Australian (ASX) Stock Market Forum

I can afford a house

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chops_a_must said:
Referencing the post above, we know that it's a bunch of crap.

Seeing family members and clients having to try to acess it, it is quite clear that those rules are far from adequate or appropriate.
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You know this...I personally have no experience with it. I only know what is says on the ATO website.

Regardless, any government sanctioned mechanism that allows you to put money in, grow it, and take money out, TAX-FREE warrants serious consideration. Even if in most situations you must wait until 60 to access it.

I don't advokate all that Robert Kiyosaki says or represents, although I do like the part in his books about a plan to be secure, a plan to be comfortable and a plan to be rich. Super is the plan to be secure for many (including me) and done well can become a plan to be very comfortable in the older years of ones life.

If any of us blow up magnificently with regards to our trading, property investments, or business endeavours, hopefully we won't end up living out our senior years in a delapidated caravan in a C-grade holiday park reliant on tax-payer funded pension money.
 
Each to their own.

Your money your life. Etc... Etc...

I am 25 and I have mapped out a plan so when myself and my wife retire (also 25) we will have quite a substantial amount in super to live on very comfortably.

Obviously this plan will change as the years pass. Financial obstacles will appear, so we would have to reassess and adapt to the changes.

This would be the same if the government make another major legislative change for super (for better or worse). You just have to go with the flow.

What I am trying to say is, what STC is doing now by paying large amounts into his super, doesnt necessarily mean he will be doing this in 10 years time.

If he were to stop in 10 years time if his life circumstances changed (gets married, has kids for example), then he would still be ahead at the end since he would have built a good sized base for compound interest to work on.

In regards to early release of super and their conditions, what would be appropriate conditions of release? You have to draw the line somewhere, and if the government starting making it much easier to get at then this would defeat the purpose of have a retirement fund.
 
Well I am very, very happy that I missed last weeks correction! Some would say luck, others would say good timing.

The reason I missed it was because I was changing over super funds and my money was out of the market for about a week, while the transfer took place.

If my money was still in Colonial First State, I would now have $38,600

Since the change-over to my new fund with Macquarie I have $40,150

So I am $1,550 better off!

I also dumped another lazy $300 into my account this week, so I now have $40,450, more money to buy that dream house.

Not bad going hey?
 
Still can't figure out why the hell you would put money into super at your age. You may never even see it you know....

$40k is still nowhere near enough for a house deposit anyway, particularly if you want a family home. I've just been doing a fair bit of research here in Melbourne and if you want what I would call a family home (i.e. 3 bed, 2 bathroom on a block size of at least 800 square meters) in a reasonably inner suburb you are paying over $800,000 - which means I need a deposit of $160k minimum, which is about the amount of equity I have in my house - but you never really know how much equity you have in your house until you sell it hey...

Is it just me, or has cost of living also gone up a fair bit in the past couple of years? I don't know how anyone could surivive on less than $50k per year these days.
 
I'm feeling the same way Fleeta. The past 2-3 years in Perth anyway seems like its caught a few people off guard.

I've had a few mates overseas travelling the past few years come back with some nice debt and to find the place they used to rent for $180 is now $350 a week. I honestly wouldn't take out an $10k loan to travel but hey each to their own.

I have managed to save a $60k deposit for my first house, but it isn't even enough to avoid paying mortgage insurance. I'm living with the olds for another year or two (hopefully out by my 26th!), working two jobs 60 hours a week and plugging away $300-400 a week. The funny thing is it seems like the $20K I had 3 years ago when I was 21 was worth more :banghead:

I can't complain but, there are people out there really struggling to buy milk and bread and were lucky enough just to have money and opportunities ahead of us.
 
My tip to any young people in Perth struggling financially.

Move...
 
Realist said:
My tip to any young people in Perth struggling financially.

Move...
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...before you die of boredom :D

(Just yanking your chain Perthites :D )
 
The Red Baron said:
The funny thing is it seems like the $20K I had 3 years ago when I was 21 was worth more :banghead:
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It probably was. Hang in there you will make it.
 
Damn...got caught in the last correction :banghead:

I thought I was safe as my account balance was not moving downwards, but alas it corrected. Lost a couple of grand, but its moving up again now.

I realised that Macquarie update their accounts differently and lag behind by some 4 to 5 days compared to 1 day behind with Colonial First State.
 
In the last fortnight I have just dumped another lazy $800 into super...home ownership is looking promising.

Just need the stock market to zooom up for the next 26 years and the housing market to crash. :rolleyes:
 
Stop_the_clock said:
Just need the stock market to zooom up for the next 26 years and the housing market to crash. :rolleyes:
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In theory, dollar for dollar the stockmarket has outperformed residential property since 1981 so history is on your side ;)
 
Stop_the_clock said:
In the last fortnight I have just dumped another lazy $800 into super...home ownership is looking promising.
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Are you structuring your contributions correctly? Are you taking advantage of the Governments co-contribution to its limit then salary sacrificing from there?

Depending on your level of gross income and employment stauts (ie employed not self-employed) then you may be better off by salary sacrificing the amounts you mention.

Good luck
A
 
Knobby22 said:
Stop doing that!
You can only buy the house if there are no borrowings and you cannot live in it until you have retired. Refer attached.

http://www.propertyupdate.com.au/articles/118/1/Is-Self-Managed-Super-for-you?
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Good point.
STC: have you had advice about using the Super money to buy a house at some stage? The rules about withdrawing your Super money are very strict.
I've seen some people who are ill, unable to work, heavily in debt, and still have been unable to withdraw their super under the hardship provisions.

Julia
 
Julia said:
Good point.
STC: have you had advice about using the Super money to buy a house at some stage? The rules about withdrawing your Super money are very strict.
I've seen some people who are ill, unable to work, heavily in debt, and still have been unable to withdraw their super under the hardship provisions.

Julia
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Are they really tough now with the hardship provisions ? I always thought those under threat of home forclosure and serious medical conditions had few obstacles ? ( providing they where provable and genuine)
 
Out of interest STC, do you only invest in shares through a SMSF or are you investing outside of super as well?
 

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