"How I saved a house deposit cycling to work"

open topic, for anything cycling related.

Re:

Postby sogood » Fri Nov 15, 2013 3:54 pm

Sell the bike and take up running/walking to save even more. Bare feet for even even more. ;)
Last edited by sogood on Fri Nov 15, 2013 4:11 pm, edited 1 time in total.
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by BNA » Fri Nov 15, 2013 4:09 pm

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Re: "How I saved a house deposit cycling to work"

Postby AUbicycles » Fri Nov 15, 2013 4:09 pm

Home loan debt beats renting hands down.

I could reorganise those words for a different meaning... Debts hands home beats down loan renting
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Re:

Postby casual_cyclist » Fri Nov 15, 2013 4:28 pm

queequeg wrote:
JohnJoyner wrote:
queequeg wrote:I bought a townhouse just down the road for $395k. My parents loaned me $20k interest free to pay the stamp duty & legal fees so that I could buy then rather than wait another year.
I repaid my parents in 1 year, and when I sold the townhouse in 2011 I had reduced the original $335k mortgage to $165k. I sold the townhouse for a break even price of $550k (after interest & stamp duty), and that gave me a $385k pool of funds to use on my new house.

That's just showing off... :lol:

I think a lot of it is also luck. Mind you, when I paid $395k at the peak of the boom, people said I was crazy and that there would be a big price crash.

Luck plays a part. I have the background to select a good investment property but even this took me by surprise. 2 years ago I bought a share in a development site with a rentable dwelling that cost $465,000. 10 weeks after I invested, the zoning was changed to allow 4 units instead of 2 units. Then about 12 months ago the state government relaxed the rules for apartments so that more can be built on blocks like this. Now development sites in the area are selling for around $700,000 because developers can build a block of 6-12 apartments (depending on the size). On a pro-rata m2 basis, this would make my development site worth around $750k. Of course I would not sell my share because by the time I am ready to get back into the market the cost would be $800k or $850k.

Anyway, I ride to work and it means I have more cash to cover investment loans. I find an even bigger saving is bringing my own lunch. I spend way to much on food when I don't bring food from home.
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Re: "How I saved a house deposit cycling to work"

Postby blk077 » Fri Nov 15, 2013 4:37 pm

After calculating my savings a few times - I have only realised the 'pay back' of the initial expense of my bicycle

Bike - $2k

Only been commuting for a year
Yearly Train Ticket ~ $1400
Cancel Gym Membership ~$900

Maybe it will get much better on year two or three. As far as House deposit .. I am nowhere near what I need for a house deposit based on the average price for a house in Sydney at least
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Re: "How I saved a house deposit cycling to work"

Postby trailgumby » Fri Nov 15, 2013 5:09 pm

Luck only plays a part if you don't do your homework. It never ceases to amaze me how little people do on such a major decision. They spend more time planning their holidays.

Tapatalk ... how is it supposed to be better?
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Re: "How I saved a house deposit cycling to work"

Postby queequeg » Fri Nov 15, 2013 5:23 pm

trailgumby wrote:Luck only plays a part if you don't do your homework. It never ceases to amaze me how little people do on such a major decision. They spend more time planning their holidays.

Tapatalk ... how is it supposed to be better?


Yes, true. The luck I am referring is being able to find the right property at the right time. I don't know too many people who can predict the market that well. All I keep hearing about is "when the bubble bursts...". One thing that certainly bumped up demand (and hence prices) for my townhouse was the massive expansion of Macquarie University, plus the train line. My place was walking distance to both.

I am now starting to see the same effect with the Northwest Railway, even though the nearest station is a good 30min walk away. After 50 years of empty promises about a rail link, I didn't see that coming.
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Re: "How I saved a house deposit cycling to work"

Postby skull » Fri Nov 15, 2013 7:11 pm

A house debt is a good debt to have (unless you actually don't need a loan to buy a house). Certainly does put cycling expenditure in perspective.


Agree with my last place I put so much into the loan and when we sold had a nice chunk. Since then have been renting thinking I would invest the difference. I need to buy another home to start saving again.

