Investing in property

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Right back at the start of my journey I always talked about investing in property, this was my eventual aim. Recently, with my divorce, I felt unsure about whether I would be able to invest in property or not. On paper my income looks pretty bad and I had always thought that I would be able to get a loan because my then husband had a job and that's how I would do it.

WIth the divorce, obviously his income was no longer available.

This week I saw a broker. I have been playing around online with mortgage calculators and it looked like I would be able to borrow on my own after all. Not as much as I wanted and not for a house where I wanted, but an investment property in an ideal area is doable.

I am pretty excited. I like property because it is a more passive form of income, it is something I plan to hold for the long term and it is solid. I can see it. I can make improvements to it.

The properties I have been looking at already have tenants and the rent will cover the mortgage and all related expenses. Depending on the interest rate I get, the price I actually purchase at and agent fees (property manager), it should be positively geared right away.

I am using some of the money from my property settlement with my ex for it. I have plans for the rest of  money and was hoping I would not need to use a lot of it to get one of the properties I have been looking at, and I don't.

This is a way for me to invest in mine and my daughters future without it really impacting much on our lives, without a whole lot of effort from me, but still proved a return and stability.

Do you invest in property? What are your thoughts?

Doing things to improve myself

I am taking control of my life and have been  on a journey to refocus, determine what direction I want to go and heal myself. I have such an intense year and I just felt completely drained.

This week I went to a naturopath and it was really interesting. I overwhelmed her with my medical history, recent events in my life and why I came to see her. She checked my blood pressure, my eyes and a few things. I am running on empty, am completely stressed and while I am physically strong, I really should not be standing. How my body has not given up before now is amazing.

She gave me some herbs, an eating plan and I see her again in 3 weeks for a more thorough check up.

I saw my psychologist this week too. He gave me a few things to try to help with my sleep. It'll be interesting to see how it all works. He says I have made amazing progress and am handling thing very well.

I have been doing a lot of reading and thinking lately too. Trying to learn more about myself, what I really want and how I want to be living my life. I know that the life I have now, while in many ways it is good, it is not what I want.

I am making small changes and have been learning a lot about which direction I want to take. It is quite different from what I have been doing the past few years, but I am excited about where it will take me.

I am also going to be seeing a kinesiologist, getting regular massage and just trying to slow down and fix myself. I work and think at a million miles a second and that is not healthy. My psychologist said I have come a long way, but it is extremely difficult to slow down when you have an ADHD brain. I like that he doesn't refer to me as being ADHD but rather that I have ADHD traits/thought patterns/and ADHD brain.

What does this mean and why am I telling you?

I am not 100% sure I want to continue on the path I am on moneywise. I know I can be a millionaire by 30. I know I will be financially free. I also know that my health, improving my mental and physical health, my daughters and living my ideal life are all more important to me than money.

I still want to be financially free and will be. It's just that won't be as important in my life any more I don't think.

Share house survival guide: tips to stress-free living

Australia’s housing affordability means many of us live in shared accommodation for years. Here’s how to keep your “home sweet home” rather than have it disintegrate into domestic warfare.

First, seek likeminded housemates in a similar life situation. Are you partying night owls or young professionals with early-morning commutes? Picking the right people and the right property is the best way to avoid obvious clashes.

Next, the key is to communicate and set agreements in advance.

1. Plan the finances

Will rent be split evenly, or will the master bedroom occupant pay more? Who’s responsible for bills and pay TV? If one person is the official leaseholder, it's wise to get bonds from other residents.

2. Food and fittings

Who pays if a shared appliance (toaster or kettle) breaks? Will you have a kitty for shared items like teabags and toilet paper, or are strictly separate cupboards and fridge shelves preferred?

3. Lifestyle and pets

Smoking, music and pets are key issues that you need to agree on beforehand.  Make sure to discuss this when interviewing potential housemates.

4. Guests and partners

What’s the rule for overnight guests? What happens if someone moves a permanent partner in (using extra utilities and living space, but not paying for it?)

