Closed The Door On The Real Estate Issue

Everything has been resolved with the Real Estate finally.

We agreed to disagree and I’m paying the $297. It seems the cleaners I hired did a pretty ordinary job in terms of end of lease ‘standards’, and because the real estate waited so long to tell me about it (I had to submit the bond request you may recall or I still wouldn't have heard from them!) there was no way the company was coming back to fix anything.

So I was stuck between the two groups and copped the brunt of it financially from both of them. There’s no ruling against me so I’m not on a bad tenant list anywhere (nor should I be!), it’s all quite normal and not a bad revenue raiser I suspect.

I still got over $700 back from my bond money, so I’m writing the $297 off as experience and moving on from here. I like my new place so much better, so it’s a silver lining situation really.

I've also made sure to take photos of every single mark, ding and scrape in my new apartment to cover myself when I move out some time in the future.

I will also be a far more demanding tenant than I have been in the past, for my own sake. I've always let things slide, to not make waves with agents and owners, but not any more. I loathe real estate agents with a passion now. They’re sweetness and light getting you in, ignore you while you’re there, and then treat you like rubbish when you’re moving out.

So that money will be paying for the car service that I couldn't afford in January due to the repairs, and towards my registration and pink slip (which may involve two new front tyres) in May. It will be nice to be able to pay cash for all that lot this year!

One step forward two steps back, at least it’s two steps forward and one step back at the moment in my case, so forward movement overall!

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When It Rains It Pours

After a full 24 hours of rain on Sunday I tuned on the TV last night to watch the new season show launches and after several loud cracks my TV died. Completely dead, the tube has gone. I didn’t get to watch a thing.

Assuming it’s the tube as (that’s where the sounds were coming from and it's gone black), is it worth fixing? Probably not. The TV is over 9 years old and had done me proud, so I wouldn’t think they even make parts for it any more?

So I need a new TV, and fast. It’s such a big part of my home entertainment, and has been free (other than electricity costs) up til now.

*sigh*

I have a hot lead on a new 40" LCD though; one of the guys at work used to work for Samsung and is still able to get them at cost. I’ll do some comparison shopping online today to see what the retail price is and how much I'd save that way. A shiny white one is so appealing after a lifetime of black or gray ones.

The other alternative would be to buy one second hand through the Trading Post or on EBay.

Any thoughts on how I should purchase my new TV?

Other than ‘with cash’ of course, that goes without saying! :-)

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The Move - 4 Days And Counting

I’m moving on Friday the 4th of January, so this years New Years festivities will be cancelled for me this year. I had two offers, one in the Blue Mountains, which would have been lovely, but would have meant virtually a whole day away from home when I need as much time as possible to sort and de-junk this place. I've been procrastinating badly the past few days due to the heat so really need to get stuck into it or I won’t be ready in time.

The other offer was for a party in Double Bay, with great Harbour views for the fireworks, but getting there and back tonight would have been a very costly nightmare, and would have also taken hours, and I’d rather put the money towards paying the movers and cleaners.

Moving is such a costly exercise. Sure you can save costs doing a lot of it yourself, but due to my circumstances I have to pay professionals to do pretty much all of it this time around, and to be honest, at this point I really see it as something I can throw money at to make the hassle go away.

I was expecting some cash at Christmas that didn't eventuate this year, which I shouldn't have counted on but I foolishly did. So the poor card is taking a beating until payday this month (and until I get my bond back from this place), but it has to be done, as I have to be out by the 7th.

Once I’m in the new place on Friday night though, let the frugality and debt reduction recommence in earnest. First thing will be to get my $1000 emergency fund fully restocked plus 10% (a total of $1100) so any future issues can be managed with cash.

I’ll celebrate my own personal New Years on Saturday the 5th, have my first guests over at the new place.

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I Found A New Home

picture courtesy icanhascheezburger.com

The real estate that I paid the deposit to on Saturday, called me this morning and the place is mine!

They've offered me a 13 month lease starting from the 28 December, which is just fantastic. The extra month is so it doesn't come up for renewal during the Christmas break, when all real estate agents shut up shop for 10 days here.

Knowing exactly what my rental expense will be for the rest of the year will really help with planning and budgeting, as it’s my largest expense after my combined debt payments. Not to mention it’s a load off my mind knowing I've got somewhere for all of 2008 sorted.

I’m really please that the owner was willing to start from the 28th, as it means I’m only paying double rent for one week, not two.

Let the decluttering and packing begin in earnest.