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Re: "How I saved a house deposit cycling to work"

Postby shashicyclewala » Sat Jan 04, 2014 12:46 pm

Saving a deposit for the house is easily done if you earn more than what you need for living. It is a simple statement but then that is the truth. You will need to save money to be able to make a deposit. Lets say you need to make a deposit of $10,000, although there would probably no house worth living at $150,000 in Australia. I would say to be able to save this amount in one year, you need to be earning at least $70,000 p/a. Even this may be a difficult to achieve unless you are starving yourself . The other option is to have a partner / spouse who is working and then it makes it easy. Cycling may not save you that much.
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Re: "How I saved a house deposit cycling to work"

Postby trailgumby » Sat Jan 04, 2014 1:56 pm

Another take on "luck" from one of my mentors

"Luck is when preparation meets opportunity"
-- Keith J Cunningham

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Re: "How I saved a house deposit cycling to work"

Postby Sith1 » Sat Jan 04, 2014 2:12 pm

Speaking of saving money by cycling ...
I wonder how much would be save annually by Planning and Infrastucture in road repairs ? The demand for oil would then not be so fluctuent on long weekends , Health system would become less congested by obese people who make their mouths their God , Granted the amount of bike parts , bikes helmets ect would increase .... but so would the need for the LBS ...

To save for a home on the savings from bike riding i think is a little far fetched esp over here in the Mining Boom State :roll: however , the follow on effect would be great for all.
A fuel rationing system for families would promote chubby mothers to walk with their kids to school rather than that 200 series Landcrusier
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Re: "How I saved a house deposit cycling to work"

Postby queequeg » Sat Jan 04, 2014 2:27 pm

Forget the saving for a deposit by cycling to work, as this is just one example.
My sister and her husband keep whining about how they can't afford to buy a place of their own, but they can afford to go away to Melbourne for weekends away, to Hawaii for holidays, to buy new cars, to go out for dinner and drinks etc.

I saved a deposit on my own while renting. I gave up my passion of flying (aerobatics), stopped eating out all the time, never went away for holidays (last trip was to New York in 2001 to visit my parents, so I didn't have to pay for a hotel).

Buying a house requires sacrifice and commitment. If you don't have these things then you will not become a home owner.
I often hear how renting is more cost effective because "interest is dead money", and how renters can invest the money they save and be way in front.
I am yet to meet any of these rich renters. Meanwhile, I'll be debt free in under 10 years, owning my house outright.
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Re: "How I saved a house deposit cycling to work"

Postby Tarquin » Sat Jan 04, 2014 2:36 pm

There is living for the present too.

In ten years time when you have flogged yourself to death to pay off your house super quickly are you going to look back and think jee I wasted the best years of my life working all the time, when did I stop to enjoy life.

Need to strike a happy balance, I think it's harder for younger people now as the prices continue to rise quickly, living in certain areas in their lifetime is certainly beyond the reaches of 95% of young people as they will never be able to afford the housing there.
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Re: "How I saved a house deposit cycling to work"

Postby Nobody » Sat Jan 04, 2014 4:59 pm

Tarquin wrote:There is living for the present too.

In ten years time when you have flogged yourself to death to pay off your house super quickly are you going to look back and think jee I wasted the best years of my life working all the time, when did I stop to enjoy life.
I'd argue the opposite, that you should spend the best years of your life being the most productive, because you don't know what health or injury problems the future holds for you.

Tarquin wrote:Need to strike a happy balance, I think it's harder for younger people now as the prices continue to rise quickly, living in certain areas in their lifetime is certainly beyond the reaches of 95% of young people as they will never be able to afford the housing there.
They may not be able to afford where they want to live, but they probably could afford to buy somewhere else to offset the rises in rents in the future.
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Re:

Postby ldrcycles » Sat Jan 04, 2014 5:24 pm

queequeg wrote:Forget the saving for a deposit by cycling to work, as this is just one example.
My sister and her husband keep whining about how they can't afford to buy a place of their own, but they can afford to go away to Melbourne for weekends away, to Hawaii for holidays, to buy new cars, to go out for dinner and drinks etc.

I saved a deposit on my own while renting. I gave up my passion of flying (aerobatics), stopped eating out all the time, never went away for holidays (last trip was to New York in 2001 to visit my parents, so I didn't have to pay for a hotel).

Buying a house requires sacrifice and commitment. If you don't have these things then you will not become a home owner.
I often hear how renting is more cost effective because "interest is dead money", and how renters can invest the money they save and be way in front.
I am yet to meet any of these rich renters. Meanwhile, I'll be debt free in under 10 years, owning my house outright.


+1, I know a few people like that.

As Tarquin said, there is living for the present, but you can strike a balance between living within your means and being frugal. I would much rather myself and my family were secure in the worst years of my life.
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Re: "How I saved a house deposit cycling to work"

Postby queequeg » Sat Jan 04, 2014 6:00 pm

Tarquin wrote:There is living for the present too.

