How I Spend $16,698 Per Month Living In Sydney

[@raycorc]

How has cost of living changed for you? Has your mortgage jumped up or are you still lucky enough to be on fixed for now? Have you tightened the belt yet?

[@jaywright6764]

Your mortgage makes me feel better about my mortgage

[@raycorc]

haha, this is not a competition I wish to win

[@Molloy1951]

Greatly illustrative and useful video! Thank you

[@raycorc]

Thanks for watching, appreciate it!

[@stronzer59]

love how this fella plugs those random sponsors, very smooth ps if you think the bills are steep now , wait till your kids get into the Teens with $20,000 plus a year college fees!!

[@raycorc]

i should do an updated video as it’s higher now both boys in daycare costs over 50k a year now anyway Private school will be about 60k a year for both so actually not too different

[@Dreamer10888]

That’s actually sounds ok considering private schools in the east are $30’to $50k

[@VitruvianVision]

Thars 10 years of life in the Philippines.. 1.5 years of life in Estonia, a year of life elsewhere in Europe if you're frugal. No further comment.

[@raycorc]

All my family and friends are here, all my clients are here, and I have ageing parents so want to be close to them I’ve been to those places and they’re lovely, but don’t need to or want to live there. Love living in Australia

[@rajparas]

Thanks for the detailed run-down mate. If you dont mind me asking, are your IPs under your personal name, company or smsf?

[@raycorc]

Thanks for watching Raj. My first couple of IP’s were in my personal name. Next one was in a trust after my accountant said stop buying in personal name. Then I bought family home in my name to get no CGT when I sell. Ongoing I’ll buy in a trust

[@MoneySmartMum]

I nearly fell off my chair when you revealed your mortgage payment!LOL I live in Perth, we have a small house our mortgage payment is 2k per month -we are on a very low fixed rate till 2025 -still can’t believe our luck with that one! We are ready to move to a bigger house (we have 3 little ones now!) but we will wait till 2025, I expect our mortgage payments will be around the 5k mark which seems a LOT to me, then again the 2k payment used to seem a lot to me so I guess it’s all subjective to where you are in life😊 Great channel - good to see some Aussie folk on here 👍🏻

[@raycorc]

Haha! Yeah it’s higher now too but it is what it is :) you’ve done well to lock in a good fixed rate. Get ahead of it and it won’t ever become an issue, that’s what I’m doing anyway!

[@sal78sal]

I was waiting for the big reveal the I saw $16K per month. Didnt know if it was going to be drugs, hookers, gambling or mortgage. There is nothing else you can spend 16k a month on.

[@idreamofmoney7199]

Thanks for sharing. I’ll be honest, the mortgage repayments are quite confronting but it’s not uncommon in Sydney where $3m family homes are the norm. Other than that your budget is quite lean. I definitely spend way more on food. I notice there’s nothing for entertainment or holidays - is that by choice or necessity due to the mortgage?

[@raycorc]

yeah it's a decent payment each month, I know I'll smash it down quickly and then it'll be similar to a more typical mortgage. Would love if they stopped increasing rates every 30 days though No entertainment or holidays for the time being because I want to get ahead. We've just booked a few days at a nice hotel pre baby 2 coming, but all this year we've spent almost nothing. We've done heaps of fun stuff and holidays over the years so I don't feel like I'm missing out. Want to go hard at the mortgage for 12-18 months then add more lifestyle in again

[@idreamofmoney7199]

@@raycorc congrats on baby 2! Yes the rate rises have been brutal so definitely prudent to bring the mortgage under control in lieu of holidays. Fingers crossed that the RBA is done...

[@raycorc]

Thank you - and yep you and me both! Either way my plan is gonna be not to spend and keep getting that buffer healthy

[@azm3588]

My grocery is about 1600 per month with 2 kids 4 and 2! Any advice for people who want to try keeping home cooked meals a thing and not rely on food delivery service?

[@raycorc]

personally I love the meal delivery aspect because of the time saving. Home made meals are slightly cheaper per meal but the time cost personally isn’t worth it - although the food is likely nicer and probably healthier. We normally have 2-3 big feeds we cook each week. So a big batch of pasta can do several meals for the whole family over 2-3 days. I genuinely like baked beans on toast, brown rice and tuna etc which are about $2 per meal. For non perishable things, I buy things like baby wipes etc in bulk when they’re on sale. So I can buy 10 packs of baby wipes for $10 instead of $16.50, so I save $65. I’d look at it one by one, some brand substitutions can really drop the overall food bill. Woolies has some good home brand products these days

[@Freedomandfeast]

Hey there Ray. Are the investment properties interest only or P&I? Just love your content

[@raycorc]

Thanks Debra - one is interest only (locked in 5 years luckily!) and the rest are p&i but I’ve had them a couple of years If I bought them with todays interest rates I think they’d be slightly negatively geared

[@johhnmorgan8329]

What about byron and kingscliff is like sydney

[@bat3332]

Hi I have a question If you are investing in USA stocks from Australia. I believe all the brokers who facilitate that from Australia provide a custody model right is there any broker that provide similar to chess sponsored model for USA stocks

[@raycorc]

Hey there, not 100% sure but I believe most brokers operate on a custodian model in the States!

