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I am getting married in 2 weeks time. Nothing too extravagent, and luckily our parents are paying for most of it. That said, budget really didn't come into it, we decided what we wanted and have done it., but we are both happy with small things so costs weren't massive anyway and nothing has been paid on credit. We had to pay for the honeymoon ourselves, but have each been putting money away each pay since we got engaged to cover that.
In the end though, it is a really big day in most young womens lives, so money can't be the primary concern…
Now as for people buying new cars all the time…don't get me started!
I understand that to free up cash flow I have to pay complete HECS debt, but thanks for bringing it up as it is an important point. It seems that unless I can clear the debt there is no point paying some of it off.
So, for the moment I am going to keep the money flowing into the homeloan, but at the time when I have enough redraw to clear my HECS debt, should I look at paying it then or am I better off leaving the compulsory repayments to cover HECS over the long haul?
I am not looking to convert my home into an investment property, but I am interested as to why an offset loan would be a better option if that was what I was looking to do.
What expenses need to be accounted for and what are some base line costs, from the top of my head…
Rates (% of property value?)
House Insurance
Liability insurance (Is this required, costs?)
Allowance for vacancy (1 months worth of rent?)
Commission to rental manager (5% of rent?)
Closing Costs (6% of property value)
Repair/maintainence kitty (how much required as a baseline?)I know there are other items to consider, but I can’t think of them at moment, anyone else want to add to the list.
Where can I find information regarding the 33:30 challenge?
Why is it normally an interest only loan? Is that purely to lower the repayments?
If it is P & I then won’t you grow more equity?
