
Thread Starter
Joined: Aug 2003
Location: Bexleyheath Kent
Posts: 411
Re: Doing the sums, what would you do?
Originally posted by wengerboy
flippin eck ab you could always give some to me
flippin eck ab you could always give some to me
Wengerboy
Youll be getting yours on Wednesday night remember.
Mar 21st 2004, 4:50 am
#4
Up The Arse!!
Joined: May 2003
Location: Maslins
Posts: 3,425
Re: Doing the sums, what would you do?
Originally posted by ADELAIDE BOUND
Wengerboy
Youll be getting yours on Wednesday night remember.
Wengerboy
Youll be getting yours on Wednesday night remember.
Mar 21st 2004, 5:04 am
#5
Monaco here we!!! oh no
Thread Starter
Joined: Aug 2003
Location: Bexleyheath Kent
Posts: 411
Re: Doing the sums, what would you do?
Originally posted by wengerboy
i see all those noughts have gone to your head ab
i see all those noughts have gone to your head ab
Mar 21st 2004, 5:42 am
#6
life begins again...
Joined: Jul 2003
Location: doncaster..then scunny... now canberra.
Posts: 1,790
Re: Doing the sums, what would you do?
Originally posted by ADELAIDE BOUND
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
i wouldn't worry you've got the options,... $800K of them. rent first and see how it goes. 
Mar 21st 2004, 5:47 am
#7
part-time Visa Angel!
Joined: Oct 2003
Location: half marathon runner!
Posts: 4,458
Re: Doing the sums, what would you do?
Originally posted by scutterUK
well i wish i had that problem...... i don't even have the option to get a mortgage, it's rent or nothing for me. i wouldn't worry you've got the options,... $800K of them. rent first and see how it goes.
well i wish i had that problem...... i don't even have the option to get a mortgage, it's rent or nothing for me.
i wouldn't worry you've got the options,... $800K of them. rent first and see how it goes.
No expert here on this, but property of there is fast rising.... I'd either get in quick or not at all in case they have the crash we had over here.
Do some research on the bbc website, there was a link on this forum a couple of weeks ago about an article on the aussie housing market that might be useful.
Also, dont know what sort of boat you're after, but my boyfriend went halves with dad on a fair sized one (sleeps 4) a few months ago and that was 30kAUD.
Mar 21st 2004, 6:30 am
#8
You sip .... I glug !!!
Joined: Nov 2003
Location: Over the hill!
Posts: 2,790
Re: Doing the sums, what would you do?
Originally posted by ADELAIDE BOUND
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
Is the interest generated enough to pay the mortgage ?????????
IMHO - If yes then 6 and two 3's. If no, go with the original plan
Mar 21st 2004, 8:37 am
#9
Forum Regular
Joined: Mar 2002
Location: essex now on the sunny coast
Posts: 232
Hi AB,
Also a sparky, but of to Brisbane.
The interest you get on any account will be subject to tax, this will have a big impact on what you will recieve, if you then use this money to live off the, amount will be less each year with the effect of inflation, and your 800k will soon be worth less. Houses have gone up along way in oz and some say they still have further to go, but no one knows for sure in the near future, but in the long term I am sure they will out perform any bank account interest. To be mortgage free with a house and boat sounds better to me than some cash in the bank.
Terry
Also a sparky, but of to Brisbane.
The interest you get on any account will be subject to tax, this will have a big impact on what you will recieve, if you then use this money to live off the, amount will be less each year with the effect of inflation, and your 800k will soon be worth less. Houses have gone up along way in oz and some say they still have further to go, but no one knows for sure in the near future, but in the long term I am sure they will out perform any bank account interest. To be mortgage free with a house and boat sounds better to me than some cash in the bank.
Terry
Mar 21st 2004, 8:43 am
#10
Joined: Aug 2003
Posts: 11,149
Re: Doing the sums, what would you do?
Originally posted by ADELAIDE BOUND
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
When we arrive in Adelaide late August early September we will have approx $800K.
It sounds a reasonable amount but with 4 Kids hitting teenage years, and professional sp;enders already it probably isnt.
We have always figured that we would buy straight away, so that we would be morgage free. What was left would go on a boat with a few dollars put away for a rainy day.We would then only have to worry about food on the table bills etc...
We are now starting to wonder if it would not be better to put the money in a high interest account, as the interest earned on that money along with my work as an electrican, would give me a better income.
Any advice would be appreciated.
Cheers.
Have you worked out your retirement plans? If you have no pension fund I would work out how much money you are going to put aside for your future.