[@bat3332]

@@raycorc thank you

[@divypatel603]

Hey Ray, a chronological questionnaire here. 1. Can I say I am breaking even is my rental yield is more or less equal to my annual interest rate? 2. Do any regions in Au offer those sorts of number? 3. If I somehow see this happening in my analysis for a property , should I be going for it? Great content btw! Cheers

[@raycorc]

Hey Divy thanks for watching, answers below: Rental yield should include all costs anyway. So if all your costs are covered by the property that’s a good start. These days it might be harder with higher interest rates and some maintenance might cost more than before 2. Lots of regions will, I used a buyers agent to buy my first few properties to learn the ropes, way quicker 3. Lots of factors to consider, but that’s definitely a good start. You also need to consider capital growth, that’d just the cashflow portion.

[@johhnmorgan8329]

170000 a year in sydney

[@TheTogmo]

You must live a very frugal life but with that sort of mortgage I guess you have to! I don't know exactly how you broke this down though. Did you look at your expenses and halve them to tell us how much you are paying personally, outside your mortgage payment? Is your takeout/grocery bill doubled as a family or is your family living off nearly $540pm for food? We have two kids and live in Brisbane but our takeout, groceries and everyday expenses amount to nearly $2000pm. I also assume your personal private health is only $100/mo, does this mean your missus is also at $100pm and you are paying roughly $2400pa as a family for your cover? That is very cheap hospital only cover!

[@raycorc]

yeah aside from our (recent) big mortgage our expenses are very low otherwise I did forget my wife’s health insurance actually, I think it’s 100-150 maybe p/m We should probably revisit that though! For food yeah we don’t spend heaps, son is at daycare (has breakfast there too). I only eat 2 meals per day as well (have been doing it for a few years, not to save money but to stay lean) I’m with Australian Unity for health care, I think it’s literally the lowest plan I could get. The premium keeps inching up though I stay home mostly these days and I love my work so I don’t spend much outside of the mortgage

[@appleglory]

Your salary is 17k after tax?

[@raycorc]

i work for myself, i don't pay myself a monthly 17k salary, but combining all income for our household it's over that comfortably yes

[@sal78sal]

Their combined salary is about $450,000 p.a. from all sources. Thats about the only way to get a 2 million loan nowadays. And repayments for a $2 million loan is about $12,600 per month. $2 mil gets you pretty crappy house 15km from Sydney CBD. Now he might be in a $4 mil home that he put 2 mil cash and borrowed the rest. In any event. the numbers we are talking about here are just insane. Imagine paying 12k per month for 30 years. I feel sick. I live in a 2 mil house and my mortgage expenses are slightly less than this gentleman. they are approximately $0. And if I had to pay 12k per month to live there I would most likely be living in a park or under a bridge.

[@nikkinc92]

Your mortgage sounds insane!! More than the majority earn in a week. But if you can do it, why not!!

[@raycorc]

yeah it’s literally the main big expense I have, so once that’s reduced it’ll drop right back down!

[@raycorc]

Follow me on Instagram for more low quality content 👉 instagram.com/raycorc/ Get $20 off My Muscle Chef meal delivery 👉 Use code DEZ7FTA1 www.mymusclechef.com/ Join our free personal finance FB group 👉 facebook.com/groups/personalfi/

[@abk1424]

New meaning to house poor.

[@raycorc]

how did you calculate that?

[@DavidRamseyIII]

Is this a shit post? I spend 15k a month without a mortgage. How on earth do you keep food costs so low

[@raycorc]

I think I saw your comment on Reddit, replied there I don’t really buy fancy/expensive meats, some veggies but just regular Woolies stuff, we do big batches of pasta and simple meals so they are very cost effective. Meal delivery covers the other half of weekly food. Son gets fed tonnes at daycare they do breakfast there too etc. I eat 2 meals a day. I like having cheap meals generally, baked beans on toast etc. Ends up being peanuts cost wise

[@DavidRamseyIII]

@@raycorc do you drink alcohol? Thanks for answering I am extremely curious. I think I am the problem our spending must be quite high

[@raycorc]

I don’t really drink anymore at all. Might have the odd beer with a mate or once in a blue moon have a few drinks. But honestly I like being fresh and I feel like shit after drinking (and being hungover with kids is hell) I’m happy with minimal to zero alcohol in my life, doesn’t add to my life

[@sal78sal]

How do you drink alcohol with kids and a job? I have not found a way to do this successfully. Yes you are the problem when you re spending 15k on living expenses. Thats insane. You should put that money to work, as you cant guarantee you will always have such a high income. @@DavidRamseyIII