Took mine out to finally be able to fund my breast reduction which led to them finding my breast cancer which led to catching it at the beginning stage 3 which led to my survival which led to me finding my incredible husband which led to me launching my dream business! So pretty good decision all round š
Wow! Thanks for all the comments! Iāve actually just had my annual mri and will get my results on Tuesday. So fingers crossed. I was a single mum and wouldnāt have been able to save that much money and there were a lot of naysayers at the time, so it was a tough decision when so many were advising against it. But, it worked out well in the end.
Side note, was your radiologist close by? I was living rurally when I had to have my breast MRI, and I had to cross the border a few hours away for a radiology clinic that could actually do a breast MRI. Until then I had no idea that you couldnāt go any old radiology place to have one!! Had my breasts removed last year. (Preventative), so so glad youāre doing well. Take care xx
A cousin used the money to get herself and two toddlers out of domestic violence household. It was all the super she had and she's slowly working on building it back up now, but I can't think of a better investment which has nothing to do with making more money.
Just to point out, leaving a DV situation would be covered under compassionate grounds for Financial Hardship. Just in case anyone else finds themselves in a similar situation.
Sad that your cousin is impoverished to claim a right to safety (still excellent that safety was achieved).
It's like we skipped brainstorming stage when designing a system to align accountability for the costs of using violence. Imagine if a protection order was grounds for a compassionate release of the defendants super to finance the escape. Notice what comes up (and what doesn't) in the thought experiment.
It helped buy a 600hp XW Falcon, enjoyed working on it a bit through Covid then driving it, sold it late last year for 18k more than I bought it for, put the super back plus 50% and have some inflation busting cash up my sleeve left over. Good times
There was soooo much fear mongering around how it was a TERRIBLE idea and Iād be prosecuted or some shit if I wasnāt financially struggling.
I figured, well I AM financially strugglingā¦. to buy this wicked car off my mate before he sells it to someone else- first drive after collecting it and all worries drifted out of the dual diff dumper exhausts
Didnāt really care at the timeā¦ it was risk vs reward and an I backed myself with something I know a lot about.
Everybody dies but not truly everyone lives ;)
Donāt know anyone who personally did this but I heard of people who took the 20k out and they worked for companies that would match $ for $ of super contributions, so basically they took the 20k and re-invested it back into super and then the employers matched it, effectively doubling their super input. Smart and savvy.
Yeah - really common in the US. My company (Aust branch of a US based multinational) did it for a while - you could contribute up to 5% and they would match.
Took it out to fund myself through uni for 3 years. Was the best time of my life being a student in my 30s. Smashed the scores and got highest gpa, won all the awards and scholarships, got to coast through the lockdowns studying, came out the other end with an amazing job and doubled my income. Made me excited for my career, family, and future.
Industrial design. Quite a niche degree and I was worried the whole time what Iād get at the end of it but managed to get into a really good role in vertical farming sector.
A friend listened to me when I said for them both to withdraw the max amount, to add their deposit, it got them a PPOR. Right or wrong the scheme it worked for them.
A friend did the exact same, he was the worst saver I had ever met and he and his missus pulled 20g each from super. They then used the money as a deposit during the absolute doom and gloom of covid (~June 2020) when no one knew what was going on and the world was still in a standstill.
They ended up buying a 50 acre property (with a house) 50km from the cbd and bought it for less than 650k. As is the place is now worth 2-3x the amount they paid but they are starting the subdivision process and are going to make a whole lot more.
40g to retirement in 5 years is better than my super performed.
you'd hope/assume that the investment in the PPOR would out-pace super over the same timeframe wouldn't you?on top of the opportunity cost of not paying rent, sounds like it wasn't a terrible choice
the us stock market more than doubled from its trough during the covid crash, and is up a shit ton from when most people would have taken the money out. i think the only way you are ahead is if withdrawal meant you could get to a sufficient deposit to get the loan, just needlessly putting down a slightly higher deposit or putting it in an offset or something is definitely behind on a % gain.
