Never mind at least you haven't been over estimating your condom size......
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
1. They can purchase other goods using the equity (cars, holidays, IPs etc) 2. They can reverse mortgage and live off the equity in retirement 3. They can sell, downsize, and pocket the spare cash 4. They have a more valuable asset to pass down to their kids/grandkids
1. Financially one of the stupidiest things any person could do with a mortgage, they could get a personal loan at 35% IR pa and still pay less than having a consumable item purchased through equity on a mortgage. You are a complete financial retard for mentioning this again!
2. As we've discussed this is the only real option but only exists once you've paid it off, the number of people going into retirement with debt is rising exponentially every year
3. The value of the home below would have risen in value roughly equal to the home your selling. If you take into consideration interest repayments on the house your selling, taxes and charges to get in and out of it then your pocketing FA. Besides my statement centred around remaining in the home, as we've seen people are extremely reluctant to sell the home they spent 40 yrs trying to work and upgrade to and raise a family in
4. They would be dead, therefore of it was worth a trillion dollars it would still have no tangible worth to them whilst they are living and breathing inside the stupid thing
Price rises for an individual who lives in a PPOR, pays down the mortgage and never leveraged off it (which we have established is the vast majority of home owners) do not get 'richer' from house price rises.
1. They can purchase other goods using the equity (cars, holidays, IPs etc) 2. They can reverse mortgage and live off the equity in retirement 3. They can sell, downsize, and pocket the spare cash 4. They have a more valuable asset to pass down to their kids/grandkids
We have established number four for quite a while now.
Our focus will be to live and not worry what tomorrow brings financially.
A percentage of Funds and if need be the selling of a property will always be available to utilize in life unexpected positives and negatives.
Edit Number 4 is varied in our position in that we can provide props for all three kids while we are certainly alive and there is no need to wait to transfer assets when the hubs and I die... as the norm with other families who get more wealth when someone dies.... Of course when that time comes assets will be as per specific Will instructions by Hubs and I.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
1. Financially one of the stupidiest things any person could do with a mortgage, they could get a personal loan at 35% IR pa and still pay less than having a consumable item purchased through equity on a mortgage. You are a complete financial retard for mentioning this again!
2. As we've discussed this is the only real option but only exists once you've paid it off, the number of people going into retirement with debt is rising exponentially every year
3. The value of the home below would have risen in value roughly equal to the home your selling. If you take into consideration interest repayments on the house your selling, taxes and charges to get in and out of it then your pocketing FA. Besides my statement centred around remaining in the home, as we've seen people are extremely reluctant to sell the home they spent 40 yrs trying to work and upgrade to and raise a family in
4. They would be dead, therefore of it was worth a trillion dollars it would still have no tangible worth to them whilst they are living and breathing inside the stupid thing
1. Incorrect. In fact there is nothing to 'pay' because any repayments simply come out of the growing equity. Remember, you can't take it with you when you die. For many people, as Bardon mentioned, the challenge will be to spend the equity fast enough before they die. There is only so much caviar one can eat!
2. Incorrect. It is not necessary to have fully paid off an existing loan before taking out a reverse mortgage.
3. Incorrect. Let's say the large property has doubled from $1M to $2M, and the downsize property has doubled from $500K to $1M. The homeowner can downsize and pocket $1M, less 5% stamp duty and buy/sell costs. There is no capital gains tax on a PPOR.
4. Incorrect. The knowledge that their descendants will be financially secure is of great value to many parents and grandparents.
Ok, so nothing was actually stolen by the boomers then, other than your sense of "entitlement"? As I surmised?
I bought my first house in 1992 (as stated in earlier posts on this very thread, and many others), when Sydney prices were about 5x average wages - but interest rates were 10%-12% until the late 90s. I bought my second house (upgrade - ie sold first house) in 1999 - by then the median multiple was close to 10 actually.
Yep - so you *do* feel entitled? Thought so.....
You know when Sydney was first established, they gave land away for nothing! Literally for nothing! Should I be angry that I was not afforded the same opportunity as my ancestors who got free land in central Sydney? (And I do have ancestors that were around in Sydney back then by the by).
When I bought things were different to now, yes - taxes were much higher, real wages and disposable incomes were lower, interest rates were higher, unemployment was much higher, there were less people in Sydney, there was less high density housing as a proportion of the housing stock, and house prices were lower (in gross wage multiple terms) for all these and other reasons (although the quality of housing was on average lower as well). But even then there were loads of people (peers of mine) just like you who whinged about how expensive and un-affordable it all was (as they jetted off to London for a working holiday for a year or 2, while I was saving for a deposit or paying down a mortgage of course ).