(In addition every single place I applied for over the weekend called me saying I was successful, 4 for 4 strike rate in this market is pretty impressive - go me!)

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Rental Applications Ahoy!

Things are progressing on the 'find a new apartment' search. I've found four nice (as in I'd be happy to live there) places this week and have submitted applications for all of them.

I just had a call from one of the agents of the places asking me to come in and pay a deposit today as they would like to pass on my application to the owner. Hurrah!

This one is the closest to work (easy walk), only 5 minutes walk from a major shopping centre with cinemas and supermarkets.

It's close (but not too close) to major arterial roads to get me where I need to go, not to mention the shopping centre is a major bus hub and there's a rail link currently underway into the area. That may be a bit of a giveaway as to its location for the Sydney readers, but what the hey.

Did I mention there's a hay-uge storage room in the back of the garage for my very own wine cellar. *lol*

It's also the cheapest rent of the four I've applied for so far, which could end up saving me a lot of money compared to the others over the next few years.

Fingers crossed.

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Where Am I Going To Live? - Flat Hunting Begins

The first weekend of new flat hunting wasn't fruitful, but it also wasn't a complete bust. It dawned on me that I've only been on this hunt twice in the last 13 years, and the last time I was 'out there' was in 2001! t least I know what I don't want.

My current agent isn't being particularly helpful, but all the other agents I've spoken to this weekend have been, which was nice. I now feel more confident about how the process works these days and can be sure to attack it properly.

There were so many other people looking at the same flats as me on Saturday, at least 10 at the first place (which was tiny, dank and not nearly close to the 'immaculate' as advertised). The next few places were just OK, and if I was desperate I'd have considered them but I believe I can do better. It's a bizarre sight seeing 15-20 odd people all swarming into a place and checking everything out.

The other thing I've realised is I've been completely unrealistic in the rent I can expect to pay for something decent in the suburbs I'm willing to live in. I spend a lot of time at home, so I want something that I want to come home to. I'm going to have to bump up the top end of my range $20 to get that. Choosing to live by myself attracts a premium. I just can't do the flatmate thing at 38, and I have to accept that there's a price to pay for that.

So it looks like I'll be spending up to 30-33% of my take home pay on rent. Ouch, but that's the Sydney rental market these days.

I've crunched my numbers and that still leaves a $500 per month snowball available over and above set minimums from September, so I can still achieve my goal of being completely debt free by May 2010, so I'm going for it.

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New First Home Owners' Policy

The Australian Labor Party (ALP) swept to power in the Federal election last night, and it will be interesting to see if their housing and broadband policies manifest. I have a particular interest in both (both personally, and one professionally). I’ll focus on the housing policy in this post though.

It seems that owning a home in Australia is becoming more an more difficult. According to the Bureau Of Statistics:

• The average home now costs seven times the average annual wage - up from four times the average annual wage just ten years ago;
• Nationally, first home buyers are now spending 31.7 per cent of their total income on mortgage repayments – up from 17.9 per cent in 1996;
• The proportion of homes being bought by first home owners declined from 21.8 percent in June 1996 to 17.1 percent today.

If you are buying your first home, you may be eligible for benefits under the First Home Owners Grant Scheme here in Australia. The Scheme was established to assist eligible first home buyers to purchase their first home by offering a $7000 grant.

The First Home Plus Scheme (which varies from state to state) also provides generous exemptions or concessions on transfer duty and mortgage duty for eligible first home buyers.

For example, if you buy a property valued up to $500,000 in NSW, 100% of the duty will be waived. If I was looking to buy a property with a purchase price of say $350,000, that’s a saving of $11,240 in duties.

Unfortunately these schemes have become been part of the reason housing prices have got so expensive, especially in major cities.

The ALP want to introduce an additional scheme called the First Home Saver Account.

Essentially, people will be allowed to make pre-tax contributions from their salary up to $50,000; which will be taxed at 15% and then invested in a superannuation style account. From what I've read on the flyer, couples will be allowed to combine their respective savings!

Deposits do have to be saved over a 4 year period (which may rule out some people, possibly even me), and of course while returns may be greater than an online savings account (plus the benefits of pretax investing); it is also possible returns could be lower too as with any investment.

I think this policy for first home owners is just stunning. It is such an incredible idea for promoting homeownership and getting people investing their money to benefit from management and compounding interest, without simply throwing money at people and artificially inflating home prices.

Anything to increase financial literacy in this country can only be a good thing. It will be interesting to see how it pans out.

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Ouch! Moving Is Expensive

I've been crunching my numbers for moving and I’m looking at approximately $3000 to relocate.

