Comments by "Andy Dee" (@AndyViant) on "Hindsight" channel.

@Slimrusty 100k = greater than 81% (top 19%) 120k = greater than 87% (top 13%) 135k gets you into the top decile (top 10%) You can easily afford a 400k mortgage on 120k Punching those numbers into a calculator, default costs, single income, no dependents, mean you can borrow about $700k. $4100 a month repayments, 30 years. Of course, you need a deposit. That's based on a 10% deposit. Usually the deposit is the limiting factor, not your income.
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Nah. They're not in good jobs, and they're crap with money. Average full time wage in Australia is $74,562. Average rental property of a property in Australia? $627 a week. That includes both houses and flats, so the median is a 3 bedroom, 2 bathroom house. No single person actually needs a 3 bedroom house. That's $32k a year rent. Rent out the other 2 rooms, that's $209 per week each ($10k). Or have a partner, and it's $313.50 a week each ($16k). Still gives you $58k a year income less tax. You can easily save money on those numbers if you put the effort in to work a full time job. If you can't afford to live in a 3 bedroom house alone by yourself then that's definitely you expecting a lifestyle you can't afford. People just expect too much for too little effort. Shared housing was a thing for many generations to help get you on the property ladder. People now just expect too much without sacrifice or effort.
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As a person who is a landlord, the entry point for each additional property is low if you stagger your purchases. But not for the reasons people think. Negative gearing doesn't actually reward you that much. The (established) property I bought as an investment in 2021 is negatively geared, but only by about 11k per year, which means I lose about 8k per year to "dodge" about 3k a year in tax. One significant weather event, an accident, or more likely bad tenants can cost me that many times over. Plus, obviously there are massive sunk costs in agent's fees, bank fees, building and pest inspections, and stamp duty What makes me money isn't Negative Gearing. Negative gearing means YOU ARE LOSING MONEY. It means you are quite literally SUBSIDISING YOUR TENANTS lifestyle. I wish people would listen to the obvious "negative" in that phrase because it's frustrating to have to repeatedly explain it means a loss. Instead, it's the combination of three principles, forced savings, leveraging of risk and the basic concept of investing money. Investment properties can take 10 or 15 years to actually reach a breakeven point between rental income vs interest and associated costs. Mostly what an investment property does is it forces you to live well within your means as a way to get ahead. Anyone can do that without investing in property - just stop going out to expensive clubs, stop the overseas holidays, stop buying expensive cars to show off your wealth.
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Wah wah wah says those who don't understand economics, sacrifice or hard work.
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@treytrittinger5829 I don't either. What's to be sorry about?
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@treytrittinger5829 I've bought 4 houses on a single income. Capital city. No house from dad. Or mum. Or Grandma Ethel or Aunt Sadie. Seriously where did you pluck that from? Can't you cope with someone putting in effort and getting a result? Or does that trigger you because you're failing to?
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@treytrittinger5829 dude I'm getting over 90k a year rent in. :D But paying over 90k a year in interest repayments. :( Just because you can't comprehend doing that with your life doesn't mean other people can't achieve it.
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I work 1 job and am in the top 10% of income earners. I own 4 houses. You're obviously doing something very wrong with your income. That's most definitely a you problem.
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@Slimrusty That's how to get ahead dude. I earn (with rental income) about double what you do and I'm driving a 9 year old ute. I did recently upgrade to an S23 galaxy... from an S8 galaxy.
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@jesse8737 then don't complain about the consquences of your laissez faire lifestyle choices.
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@simjam1980 the double the people but not double the houses i the issue.
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@genkifd Paid over 70k for repairs and maintenance after the tenants left. That' s using my own and mate's free labour, btw. Couldn't afford other repairs in the 12 month period after I moved back in, so there's been about $20k more since then, which I will not be able to claim. Don't think it's a free money from the sky scenario. They weren't even nightmare tenants, just aged and no longer kept up with the required maintenance of living in a 30 year old house with a big yard.
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@RogueCowTurd exactly when was housing only 3-4x the median wage? I'd lover to see some evidence of that, because I don't recall it happening in my lifetime. Magically plucking a number from an orifice doesn't make it statistically accurate data. However, if said housing was ever 3-4x median wages (it wasn't) and you chose not to buy then you'd have met my criteria of "those who don't understand economics" and that would clearly be a YOU problem.
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@RogueCowTurd when was median housing 3-4x the median wage? Never in my lifetime.
