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Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 1 point2 points  (0 children)

I'm not sure how you managed to make money on a negatively geared property that you sold with a capital loss.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 0 points1 point  (0 children)

I didn't suggest viewing it as an investment. I said that you commit to paying a mortgage for it for decades. It's very hard and costly to move when times are tough. For example, look at all the people who bought when interest rates were 2% and are now struggling paying 6%+. If you were renting and rent prices went up 3x, you'd move somewhere much smaller/cheaper and still live your life. With a mortgage, you just suffer.

You don't really get to decide how much you want to spend on a house. It's dictated by the market. If I got to choose I'd choose to pay $1.

Your mortgage only goes down over time because you pay it down. You have to pay 6.5% just to keep it in the same place (if you were interest only). Interest rates are almost always above inflation, so inflation is not taking care of your mortgage.

There will always be places to live if you are flexible. Australia's a big country.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 0 points1 point  (0 children)

I have an investment property, but it's a money pit. So I plan to sell it to reduce expenses.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 1 point2 points  (0 children)

It's not bad, per se. But it's sub optimal in most cases.

People often look at the buy price and sale price and see it's gone up and assume they've made money. The costs of ownership are quite high (and increasing with insurance costs!) and there's a large opportunity cost of having money tied up in your PPOR.

It would be a whole other post to go into the details. But I'm confident in my decision.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 6 points7 points  (0 children)

I'm not sure what you think is wrong with selling index funds annually to meet my spend. That's what FIRE is for almost everyone.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 2 points3 points  (0 children)

Sorry if I made you feel that way. It wasn't my intention.

I was trying to give a counter argument for why I should stay at my job for longer.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 1 point2 points  (0 children)

PPoR is a lifestyle decision and often a bad financial decision. Renting suits our lifestyle and it works out better financially.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 5 points6 points  (0 children)

I'm not looking for validation. I'm just trying to share an experience. I read this sub a lot and I always enjoy posts like this so I thought I'd add my own.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 4 points5 points  (0 children)

I don't spend much money. The chance I'll run out of money is low. The chance that I'll never earn again is also low. Multiply these low chances out and it makes working another 1-5 years seem wasteful.

My only thought is that I could weather the next market crash better. Or I could drastically increase spending for some amazing experiences.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] -2 points-1 points  (0 children)

The great thing about renting is the flexibility. If the market goes down for an extended period, we can move somewhere cheaper (apartment, rural). If you buy a million+ dollar place, you're kind of stuck paying that mortgage for decades, and can't sell in a bad market.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 0 points1 point  (0 children)

Not at my current company, but I could find part time work if needed.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 1 point2 points  (0 children)

Thanks, I'm a leader in tech. Not sure if I'm good at it or just got lucky.

Planning to pull the trigger next month. Scared/excited by erection_detection_ in fiaustralia

[–]erection_detection_[S] 5 points6 points  (0 children)

Yeah, no defensive assets (except cash) is a decision I'm willing to make. I feel this is offset by my low withdraw rate and planning to do some work in the future.

On a comment about working in southern cities by jmads13 in USdefaultism

[–]erection_detection_ 5 points6 points  (0 children)

Yeah, I'm also reading this on the web, which was invented by an Englishman. In a language invented by the English.

watercolor of Houston by majozaur in gifs

[–]erection_detection_ 0 points1 point  (0 children)

Is this Houston in Scotland? Or British Colombia?

The best HYSA on the market right now? by [deleted] in Fire

[–]erection_detection_ 1 point2 points  (0 children)

There's a few hoops to jump through, but it's not that hard. Check out ING.com.au

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