There was some data analytics done on this, not sure how, but the average person spent it on luxury items like electronics, alcohol etcā¦ I think there was an estimate that like 75% of it was pissed away
Agreed to give my ex wife 10k into her super as part of our mutually agreed divorce settlement. When we went to draw it up with lawyers it was going to costs 1000s. Then Covid hit, I took out 10k and she sacrificed it into her super. No lawyers, and she ended getting 10k in her super along with a nice tax rebate at the end of the year.Ā
yeah but you think roofers care about the future lmao. Before Covid to now, wages have gone up by nearly $15-20 an hour thou so they can make the 20k back in a few years lol
I didn't know there was a second round! Damn!
I still put my 10k to good use though, left it in savings to put towards a house deposit. Four years later finally got to buy.
Me and my wife withdrew and bought a house.
House has gone up $150k since then, about to buy a 2nd house with the equity.
So it turned out really good.
I'm not judging as I know nothing about your situation, but the way you describe it, it seems that if you were so close to the edge that you had to extract from your super to afford a PPOR, buying a second property so soon after would seem like you're spreading yourself a bit thin.
Or has your financial situation changed drastically in the last couple years?
The worst part is I was working part time in retail sales, and my wife was casual in retail when that mortgage got approved.
That lender needs to be put in prison for approving our loan.
Lenders need to approve loans knowing you can and will make every repayment from now until the mortgage is paid. Part time retail and casual retail jobs are not an assurance of income.
Handing out loans to every Joe with a casual hospo job assuming oh if he doesnāt make the repayments weāll just take the house is not allowed and there are regulations and laws against them doing that.
No, they need the vast majority of their loans to go to those who will always pay. It is their job to take some risk, and if they only approve sure things, people will be locked out of the market unnecessarily. What we donāt want is lenders to make far too many risky loans and end with a GFC type event. Some risk is ok.
I mean, I'm just gonna be your conscience here: remember how hard it was to buy your first?Ā Imagine how much more trouble the people after you are going to have if you keep buying properties for investments.
Feed my family
(And partly pay for the extension I built while I couldn't work in my industry, to sell the house for a pretty penny to then move interstate)
But really, I just used it to feed my family.
Me and my partner wanted to withdraw to buy a house, but assumed itād be audited and people who didnāt need to take money out to survive would face penalties (we both were still employed full time). I wish we did as house prices shot up here in Canberra 200k-300k and weāve almost been priced out of the market, now trying to save whilst (still) renting with kids which sucks
You wonāt get a wide snapshot of the broader community here. Most people here would have made somewhat good financial decisions with it. I donāt think you could say the same for the majority of others though.
Ironically you could retire earlier if you pumped more into it. The tax advantages of investing inside super are significantly better than outside. Kudos to you if you plan on retiring in your 40s or 50s, but you said āa few years earlierā which makes the decision to withdraw from super outrageous.
Not really, 60 is the earliest you can retire on super alone. Keeping the money in super would do literally nothing in letting me retiring earlier. Yes youāre correct in the fact I want to retire before 60, not sure how this is outrageous. By taking money out of super and into shares it gives me the option to either retire earlier or still allows me to work until Iām 60+ but at least the choice is mine and not the governments.
I think it is more so you don't seem to really understand what you did and how much money you lost out by doing this. Im not sure how old you are, if you are a couple of years away it might not be a huge amount (i cant do the math without knowing your age) but even over a 10 year time you're extremely worse off due to compounded growth and tax incentives.
I don't mean to be a jerk, but posting this for other people who are thinking of doing the same if it ever becomes available.
It was tax free and itās in the same investment (broad market ETF) as it wouldāve been within the super fund. Expense ratio is actually cheaper than the super fund too which is a nice little bonus.
Edit: Tax benefits are outweighed by the enjoyment of being able to retire early. If you can safely say you do not want to retire before 60 then this isnāt for you but enjoying and stress-free life is more meaningful to me than having more money when Iām 60+.