In ten years time when you have flogged yourself to death to pay off your house super quickly are you going to look back and think jee I wasted the best years of my life working all the time, when did I stop to enjoy life.

Need to strike a happy balance, I think it's harder for younger people now as the prices continue to rise quickly, living in certain areas in their lifetime is certainly beyond the reaches of 95% of young people as they will never be able to afford the housing there.


I think I have that balance pretty well on par. We set a budget for the house so that we could repay it within 12 years without too much trouble. For this house our loan was just over 50% of the purchase price. That is a big difference from the 85% loan I took out on my first townhouse in 2003. I had knocked off almost 60% of the original loan by 2011, which is when we had to upgrade due to a growing family.
This year will be the most expensive year as we'll have both kids in preschool for two days a week. The eldest starts school next year, then the other one two years after that.
As it stands, we should have the house paid off just as the youngest starts high school. That is also the year I turn 50.
Neither child is going to private school as we have the highest ranked comprehensive school in NSW around the corner.

I have lived in some nice places as a renter that I could never afford. It is not the end of the world.
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Re: "How I saved a house deposit cycling to work"

Postby myforwik » Sun Jan 05, 2014 1:14 pm

Most people still need a car even if they cycle, for moving stuff around and shopping.

I had a look at the 'costs' to try and justify to my wife (accountant) spending more money on bicycles. By the end of it - they only savings was fuel, as we still needed to keep the cars, still needed to keep the rego/insurance, and the reduction in maintenance and depreciation was negligible, as weekend long distance driving or shopping was still significant.

Basically unless you can actually sell your car completely, you won't save anything cycling. Even the fuel cost is debateable. For example on a small city 20km per day round trip, I doubt I saved anything in fuel when considering in the extra food and drink I had to consume now that I was burning way more energy. Plus you have to factor in the time you loose. What used to be a 10minute trip is now a 30 minute ride plus 10 to 15 minutes to shower and cool down and change.

If you had public transport and/or car parking costs, or you were a single hipster living in the city, then maybe, maybe, cycling would be cheaper.

What really needs to happen is, since rego and fuel exercise pays only a portion of road costs, people who cycle to work should be getting some sort of tax offset. Something like $1000 per year.
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Re: "How I saved a house deposit cycling to work"

Postby ColinOldnCranky » Sun Jan 05, 2014 3:56 pm

myforwik wrote:Most people still need a car even if they cycle, for moving stuff around and shopping.

Pretty true in many/most cases for much/most of the time. We do tend to spin it to our advantage.

However, while most people do need a car (especially in places like Perth), at certain times for certain types of work a rider may be able to dispense with one car when you live within a family. Not all times. While for certain periods I needed the extra car, I have also had extended periods of time in my life, maybe30 years, where my wife and I have deliberately dispensed with the second car. 30 years of savings on a car certainly does amount to a huge amount of money.
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Re: "How I saved a house deposit cycling to work"

Postby lobstermash » Sun Jan 05, 2014 4:29 pm

Yep, running one car for the family is brilliant costs wise. Though my poor mx-5 is sitting in my carport, undriven and unregistered for two years. And to be honest I can't see the hassle of putting it back over the pits to register it again happening any time soon. Running one car for the family works out much better and smoother than I thought it would, even taking into account my other hobbies (esp. fishing and RC planes, which both generally require a car).
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"How I saved a house deposit cycling to work"

Postby RonK » Sun Jan 05, 2014 5:31 pm

Some seen to be missing the point - if you don't own a house, i.e. you're renting, then most should be able to rent near their work or near public transport at least. And it's ludicrous to be talking about running two cars.

The government already gives a $15k handout to first home buyers, interest rates are at an all time low, and house prices are depressed in most places.

Those who are prepared to make sacrifices in the short term will reap the rewards. The rest will still be moaning for years to come.
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Re:

Postby mitzikatzi » Sun Jan 05, 2014 5:53 pm

RonK wrote:Some seen to be missing the point - if you don't own a house, i.e. you're renting, then most should be able to rent near their work or near public transport at least. And it's ludicrous to be talking about running two cars.

The government already gives a $15k handout to first home buyers, interest rates are at an all time low, and house prices are depressed in most places.

Those who are prepared to make sacrifices in the short term will reap the rewards. The rest will still be moaning for years to come.



