While we are almost last 4 years out of jobs and living off our investments, there can be large purchases to be made. Of course we are trying not to waste funds. But buying cheaply can be often expensive. So it is good to make our research.
Few appliances broke or needed to be purchased within 8 weeks. I will summarize our approach to larger expenditures.
DISHWASHER
Dishwasher suddenly stopped. There was nothing I could do. It just did nothing. Me being stingy and thinking I am too smart to waste money on the new one, I thought “let’s get one from Facebook Market place”. That should be much better value. So we looked for dishwasher. There was actually one in “great condition” being given away 40km away. So I have driven 40min to pick it up and 40min back. Loading it in and out of boot. Dragging it to my kitchen. Removing old not working dishwasher and connecting new one. Guess what. It worked. After couple of days I started getting annoyed that the dishes had often food marks. After another couple of days I got angry with the dishwasher (and with myself) and also my wife reminded me that she “Itoldyouso””. She was right. The thing did not work properly. I was wondering why people were getting rid of it and why they said it worked well. Anyway. After wasting 2 hours moving it around and after another half an hour of installation I was stuck with 2 not working dishwashers.
Now I had enough. I went on internet and found out who might make best dishwashers. It is supposedly Bosch. Then I checked few retailers around who had good specials for Bosch. I found something about 20% off (that was best I could do on the given day as I am person responsible for all the dishes and we are doing about 3 dishwasher loads a day and I did not want to wait another day). I picked one lower range model for about $800. This was couple of months ago and I could not be happier with my machine. Then I got lucky and after placing the add online on Gumtree, someone happily picked up from me 2 not working dishwashers for spare parts. Free stuff doesn’t have to be always free.
FIREPLACE
Similar story was with the fireplace. We have just finished reno of our converted shed and we were just about to start looking for tenants. Last thing missing was fireplace. Process got more complex as often happens. First I finally found fireplace online. It was already winter and it is not good idea to look for fireplace when everybody else looks for one too. I found one. It was 50 min drive (bit longer than I would like) and when I saw it, it looked bit older and bit more expensive ($600) than I would like (but you cannot be picky). It looked like a good quality English brand. It was then waiting few days for installer. He asked me to find online installation information for this particular model. Unfortunately after a dozen of phone calls (including overseas ones), and hours online I have not managed to find a manual. It seemed like a good brand but it ceased selling fireplaces in Australia couple of decades ago.
We had to make plan B. We have decided we will buy new fireplace for the second house on the property (that house was better quality one) and existing fireplace (which seemed bit small and old) from the second property, we will move to the shed. We have purchased new fireplace which was at the moment running some special, that it will get free flue with it. I am talking $1,900. That was bit steep, but after some research it looked like I did not have many options. Also we though new, large, quality fireplace should increase capital value of the property. So luckily I managed to sell the fireplace without manual to someone who was happy to install it themselves and who paid me same amount I paid for it.
I called the installers. They came and told me that to switch the fireplaces will be more than just simple 2 installation due to missing flue and location. We are talking about $1,500! That’s on the top of the $1,900 for the fireplace. To cut the long story short, we have decided to do the plan C. Leave old fireplace in the second house and install the new expensive fireplace in the shed. It was definitively more than we wanted to spend on tenants’ heating, but A) that should keep tenants happy and B) we should be able to claim tax deductions.
TV
We had nice LED Sony TV 46 inches. Yes it was used and we got it from our flatmate and Yes that was 8 years ago. And No, Sony refused to keep updating the software because the TV was too old. I did not complain. We used Chromecast to make it Smart TV for our Netflix and Youtube needs and all worked well. Unfortunately after about 10 years of life Sony decided it had enough and died. Not really actually died, but half of the screen had permanent lines on it and it was flickering. Thank you Sony, as this was anyway solid life, for economic, great picture TV.
So I have started looking for replacement. First I have seen some good quality 55-65” replacements but these were in $500-700 category for used TV, sometimes 5 years old. After my experience with the dishwasher I was bit hesitant to get used one. I have started doing research what can I get in our area. Best value looked like one Chinese brand 70” smart TV with reasonable reviews for $1,100. I kept looking and once we were ready to pick one up, there was suddenly another special dropping price of the same TV to about $850. At the same time $2,000 Samsung 75” dropped to about $1,250. I would be happy with the Chinese brand but wife decided she would like to get the Samsung one. Yes she is Korean. I did not protest. Actually it was still cheapest 75” from reputable brands so it looked like OK value. Also hopefully it can serve us at least 5 years so couple of hundred dollars extra should not hurt. It is huge, picture is great (especially at night), it has heaps of apps and good software.
HOT WATER SYSTEM
Wow. Here I got quite surprised. I was aware how much hot water system with the tank costs, with the reasonable quality ones costing just under $1,000. So we got couple of quotes for replacement of hot water system on our investment property. Existing one was very old solar one. First shock was that like for like it would be around $5,000. Hmm. So how about the standard one with the tank? One quote came $3,500! That cannot be possibly right as I knew that actual system was only about $900! So we got another couple of quotes coming to $3,000 and $2,900! It turned out that as the solar system is on the roof the pipes will need to be rerouted and it will need couple of expensive valves fitted. Also they said it would take 12 hours for couple of plumbers to complete the job. Well we did not have much choice as tenants were moving in the same week. It took only about 4 hours of work but main thing is that hot water is running and tenant is happy. That was bit expensive and unexpected experience. Hopefully this system will last for another 10 years.
MICROWAVE OVEN
This was smaller expense compared to the above ones, but considering all of them happened within few weeks it was still bit upsetting. We have small kids and microwave is used many times a day so it is an important appliance to us (same like dishwasher). We are already used to that microwave lasts in our family only about 3 years and the last model was same. Just the timing of its death was bit unfortunate with all the other appliances. Again same like with the TV I did not have luxury to wait for the best special. I just checked that best microwave brand is supposedly Panasonic. Then I picked one in the bottom price range on special in our area. We got only about 20% discount from the RRP but as I needed it TODAY. Then we just went and picked it up. It works well and we are quite happy with it hopefully for another 3 years.
These are just examples of standard family expenditure happening to all of us. It is necessary to have reserves for such outlays as they will happen to anyone. In our case they all happened just after about $30,000 renovation of the investment property, $650 plumbing emergency, $800 water tanks cleaning, $500 mower service and probably many other significant expected but (mostly) unexpected expenditures. Also in our case as we are not working now and standard investment income which we are now living off could not cover it, most of the amounts had to be paid from our line of credit incurring extra interest.
Retired or not, keep financial reserves! It can be leaking roof, broken down car or dead fridge, but it will happen, so better be ready for it.
