Increasing mortgage repayments vs Kiwisaver

[marty]

I'm not in Kiwisaver yet, but have had discussions about paying an extra 4% off my mortgage instead.

Does anyone have a link to calculator to figure out how much time/$$ I would save by adding 4% to my fortnightly repayments? I have found ones that will tell me how much I have to pay per fortnight to finish by 2020, but I'd like to see something a bit more comprehensive.


Cheers............................

[Unit]

If you cant find this on any of the bank websites then talk to your bank, Im sure they would NOT be happy to disclose this information as they would make less money out of you.
And to be a real purest about it all, if you put all your wages each month direct onto your mortgage, pay everything by credit card through the month, then draw back the overpaid amount into your mortgage to clear the credit card before the interest is due, this is the most effective way of reducing your overall interest on your mortgage. And make sure your credit card is a member of Flybuys or the like, then you get a free overseas holiday once a year for two!
Just my little bit of financial advice
BTW most Kiwisaver providers have lost money in their first term, Ambo Craig are a much better investment advisor, or put $10k into a compounding interest bearing account and forget it for the next 30 years, works out far better and safer than Kiwisaver at this stage

[Mully]

Have you had a play with the calculators on Sorted?

http://www.sorted.org.nz/

My thoughts are chuck it on the mortgage if you have the discipline. You have to get a pretty good return from Kiwisaver to beat the return on the house. Especially the way the markets are at the moment.

[Mully]

And to be a real purest about it all, if you put all your wages each month direct onto your mortgage, pay everything by credit card through the month, then draw back the overpaid amount into your mortgage to clear the credit card before the interest is due, this is the most effective way of reducing your overall interest on your mortgage.

I'd concur, but make sure you have lots and lots of self control to get a revolving credit mortgage. Banks like them cos most people fuck them up.

[Unit]

I'd concur, but make sure you have lots and lots of self control to get a revolving credit mortgage. Banks like them cos most people fuck them up.
True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

[Mully]

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

Good on your brother. Takes a lot of discipline and sacrifice to do that.

We have messed around with our mortgage structure to maximise how much we pay off. We correctly decided we couldn't do revolving credit.

[marty]

I went to Sorted - it's more of a trial and error calculator. Gives me some good ideas though. Thanks

[Pussy]

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

I need to have a chat with you, Unit! I'm just a dumb ag pilot (strong in the arms, weak in the head), and don't have much nouse with things like that, you may save me a few bucks!! :2thumbsup

[The Stranger]

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

He's not a biker is he?

[homer]

isnt the mortgage the whole saving point ,
i wont be putting in to kiwi saver ,due to the fact thats its share based . no gurantees
you could pay in to it and still get nothing

You can pay the mortgage on the other hand and then sell the place bank the money in high interest account and then pay a small rent later . you still have the money you sold for .

also what happens to all the extra money that you dont get ?
if you save say 1000 a year
and the govt puts in 1000
and the employer puts in 1000
k you get 3000 for that year

what about when you put in say 1500 a year
wheres the bit from the govt
in theory they take 500 off you

rough figures ok

[homer]

another point to
is do you get to claim at the end of year tax for the amount you put in .
after all its money you earned and dont have , so its now a tax deduction

[Mully]

another point to
is do you get to claim at the end of year tax for the amount you put in .
after all its money you earned and dont have , so its now a tax deduction

Is that what the tax credit is about??

I wont be joining either. I get a better deal from work.

[Finn]

DO NOT put ANY money into KiwiSaver. My advice is to keep working hard and stash your money into a bank other than the one you have your mortgage with. Liquidity is key at the moment and given all the indicators, we're in for a rough time ahead, particularly with an over spending Government with third world fiscal policy.

[homer]

I dont know if that whats the tax deal is about , i suspect that it will be
of course well alll get it i suppose .
but i guess if you pay in to kiwi saver you ll get not really anything ,if thats they way they work it .

My finance manager said not to put in to it
go ask your self

[toebug]

You need to have some savings as well as pay off the house, cause when you retire the money tied up in the house is only good for you if you sell it!

[Mully]

I dont know if that whats the tax deal is about , i suspect that it will be
of course well alll get it i suppose .
but i guess if you pay in to kiwi saver you ll get not really anything ,if thats they way they work it .

My finance manager said not to put in to it
go ask your self

I did some research and decided against it before it came in.

