The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: rue on June 01, 2015, 06:23:33 PM
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Hi All
I have returned to part time work after a couple of years off. We don't have lots of money but no mortgage or debt, a garden, bees and a tiny income from my craft work plus partners income from a P/T (but really F/T) job. The kitchen works but still needs renovating. My car is 14 years old and has over 250,000 k on the clock. Both have around $60,000 au each in supers. I have a small private pension from UK due to be paid out when Im 60 and Im entitled to 2/3 of the UK pension but not overly optimistic I will ever get this as it keeps going up and up in terms of age to be paid. We are 50. We live frugally. I tell this to contextualise our financial situation. We have a recession in Australia at the moment and I keep hearing that this will get worse and there may be another GFC. My question. I want to buy a small piece of land (close to our home in order to manage it ourselves) with our cash savings (around $120,000 all up) and then get a loan to put a dwelling on and run it as an eco holiday let. Use my wages to pay the loan and keep the business afloat in order to get it going. We are very conservative savers. We would not enter the stocks and shares arena. Thoughts and in context of looming financial crisis?
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We are very conservative savers. We would not enter the stocks and shares arena. Thoughts and in context of looming financial crisis?
Buying land in an attempt to build this vacation rental is much riskier financially than a global investment portfolio in stocks and bonds.