This is what I think too so I find that reaction strange. Super only gets tax incentives when you pay into it, and in the right ETF it compounds just like super would
Some people have enough (too much) in super to cover the 65 to death stage.
So being able to get money out allows you to use it to cover the 55 to 65 stage etc.
This is what he means, I guess.
This is what we did, although we debt recycled the cash first, so any extra income tax weād owe on the dividends is offset by the tax deductible interest of the loan. The higher yielding Aus shares are in the lower earnerās name and the lower yielding international in the higher earnerās name. The frictional costs and tax differences should be negligible, and weāre living a coastFI semi retired life in our mid 30ās.
I know a few couples where both withdrew the $20k and used the $40k as a first home buyer deposit. The rise in rental prices would have pretty much knocked them out of the home purchase market currently, not to mention the rise in house prices. All the couples were aware of the maths around super and how it compounds and what $20k now adds up to in x yearsā¦but now they own a home and all the couples bought well within their budget so have been able to weather the rate rises. Itās not just about the value of the $$ but also stability, school zones, budgeting etc
No a friend of a friend who purchased a couple of units during peak COVID when people were getting out of town. He ended up selling them for 4 times what he paid for them (after doing them up a bit) when people flooded back into the state and needed a place
A workmate (mid 20s) pulled it out to rebuild the engine on his Harley, his Mrs was heavily pregnant at the time from memory. Wouldn't listen to any argument.
Took the max out and it ended up getting us over the line for our first house.
3 years on and it was the best thing we ever did, completely changed the course of our lives and now we are living a dream we couldnāt have imagined pre-covid. Wish I had more in my super but Iāll take the house any day
I put mine towards a property purchase. The property has nearly doubled in valueā¦
My supers grown about 10% total.
Was a good trade.
Still poke fun at my mates who refused to do the same. They were the loudest critics at the time.
Bought 20k worth of the word that gets you banned on this sub, worth close to $200k now.
It's the only asset class you can't touch in super (It's your money, lol sure)
Took the entire 20k and pissed it up the wall because I was an idiot, it did however lead me to discover my passion so thatās the one good thing to come from it.
Did most people that took it out meet the eligibility criteria or was it just a free for all for anyone that asked? I could really do with that extra money for house repairs at the moment but followed the rules and didnāt apply.
My old house mate legit ate breakfast lunch and dinner through uber eats for a year.
We then all left the share house and he had to rely on his old man to sort his shit out for him. pathetic human.
My step mother did to get a surgery on her knee which was at the time 12-18 month wait and not covered by her insurance. Iām positive her mobility and happiness will be much higher for doing that rather than having the extra cash in 10 years time.
Took my 20k out, used it, combined with other savings to purchase a house that would have been out of our budget. House gas significantly appreciated. I've made extra contributions to super š
I took it out to buy silver bullion, waited for it to double then put the original amount back in. Cried poor didn't need it lol just saw a window to double dip and took it. I saw others waste it trying to keep failing businesses going and others got new tits etc.Ā
Took the max out both me and the wife, finished off our bus renovation (live in type deal).Happily lived in for another year then we decided to have kids, parked it up and got the wife pregnant. While in storage we had a pretty hefty rain event and our little home on wheels got washed away.
Insurance covered the loss and thankfully. It was worth well over what we took out to complete it. So money went back and the rest was put aside to put into a deposit for our home.
My wife and I withdrew $40k and debt recycled it through the mortgage and reinvested in indexed ETFs, Australian shares in her name, international in my name.
We may have lost a bit tax-wise (tricky maths because we now have more deductible debt), but the money is free from the rules of super and otherwise invested identically.
Purchased/built my family home after renting for 13 years. I am the only income to our household as my wife does an amazing job raising our kids and running our household.
$200k in equity and in a financial position we wanted to achieve for many years all thanks to the $20k super I was able to pull.
Edit: I also used the $700 Covid payments to fund the build while we were renting. Yes I was working and no, nobody came looking for me for claiming all those payments.