Just don't live in Perth and work in the city.
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Re: "How I saved a house deposit cycling to work"

Postby Ross » Sun Jan 05, 2014 7:12 pm

myforwik wrote:Most people still need a car even if they cycle, for moving stuff around and shopping.

I had a look at the 'costs' to try and justify to my wife (accountant) spending more money on bicycles. By the end of it - they only savings was fuel, as we still needed to keep the cars, still needed to keep the rego/insurance, and the reduction in maintenance and depreciation was negligible, as weekend long distance driving or shopping was still significant.

Basically unless you can actually sell your car completely, you won't save anything cycling. Even the fuel cost is debateable. For example on a small city 20km per day round trip, I doubt I saved anything in fuel when considering in the extra food and drink I had to consume now that I was burning way more energy. Plus you have to factor in the time you loose. What used to be a 10minute trip is now a 30 minute ride plus 10 to 15 minutes to shower and cool down and change.

If you had public transport and/or car parking costs, or you were a single hipster living in the city, then maybe, maybe, cycling would be cheaper.

What really needs to happen is, since rego and fuel exercise pays only a portion of road costs, people who cycle to work should be getting some sort of tax offset. Something like $1000 per year.


Yes. If I sat down and truly did the sums on what my bike really cost to ride 23000km a year (not inc purchase price or "bling" items like carbon wheels or power meters, just maintenance items like tyres and chains and servicing) it would most likely work out similar to running the car. And that's buying all the parts for the bike online from UK, if I bought it all at LBS then it would be more for sure. Not sure if bike clothing should be added on to the costs or not. I guess it probably should as the only time I wear it is when I ride the bike.
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Re: "How I saved a house deposit cycling to work"

Postby eeksll » Mon Jan 06, 2014 12:03 am

myforwik wrote:Most people still need a car even if they cycle, for moving stuff around and shopping.

I had a look at the 'costs' to try and justify to my wife (accountant) spending more money on bicycles. By the end of it - they only savings was fuel, as we still needed to keep the cars, still needed to keep the rego/insurance, and the reduction in maintenance and depreciation was negligible, as weekend long distance driving or shopping was still significant. ...


I likewise have never been able to get the sums to add up that favourably. For me its as simple as taking over my bus ticket. Which would be ($30 a week at 50 ish weeks) $1500. Hardly in the home loan deposit savings realm.

I could go into the whole paying for parking every day and all that, but there are other ways of saving that type of money i.e public transport ...

I still go to the gym (gym is not cycling and cycling is not the gym ... huh?).

Time wise in commuting its not too much different, i dont ride hard and I dont shower at work. However if i was driving or catching public transport I'd probably choose different commuting times (ie earlier to be quicker).
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Re:

Postby FuzzyDropbear » Mon Jan 06, 2014 9:43 am

queequeg wrote:Buying a house requires sacrifice and commitment. If you don't have these things then you will not become a home owner.
I often hear how renting is more cost effective because "interest is dead money", and how renters can invest the money they save and be way in front.
I am yet to meet any of these rich renters. Meanwhile, I'll be debt free in under 10 years, owning my house outright.


I rekon there's a lot of truth there. I have a mortage that I'm putting a big dent into, but to do that I had to make certain sacrifices that some of my mates didn't, because they chose not to buy a house. I sacrificed buying equipment to work on my car in order to save the deposit for my house. Sure, I have mates who now have nice cars etc. but those cars are still on loan and they still rent, citing that same line of 'interest is dead money'. Yeah, sure, it's dead money, but (in my mind) so is paying someone else money for something that you'll never own.

I think that while the article has merit, it doesn't mean that it's as applicable to Australia. We have a different landscape here to what they have in the UK (especially with their MOT etc.). Things are often further away here as our population is less dense than what they have in the UK. I rekon that savings here need to be a bundled package for Australians, anything on its own isn't much of a saving, however, as a package deal you can make good savings for not much of an impact on quality of life.
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Re: "How I saved a house deposit cycling to work"

Postby Mulger bill » Mon Jan 06, 2014 9:46 am

Impossible to calculate but for those of us in the situation, being able to outrun the black dog on our bike is worth way more than any house or car.
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Re: "How I saved a house deposit cycling to work"

Postby rheicel » Mon Jan 06, 2014 9:49 am

Yep, I think there are other benefits of Cycling other than monetary savings, but this is probably out of this topic as this is all about cycling to save money for a house deposit.
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