VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Go down

VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by Scrappy on Wed Sep 21, 2016 1:02 pm

Value for money
Ways to make the dollar stretch further

Methodologies include
Penny pinching
Bargain buzzing
Dollar dazzlers
Superdooper savings

ACORNS GROW
Here is a report by a financial services firm
* Acorn Australia has found drinking, drugs, trouble sleeping, and physical health issues are among the problems caused by money worries
It found 73% of Australians are stressed by their current financial situation, including 25% who are severely stressed
About half say money issues have affected relationships and work performance, one-third say it leads to excessive drinking and 1 in 5 say they have taken illicit substances to help them cope.*

Quite a damning report
That just shows a lot of lifestyles are affected by $$$$$$

I think when it comes to money its what makes you tick
There are an infinite amount of choices individuals can do to make or break
avatar
Scrappy

Join date : 2012-05-15
Posts : 3561

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by Scrappy on Wed Sep 21, 2016 1:05 pm

SUPERANNUATION V HOUSING LOAN

Is it better to pump money into Superannuation or pay of an existing Housing Loan ?
Most people I know are advising me that Superannuation is the way to go as a choice

Superannuation Guarantee rates are projected at about 9.5% for 2016/2017 ?
Housing Loans at present , depending where you look are mostly just under 4%
On face value Super 9.5 % outweighs the less than 4% housing loan interest rate
avatar
Scrappy

Join date : 2012-05-15
Posts : 3561

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by mickyj on Wed Sep 21, 2016 1:38 pm

Ok super and home
I did almost buy a house just before the divorce was forced to sell and split
The money .
I did have thoughts with what was my share or half to get a home loan
Buy it back needed a lot of repairs
Or buy another house
At that stage I had been employed by the one company 15/16 years .
I tried the credit union I was a customer of and also Bendigo bank
Result from both places
1 although I was employed by the same firm for 15/16 years on a low wage
I was classed as a bad credit risk . Bendigio bank wanted me to have $150 grand in my account . My half didn't come to that amount well neither did my exwifes .
2 both wanted me to take out the first home owners loan .
And have that money in the bank . When I asked but I've sold my house that was on the first home owners loan . They were stumped .
So i bought a car and rented . Still what was left made me a credit risk

Super yeah I didn't have one in this job money was tight but would have been tighter .

I stil find it funny you work now it's in a fight but 21 years for one company and your a risk
avatar
mickyj

Join date : 2012-02-21
Posts : 1940
My club : eagles

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by UncleHuey on Thu Sep 22, 2016 1:26 pm

Scrappy wrote:SUPERANNUATION V HOUSING LOAN

Is it better to pump money into Superannuation or pay of an existing Housing Loan ?
Most people I know are advising me that Superannuation is the way to go as a choice

Superannuation Guarantee rates are projected at about 9.5% for 2016/2017 ?
Housing Loans at present , depending where you look are mostly just under 4%
On face value Super 9.5 % outweighs the less than 4% housing loan interest rate


The Super Guarantee rate of 9.5% is the amount your employer has to pay into your super (9.5% of your wage). It is not the rate of return you get once the money is invested.
Trouble is that most super fluctuates with the share market. A 9.5% return would be above average.

The question is should you pump excess cash into the mortgage or super. If mortgage rates are 4% your super will need to make a return of 4.6% or better (allowing for tax). As this is much higher then cash rates you will need to invest in the share market which will give you dividends but also expose you to potential capital gains and losses.

Given that interest rates are so low and the share markets are looking rocky I would pay off the loan first.

avatar
UncleHuey

Join date : 2013-03-20
Posts : 1184
My club : glenelg

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by Scrappy on Thu Sep 22, 2016 6:25 pm

SALARY SACRIFICE OR MORTGAGE ?
Huey the rate is 9-5 % from your employers contribution, so correct
I didnt word it right
I should have stated that is it better to salary sacrifice or pay off a mortgage
Or make your own contributions as against paying off a mortgage

avatar
Scrappy

Join date : 2012-05-15
Posts : 3561

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by UncleHuey on Fri Sep 23, 2016 12:47 pm

It depends a bit on your personal circumstances of which I have no knowledge.

I would lean towards paying off the mortgage first. It is a non-deductible expense and with interest rates low, you pay can pay down the capital quicker. If you factor in an interest rate of 4% and consider that mortgage repayments come from post-tax dollars IMO opinion you are better off getting rid of the mortgage as quickly as possible and then salary sacrificing the amount you were paying off into super.