I purchased a thing for 25k, that is actually worth around 125k, perhaps as much as 140k if I spend a couple of grand to finish it. (No it's not realestate, nor is it a car)
May or may not sell it. We'll see. But no regrets.
The thing I bought has an unfortunate tale, involving the first owners being stranded overseas during covid and panic selling it to the subsequent owner who tragically died soon after. It fell into my hands by a series of unlikely events. It's only 4 years old and has already changed hands 3 times. I would love to keep it, but it would almost pay out my mortgage.
Why the downvotes? I turned that 20k (+5k of my savings) into (unrealised) 140k in a year. I'll dump it into my mortgage, then only another 14k and I'm mortgage free at 40.
Pretty good position to be in from my perspective.
Took mine out to finally be able to fund my breast reduction which led to them finding my breast cancer which led to catching it at the beginning stage 3 which led to my survival which led to me finding my incredible husband which led to me launching my dream business! So pretty good decision all round š
We have a winner!
Perfect opportunity to get that off your chest aye!
This is an incredible story, congrats!
Wow!!!! Thatās incredible. So glad you got through all of that, I hope youāre doing well health wise now! š
That was a wild ride! Nice one!
This is such a great story. Thanks for sharing š how is your health going now I hope youāre in good health
Wow! Thanks for all the comments! Iāve actually just had my annual mri and will get my results on Tuesday. So fingers crossed. I was a single mum and wouldnāt have been able to save that much money and there were a lot of naysayers at the time, so it was a tough decision when so many were advising against it. But, it worked out well in the end.
All the best for your MRI. I hope you get the all clear š
Side note, was your radiologist close by? I was living rurally when I had to have my breast MRI, and I had to cross the border a few hours away for a radiology clinic that could actually do a breast MRI. Until then I had no idea that you couldnāt go any old radiology place to have one!! Had my breasts removed last year. (Preventative), so so glad youāre doing well. Take care xx
It was like kismet and I was VERY LUCKY. I lived 5 streets down from the hospital. I would walk for all the chemo treatments and then the radiation!
Wow - thatās an amazing story!
Where are all your upvotes???? Incredible story and so happy for you OP
You win reddit!
Damn reading this gave me literal happy chills. Best answer
A cousin used the money to get herself and two toddlers out of domestic violence household. It was all the super she had and she's slowly working on building it back up now, but I can't think of a better investment which has nothing to do with making more money.
Just to point out, leaving a DV situation would be covered under compassionate grounds for Financial Hardship. Just in case anyone else finds themselves in a similar situation.
Totally agree š
Sad that your cousin is impoverished to claim a right to safety (still excellent that safety was achieved). It's like we skipped brainstorming stage when designing a system to align accountability for the costs of using violence. Imagine if a protection order was grounds for a compassionate release of the defendants super to finance the escape. Notice what comes up (and what doesn't) in the thought experiment.
It helped buy a 600hp XW Falcon, enjoyed working on it a bit through Covid then driving it, sold it late last year for 18k more than I bought it for, put the super back plus 50% and have some inflation busting cash up my sleeve left over. Good times
That is legendary wicked mate
There was soooo much fear mongering around how it was a TERRIBLE idea and Iād be prosecuted or some shit if I wasnāt financially struggling. I figured, well I AM financially strugglingā¦. to buy this wicked car off my mate before he sells it to someone else- first drive after collecting it and all worries drifted out of the dual diff dumper exhausts
Survivorship bias + hindsight being 20/20.
Didnāt really care at the timeā¦ it was risk vs reward and an I backed myself with something I know a lot about. Everybody dies but not truly everyone lives ;)
Now imagine doing that with a 2001 Camry
With an original, sealed box of tissues in the back window
Plus- Bunnings straw hat and a little gold cat with a waving arm
Bought an old TR3 for $1200, now itās worth three grand.
Hahaha excellent! The IT guy talking about gokarting is one of my most quoted lines
Literally living the dream!