Mar 21st 2004, 9:47 am
#11
Monaco here we!!! oh no
Thread Starter
Joined: Aug 2003
Location: Bexleyheath Kent
Posts: 411
Originally posted by Terry
Hi AB,
Also a sparky, but of to Brisbane.
The interest you get on any account will be subject to tax, this will have a big impact on what you will recieve, if you then use this money to live off the, amount will be less each year with the effect of inflation, and your 800k will soon be worth less. Houses have gone up along way in oz and some say they still have further to go, but no one knows for sure in the near future, but in the long term I am sure they will out perform any bank account interest. To be mortgage free with a house and boat sounds better to me than some cash in the bank.
Terry
Hi AB,
Also a sparky, but of to Brisbane.
The interest you get on any account will be subject to tax, this will have a big impact on what you will recieve, if you then use this money to live off the, amount will be less each year with the effect of inflation, and your 800k will soon be worth less. Houses have gone up along way in oz and some say they still have further to go, but no one knows for sure in the near future, but in the long term I am sure they will out perform any bank account interest. To be mortgage free with a house and boat sounds better to me than some cash in the bank.
Terry
Thanks Terry
I understand where you were coming from in stating the money will be worth a lot less in 10 years. I think BP has struck on something that I need to look at.
Where abouts in essex are you?
Cheers
Mar 21st 2004, 9:53 am
#12
Forum Regular
Joined: Mar 2002
Location: essex now on the sunny coast
Posts: 232
Hi AB,
We are from brentwood.
As mentioned a few times before on here http://www.somersoft.com/forums/ gives others views on the property market in oz there are some good but frightening ways to reach your retirement goals.
Terry
We are from brentwood.
As mentioned a few times before on here http://www.somersoft.com/forums/ gives others views on the property market in oz there are some good but frightening ways to reach your retirement goals.
Terry
Mar 21st 2004, 9:55 am
#13
Monaco here we!!! oh no
Thread Starter
Joined: Aug 2003
Location: Bexleyheath Kent
Posts: 411
Re: Doing the sums, what would you do?
Originally posted by bondipom
There are other methods of generating an income. A high interest account would earn you $40,000 gross . I would guess half that money would get you a decent house in Adelaide and the rest could be invested. You will then avoid paying rent and having to pay the tax on the interest earned on savings. I would work out the rent you would have to pay on the property you would be living in.
Have you worked out your retirement plans? If you have no pension fund I would work out how much money you are going to put aside for your future.
There are other methods of generating an income. A high interest account would earn you $40,000 gross . I would guess half that money would get you a decent house in Adelaide and the rest could be invested. You will then avoid paying rent and having to pay the tax on the interest earned on savings. I would work out the rent you would have to pay on the property you would be living in.
Have you worked out your retirement plans? If you have no pension fund I would work out how much money you are going to put aside for your future.
BP
I like your idea although how would the investment interest not be taxed if it was invested at source into bricks and mortar?
How does that work then?
I have been looking at realestate.com and you are right the interest accumulated would pay for a nice house under mortgage payments.
Although of course the initial money would not be worth as much in 10 years the house investment should have increased in value.
Im not to worried about pensions they are covered, I would however like to give the kids a good start in life when I can finally get rid of them.
Cheers.
Mar 21st 2004, 9:58 am
#14
Monaco here we!!! oh no
Thread Starter
Joined: Aug 2003
Location: Bexleyheath Kent
Posts: 411
Originally posted by Terry
Hi AB,
We are from brentwood.
As mentioned a few times before on here http://www.somersoft.com/forums/ gives others views on the property market in oz there are some good but frightening ways to reach your retirement goals.
Terry
Hi AB,
We are from brentwood.
As mentioned a few times before on here http://www.somersoft.com/forums/ gives others views on the property market in oz there are some good but frightening ways to reach your retirement goals.
Terry
Terry
Great info thanks
Cheers
Mar 21st 2004, 10:09 am
#15
Guest
Posts: n/a
Re: Doing the sums, what would you do?
Originally posted by ADELAIDE BOUND
Im not to worried about pensions they are covered, I would however like to give the kids a good start in life when I can finally get rid of them.
Cheers.
Im not to worried about pensions they are covered, I would however like to give the kids a good start in life when I can finally get rid of them.
Cheers.
How about this thought....
Buy two houses, live in one and rent one out for an income, then use that income to pay a mortgage on a third house, etc
Then later down the track you can give the extra houses to the Kids
Consider houses price movements, and try to get it right. There is great uncertainty as to whether prices will drop, stay level or increase slightly. And different areas will also perform differently.
You will gain a lot from Somersoft Property Investment Forum well worth looking.
