Who's in debt and by how much?

[Glenno23]

My wife and i are in a good spot

Bought a 450K house with a 265K loan (had the rest left over from the last house)

Both cars are paid off

No credit cards. 2 kids. At the moment, she is on maternity leave, so the 18 weeks of government money is paying the mortgage ( and have extra left over each fortnight) and when she goes back to work 2 days a week, her wage covers the mortgage, whilst mine pays the bills and gives us savings

When she goes back full time when the kids are both at school, it'll be party time, pay off the house and enjoy living and travelling

Used to have a credit card when i was younger and was very dumb with it. Learnt from my mistakes and got rid of it once it was paid off

I think they can be good if you're smart, but i wasn't back then. Too young with too much disposable income.

 

[woomera_skp]

Lazy, dumb, stupid - same thing. A lot of people don't have the ability to plan ahead or budget, and plenty have zero willpower. If you have 24 cans of coke for example, it's OK to not drink them all before your next weekly shop...

Home loans as a percentage of income is an inexact science. There's no point paying $600 a week to buy a place over the course of 30 years when you can rent it for $300 and pocket the rest. $15k in additional savings is worth more than one year's equity in a house on a long-term loan, and house prices aren't looking like booming any time soon. The more you can afford to put into a home loan the better, as getting the principal down is the aim of the game. There's also no point prolonging a compounding debt to stick to a defined figure of 40% or less of your income is sufficient to pay a lot more.

Good point...ATM i'm looking to buy a house with deposit ready and $25k Spare on top..However the repayments would make me Semi-disabled for my Luxury Life style at the moment (55% of my net income), The only Option is to rent it out till i get married, But that means i would either have to pay rent somehwere else which is the same Sh*t Really or move In with my Family and that is a disaster as they treat u like a 12 yrs old kid when u living at home.

Big Choice and houses are only getting more expensive by the day.I borrowed $20k to buy a new car 4 months ago to strengthen my credit Rating and Update my car before committing to a mortgage and paid 10k already (Basically any Leftover from my whole wage goes to the car repayment No saving added for the last 4 months) But once i finish the loan By the end of the year Im not sure what to do Either buy a house or keep on saving.

 

[woomera_skp]

I know people right now, that own a property valued at 650K can't even get an offer for 450k.

You kidding me Is that because people doing it tough or the area has gone down hill???

 

[woomera_skp]

My wife and i are in a good spot

Bought a 450K house with a 265K loan (had the rest left over from the last house)

Both cars are paid off

No credit cards. 2 kids. At the moment, she is on maternity leave, so the 18 weeks of government money is paying the mortgage ( and have extra left over each fortnight) and when she goes back to work 2 days a week, her wage covers the mortgage, whilst mine pays the bills and gives us savings

When she goes back full time when the kids are both at school, it'll be party time, pay off the house and enjoy living and travelling

Used to have a credit card when i was younger and was very dumb with it. Learnt from my mistakes and got rid of it once it was paid off

I think they can be good if you're smart, but i wasn't back then. Too young with too much disposable income.

It took me 4 credit cards To learn for me, Alot of diffrence when you have a debit mastercard though, Since its your money its amazing how hard it is to come out of your wallet instead of a credit card.lol

 

[woomera_skp]

Have you guys seen how much the forclosure Houses going for In america??? **** me a 2 Year old New double story House 4 bedroom House in a nice suburb area of atlanta for 65k-70k??? We are pretty lucky in here people over there are doing it really really tough ...Sank you China Love you long time and please come again for our natural resources.

 

[Fire]

Have you guys seen how much the forclosure Houses going for In america??? **** me a 2 Year old New double story House 4 bedroom House in a nice suburb area of atlanta for 65k-70k??? We are pretty lucky in here people over there are doing it really really tough ...Sank you China Love you long time and please come again for our natural resources.

Yeah, we're so lucky that our houses cost five times that.

Plus the high AUD is driving my industry offshore.

I could really do with a recession here. I'm far fromt he only one. There are always two sides to a coin.

 

[Ghostwriter]

Have you guys seen how much the forclosure Houses going for In america??? **** me a 2 Year old New double story House 4 bedroom House in a nice suburb area of atlanta for 65k-70k??? We are pretty lucky in here people over there are doing it really really tough ...Sank you China Love you long time and please come again for our natural resources.

There's a reason for that too, in the US there was a housing boom in which lots were built on spec, the banks gave out no doc loans, people couldn't pay back the loan, hence there is a surplus, we haven't had that problem here, for a start not a lot of houses are built on spec, especially not in a mass production style, also most new houses in the US are fibro/timber, very few are brick, which makes them quick, cheap and easy to build.
Another thing is they have different laws regarding foreclosure, if I default on my loan it stays on my personal credit details for life, over there they can hand the keys back to the bank and move on.
Comparing the US to Australia housing situation is very much a case of apples and oranges.

 

[woomera_skp]

Yeah, we're so lucky that our houses cost five times that.

Plus the high AUD is driving my industry offshore.

I could really do with a recession here. I'm far fromt he only one. There are always two sides to a coin.

What Industry Are you in?? It's a Dilemma with the High AUD these days, some benefit and others feel the squeeze.

 

[woomera_skp]

There's a reason for that too, in the US there was a housing boom in which lots were built on spec, the banks gave out no doc loans, people couldn't pay back the loan, hence there is a surplus, we haven't had that problem here, for a start not a lot of houses are built on spec, especially not in a mass production style, also most new houses in the US are fibro/timber, very few are brick, which makes them quick, cheap and easy to build.
Another thing is they have different laws regarding foreclosure, if I default on my loan it stays on my personal credit details for life, over there they can hand the keys back to the bank and move on.
Comparing the US to Australia housing situation is very much a case of apples and oranges.

hmmmm It makes sense now, I only knew That because My first cousin bought a second home for $70k and he told me about it and sent me pictures, i couldn't believe it and i thought $70k was like a 10% deposit, he told me that was all and he paid it in full and man o man it looks like a 1 million dollar new house in a good suburb of melbourne.But what you say now does make sense as to why its really cheap.

