We’ve been busy over the last week or so with the new investment property. It’s about 5 hours from where we live and so we had to go down and inspect it for the handover. It was basically clean, but not as well as I would have left it, but I wasn’t going to delay settlement over it. We stayed down there a few days, gave it a really good clean and helped with the move. It is a lovely unit, very light and airy and quite cool in this heat.
We knew we needed to replace the kitchen but we were going to wait a few months, however when we removed the paper lining the lower kitchen cupboard we found some mould starting, so the kitchen will need to be done in the New Year. I’m working on the best layout of the cupboards. It’s very small and has no upper cupboards at the minute, so I might add some narrow shelving above the new cupboards to increase the storage. We can get the kitchen at cost price from a mate of DH’s because its only small, it won’t be expensive. The carpet is in good nick and the only other thing we will update is the bathroom vanity. Our first payment is next week. The rent is not full market price but it is enough to cover the costs of the loan.
The other thing I’ve been busy with is sewing and quilting! – Now that I finally have some more time in my day – and more energy, I have finally got my sewing machine out and I am thoroughly enjoying making some items for local charities. I have always loved to sew and it went by the wayside for too many years. I guess I’m trying to just get on with ‘simple living’ and so I’m not spending much time online anymore. It feels good to be doing things!
We’ve almost finalised the payments on IP #2 now with the last payment to go through for the solicitor on Monday. I was able to transfer another $5000 off the mortgage, so now it’s down to $192,00.
November is a big bill month for us. This week I’ve paid the insurance on IP #1 – $300 and the strata fees $452. I have also just paid $952 for income protection insurance of 75% of my income. I think the biggest risk to us financially now is if either one of us got sick and couldn’t work for an extended period. DH has also just paid his income protection insurance and upped his life insurance to cover all three mortgages. I’m in the process of getting quotes for my life insurance. That way is something happened to either of us we could clear all debts with the payout.
Having already been through the experience of getting sick and losing my business in the past I’m convinced of the value of income insurance! I have often thought about how different things might be now if I had not missed that years payment!
Do you have income protection insurance?
Well, how time flies! After a stressful few months I’m back to continue to debt reduction. I initially took the blog down to do some maintenance and then got sidetracked with ‘life’. So, whats been happening?
Well, the good news is that I am moving to a job located about 5 minutes drive from my home, so my days of spending 16 – 20 hours a week in the car are nearly over. I also have been given a small pay- rise and will be saving $75 a week on petrol costs. The job will be a lot less stressful and a lot better for my health. The situation at work has been pretty bad the last few months, and one of the reasons I’ve been AWOL from the blogosphere as it was taking it’s toll on my health.
On the finance front a lot has changed – for the better. We have purchased a second investment property to lease out to a family member in need. Was it in our plans? No. But we were in a position to do it and it was needed for reasons I won’t go into here. That property settles in a fortnight. It is very close to cash flow positive on an interest only loan.
The ‘downsizing house’ investment property was revalued at over $25,000 more than what we paid for it almost a year ago. That certainly took us by surprise and boosted our net worth! It remains tenanted and we’ve had no problems with it.
The other change is that we moved our mortgage to a new bank. Right now the mortgage is at $197,00 but that number will be going down very soon when we make a large payment off it from our savings. Over the last few months we’ve just been saving our money in another account while we sorted out a few things and it’s a good sized balance. I am just holding off transferring it to the mortgage until the investment property #2 is fully settled.
Over the next week or so I’ll update the numbers. The goal remains the same – to pay off the mortgage asap.
Now I need to catch up my blog reading! … oh and the other good news is I’ve lost 21lbs!