This breaks down to:

• 2 weeks rent in advance - $660 (assuming $330 per week rent)
• 4 weeks rent as bond - $1320
• Removalist costs - $500
• End of lease clean of old place - $300
• Bonds for electricity/gas - $100
• Post Redirection for 6 months - $35
• Boxes & tape - $100

Not to mention the hoops you have to jump through to rent a place these days. It’s been six years since I last went through this, and the world seems to have gone mad in the meantime.

I have to supply:

• Photo Identification - current drivers licence or passport
• Other Identification – Medicare card, debit card
• Proof Of Current Address - phone account, electricity/gas account, bank statement, mobile phone account etc.
• Proof Of Employment/Income - current payslip or a letter on company letterhead from your employer confirming employment and salary.
• Proof Of Regular Housing Payments - copy of rental ledger from your current agent
• References from your previous agents, and 2 personal references

The application form I printed out for one real estate to get a feel for things is no less than 8 pages long and asks all manner of questions. All of which you have to answer if you want to have your application considered, supplying all of this is no guarantee of securing the property.

I just need those references sorted out then I’ll be good to start applying this weekend if I find something. If they just need names and contact details though I’ll be fine.

I think buying a place would be easier than this, even more reason to get my finances sorted out so I never have to do this again!

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60 Days Notice To Vacate

Got home last night from a business trip to find the landlord has given me 60 days to vacate my unit. I need to be out by January 24, 2008. Great.

He advised he’s not willing to issue a new lease (I’d been on a month to month lease for 6 years), so the flat hunt begins. I was upset for a short while, but now I see it as an opportunity to move on to something new.

The downside is I’ll have to pay a lot more rent per week than I’m currently paying due to the Sydney rental market being what it is, and that’s going to put a bit of a dint in my debt repayment for the short term, not to mention the costs associated with moving. They are not abandoned of course; it’s just that till I’m set up in my new place the snowball amount will be diminished considerably.

Having done a quick search this morning, I’m looking at a rent increase of anywhere between $15 and $45 a week, depending on where I’m willing to relocate to.

I’m also so grateful that I have had a focus on eliminating debts over the last few months as I’m in a much better place to cover all the costs with cash over credit where possible. Had I done nothing, I wouldn't have even had any available credit, and it would have been a disaster!

Moving somewhere cheaper isn't really an option for me as any savings in rent would be eaten up in extra travel costs to work.

It’s also a little bit of a relief to know that I won’t need to spend another sweltering February in a west facing top floor unit with no air-conditioning!

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Found Money

In my further decluttering last night I found the wallet I use when I travel overseas, it's a great little thing as it's just big enough for my passport and has an over the shoulder strap, so I don't need to take a whole handbag with me.

Took a look inside - score! I found Yuan and Hong Kong dollars in there that I hadn't converted back into Aussie dollars from my last trip in June/July this year.

Quick online check of the exchange rates this morning and there's approx $165 I can put towards recouping my cleaning costs this week. Nice!

I Have Too Much Stuff

The last few days have been an epiphany. Everything in my life is connected and changing one thing eventually drives a change in everything.

After months of half baked efforts to get my house in order I finally had a line drawn in the sand with the rental inspection this week. Then last weekend my best friend called and asked if he could come and stay with me for a few weeks while he sorts out a UK Visa (he’s an Aussie living in Hong Kong). He’s arriving on Thursday night! I was actually able to say yes. I’m so excited to get to spend this time with him.

Anyway, back to the topic at hand, too much stuff. My apartment was (and still is to a much lesser extent) stuffed to the gills with junk, clothes, books, DVD’s, handbags plus numerous other bits and pieces. I realise now why I haven’t been able to sort it all out. There’s just too much of it! I’ve been buying more and more stuff in an attempt to feel better, but it’s trapped me, reduced my choices in life and made me feel worse:

• Financially – this one speaks for itself, over $55000 in debt!
• Emotionally – I’ve been depressed for years now (actually diagnosed), I’ve always thought it was just chemical, but I now see how my environment has encouraged feeling as low as I have.
• Socially – I never invite people over to my house. I love to cook, especially for others, and I haven’t done that in months.
• Physically – The stress of living this ‘double life’ has really taken it’s toll, I’ve stacked on the kilos over the years from comfort eating, and the stress of it all has impacted my sleeping patterns for a while now.

The universe is really trying to show me something here, i.e. "you need to change and get your act together girly!" and I need to pay attention and act on the things I’m being shown.