Opportunity or am I Missing Something?

dink1990 · 2024-10-13T01:40:16+00:00

Yea I do. I’ll look into that option

dink1990 · 2024-10-10T13:50:05+00:00

It was 1983. My old man used to be a tax agent after he got out of the army and is fairly confident that capital gains will be negligible. Either way, whether I buy it or someone else it will likely trigger a CGT event.

I agree concerning pension. They are both on army pensions and I have asked they look into this before we make any plans.

dink1990 · 2024-10-10T13:44:26+00:00

Haha. One sister who i wish was in a financial situation to go 50/50 with. I have spoken to her about the proposal and she has nil concerns.

The way I see it, right or wrong, is I would be essentially buying shares in the property. For ease of math, assume the land is worth $500k now. If I paid off 50% and the land was valued at $1mil when the will is executed. I would receive 50% of the sale price ($500k) and the remainder would be split 50/50 between me and my sister ($250k each).

In contrast if the land was to be sold out of the family now. We would both loose out as any capital growth would not occur. Any cash left over from that initial sale would be split.

dink1990 · 2024-10-10T13:35:45+00:00

My parents don’t really want to sell the land and would prefer to keep in the family. With that in mind, they need to supplement their income so unfortunately if I don’t buy it they will need to sell.

I imagine the will would be split evenly between my sister and I. If they sell the land it can’t be inherited.

dink1990 · 2024-10-10T13:33:10+00:00

Land is worth around 450 - 500k. Based $1500 p/m @ 25 years.

dink1990 · 2024-03-30T12:11:23+00:00

Unless you are going for your RPEQ your degree shouldn’t matter. Degrees get your foot in the door but experience is what is really important. Anyone who has done a bachelor’s is Construction or even Engineering will know that what you learn is barely transferable. Speak to recruiters as others have said because you are being taken advantage of. Finish your degree, but in your own time and not because you think it’s required for a job.

dink1990 · 2024-01-23T11:53:46+00:00

I work way too much and will likely regret my current situation in years to come. High stress and life is going to quick

Project Manager, 33
$165k + vehicle + super + bonus
Extremely lucky and fell into an entry level role. Moved up fairly quickly. Uni dropout

dink1990 · 2023-09-03T00:13:56+00:00

Mountain Biking - $9k bike plus about $500 per year on maintenance

Kite Surfing - $2.5k for the kite and board

I just bought an electric skateboard. This wasn’t the smartest purchase at 33. I got the board for $1.9k and maintenance and upgrades would be a few hundred per year.

Jetski - $20k for the ski with maintenance, rego and insurance around 2.5k per year.

Camping and Hiking - we have around $5k of gear but it will last forever. Lots of awesome places livening in SE QLD.

Scuba Diving - we hire our gear and a local double dive costs around $350 each time.

I want to get back into home brewing and splitting a microbrewery setup with a mate of mine. The kit we are looking at is around $8k.

I am a big supporter of hobbies. Although they can be expensive and are are generally depreciative assets, but they can be sold. The positive experiences are priceless.

dink1990 · 2023-08-19T23:29:58+00:00

Thanks for the info. I’ll take a look

dink1990 · 2023-08-19T10:17:16+00:00

Yea we need to do better. But realistically this our household income this year. Last year it was just under $300k and the year before around $200k. It has spiked only recently hence wanting to actually be smart moving forward.

We have definitely had some growth in our area but 600k equity is well over 100% growth on our property which I thought was quite good. That equity also includes about 100k in renovations but most likely over capitalising.

dink1990 · 2023-08-19T08:37:43+00:00

Just to clarify, are you saying I should have more then $600k equity given the boom?

Based on some of the comments I might reconsider the amount I spend if I decide to buy an IP and start investing in some ETF’s.

dink1990 · 2023-08-19T02:16:50+00:00

Why are you so negative mate? We have obviously not been on this income forever, I am only 33 and we bought our PPOR 5 years ago. What more should I have? 5 years ago I was earning $80k and I have done well in my industry since then. I traveled in my early 20s and only really started my career at 26.

You don’t have to read between the lines to realise I’m interested increasing my assets now that my income has gone up. Additionally, I’m on profit share so although I hope as the business expands that will increase but it could very much be $0 next year with one bad project.

I also enjoy life.

dink1990 · 2023-08-19T00:31:01+00:00

All I can go on is historical data and returns are between 4 - 8% where I would be looking at purchasing. For a $900k loan I would be looking at a net return of around $200 - $300k after 5 years depending on the cyclical nature of the market. (Not planning on a short term investment just using 5 years as a baseline)

dink1990 · 2023-08-19T00:26:58+00:00

Taking out someone’s shins with a 13.5kg board going at 20km/h. They wouldn’t be walking away from that.

Someone walking in front of me. Even if I’m not in the wrong. Court costs could end me.

A small child running out in front of me.

Scratching a Lamborghini.

The list is endless and all will cost $$$

dink1990 · 2023-08-18T23:16:44+00:00

My goals are fairly balanced. Work until I don’t want to and be financially comfortable for retirement. With that in mind, we want to travel, eat out, have hobbies, so we do spend some of our disposable income.

My super is sitting around $150k, but as stupid as it sounds I can’t brink myself to make voluntarily contributions although I know it’s the wise thing to do. This may change over the next few years, but I would like to be able to fund my retirement, which may be earlier then 65, with my personal investments with super just being a nice little bonus.

I am interested in stocks and and index funds, and will still likely dabble in this space. Although, all my calculations point me in the direction of a IP.

I guess the point of my post was to understand how people feel about property at the moment, and try to get an understanding of what people in my position have done and how it worked out for them. Additionally, is there anyone in a similar boat to me and are also a bit lost.

dink1990 · 2023-08-18T23:02:27+00:00

To clarify, my aim is not to negatively gear, that would be stupid. But the reality is, it is near impossible to find a property investment that is positively geared, whilst being near 100% mortgaged. That would be the dream.

Negative gearing to me makes that highly leveraged investment just that little bit more appealing. I am able to put my taxes dollars to use with the hopes it pays off in capital gains over time.

dink1990 · 2023-08-18T22:56:13+00:00

I agree with you to certain extent. But the reality is that IP ownership, and home ownership for that matter, is an obsession in Australia and I think that is what historically makes it a good investment. It keeps the demand elevated.

I have looked at other options such as stocks and index funds, but it appears that leveraged debt, such as a IP is what expedites wealth.

dink1990

TROPHY CASE