[homer]

Thats what id do
you get nz super as well remember , your already paying for that

Its a typical nz thing , i say it wont work , should be like its done in aussie

[Mully]

You need to have some savings as well as pay off the house, cause when you retire the money tied up in the house is only good for you if you sell it!

Yeah, but the theory is you keep it, and ride the capital value up. Once the kids leave home, you sell it, and buy a smaller retirement home keeping a nest egg in the bank.

[homer]

Yep which ever way you want to do it
the mortgage is saving ,or you save as well
i read the actuall document all i think it was 211 pages ?
and what it dosnt tell me and i stil ldont know ......Is how you get the fucken money

hows it payed back
i dont know . does anyone know
i know they say you get a lump sum , when ,how
theres so many unanswered Qs?

[barty5]

hows it payed back
i dont know . does anyone know
i know they say you get a lump sum , when ,how
theres so many unanswered Qs?[/QUOTE]

they dont they go bust before that happens and you loose it all just like the ones that have already (but im sure they will be thankfull for the use of your money in the mean time).

[homer]

hows it payed back
i dont know . does anyone know
i know they say you get a lump sum , when ,how
theres so many unanswered Qs?

they dont they go bust before that happens and you loose it all just like the ones that have already (but im sure they will be thankfull for the use of your money in the mean time).[/QUOTE]

you are so on to it m8
thats exactially what im thinking
its all basically going in to the share market , the govt sold well reserve bank sold a shit load of nz currency , to bring down the exchange rate in turn brings back inflation , yeah right
wheres that money gone now
and the interest rates are higher and the inflation rate is higher ....mmmmm
lets see , the fuckers lost a shit load of money
now whos going to pay for it

[tri boy]

A balanced portfolio of shares, savings, property has been proven for decades to be the best option.
Finn is dead right though. The financial sewer gates are fit to burst world wide.
Reduce credit card debt, try hard to save some cash, (ya gunna need it), and solidify mortgage/multi loans as best you can.
Housing values are going to drop maybe 10-30% depending on location, (but recover albeit slowly).
Most people will financially tip toe through the next 2-3yrs, (high risk property investors will scream though).
Fasten ya seat belts, the turbulence is just ahead.:crazy: MHO

[homer]

A balanced portfolio of shares, savings, property has been proven for decades to be the best option.
Finn is dead right though. The financial sewer gates are fit to burst world wide.
Reduce credit card debt, try hard to save some cash, (ya gunna need it), and solidify mortgage/multi loans as best you can.
Housing values are going to drop maybe 10-30% depending on location, (but recover albeit slowly).
Most people will financially tip toe through the next 2-3yrs, (high risk property investors will scream though).
Fasten ya seat belts, the turbulence is just ahead.:crazy: MHO

Yep the higest risk you ll hear first
i dont think the prices will drop as much as you think
after all it should be the time to buy now isnt it ?
oh yeah but the govt dont want us to spend ....lol

might buy another bike !

[bane]

WTF???? :2guns:

Kiwisaver is money for jam. With government and employer contributions the return is far higher than any mortgage interest rate! Even if the scheme you join makes nothing, the return is still 50%+ (due to government and employer subsidies)

Be smart.

1. If you dont trust shares, you dont have to invest in them. Choose the lowest risk cash funds. (i.e. 100% in cash and fixed interest). In the long run it will return less than a balanced fund, but you'll never get a negative return.

2. If you have a mortgage, choose a fund that offers mortgage diversion. This means you get all the tax advantages and subsidies of the Kiwisaver scheme, but can also divert up to 50% of your contributions to paying your mortgage.


... yes it would be nice if the government left us will all our money in the first place, but unless the Libertarians get in, it aint going to happen....

so join Kiwisaver!

[The Pastor]

yeah kiwisaver is great. esp cos im starting working, so i'll get the most out of it :D

But this is whats going to happen, employer puts in 1%, where is he going to get that 1%? your salary. you wont get a pay cut, you will just get your next pay rise at -1%.

[Ryder]

for those of you who are unsure about kiwisaver, you can call 0800 kiwisaver (0800 272 386) or visit http://www.asbbank.co.nz/story11392.asp ASB is the only bank that is a kiwisaver provider. alternatively you can go through other companies and your employer etc for more on that... http://www.kiwisaver.govt.nz/

i dont know if any of this helps but i certainly hope so :2thumbsup

[Swoop]

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.
Correct. If you are disciplined about it and are not the "impulse spending" type of person, it can be very effective.
I changed over to it after not seeing enough progress on the typical table mortgage.
"Knocked the bastard off" and pissed off the personal banker who advised not to get that sort of mortgage.


