Don't let fuel prices shatter your dream to caravan around Oz!

Submitted: Sunday, May 25, 2008 at 14:51
ThreadID: 57980 Views:4742 Replies:7 FollowUps:6
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FOUND THIS and thought it might be an encourage to some.........So you are going to retire and your dream has been to tow a caravan aoround Oz for a year and see it all. Can you afford to do it now, with fuel to reach $2 per litre soon?

I put some figures into a spread sheet and came up with some alternatives. First of all, I based the original dream on paying $1 per litre. You have $350,000 in super and can also get the pension. Your home is either sold or locked up and no funds coming from rental. This is an approx of what you could do, based on a budget of $3000 per month:

Invested Super: $350,000

Growth at 8% $28,000

Plus Pension, your budget is $36,000

Big one towing 13,000k plus 5,000k running around: 18,000k

At 20litres per 100 3,600 L

$1 per L $3,600

Caravan Parks average $25 per day $9,125

Food, Entertainment, Insurance etc $23,275

TOTAL $36,000

That was your dream. Now fuel is $2 per L

Cost fuel $7,200

TOTAL IS NOW $39,600

So what can you do? How about installing some solar, bigger battery and a small generator and be independant of Caravan parks a bit more?

Caravan Parks 3 nights per week: $3,900

Cost to set up solar etc. $2,000

New Total is now: $36,375

To save even more money, since you will be retired and have the time, instead of rushing around the block in 12 months, slow down and take two years and let your Super pay the fuel price:

YEAR ONE:

Drive half way around Oz

Invested Super: $350,000

Growth at 8% $28,000

Plus Pension, your budget is $36,000

Big one towing 7,000k plus 5,000k running around: 11,000k

At 20litres per 100 2,400 Litres

$2 per L $4,800

Caravan Parks average $25 per day $3,900

Food, Entertainment, Insurance etc $23,275

Set up for bush camping $2,000

TOTAL $33,975

Year TWO with 3% inflation (solar paid year one): $32,934

You have saved $5,000 over the two years despite the rising fuel prices, plus you now have enough money to fly back from Perth to Sydney 3 times to see the Grandkids.

So you can still live your dream if you just want to make a few changes.....and who knows...you may even love bush camping more than you think................ From caravaners forum.
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Reply By: Member - Doug T (FNQ) - Sunday, May 25, 2008 at 16:51

Sunday, May 25, 2008 at 16:51
Yeh looks good on paper, but out in the real world things will be a whole lot different, you forgot repairs, tyres , puntures,services, and what happens when one goes shopping and sees things you think you might like ...you buy it , what about Internet, Phone, Rego's , maybe doctor bills, vets if you have a pet,
I better stop or there'll be no money left.

.
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Follow Up By: awill4x4 - Sunday, May 25, 2008 at 18:17

Sunday, May 25, 2008 at 18:17
Doug, don't bother with Ricks car it's not being missed by me. Put Frosty's car up instead lol.
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Follow Up By: Member - Doug T (FNQ) - Sunday, May 25, 2008 at 18:29

Sunday, May 25, 2008 at 18:29
awill4x4
Don't be silly, just because he got 3 / 3 in WA don't mean he'll get 3 at Sandown, besides it's a Ford ,

.
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Reply By: Member - kevin Y (SA) - Sunday, May 25, 2008 at 17:01

Sunday, May 25, 2008 at 17:01
deary deary me ---o boy ---if i only had half that money ------made big boo boo years ago and sold my house ---i'm still alive to regret that part
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Follow Up By: Member - Warfer (VIC) - Sunday, May 25, 2008 at 17:49

Sunday, May 25, 2008 at 17:49
made big boo boo years ago and sold my house



Hiya Kev

Yeah i really cringe when people mention this on the Forum !
Sometimes it really hard to look into the future..
A few years back you'd be gone around Australia for 2-3 years and the housing market doubled or if not higher in that period..Theres no chance of getting back in especially if the kids had moved out and thats the reason (age etc etc) for doing it in the first place..



Goodluck Mate
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Reply By: Member - DAZA (QLD) - Sunday, May 25, 2008 at 17:38

Sunday, May 25, 2008 at 17:38
Hi Phillip S

I did-nt think the government would give you a pension with
$350000-00 in the bank, certainly not from Centre Link any way.

Cheers
Daza
AnswerID: 305778

Follow Up By: Member - Warfer (VIC) - Sunday, May 25, 2008 at 17:53

Sunday, May 25, 2008 at 17:53
Yeah usually they say spend up all the money in the bank and then come back ! Then we'll asset test you... lol

The asset test has risen a far bit over the last few years as i understand it...$35k is an income and i'll bet your balls lol that they'll not like that without reducing the benefit,,


Cheers
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Reply By: DIO - Sunday, May 25, 2008 at 18:08

Sunday, May 25, 2008 at 18:08
Who's making 8% at the moment? Most Super Lump Sums are going backwards at a worrying rate.
AnswerID: 305783

Follow Up By: Brew69(SA) - Sunday, May 25, 2008 at 18:28

Sunday, May 25, 2008 at 18:28
Assuming the Super is matured 8% in any bank is easy.
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FollowupID: 571876

Reply By: pelbo - Sunday, May 25, 2008 at 19:08

Sunday, May 25, 2008 at 19:08
If you read the article properly, the author said $350,000 in super, not the bank. So you can still receive a pension. What you have in a pension fund does not effect your pension.

Yes, super isn't doinf well right now. But like the last 40 years, irt will average 8.5% growth, even after this latest fall. And will do this for the next 40 years.

Also said $23,000 for food and all other items.
That’s correct. Covers food, repairs etc etc. Quite achievable on that budget, including internet and private health cover.

Why do you have to own a home? So the kids can inherit a fortune? Ever heard of renting? Not in a capital city, but in a small country town. Cheap.

How do I know this - I have been on the road in our caravan traveling for almost 3 years now. And we live well on that budget. We just don't act like juveniles and buy useless stuff we don't need. We even paid to ship our rig to Tasmania last year and spent 3 months towing the van down there. Also had enough money to fly interstate to visit the grand kids. And we service the tug every 5,000k and the van every 10,000k. Still stayed on our budget of $3000 per month. In fact, we are a little under that budget, even though fuel prices have risen so much.
AnswerID: 305797

Follow Up By: Member - Phillip S (WA) - Sunday, May 25, 2008 at 19:34

Sunday, May 25, 2008 at 19:34
Thanks Pelbo....there are the usual knockers on this site who are so negative that it's a wonder they still know how to breath..however it is for the the ones who still believe that you can live and see all that this country has to offer...and do it with style and comfort, without it costing you a fortune....Pelbo, thanks again...from us who have not given up.
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Reply By: Angler - Sunday, May 25, 2008 at 19:30

Sunday, May 25, 2008 at 19:30
A pension is certainly possible on 28G a yearImage Could Not Be Found
AnswerID: 305809

Reply By: Waynepd (NSW) - Monday, May 26, 2008 at 10:34

Monday, May 26, 2008 at 10:34
Thanks for this info Phillip S,
I plan to be in this situation or something similar in a few years and hadn't begun to research the possibilities yet. I should start looking at it i guess.
AnswerID: 305904

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