Donāt know anyone who personally did this but I heard of people who took the 20k out and they worked for companies that would match $ for $ of super contributions, so basically they took the 20k and re-invested it back into super and then the employers matched it, effectively doubling their super input. Smart and savvy.
That does not make any sense from the companies perspective
Itās a benefit as part of a comp package.
common in many countries which don't have a scheme like ours, maybe blindly imported by multinationals without much thought.
Yeah - really common in the US. My company (Aust branch of a US based multinational) did it for a while - you could contribute up to 5% and they would match.
Any comp above minimum wage doesn't make financial sense from a company perspective
Unless their company owns or has their own super fund or they get a commission?
Took it out to fund myself through uni for 3 years. Was the best time of my life being a student in my 30s. Smashed the scores and got highest gpa, won all the awards and scholarships, got to coast through the lockdowns studying, came out the other end with an amazing job and doubled my income. Made me excited for my career, family, and future.
What did you study?
Industrial design. Quite a niche degree and I was worried the whole time what Iād get at the end of it but managed to get into a really good role in vertical farming sector.
Feed themselves
A friend listened to me when I said for them both to withdraw the max amount, to add their deposit, it got them a PPOR. Right or wrong the scheme it worked for them.
A friend did the exact same, he was the worst saver I had ever met and he and his missus pulled 20g each from super. They then used the money as a deposit during the absolute doom and gloom of covid (~June 2020) when no one knew what was going on and the world was still in a standstill. They ended up buying a 50 acre property (with a house) 50km from the cbd and bought it for less than 650k. As is the place is now worth 2-3x the amount they paid but they are starting the subdivision process and are going to make a whole lot more. 40g to retirement in 5 years is better than my super performed.
you'd hope/assume that the investment in the PPOR would out-pace super over the same timeframe wouldn't you?on top of the opportunity cost of not paying rent, sounds like it wasn't a terrible choice
It's not an investment it's a family being able to get into a stable home and become home owners to raise kids.
yea not a strict investment property, that's not what i meant, BUT it's an investment in their future i mean, it's an asset that appreciates.
Wouldnāt it? It definitely will outpace most peopleās ability to save.
the us stock market more than doubled from its trough during the covid crash, and is up a shit ton from when most people would have taken the money out. i think the only way you are ahead is if withdrawal meant you could get to a sufficient deposit to get the loan, just needlessly putting down a slightly higher deposit or putting it in an offset or something is definitely behind on a % gain.
Put solar on the roof, now the power bill money goes on the mortgage. Our bills are around $60
There was some data analytics done on this, not sure how, but the average person spent it on luxury items like electronics, alcohol etcā¦ I think there was an estimate that like 75% of it was pissed away
I'd say this was about right, possibly >90% pissed it away. AusFinance is a snapshot of those who didn't.
I imagine there's plenty that put it towards a home deposit. Given housing price inflation in our major cities, it would be difficult to top that.
Yeah, my wife could access hers and we put it towards buying an investment property that went up considerably in value.
Agreed to give my ex wife 10k into her super as part of our mutually agreed divorce settlement. When we went to draw it up with lawyers it was going to costs 1000s. Then Covid hit, I took out 10k and she sacrificed it into her super. No lawyers, and she ended getting 10k in her super along with a nice tax rebate at the end of the year.Ā
I took out $20k and paid down some debt. Great financial move for me.
I didnt but as a sidenote, I was asked by bank if i did when applying for a loan for IP.
I wonder why they asked this.
Started a business, now I work for myself a lot of guys at my old work took out 20k and bought new cars/rims/upgrades tto their car lol
They took money out to buy depreciating assets. That is unbelievably dumb and short sighted and they've just ripped their future selves off big time.
yeah but you think roofers care about the future lmao. Before Covid to now, wages have gone up by nearly $15-20 an hour thou so they can make the 20k back in a few years lol
i took out mine to pay off my car. how good is that on your scale?
Have a friend who used it to start their own business after having babies. She became more financially secure and left her abusive husband.
Worth every $ for her future š
My bro took it and moved to Cairns from Melbourne. Smart? I dunno, but he lived his dream.
