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2017 coming; Where is the crash
Topic Started: 9 Oct 2016, 09:41 PM (4,545 Views)
Simon_S
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Trollie
10 Oct 2016, 03:46 PM
Nope, very little sacrifice and no additional hard work compared to paying rent. I took me no where near 30 years either.

But don't let facts get in the way of your bleating. Go right ahead and follow your plan to be a life time renter.
Sydney median is a million dollars is it not?

What are the repayments on a Million Dollar mortgage again..........

5K a month?

Yep that's all just loose change..........



Sydneyite
10 Oct 2016, 03:39 PM
I don't think the average is 25-30 years by the way -

I've paid off 3 PPOR mortgages (for 3 separate residences) over a 20 year period,
Please provide evidence of this otherwise its just another meaningless assertion.

Now please Explain how some one would pay off a median priced house in Sydney at 1 Million in less than 7 years.

Which is around 14K a month in repayments.

Edited by Simon_S, 10 Oct 2016, 05:07 PM.
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Trollie
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Simon_S
10 Oct 2016, 04:52 PM
Sydney median is a million dollars is it not?

What are the repayments on a Million Dollar mortgage again..........

5K a month?

Yep that's all just loose change..........

And yet the average loan is only $437,100.

http://www.smh.com.au/business/banking-and-finance/average-nsw-home-loan-jumps-78100-in-a-year-20151009-gk5b6q.html

You still lost or is the fog clearing a little?
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b_b
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Simon_S
10 Oct 2016, 04:52 PM
Sydney median is a million dollars is it not?

What are the repayments on a Million Dollar mortgage again..........

5K a month?

Yep that's all just loose change..........




Please provide evidence of this otherwise its just another meaningless assertion.

Now please Explain how some one would pay off a median priced house in Sydney at 1 Million in less than 7 years.

Which is around 14K a month in repayments.
Assuming a 20% deposit you can pay off the residual loan ($800k) in 7 years with monthly payments of $10.935045k.

The calculation is pretty easy - just divided the principal sum by the following formula for the monthly payment.
=(1-(1+0.04/12)^(-7*12))/(0.04/12)

0.04 is the assumed interest rate (4%)
-7 is the term in year (seven)

Change the assumption to how you see fit.

Not an easy task I grant - but two well paid executives can manage it.

The task will be easier as interest rates fall to ZIRP. Or easier if you want to pay it off in 20 years.
Edited by b_b, 10 Oct 2016, 05:30 PM.
(S – I) + (T - G) + (M - X) = 0
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Terry
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b_b
10 Oct 2016, 05:25 PM
Assuming a 20% deposit you can pay off the residual loan ($800k) in 7 years with monthly payments of $10.935045k.

The calculation is pretty easy - just divided the principal sum by the following formula for the monthly payment.
=(1-(1+0.04/12)^(-7*12))/(0.04/12)

0.04 is the assumed interest rate (4%)
-7 is the term in year (seven)

Change the assumption to how you see fit.

Not an easy task I grant - but two well paid executives can manage it.

The task will be easier as interest rates fall to ZIRP. Or easier if you want to pay it off in 20 years.
Dumpster diving
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Simon_S
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Trollie
10 Oct 2016, 05:19 PM
And yet the average loan is only $437,100.

Average........


b_b
10 Oct 2016, 05:25 PM
Assuming a 20% deposit
How long did it take to save up 200K........
Edited by Simon_S, 10 Oct 2016, 06:57 PM.
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Sydneyite
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Simon_S
10 Oct 2016, 06:56 PM
Average........



How long did it take to save up 200K........
It took me 5 years to save the deposit for my first home, which I bought the hard way as a single income earner rather than as a DINK couple.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Simon_S
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Sydneyite
10 Oct 2016, 07:12 PM
It took me 5 years to save the deposit for my first home, which I bought the hard way as a single income earner rather than as a DINK couple.
When......

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Jon Snow
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b_b
9 Oct 2016, 11:50 PM
Low interest rates, cheap food, cheap goods, and cheap energy.

Doesn’t sound so bad.

Sounds excellent to those with cash savings.

For those with debt ... not so much.

Jimbo
10 Oct 2016, 03:46 AM
The GFC started in 1971 and has a few more years to run yet.

Actually, 1961.
http://www.robotics.org/joseph-engelberger/unimate.cfm
Edited by Jon Snow, 10 Oct 2016, 07:40 PM.
Speak when you are angry and you will make the best speech you will ever regret.
Ambrose Bierce
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Rufus
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Jon Snow
10 Oct 2016, 07:38 PM

Sounds excellent to those with cash savings.

For those with debt ... not so much.



Actually, 1961.
http://www.robotics.org/joseph-engelberger/unimate.cfm
It's particularly good for those with debt, and the low rates are quite unattractive for those with savings, but please feel free to prove otherwise.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Jon Snow
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Sydneyite
10 Oct 2016, 07:12 PM
It took me 5 years to save the deposit for my first home, which I bought the hard way as a single income earner rather than as a DINK couple.
When the house price to single* income ratio was 4, not 9.


*Note to resident time travelling serial killer from the sub-continent: I don't give a f*** about your household income metric or chart.
Speak when you are angry and you will make the best speech you will ever regret.
Ambrose Bierce
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