We have exchanged contracts to buy a house at Moonta Bay in South Australia (pictured). It’s one year old, in a quiet area about 15 minutes walk from the beach.

Moonta Bay is less than two hours drive from Adelaide on the Yorke Peninsula. We came to know and like that area when we lived at Port Pirie.

We’ll rent the house out, but hopefully in 20 years it will still be in good enough nick to be our retirement home.

I sold my managed funds this week to pay the deposit, which was good timing given the fall in world share markets over the past few days. We timed it perfectly in fact and hung onto probably $2000 which would otherwise have been lost.

Interest rates look like going up, but we’ll be able to absorb a few rises without too much trouble.