What would you do to become debt free?
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Re: What would you do to become debt free?
Comparisons need to be made interest paid, maintenance stamp duty etc vs rent earned and increases.
Compared to interest gained or dividends paid and stock increases combined within the same period.
Compared to interest gained or dividends paid and stock increases combined within the same period.
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Re: What would you do to become debt free?
That's true rb85, but the biggest factor is the actual house prices.rb85 wrote:Comparisons need to be made interest paid, maintenance stamp duty etc vs rent earned and increases.
Compared to interest gained or dividends paid and stock increases combined within the same period.
With on average, doubling of house prices over a 9-10 year period, interest rates, stock and dividends have zero major factor.
Their stating house prices have dropped by 7 %, this is pure speculative forcasting on " historical increase % achieved, not actual current prices.
Property is a long term investment strategy, It wouldn't have made a damn difference with any of those factors on my last two properties, as the 10 year doubling factor blows those scenario's out of the water.
Property investment, is a long term strategy, personal home ownership should be treated the same way, You wont loose in the housing market if you stay with it with that long term strategy focus in mind and concentrate on debt reduction.
It's not a quick fix, but historically, you wont loose in terrafirma, despite the dooms day sprukers.
But, if your stretching yourself with investment properties, then yes, interest rates etc will come in to play, the answer there is don't invest if your stretched down to the last dollar, before the selling bell kicks in.
Never invest if your making your self prone to a slight shift in the money market, that could have dire consequences.
We have never invested and rented out, we have always lived in, renovated then moved it on when the market was healthy.
different strokes or strategies for different people but.....
col
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Re: What would you do to become debt free?
Yes the house prices will increase over time BL but so too does the ASX then if you add dividends payable you are earning interest and not paying interest to banks.
Then there’s industry super funds a lot have averaged above 9% returns over 10 years pretty good investment right there specially when extra before tax contributions are made.
Nothing wrong with property and we all need a roof over our head but the view that it’s the only surefire investment is not accurate especially when you have to pay interest and not make income. Each to their own of course those who got in the market at the right time have enjoyed unprecedented increases to property prices I doubt they will increase at such a rate for the next 10.
Then there’s industry super funds a lot have averaged above 9% returns over 10 years pretty good investment right there specially when extra before tax contributions are made.
Nothing wrong with property and we all need a roof over our head but the view that it’s the only surefire investment is not accurate especially when you have to pay interest and not make income. Each to their own of course those who got in the market at the right time have enjoyed unprecedented increases to property prices I doubt they will increase at such a rate for the next 10.
- bowl
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Re: What would you do to become debt free?
Some areas will double in less then ten years. Just depends where n what state U invest in .
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Re: What would you do to become debt free?
Also very important not to have all the eggs in one basket.
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Re: What would you do to become debt free?
True thatfrozenpod wrote:Also very important not to have all the eggs in one basket.
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- Bluefin
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Re: What would you do to become debt free?
X2.smile0784 wrote:True thatfrozenpod wrote:Also very important not to have all the eggs in one basket.
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Re: What would you do to become debt free?
It also depends on how much you need to live and were abouts.
Where I'm retiring to in the next few years the house costs abt 150 thousand.
So I get some left over cash from selling properties in victoria to see me through.
But if you intend to live like the queen it's a bit harder
Where I'm retiring to in the next few years the house costs abt 150 thousand.
So I get some left over cash from selling properties in victoria to see me through.
But if you intend to live like the queen it's a bit harder
- bowl
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Re: What would you do to become debt free?
Where U retiring to,is u close to hosptial .barra mick wrote:It also depends on how much you need to live and were abouts.
Where I'm retiring to in the next few years the house costs abt 150 thousand.
So I get some left over cash from selling properties in victoria to see me through.
But if you intend to live like the queen it's a bit harder
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Re: What would you do to become debt free?
Is that a closet door I hear creaking “live like a queen” lolbarra mick wrote:It also depends on how much you need to live and were abouts.
Where I'm retiring to in the next few years the house costs abt 150 thousand.
So I get some left over cash from selling properties in victoria to see me through.
But if you intend to live like the queen it's a bit harder