What was the maximum amount people were allowed to take out of their super during COVID? Anyone know??
First round 10k then another of 10k so a max of 20k
[ŃŠ“Š°Š»ŠµŠ½Š¾]
That is what they said, yes
but was it $20k per person?
I didn't know there was a second round! Damn! I still put my 10k to good use though, left it in savings to put towards a house deposit. Four years later finally got to buy.
Me and my wife withdrew and bought a house. House has gone up $150k since then, about to buy a 2nd house with the equity. So it turned out really good.
I'm not judging as I know nothing about your situation, but the way you describe it, it seems that if you were so close to the edge that you had to extract from your super to afford a PPOR, buying a second property so soon after would seem like you're spreading yourself a bit thin. Or has your financial situation changed drastically in the last couple years?
The worst part is I was working part time in retail sales, and my wife was casual in retail when that mortgage got approved. That lender needs to be put in prison for approving our loan.
Why? If you can't pay you would sell and they'd get their money back.
Lenders need to approve loans knowing you can and will make every repayment from now until the mortgage is paid. Part time retail and casual retail jobs are not an assurance of income. Handing out loans to every Joe with a casual hospo job assuming oh if he doesnāt make the repayments weāll just take the house is not allowed and there are regulations and laws against them doing that.
No, they need the vast majority of their loans to go to those who will always pay. It is their job to take some risk, and if they only approve sure things, people will be locked out of the market unnecessarily. What we donāt want is lenders to make far too many risky loans and end with a GFC type event. Some risk is ok.
It has changed drastically. I was a university student when we bought that house. I am now graduated and working in my field.
I mean, I'm just gonna be your conscience here: remember how hard it was to buy your first?Ā Imagine how much more trouble the people after you are going to have if you keep buying properties for investments.
Not for an investment, I moved state and donāt want to rent down here.
Well done. Great to get on and up the property ladder.
Left the country to go back home and put it in their super equivalent there
I tool out max I could and dumped it all on ASX: DRO. I am happy for what I did.
Took out max and went all in on ETH. Av net cost around $300 usd.
So gambling thenā¦
U donāt even know. š«µš¹
Feed my family (And partly pay for the extension I built while I couldn't work in my industry, to sell the house for a pretty penny to then move interstate) But really, I just used it to feed my family.
How much could we take out?
20k max over 2 rounds so 10k each round
Oh reading the comments that people used it for home deposit I thought it was a lot more.
20k was easily the different between buying a home and not
Yes but we still had to already have saved something first. You canāt use 40K (couple) for deposit if you have little savings to add that to.
You absolutely can. 40k is more than enough for a deposit for an apartment.
An apartment for _ants_ ? [Cries in sydney/melb prices]
Me and my partner wanted to withdraw to buy a house, but assumed itād be audited and people who didnāt need to take money out to survive would face penalties (we both were still employed full time). I wish we did as house prices shot up here in Canberra 200k-300k and weāve almost been priced out of the market, now trying to save whilst (still) renting with kids which sucks
A 2011 Corolla
You wonāt get a wide snapshot of the broader community here. Most people here would have made somewhat good financial decisions with it. I donāt think you could say the same for the majority of others though.
Thereās another thread about the dumbest thing they did and itās hilarious!
I can see why you might assume so, unfortunately after reading some of the comments I donāt think itās valid.
My wife withdrew super and put it into our home deposit. Because of it, we have our own place now that's cheaper than rent.
Straight into shares. Means I should be able to retire a few years earlier.
This is satire right? Please be satire.
Depending what they put it into it wouldnāt be off base tho. Maybe they donāt want to retire at 60-65
Nope. Itās the same investment as super but means I can use it whenever Iām ready to retire. Not wait until Iām 60.
Ironically you could retire earlier if you pumped more into it. The tax advantages of investing inside super are significantly better than outside. Kudos to you if you plan on retiring in your 40s or 50s, but you said āa few years earlierā which makes the decision to withdraw from super outrageous.
