What would you do to become debt free?

Everything that has nothing to do with fishing.
rb85
Rank: Premium Member
Rank: Premium Member
Joined: Thu Dec 08, 2016 8:08 pm
Location: The Ocean
Has liked: 412 times
Likes received: 609 times

Re: What would you do to become debt free?

Post by rb85 » Sun Jul 22, 2018 7:14 pm

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.

blacklab99
Rank: Premium Member
Rank: Premium Member
Joined: Mon Mar 11, 2013 2:41 pm
Location: malvern east
Has liked: 14 times
Likes received: 73 times

Re: What would you do to become debt free?

Post by blacklab99 » Sun Jul 22, 2018 7:36 pm

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.
That's true rb85, but the biggest factor is the actual house prices.
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

rb85
Rank: Premium Member
Rank: Premium Member
Joined: Thu Dec 08, 2016 8:08 pm
Location: The Ocean
Has liked: 412 times
Likes received: 609 times

Re: What would you do to become debt free?

Post by rb85 » Mon Jul 23, 2018 6:01 am

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.

User avatar
bowl
Rank: Premium Member
Rank: Premium Member
Joined: Mon Nov 19, 2012 12:30 pm
Location: Wyndham Vale
Has liked: 292 times
Likes received: 559 times

Re: What would you do to become debt free?

Post by bowl » Mon Jul 23, 2018 7:08 am

Some areas will double in less then ten years. Just depends where n what state U invest in .

frozenpod
Rank: Premium Member
Rank: Premium Member
Joined: Thu Sep 27, 2012 2:04 pm
Has liked: 81 times
Likes received: 109 times

Re: What would you do to become debt free?

Post by frozenpod » Mon Jul 23, 2018 9:12 am

Also very important not to have all the eggs in one basket.

smile0784
Rank: Premium Member
Rank: Premium Member
Joined: Thu Apr 26, 2012 5:16 pm
Has liked: 39 times
Likes received: 356 times

Re: What would you do to become debt free?

Post by smile0784 » Mon Jul 23, 2018 11:20 am

frozenpod wrote:Also very important not to have all the eggs in one basket.
True that

Lightningx
Bluefin
Bluefin
Joined: Wed Oct 01, 2014 4:21 pm
Has liked: 72 times
Likes received: 976 times

Re: What would you do to become debt free?

Post by Lightningx » Mon Jul 23, 2018 11:23 am

smile0784 wrote:
frozenpod wrote:Also very important not to have all the eggs in one basket.
True that
X2.

barra mick
Rank: Kingfish
Rank: Kingfish
Joined: Sun Nov 11, 2012 7:42 pm
Has liked: 26 times
Likes received: 58 times

Re: What would you do to become debt free?

Post by barra mick » Mon Jul 23, 2018 5:41 pm

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

User avatar
bowl
Rank: Premium Member
Rank: Premium Member
Joined: Mon Nov 19, 2012 12:30 pm
Location: Wyndham Vale
Has liked: 292 times
Likes received: 559 times

Re: What would you do to become debt free?

Post by bowl » Mon Jul 23, 2018 5:56 pm

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
Where U retiring to,is u close to hosptial .

Nude up
Rank: Kingfish
Rank: Kingfish
Joined: Thu Aug 08, 2013 5:08 pm
Location: Bellarine peninsula
Has liked: 333 times
Likes received: 569 times

Re: What would you do to become debt free?

Post by Nude up » Mon Jul 23, 2018 6:15 pm

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
Is that a closet door I hear creaking “live like a queen” lol

Post Reply

Return to “Off Topic Forum”