For the average kiwi who enjoys going out and spending up large on the credit card, it is not the thing to have. You will be bankrupt in no time at all.

[Hinny]

given all the indicators, we're in for a rough time ahead, particularly with an over spending Government with third world fiscal policy.

The smart money seem to be cashing up. Shows a lot of confidence in the polls I'd say.

[vifferman]

for those of you who are unsure about kiwisaver, you can call 0800 kiwisaver (0800 272 386) or visit http://www.asbbank.co.nz/story11392.asp
Too late.
I just signed up for it on Monday.
I wasn't sure what to do, so I asked the vifferbabe. She tole me I had to.
But then, she is the ASB Bank KiwiSlaver X-Spurt, so I did what she said. :confused:

Wouldn't want to go agin her and miss out on nookie...
Personally, from a "look what the Gubmint did last time we had a super scheme" point of view, and also from a "lookit the backward trend of these investments the wife's cousin signed us up for twenty years ago that are steadily going backwards while his cut trends upwards" point of view, and also also "lookit how pharkt the stock market is at the moment" point of view, I reckon paying off your mortgage and keeping your debts low is a better bet.
That, or buying classic motorcycles.
They may not appreciate, but at least you could appreciate them...

[Strider]

Revolving credit can help get your mortgage payed of quicker.
But it takes a lot of self control and discipline to do it that way.
If you are looking at refinancing your mortgage then you best to talk to a broker. It don't cost you anything as they get payed by the bank that they find for you.

[Strider]

Invest in gold its going up in $$

[Coldrider]

Invest in gold its going up in $$
That's due to the demand, when yanks start selling it's gonna fall to reality (market value).

[Waxxa]

A couple of remarks. Will Kiwisaver still be in existance over successive governments to come? Will you reach 65 years to claim, if still possible? And with a likely recession looming can you afford 4% of wages?

Also, why is it when people buy a home, why pay principal? Take out an interest only loan! The idea is that your first home is not the one you will retire in and live happily ever after. Property value increases every 7 years and this is when you sell the home, make the profit for a bigger deposit payment for the next house, keeping interest only loan, paying the minimum and in the following 7 years repeat the cycle.

Over successive years you will then have the deposit to buy outright a property when you or your family do decide this home is the one. The mentality of kiwis that buy a home and think 'I must own this house' means people stuggle to pay off the principal and have no spare income for emergencies or even interest hikes or rate rises or maintenance. Let the bank own the house, who cares, you profit from it.

[Badjelly]

But this is whats going to happen, employer puts in 1%, where is he going to get that 1%? your salary. you wont get a pay cut, you will just get your next pay rise at -1%.

Possibly, but you'll still be better off than the next guy/gal, who also gets the smaller pay rise and isn't in Kiwisaver.

[Unit]

What I dont like about Kiwisaver is it was an unfinished product when released, with too many unanswered questions (which still exist today). Most of the fund managers have run at a loss, and now IRD are ballsing everything up, they have stated this morning they have failed to allocate a managed fund providers funds to thousand of Kiwisavers accounts back to last August! My parents have pulled their money from a few of these fund managers over the years, because they were not performing well and charging too much for their management fees.
The property market locally and worldwide needs a correction, and it is well on its way. Look at the states, who has whole suburbs vacant with mortgagee sales, and home owners so deparate they are torching their houses trying to claim the insurance.
Finance companies are collapsing everywhere (that was bound to happen the model was wrong, only the self funding onces will survive). Household debt in general exceeds disposable income, house prices are out of wack with wages, the lower income jobs now cant be fulled because they are not paying enough. Yet people like my brother who owns a retail business will choose to work public holidays himself instead of offering to the staff because now he has to contribute 1%, he cant afford to pay them the extra.

[Mom]

And to be a real purest about it all, if you put all your wages each month direct onto your mortgage, pay everything by credit card through the month, then draw back the overpaid amount into your mortgage to clear the credit card before the interest is due, this is the most effective way of reducing your overall interest on your mortgage. And make sure your credit card is a member of Flybuys or the like, then you get a free overseas holiday once a year for two!


Not bad advice there, as long as you have the discipline to do it


I need to have a chat with you, Unit! I'm just a dumb ag pilot (strong in the arms, weak in the head), and don't have much nouse with things like that, you may save me a few bucks!! :2thumbsup

Pity you live so far away mate, little things like sitting down and putting a strategy in place is the best way to save yourself plenty. I am about to go back into the business of helping people do just that!


