I haven’t noticed any more houses than usual in my area for sale, but just that none have sold!

Some have been on the market for 3 – 4 months.

‘Eat rich food, barbeque a yuppie’ [greedy]

I’m glad you cleared that one up Derek. I was wondering where you were coming from!

‘Eat rich food, barbeque a yuppie’ [greedy]

Marco

That broad statement of yours must come under a little scrutiny.

Why would Kirribilli house not be able to be +ve CF if you say any house could be?

I guess what you are saying is if you put a 95% deposit on a $15 million house it may turn +ve CF. That is true but so far out of anybodies league here except maybe Steve’s. Sure any home can be +ve CF as long as the deposit is big enough.

I see what you are trying to say, but if people had deposits big enough to make any house +ve CF, I would hazard a guess and say they would not be wasting their time on this website but probably in Imola for the Formula 1 Grand Prix, or Monaco with their super yacht!

‘Eat rich food, barbeque a yuppie’ [greedy]

I’ll start:

PPoR – Principle Place of Residence (your home)
IP – Investment Property
LOC – Line of Credit
LOL – Laughing out loud (well you asked)
CoCR – Cash on Cash return
+veCF – Cash Flow positive
-veCF – Cash Flow negative (neg. gearing)
IRR – Internal Rate of Return

I’m sure there are plenty of others, but there is a start

‘Eat rich food, barbeque a yuppie’ [greedy]

I don’t put any deposit down for properties. The bank loan is for 105% (loan plus costs). I figure you need a rental yield of somewhere over 15.5% to make it +ve CF without a deposit.

This will of course difer slightly depending on things such as body corporate fees, council rates etc.

Your $90K property with $135 p/w rental is only a 7.8% yield. This is a good return if there is capital cain to be had but definately not positive.

BTW, even with a $30,000 deposit it would not be positive.

‘Eat rich food, barbeque a yuppie’ [greedy]

I don’t agree but I understand your point. You have not quite made it clear. Have you any property (PPoR or investment property) yourself?

‘Eat rich food, barbeque a yuppie’ [greedy]

Steph

There are plenty of sports that don’t cost too much money to play. Your town is big enough to have plenty of sporting clubs and you are bound to find one both you and your husband enjoy:

Running, bowls (don’t knock it until you’ve tried it), soccer, netball, basketball, volleyball etc etc. The only money is usually registration each year and maybe a uniform (for some sports).

Sport does not have to cost much money and I know how much it can do to lift up one’s self esteem. I have been playing sport reguarly pretty much all my life and I use it for many things.

1. Socialising
2. Competitiveness
3. Fun
4. To vent anger or another emotion.
5. To get fit (the fitter you are, the better you feel, sleep, relate to people etc)

Do yourselves a favour and join some sort of club. WA has such great weather, take advantage of it.

Here’s another idea, why not give each other a present of a personal trainer for an hour. He/she will get you started and make exercising feel more fun. That will get you more motivated. Get the endorphins running around your body and I bet you will feel great.

I have been really fit now for a couple of years and I sometimes I find it hard to motivate myself to swim laps or go for a run, but then I remind myself how much work I have put in to get where I am today, that helps.

‘Eat rich food, barbeque a yuppie’ [greedy]

Why don’t you look at setting up your own super fund. You can use the money to invest in whatever you want. You of course cannot touch it until 65 but if you are confident with your investments, it is a worthwhile thing. My Dad set one up 10 years ago and has invested in property, shares, funds and other ventures. He has made and lost money on various investments but in the long run, he is well ahead. In fact he pulls money out for Mum and himself to live on and has not reduced the capital.

Remember that super gets taxed at a much lower rate than income.

Speak to your accountant about the costs involved. It may be $1K – $2K but worth it IMHO.

‘Eat rich food, barbeque a yuppie’ [greedy]

That’s a bit unfair, my parents are into their sixties and have only just retired. They go overseas every year (last year Turkey, year before Greece) and even did some trekking through the Himalayas only a few years ago. No walking sticks there.

They also play tennis with similar aged people, golf, walk and are working on the huge gardens they put into their new house in country WA.

I think you will find that the average ‘walking stick’ age in this country is much higher than that now. 20 years ago maybe, but now it is 75+.

Standard superannuation will not sustain you completely anyway IMHO. You will need other sources of income (unless you have set up you own super fund that has performed really well)

‘Eat rich food, barbeque a yuppie’ [greedy]