 

[Fire]

What Industry Are you in?? It's a Dilemma with the High AUD these days, some benefit and others feel the squeeze.

I work for a company that makes computer games.

So manufacturing, in a sense.

 

[woomera_skp]

I work for a company that makes computer games.

So manufacturing, in a sense.

Ouch Importing Side of it would be toughy these days, Hopefully our ,arket can Fill up these gaps.

 

[woomera_skp]

Didn't want to make another thread but i applied for another car secured loan from my bank Since i finished my old one (5 years but paid it in 1 yr 2 months), I wanted to upgrade my car and got a good price to sell on my current car (2007 model), However The car that i wanted with the extra Is Almost brand new but private Sale, I told My bank its 2010 Model and they insisted I can't qualify for the low Rate Because its not from a dealer something about They Trust Dealer Not private, i told them Its newer than what the dealer have for a 2010 model Plus the extra's and they wouldn't Budge, I even told them to have my funds in my other saving account as an insurance which covers 3x the laon amount but they wouldn't shake, are all the banks like that????I don't really blame them since its their condition but has it always been like that Dealer much more prefered??The interest comparison is like almost 5% as well.

 

[cairnsinformant]

Hello guys was wanting suggestions to help me decide what to do. I currently have credit card debt and am using my money post car payments and rent to pay of the credit card. But after having to use the card again for food etc at the end of the week i probably have $100 paid of the card. My other option I was thinking was a small loan to pay of the card and have some savings. As well as that I will have my money each week back id normally put into the card. Thoughts appreciated...

 

[ash_1050]

A

 

[cairnsinformant]

If it were me I would get the balance transferred to another card (have a look online for the suits your circumstances best), cut up the current card and ban myself from credit all together. I would then work out a practical and realistic budget that looks to pay off debt as quickly as possible.

If saving is a high priority I would use a 30/70 ratio of saving to debt payments and if it is non essential than I would put 100% of it into paying down debt. I would try and pick up part time work where practical to assist in this process.

I would also have a look online for ways to pay off debt as fast as possible, there are plenty of budget templates etc which will help you get back into the black and allow you to start putting away cash for a holiday, house deposit etc.

Very thankful for your response, I currently put 100% of my left over funds after car loan and rent onto my credit card. Even that isn't helping, I moved to Cairns a while ago and when I moved across I was without a job for a good four months. It has gotten to a point where everything finacial is killing me.

Your suggestion of getting another card and placing all the debt onto it sounds good, but it scares me to have another one of these damn things. I used to use the card well, put all of my bills onto it etc and then pay it off and it was always paid.

Also considered the Westpac Flexi Loan, I can consolidate all my debts into one loan and pay it of as quick as I wish?

 

[Borry]

AMEX: $1900
VISA: $1800
Car loan: $7600

Lost my job at the start of this week, so if I don't get a job within the next three months I'll go crazy. The CC debt in total was out to $6000 in June, so I am working hard to wipe it off. I dream of the day where I can be totally debt free (apart from HECS).

 

[ash_1050]

a

 

[brooklyn]

you can buy a $400k, 2 bedroom apartment in mlbourne, or a $400k, 2 bedroom apartment in NY...
while there is a lot more upper echelon living in NY, the two cities apartment values are largely comparable...
yep, i know where id rather live

 

[fairdinkum]

@^

'yep, i know where id rather live'

Where would you rather live?

 

[Cuzz09]

you can buy a $400k, 2 bedroom apartment in mlbourne, or a $400k, 2 bedroom apartment in NY...
while there is a lot more upper echelon living in NY, the two cities apartment values are largely comparable...
yep, i know where id rather live

@^

'yep, i know where id rather live'

Where would you rather live?

Ive just got back from NY and Id live in Melbourne hands down every day of the week

Nothing against NYC - was awesome - but its no Melbourne

 

[Kenny_01]

Hope quickstraw is enjoying his kazillion negatively geared properties.

 

[bunsen burner]

Hope quickstraw is enjoying his kazillion negatively geared properties.

Why that's very kind of you. And yes, I am enjoying them long time. I mean, err, yes, I'm sure that jolly chap Quickstraw is enjoying them immensely.

 

[Ghostwriter]

Back in debt, bought another house and are using the first as a rental, which is paid for, not sure if it is the right way to structure the home loan, can I swap the loan for the house I currently live in and put it on the rental which is paid for thus the rent pays the loan?

 

[bunsen burner]

Back in debt, bought another house and are using the first as a rental, which is paid for, not sure if it is the right way to structure the home loan, can I swap the loan for the house I currently live in and put it on the rental which is paid for thus the rent pays the loan?

Nope.

The loan repayments of your rental are tax deductable but on your PPOR they are not. Pretty sure it is too late to swap. I think you'd have to get a new loan (on the rental), pay out your current loan and early settle fees.

I'm surprised your loan guy didn't suggest you structure it correctly. The difference is substantial.

 

[Ghostwriter]

Nope.

The loan repayments of your rental are tax deductable but on your PPOR they are not. Pretty sure it is too late to swap. I think you'd have to get a new loan (on the rental), pay out your current loan and early settle fees.

I'm surprised your loan guy didn't suggest you structure it correctly. The difference is substantial.

Taxwise?