Liquidity is key at the moment and given all the indicators, we're in for a rough time ahead, particularly with an over spending Government with third world fiscal policy.

I agree!


good advice

Pity the bling-o-meter has limits sometimes.

Good luck with your attempt to put an extra 4% into your mortgage mate, everytime I do something similar in an attempt to beat them at their own game, they raise the interest rates! Like Finn says, being as liquid as you can at the moment is a good thing to achieve. Getting rid of your debt the best way to achieve it IMO. The credit card trick is worth a shot if you are disciplined, it is easier now as most people accept them. Small dairies and the like dont, so make your lunch and save even more!

[doc]

I'm not in Kiwisaver yet, but have had discussions about paying an extra 4% off my mortgage instead.

Does anyone have a link to calculator to figure out how much time/$$ I would save by adding 4% to my fortnightly repayments? I have found ones that will tell me how much I have to pay per fortnight to finish by 2020, but I'd like to see something a bit more comprehensive.


Cheers............................

Call me old school but the best investment is your mortgage. You don't start investing until you are debt free. makes it easier for them to sux it out of you later.

[doc]

Invest in gold its going up in $$

Argh ha, Old school again. "the ole bigger fool theory" sort of like collecting coins, you are relying on some one to pay more for them than you did. Gold is not going to feed your brats when the Holocast comes. Its in the bible somewhere.not that I would ever be able to find it for you.

[Southmotian]

But this is whats going to happen, employer puts in 1%, where is he going to get that 1%? Employer tax credit will help to offset


WTF???? :2guns:

Kiwisaver is money for jam. With government and employer contributions the return is far higher than any mortgage interest rate! Even if the scheme you join makes nothing, the return is still 50%+ (due to government and employer subsidies)

Be smart.

1. If you dont trust shares, you dont have to invest in them. Choose the lowest risk cash funds. (i.e. 100% in cash and fixed interest). In the long run it will return less than a balanced fund, but you'll never get a negative return.

2. If you have a mortgage, choose a fund that offers mortgage diversion. This means you get all the tax advantages and subsidies of the Kiwisaver scheme, but can also divert up to 50% of your contributions to paying your mortgage.


... yes it would be nice if the government left us will all our money in the first place, but unless the Libertarians get in, it aint going to happen....

so join Kiwisaver!

+1

For anyone unsure about it, talk to a financial adviser. There is so much misinformed "a guy told me at the pub" stuff floating around. Talk to someone who actually knows what they're on about. The answer is likely to be that you'd be stupid not to join!

[The Pastor]

explain this tax credit, my understanding is the employee also gets a tax credit.

WTF is a tax credit?

[bane]

explain this tax credit, my understanding is the employee also gets a tax credit.

WTF is a tax credit?

couple of ways

1. If you are over 18yrs old, the government will match your contributions up to $20 per week, in the form of a tax credit applied by IRD to your kiwisaver a/c annually. i.e. $1040 per year

2. employer contibutions into Kiwisaver on your behalf are tax free (as long as they are matched by your contribution). So instead of the employer contribution being worth (for many) 0.67%, you get the full 1%.

money for jam....

[k14]

Yeah there are a few factors re kiwisaver that do ask a few questions but surely I'm a retard for not signing up before next month when my company starts contributing up 4% to it. I'll be signing up next week if I remember and taking that $1000 along with the $20 a week.

According to the ASB tables I "should" have $600k+ when I retire, hehe.

[Southmotian]

WTF is a tax credit?
"To offset the cost of providing the matching contribution, employers will be entitled to a tax credit of up to $20 per week, based dollar-for-dollar on their matching contributions for each employee. This tax credit will reimburse employers for much of the matching contribution expense. For example, in 2011 the tax credit will cover two-thirds of the matching contributions for an employee on $40,000 contributing 4% of salary."

[cheese]

If you cant find this on any of the bank websites then talk to your bank, Im sure they would NOT be happy to disclose this information as they would make less money out of you.
And to be a real purest about it all, if you put all your wages each month direct onto your mortgage, pay everything by credit card through the month, then draw back the overpaid amount into your mortgage to clear the credit card before the interest is due, this is the most effective way of reducing your overall interest on your mortgage. And make sure your credit card is a member of Flybuys or the like, then you get a free overseas holiday once a year for two!
Just my little bit of financial advice
BTW most Kiwisaver providers have lost money in their first term, Ambo Craig are a much better investment advisor, or put $10k into a compounding interest bearing account and forget it for the next 30 years, works out far better and safer than Kiwisaver at this stage

While that sounds like sound financial information (revolving credit) in actual practice it hardly ever works unless you are very very good with budgeting and you have a high income. for example

Friends of ours got a mortgage about 1 year after us, they got revolting credit, and after 2 years (3 for us) they had less of a mortgage than us, now another 3 years on they have crept back to the original lending ammount and we have paid off half of our mortgage. We had a standard mortgage and justr upped out payments.