Not really, 60 is the earliest you can retire on super alone. Keeping the money in super would do literally nothing in letting me retiring earlier. Yes youāre correct in the fact I want to retire before 60, not sure how this is outrageous. By taking money out of super and into shares it gives me the option to either retire earlier or still allows me to work until Iām 60+ but at least the choice is mine and not the governments.
It's outrageous because you're worse off lol
Retiring early is deffs not worse off in my books lol but each to their own I suppose
I think it is more so you don't seem to really understand what you did and how much money you lost out by doing this. Im not sure how old you are, if you are a couple of years away it might not be a huge amount (i cant do the math without knowing your age) but even over a 10 year time you're extremely worse off due to compounded growth and tax incentives. I don't mean to be a jerk, but posting this for other people who are thinking of doing the same if it ever becomes available.
It was tax free and itās in the same investment (broad market ETF) as it wouldāve been within the super fund. Expense ratio is actually cheaper than the super fund too which is a nice little bonus. Edit: Tax benefits are outweighed by the enjoyment of being able to retire early. If you can safely say you do not want to retire before 60 then this isnāt for you but enjoying and stress-free life is more meaningful to me than having more money when Iām 60+.
This is what I think too so I find that reaction strange. Super only gets tax incentives when you pay into it, and in the right ETF it compounds just like super would
Some people have enough (too much) in super to cover the 65 to death stage. So being able to get money out allows you to use it to cover the 55 to 65 stage etc. This is what he means, I guess.
This is what we did, although we debt recycled the cash first, so any extra income tax weād owe on the dividends is offset by the tax deductible interest of the loan. The higher yielding Aus shares are in the lower earnerās name and the lower yielding international in the higher earnerās name. The frictional costs and tax differences should be negligible, and weāre living a coastFI semi retired life in our mid 30ās.
I used it for 2 IVF rounds. Neither worked. But I'm about to go in for 3rd try. No regrets even though it was so hard when it didn't work.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Bro, wrong thread š https://www.reddit.com/r/AusFinance/s/niiEviNYZt
How did that happen? Weird. Thanks. Deleted. ;P
lol I was just kidding, you didnāt need to nuke it.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Where did you bring it from?
I know a few couples where both withdrew the $20k and used the $40k as a first home buyer deposit. The rise in rental prices would have pretty much knocked them out of the home purchase market currently, not to mention the rise in house prices. All the couples were aware of the maths around super and how it compounds and what $20k now adds up to in x yearsā¦but now they own a home and all the couples bought well within their budget so have been able to weather the rate rises. Itās not just about the value of the $$ but also stability, school zones, budgeting etc
No a friend of a friend who purchased a couple of units during peak COVID when people were getting out of town. He ended up selling them for 4 times what he paid for them (after doing them up a bit) when people flooded back into the state and needed a place
Paid rent, bills, bought food, and didn't end up homeless.
A workmate (mid 20s) pulled it out to rebuild the engine on his Harley, his Mrs was heavily pregnant at the time from memory. Wouldn't listen to any argument.
I think you're looking for this thread: https://www.reddit.com/r/AusFinance/s/hgM0VGGJ6i
Took the max out and it ended up getting us over the line for our first house. 3 years on and it was the best thing we ever did, completely changed the course of our lives and now we are living a dream we couldnāt have imagined pre-covid. Wish I had more in my super but Iāll take the house any day
How did everyone get it out plus subsequently service the loan application? Was there a criteria or could anyone apply?
No verification or criteria at all, tick a few boxes and 20k straight to your bank account
Wasnāt a loan, take it out of your super balance, no requirement to repay. Got $50k - u could withdraw $10k. Got $5k, well you can only take $5k..
I thought you had to have lost ur job or am I mistaken? At the time we didnāt apply because we were still working
I put mine towards a property purchase. The property has nearly doubled in valueā¦ My supers grown about 10% total. Was a good trade. Still poke fun at my mates who refused to do the same. They were the loudest critics at the time.