5. Housework

Will you pool money together for a cleaner or will you split the chores? Do you need to create a roster? What are the consequences if someone doesn’t do their part?

6. Respect each other’s space

Everyone needs their alone time – and some people need more than others. Be conscious to take time out and don’t pester people if they’re alone in their room, talking on the phone or working.

7. Have fun together

Engage in fun activities or spend time talking to your housemates. The better you can communicate with each other, the less chance there is for misunderstandings and arguments. Plan regular catch-ups, throw a party or have dinner together each week.

Following this, hold monthly meetings to raise issues and grievances and address any extra expenses.

Finally, be considerate. Think communally, not selfishly.

With property prices showing no signs of crashing, even home owners may end up sharing – either by buying real estate with a friend or relative, or taking in lodgers to pay the bills. On the upside, roommates can become your closest friends and allies. Happy house sharing!

Moving house again

I am currently negotiating to be able to move interstate with my daughters. Naturally, it is very difficult for my ex husband to be ok with us going. I want to move about 3 hours away from where we live now. I feel the schools are better, life is slower, the crime rate lower and since we have lived there before we already have a support network.

He has almost agreed and we have mediation this week about it which I am desperately hoping goes well so I can move.

I have decided that since it is my aim to move, I need to get ready for it anyway. I have been going through my house and pulling out everything I do not want to move interstate and have been listing it on eBay. I was surprised how quickly I listed the free 30 items this month already.

I've had a few issues trying to list items, but got a lot up there and had watches on some within minutes of listing so at least some items should sell.

I am also looking at homes where I am moving to. I am leaning towards renting with a friend as the rent is significantly higher than what I currently pay and the homes are older. I live in a pretty new townhouse and love it, but would prefer to live in an area I love in an old house instead of an area I hate with a newer home.

I have looked into the schools and have selected one my ex and I agree would be a great fit for our daughters as it has programs she is already in plus lots of extras her current school does not offer. It is in a really nice area and is not too big. Our daughters are very social so I am not worried about them making new friends at school.

The one decision I have been toying with is whether to buy there or invest. I would love my own house again and could afford it with a bit of juggling OR I could buy an investment property elsewhere and build my property portfolio over the next 12 - 24 months then buy my own home. I am leaning more towards option number 2 as it fits more with my long term plan and the tax system in Australia is more geared towards investors, not home owners.

Either way, by the end of this week I should know for sure if and when I am moving.

What would you do, buy your own home or an investment property?

Bank loans - overseas vs Australia

I try to avoid bank loans but I know many others will take out bank loans for things they really want such as a new car, furniture or even travel. My personal preference is to save for what you want, but sometimes it is easier to just get the loan.

For example, if you want to live overseas, the costs involved in moving can quickly add up, especially if you do not have an employer paying for things or you don’t have friends or family where you are going. If you suspect it will cost more than your savings, it can be an idea to take out a bank loan, but shop around.

Interest rates in Australia are high because of our strong economy. In some countries the interest rates are more than half what we currently pay for exactly the same thing. As such if you are looking at moving overseas and are considering a bank loan, you should consider looking at major banks in the country you are relocating to. For example, in the UAE interest rates on a bank loan are less than 7% whereas here in Australia you are looking at 10 to 14% usually. So taking out a bank loan in the UAE makes more sense if you can do it than taking out a loan here before you leave.

Just with the above example of the UAE interest rate of 7% vs the Australian rate of 13%, you would save $1,000 on a 3year loan by taking it out in the UAE instead of Australia.

Australia is great for so many reasons, but if you can manage some of your money overseas at lower interest rates it can give you more money to play with when you are travelling.

I want to live overseas at some point and I know it will cost me a lot because just moving interstate costs me, let alone either selling off everything and rebuying or paying to have everything shipped. I have had friends who have moved overseas and back and it cost a fortune. More often than not, the amount you save just will not end up covering all your expenses and you are better to have things in place incase your funds run out before they actually run or your situation looks dire.

I would love to hear from personal experiences though. Have you ever dealt with overseas banks? Have you ever lived overseas? If you have, did you save a set amount or just go?