Things I've learnt - when you go redo your mortgage, they will say so you want to put that back at 25 years again? this is going to fuck you. They keep putting the term out and you never get anywhere.

set a dollar amount you want to pay and set the term on that. i.e say I want to pay $800 a fortnight, you will be surprised what the term comes down to.

and as for kiwi saver v pay off your mortgage, well my wife and I are about to have our first child. We figure at present kiwi saver wouldn't work for us. If you have surplus income, I'd get kiwi saver, look at it as a payrise from your boss with out asking for one. you'd be foolish to do more than 4% though. But more info is needed. How old are you, you both working? how much is your mortgage? and lastly what do you earn?

[homer]

While that sounds like sound financial information (revolving credit) in actual practice it hardly ever works unless you are very very good with budgeting and you have a high income. for example

Friends of ours got a mortgage about 1 year after us, they got revolting credit, and after 2 years (3 for us) they had less of a mortgage than us, now another 3 years on they have crept back to the original lending ammount and we have paid off half of our mortgage. We had a standard mortgage and justr upped out payments.

Things I've learnt - when you go redo your mortgage, they will say so you want to put that back at 25 years again? this is going to fuck you. They keep putting the term out and you never get anywhere.

set a dollar amount you want to pay and set the term on that. i.e say I want to pay $800 a fortnight, you will be surprised what the term comes down to.

and as for kiwi saver v pay off your mortgage, well my wife and I are about to have our first child. We figure at present kiwi saver wouldn't work for us. If you have surplus income, I'd get kiwi saver, look at it as a payrise from your boss with out asking for one. you'd be foolish to do more than 4% though. But more info is needed. How old are you, you both working? how much is your mortgage? and lastly what do you earn?

un fortunately from what you are saying
i need a big pay rise to cover it .
i know you just put an example up of mortgage repayments ""800 fortnight ""
me and my partner could do that , but im not sitting at home for 20 years go no where

[homer]

Invest in gold its going up in $$

You need to get in to the gold 3 years ago
when it was like 280 an ounce

it wil fall , in a hurry . over night actually as there always seems to be a huge release of gold to off set the demand , which means theres then to much out there , the price drops

Youll actually find that buying silver would have got you a bigger return , about 5 times as much

[Hinny]

a better bet.
..... buying classic motorcycles.
They may not appreciate, but at least you could appreciate them...

You said a mouthful there.
Buying bikes that are going to become classics might be even better. Appreciate and use them while they are new. Admire and reminisce when they, and you, are old.

[Ryder]

Too late.
I just signed up for it on Monday.
I wasn't sure what to do, so I asked the vifferbabe. She tole me I had to.
But then, she is the ASB Bank KiwiSlaver X-Spurt, so I did what she said. :confused:

Wouldn't want to go agin her and miss out on nookie...
Personally, from a "look what the Gubmint did last time we had a super scheme" point of view, and also from a "lookit the backward trend of these investments the wife's cousin signed us up for twenty years ago that are steadily going backwards while his cut trends upwards" point of view, and also also "lookit how pharkt the stock market is at the moment" point of view, I reckon paying off your mortgage and keeping your debts low is a better bet.
That, or buying classic motorcycles.
They may not appreciate, but at least you could appreciate them...

lol well its all good but no it is not compulsary. you are far better off just opening a savings account thta you ant access easily and just pay off your mortgage asap :2thumbsup umm...and yea if the last scheme was anything to go by you'll probably end up losing what you put in anyways :buggerd:

[Ryder]

A couple of remarks. Will Kiwisaver still be in existance over successive governments to come? Will you reach 65 years to claim, if still possible? And with a likely recession looming can you afford 4% of wages?

Also, why is it when people buy a home, why pay principal? Take out an interest only loan! The idea is that your first home is not the one you will retire in and live happily ever after. Property value increases every 7 years and this is when you sell the home, make the profit for a bigger deposit payment for the next house, keeping interest only loan, paying the minimum and in the following 7 years repeat the cycle.

i doubt kiwisaver will be around that long but who knows. 65???...umm?! hehe pass! heck!...i cant even afford the 4% now!!!

you can go interest only buy taking principle releif but i think you can only do 11 or 12 months at a time within a certain time frame.