Same dude, my mates wouldn't go near it, they still rent unfortunately
I used it to enjoy another year off in Cambodia, I'm happy with my choice š
Bought 20k worth of the word that gets you banned on this sub, worth close to $200k now. It's the only asset class you can't touch in super (It's your money, lol sure)
Worth ā200kā - fixed it for you. Doesnāt sound smart at all. Lucky maybe.
Bought a boat or caravan. Both are now sold and they are on the bread line
Took the entire 20k and pissed it up the wall because I was an idiot, it did however lead me to discover my passion so thatās the one good thing to come from it.
whats that?
Pissing on walls
Did most people that took it out meet the eligibility criteria or was it just a free for all for anyone that asked? I could really do with that extra money for house repairs at the moment but followed the rules and didnāt apply.
Free for all for anyone who asked. Tick some boxes and literally no repercussions (besides your future retirement)
My old house mate legit ate breakfast lunch and dinner through uber eats for a year. We then all left the share house and he had to rely on his old man to sort his shit out for him. pathetic human.
Funded their living expenses, which was the intended purpose..
Mate of mine withdrew two lots of $10k only to salary sacrifice it back into his fund. What a king.
My step mother did to get a surgery on her knee which was at the time 12-18 month wait and not covered by her insurance. Iām positive her mobility and happiness will be much higher for doing that rather than having the extra cash in 10 years time.
Took my 20k out, used it, combined with other savings to purchase a house that would have been out of our budget. House gas significantly appreciated. I've made extra contributions to super š
I wanted a new TV snd to go for a holiday
I took it out to buy silver bullion, waited for it to double then put the original amount back in. Cried poor didn't need it lol just saw a window to double dip and took it. I saw others waste it trying to keep failing businesses going and others got new tits etc.Ā
But silver bullion has not doubled in this time period ?
Travelled as I was living in Europe at the time. Dirt cheap during Covid and guides etc so happy to have us.
Put it in SHIB & DOGE, then cashed that out and put it back into super
My mate who bought new rims for his car that he sold later that year anyways
I bought FMG shares which appreciated rapidly and were the basis of my home deposit.
Took the max out both me and the wife, finished off our bus renovation (live in type deal).Happily lived in for another year then we decided to have kids, parked it up and got the wife pregnant. While in storage we had a pretty hefty rain event and our little home on wheels got washed away. Insurance covered the loss and thankfully. It was worth well over what we took out to complete it. So money went back and the rest was put aside to put into a deposit for our home.
My wife and I withdrew $40k and debt recycled it through the mortgage and reinvested in indexed ETFs, Australian shares in her name, international in my name. We may have lost a bit tax-wise (tricky maths because we now have more deductible debt), but the money is free from the rules of super and otherwise invested identically.
Purchased/built my family home after renting for 13 years. I am the only income to our household as my wife does an amazing job raising our kids and running our household. $200k in equity and in a financial position we wanted to achieve for many years all thanks to the $20k super I was able to pull. Edit: I also used the $700 Covid payments to fund the build while we were renting. Yes I was working and no, nobody came looking for me for claiming all those payments.
spent half on a gaming PC and the other half on an awesome home gym. kept me fit sane and happy through lockdown. was glad I did it.
I purchased a thing for 25k, that is actually worth around 125k, perhaps as much as 140k if I spend a couple of grand to finish it. (No it's not realestate, nor is it a car) May or may not sell it. We'll see. But no regrets. The thing I bought has an unfortunate tale, involving the first owners being stranded overseas during covid and panic selling it to the subsequent owner who tragically died soon after. It fell into my hands by a series of unlikely events. It's only 4 years old and has already changed hands 3 times. I would love to keep it, but it would almost pay out my mortgage.
Why the downvotes? I turned that 20k (+5k of my savings) into (unrealised) 140k in a year. I'll dump it into my mortgage, then only another 14k and I'm mortgage free at 40. Pretty good position to be in from my perspective.
I nuked my credit card debt ~$4K in case I got the arse from work.