Mind you, there are a lot of financial planners and super funds who will tell you the opposite and use the "build up your super now and then pay off your mortgage with a lump sum when you retire" strategy. It is valid but the 2 things of concern. Superfund growth can be choppy as it is exposed to the sharemarket and there is no guarantee that the government will not change the rules to stop you taking out large lump sums when you retire in the future.
avatar
UncleHuey

Join date : 2013-03-20
Posts : 1184
My club : glenelg

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by mickyj on Fri Sep 23, 2016 1:28 pm

Honestly after my long winded post .
I think in our great country.
There are two things we focus on .
1 owning a home / land
2 super

I'm over 50 and do not have enough super to retire on .
While I almost owned a house to me that's a trap .
If I earned after tax 50 grand or more a year yes I'd own land or houses.
But after tax the most I've earned does not reach 40 grand .
And yes I got a loan but like some of us older workers would say to each other in the work place . We are the working poor yes we work we earn money pay bills etc .
But banking institutions think low paid workers are bad risks
What happens to low paid workers you can't get housing trust places yes female coworkers did but not guys like me I was told buy a house .
Hell even a nonaustralian resident got a trust house .

So while houses and super are great what do working poor do .
And don't say study I've worked with two who went to uni got degrees in engineering in the mining industry one went overseas got a great job .
avatar
mickyj

Join date : 2012-02-21
Posts : 1940
My club : eagles

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by Scrappy on Wed Sep 28, 2016 12:48 pm

Hey Mickey
Is it an option to sell your house , have whatever equity ,and rent ?
avatar
Scrappy

Join date : 2012-05-15
Posts : 3561

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by Scrappy on Wed Sep 28, 2016 3:13 pm

www.entertainmentbook.com.au/about/Tell-me-More/Adelaide

The Entertainment Discount Book
Only $70
Very good value for $$$


avatar
Scrappy

Join date : 2012-05-15
Posts : 3561

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by mickyj on Thu Sep 29, 2016 9:18 am

Scrappy wrote:Hey  Mickey
Is it an option to sell your house , have whatever equity ,and rent ?

thats what i did Scarppy upgraded my car was either keep paying a grand a service or upgrade so i did.
Co workers told me off told me i should be buying a house or something but not having 150 grand in the bank being a low paid worker i was considered a credit risk

Yes i am paying more in rent but if things die like hot water heaters i went threw 3 or 4 in 21 years at the old place costs me nothing

Working I have no clue if or when i will ever
avatar
mickyj

Join date : 2012-02-21
Posts : 1940
My club : eagles

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by mickyj on Thu Sep 29, 2016 9:32 am

oops
avatar
mickyj

Join date : 2012-02-21
Posts : 1940
My club : eagles

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by Scrappy on Thu Sep 29, 2016 10:02 am

RENT OR OWN A HOU$E

Example using approximate average house values and average rental prices
Based on owning a house freehold as against renting
Also included are approximate term deposit interest rates
Please note the figures I will use are just an approximation

$400,000 House value
$300 Rental per week
3% Term Deposit rates per 12 months
Subject has no liquidity money saved in financial institutions

Sell the house
Put $100,000 liquidity aside for $pending
Invest $300,000

$300,000 will net you about $9,000 in interest at 3% , less tax if applicable
$300 per week rent will amount to about $15,600
The difference is $6,600

So to sell/invest/then rent means you need to find about $127 a week to cover the $6,600 deficit
And you have $100,000 to spend !

I have probably overlooked other factors with my example
But the question is
Asset richness or liquidity richness ?

www.averagerent.com.au/Adelaide

That site shows average rentals in Adelaide
avatar
Scrappy

Join date : 2012-05-15
Posts : 3561

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by Scrappy on Thu Sep 29, 2016 10:11 am

SOLAR POWER
is it too late to invest ?

https://www.solarmarket.com.au/solar-rebate-phasing-out/?utm_source=outbrain&utm_medium=cpc&utm_campaign=incentive&utm_term=4871018


Last edited by Scrappy on Thu Sep 29, 2016 10:12 am; edited 1 time in total
avatar
Scrappy

Join date : 2012-05-15
Posts : 3561

Back to top Go down

Re: VALUE 4 $$$$$$$$$$$$$$$$$$$$$$

Post by mickyj on Thu Sep 29, 2016 10:11 am

Scrappy wrote:RENT OR OWN A HOU$E

Example using approximate average house values and average rental prices
Based on owning a house freehold as against renting
Also included are approximate term deposit interest rates
Please note the figures I will use are just an approximation

$400,000 House value
$300 Rental per week
3% Term Deposit rates per 12 months
Subject has no liquidity money saved in financial institutions

Sell the house
Put $100,000 liquidity aside for $pending
Invest $300,000

$300,000 will net you about $9,000 in interest at 3% , less tax if applicable
$300 per week rent will amount to about $15,600
The difference is $6,600

So to sell/invest/then rent means you need to find about $127 a week to cover the $6,600 deficit
And you have $100,000 to spend !

I have probably overlooked other factors with my example
But the question is
Asset richness or liquidity richness ?

www.averagerent.com.au/Adelaide

That site shows average rentals in Adelaide

your spot on Scrappy the credit union and bendigo bank estimated my old house was valued at 350 grand while in truth it was nowhere near that mark my share was not even half of that and i paid the entire mortage .
But that is life you win and lose
avatar
mickyj

Join date : 2012-02-21
Posts : 1940
My club : eagles

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum