Australia's largest stock trading and investment forum Australia's #1 stock forum

Sure you are making some $$ far but far less than you could...

First 11 Last

Share
Profile

Follow
nippy

11,215 Posts.

705

16/06/24

16:54

Post #: 74339158
Share

Originally posted by rona142: ↑

I bought my first property off the plan in 2015 for $550k (we paid zero stamp duty and also got a FHOG of $15k so effective purchase price of $535k). We paid a 10% depoist upfront and nothing else was required to handover of the property. Settlement happened in June 2017 which is when we borrowed $400k @ 3.98%. From then until we sold the property mid 2023 rates dropped progressively to 2.34%. By the time we sold for $830k we owned the property outright. The proceeds of sale was $815k taking into account legal fees and agents commission.

Over the life of the loan we would have paid less than $50k collectively in interest which still leaves us massively in front. Lets call purchase price plus interest $585k we still walked away $230k infront. When we first moved in our neighbours were paying ~$500/week in rent and by the time we left they were up to $650/week. Lets call it an average of $575/week for rent for them over the 6 years.

Rental costs for 6 years = $179,400 vs less than $50k in interest plus I walk away with an extra $230k in capital gains in my pocket.

We now have a bigger property and our monthly interest for the homeloan averages $550/week. To rent the same property it'd cost $1000/week. Again we're making accelerated repayment so we'll likely own it outright within 10 years even if interest rates stay where they are now.

Expand

Sure you are making some $$ far but far less than you could have.

Thats my point.

With an emotive partner in tow well done as they mostly do not cope with the more variable returns and no nest.
Upvote

Reply

Top Stories

VMS

Venture to sniff out high-grade REE targets at Jupiter project, WA

DVP

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Is oil undervalued?

NXG

Cost blow-out for Rook I uranium project sees share plummet for NexGen

MGU

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

GRX

GreenX picks up prospective copper project in Germany

BOE

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

WGX

Westgold sets its sights on top five producer status through merger with Karora

VMT

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

There are more pages in this discussion • 194 more messages in this thread...

First 11 Last

Sure you are making some $$ far but far less than you could...

Venture to sniff out high-grade REE targets at Jupiter project, WA

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Is oil undervalued?

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

GreenX picks up prospective copper project in Germany

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Westgold sets its sights on top five producer status through merger with Karora

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Featured News

Featured News

Sure you are making some $$ far but far less than you could...

Top Stories

Venture to sniff out high-grade REE targets at Jupiter project, WA

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Is oil undervalued?

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

GreenX picks up prospective copper project in Germany

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Westgold sets its sights on top five producer status through merger with Karora

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Featured News

Featured News