[Hoon]

I did the Math on kiwisaver in this thread (http://www.kiwibiker.co.nz/forums/showthread.php?t=56358&highlight=kiwisaver).

The Govt can't take your money. It belongs to the Provider.

Sure Providers can go bust just like any investment scheme but you can offset this risk by going for a big bank like ASB instead of the dodgy outfits that promise an extra 1%.

If your employer would reduce your pay raise to offset their kiwisaver contributions then I would get another job. Luckily I work in a place where those that approved the pay raises have nothing to do with those that count the beans.

Don't have access to the money until you retire? Do what I said in the above thread. Contribute the minimum amount required to gain maximum benefits and invest the rest elsewhere.

Put the money in the bank you say? Show me one that pays 150% interest!

Like others said its money for jam. Sure there are some risks involved but with 150% return on your investment its well worth it.

[YellowDog]

I am glad some people seem to believe Kiwisaver to have some merit. I don't. It is just paper money that may or may not have any value in the future. Paying off your motgage is a 'real life today option' and will show some tangiable benefits.

Unless you are a young couple looking to get a deposit to buy a house, Or you are getting close to retirement age; then I can't see the point in it.

[Swoop]

Trusting this and successive gubbinment's not to tinker with or raid the piggy bank... (like previously)
No thanks.

I'll stick with the alternatives, thanks.

[homer]

hey all
i want some info
if i pay 4 % in to kiwi saver
and eventually the employer pays in %4
and the govt pays 1 %
thats 9% total , 5% of that is on top of my wages total .
so how come i actually only make $1040 dollars from the govt ,wheres the rest of what the 9 % saved could earn . Or am i missing something .
and do they then class the interest made on it as part of the savings as well

[NinjaNanna]

Some really good calculators here. http://www.stgeorge.com.au/calculators/default.asp?orc=home the "extra repayments calculator" is exactly the one you need

[Oakie]

The government doesn't pay 1%. They pay $1000 to kickstart your fund as a one off. They also pay a small amount to help cover fees. God, they may even make their own contribution up to a maximum of $1040 but I can't remember now.

[Jantar]

I'm not in Kiwisaver yet, but have had discussions about paying an extra 4% off my mortgage instead.

Does anyone have a link to calculator to figure out how much time/$$ I would save by adding 4% to my fortnightly repayments? I have found ones that will tell me how much I have to pay per fortnight to finish by 2020, but I'd like to see something a bit more comprehensive.


Cheers............................

Why not do both. Join Kiwisaver at 4% adn get your employers contributions as well. Then after 3 years when the employers contribution is also 4%, divert your 4% to your mortgage. Your employer still has to match your 4% into kiwisaver and the government give you $1043 pa as well.


isnt the mortgage the whole saving point ,
i wont be putting in to kiwi saver ,due to the fact thats its share based . no gurantees
you could pay in to it and still get nothing

You can pay the mortgage on the other hand and then sell the place bank the money in high interest account and then pay a small rent later . you still have the money you sold for .

also what happens to all the extra money that you dont get ?
if you save say 1000 a year
and the govt puts in 1000
and the employer puts in 1000
k you get 3000 for that year

what about when you put in say 1500 a year
wheres the bit from the govt
in theory they take 500 off you

rough figures ok

Two points here, not all funds are share based. You can chose between conservative (interest only), Balanced (shares, property and interest) or growth, (shares only). The government match you $ for $ up to a maximum of $1043 pa. They don't take anything off you other than tax on the profits earned by the fund, and even then the tax is capped at 30% rather than 39%.

[homer]

i do see
i would now want a 4% payrise tomorrow to cover this and then payrise per year accordingly

after all thats what most jobs in aussie work pay rates like
id then be quite happy

[doc]

You need to have some savings as well as pay off the house, cause when you retire the money tied up in the house is only good for you if you sell it!

Investment advisors will tell you your best investment is your mortgage, the savings you make in interest are tax free.
You dont start investing until your debt free.
Diversification, mix of commercial over private rental property, sharemarket the graph equates to a yoyo going up stairs. Managed funds, and cash.
Take your risks early in your life, more time to recover.

I however have been asessed as being "recklessly conservative"

Dont be greedy you don't need to wring the last little penny out your investments.