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@RogueCowTurd I didn't. I've put up 4 answering posts that have been removed. Guess there's lots of people sooking about them
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@RogueCowTurd I've posted multiple times that never, in the last 4 decades, could you buy a house for 3-4x the median wage in the zone you're actually buying the house. Maybe, just maybe, there was a remote postcode with cheap rural house prices and a booming mining industry during those last 4 decades, but I've never seen that documented. Regardless, there's no point in those last 4 decades you could buy a house in a capital city with 3-4 times that capital city's median income, and no point in those last 4 decades when you could use an 4 times the Australian Median Wage to buy an Australian Median Property (meaning a HOUSE in suburban Melbourne or Sydney). And I seriously doubt there was before that, either. Maybe in the 1890 Melbourne property bust?
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@treytrittinger5829 I haven't sold a single house because I'd pay a large amount of capital gains. House flipping on a house you aren't living in as an owner occupier sees fairly heavy taxation. I'm not sh*thing myself or I wouldn't have just bought another one in May. I'll earn over 200k from my job, plus the rent, making over 300k None of my houses are "rented to Indians". However, why would the racial background of a tenant decide whether they are a suitable tenant? Seems like you have thrown a heap of projection, personal attacks, and casual racism in here to bolster your case.
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@treytrittinger5829 I have had ONE day off work in the last 19 days. I am rostered to work Saturday and Sunday too, so it will be one day off in three whole weeks. I "Picked the easy way out"? Lol. You're pathetic, dude. You just make stuff up to support your argument because you want to stay a lazy, whiny, victim.
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@RogueCowTurd they didn't though. That number is not accurate.
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@besovereign2032 no one has to put down a 200k deposit. You really need investment advice.
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@Slimrusty just search "income percentile calculator australia" and you can find out easily. A top 10% income in 2024 for a single income earner is $137k a year, so you're definitely in it.
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@TheTemplar113 Yeah, you'll need it. People want mollycoddling not facts. It should get hella entertaining.
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@Irin31 banks don't like lending more than 35% of income. But if you can show them that you're living cheap they will potentially let you borrow more. Also, the way they view income varies. Overtime often gets discounted as part of your income because it's not reliable.
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@TheModeler99 no. It's funded by high income earners who have private health insurance but still need to pay the Medicare levy
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@Slimrusty Best solution is borrow to your needs, not to your limit. This is why people don't get ahead. Borrowing for things they don't need. THis is why housing was affordable back then and isn't now. A 13 square 3 bedroom house is fine. Until you have a lot of kids you don't need a 4 bedroom, 3 bathroom house with a living room, rumpus room and media room. How did I get where I am? Three things: Hard work (lots of overtime) Cheap living (never had a new car in my life) Buying a house (3-1-1) for stability not show The less you borrow, the quicker you can pay down capital. Borrow as little as you can, pay it down as quick as you can. Over the course of a loan, minimum repayments on what you can borrow will take you 30 years. Paying extra saw me own two houses, one fully paid off, within 15 years. That's why I bought more since then.
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@shanangemi1701 I own one outright, owe about $100k out of $850k on another, own just under half of a third and you can honestly say the bank owns the fourth. If you shuffle the buckets of money around enough I'd own 3 of the 4 and sell the one I own in full and I'd own the 3 I had left. But that would be a dumb way to utilise my money.
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@leventelajos5078 be smart and don't. I'm probably blowing 15k on rego and insurance I don't need. But hey, that's what we do as we earn more
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I guess we kick out people from a million houses and let them live in tents then?
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@charabotte1 Until the government sells them for a quick buck. Like they've done every time we build up public housing stock. Or, they let them go to waste because house after house gets trashed and centrelink just hands a new one to the same ferals who have trashed 5 so far this year.
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@Wolf-hd1hr don't expect people to comprehend this. It's the whole purpose of tax writeoffs for negative gearing in the first place.
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@KarlSmith1 So everyone who can't afford to buy just lives in a tent until they have $200k as a deposit?
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That sounds like a you problem. Most people have permanent employment. Perhaps you should have chosen your career better or committed more effort in your workplace.
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@Beanerds you don't need to buy all that though. That's simply poor financial decisions from mostly young blokes who want all the toys.
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@stuartames1508 yeah, but then your income in that smaller regional city would be below the median income... and if you were in a booming mining town where you could get a good wage you were probably paying Sydney prices.
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@stuartames1508 Port Headland blew out to well over a million bucks a home. It's now settled to about the same prices as Brisbane, which is the second most expensive real estate in Australia. Without getting too specific I'm guessing you're in Bowen Basin, or Surat Basin. The original quote was about median income, not median household income. Good on you for doing well (I'm not jealous as I'm earning more solo than your combined income) but because you're on it doesn't mean 250k is median household income either.
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