We each have to deal with the circumstances that are presented to us in our lifetimes - the good and the bad. There is huge opportunity today that I was not "afforded" back in my younger days for all sorts of things - should that make me jealous? Angry? Rufus hits the nail on the head with his post as well.
Your problem Chris is really all about your own attitude - until you sort that out, you will continue to an angry and bitter man who wants for all and has naught.
I got to gain some personal insight in those early nineties by having the opportunity to look at my BB brothers and my own Hubs who also a Boomer in the type of IR they got in their varied mortgage documentation during that timing.
Times have certainly changed with IR.
Chris
10 Jul 2017, 02:28 PM
1. Financially one of the stupidiest things any person could do with a mortgage, they could get a personal loan at 35% IR pa and still pay less than having a consumable item purchased through equity on a mortgage. You are a complete financial retard for mentioning this again!
2. As we've discussed this is the only real option but only exists once you've paid it off, the number of people going into retirement with debt is rising exponentially every year
3. The value of the home below would have risen in value roughly equal to the home your selling. If you take into consideration interest repayments on the house your selling, taxes and charges to get in and out of it then your pocketing FA. Besides my statement centred around remaining in the home, as we've seen people are extremely reluctant to sell the home they spent 40 yrs trying to work and upgrade to and raise a family in
4. They would be dead, therefore of it was worth a trillion dollars it would still have no tangible worth to them whilst they are living and breathing inside the stupid thing
Price rises for an individual who lives in a PPOR, pays down the mortgage and never leveraged off it (which we have established is the vast majority of home owners) do not get 'richer' from house price rises.
Do you get that when some thing is positive in cash flow there can exist financial choice in putting $ aside in an account ( in my case it was rental proceeds that I didn't want to use regularly ) that's dedicated NOT to be touched be it a mojo for and save up for a goal?
*dedicated account for 1 Ip proceeds*
Bardon
10 Jul 2017, 01:42 PM
This is the path that I will most likely go down.
Foie gras or cavair, whist sipping my cognac in the best hotel in St Petersburg, then limousine for my first class flight to Manhattan for the film festival. My challenge will be try to consume my equity at the same rate of faster than its rising, pretty tough challenge that I have set myself I know, but my wife and I will be giving it our best shot.
I hope to die with cheese...... and the hubs does not mind.....
Nibble Nose cheddar whilst in Zurich buy the regular mature cheddar(black) and the garlic and chive (white) both are delicious .
The price is 5.95CHF per 200g piece which is damn similar to the uK price of 3.95GBP, only 1CHF more!
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
1. Financially one of the stupidiest things any person could do with a mortgage, they could get a personal loan at 35% IR pa and still pay less than having a consumable item purchased through equity on a mortgage. You are a complete financial retard for mentioning this again!
This is right up there with all the other incredibly stupid assertions that you have made Chris! You really think that borrowing money at an interest rate of 35%pa is somehow cheaper than borrowing money at 3.8%? Who is the retard again?
PS - you do know that you do not have to pay only the minimum payment on a variable rate mortgage each month, right? That you can pay more if you want?
For Aussie property bears, "denial", is not just a long river in North Africa.....
In fact there is nothing to 'pay' because any repayments simply come out of the growing equity. Remember, you can't take it with you when you die. For many people, as Bardon mentioned, the challenge will be to spend the equity fast enough before they die. There is only so much caviar one can eat!
One solution is to triple the size of servings, that way you may have a fighting chance!
This is right up there with all the other incredibly stupid assertions that you have made Chris! You really think that borrowing money at an interest rate of 35%pa is somehow cheaper than borrowing money at 3.8%? Who is the retard again?
PS - you do know that you do not have to pay only the minimum payment on a variable rate mortgage each month, right? That you can pay more if you want?
I'm wondering this myself.
Option 1: You buy a car, get a car loan at 17% and pay it off in 5 years
Option 2: You buy a car, put it on the home loan at 4% and pay it off in 5 years
1. Incorrect. In fact there is nothing to 'pay' because any repayments simply come out of the growing equity. Remember, you can't take it with you when you die. For many people, as Bardon mentioned, the challenge will be to spend the equity fast enough before they die. There is only so much caviar one can eat!
2. Incorrect. It is not necessary to have fully paid off an existing loan before taking out a reverse mortgage.
3. Incorrect. Let's say the large property has doubled from $1M to $2M, and the downsize property has doubled from $500K to $1M. The homeowner can downsize and pocket $1M, less 5% stamp duty and buy/sell costs. There is no capital gains tax on a PPOR.
4. Incorrect. The knowledge that their descendants will be financially secure is of great value to many parents and grandparents.
1. Still the stupidiest financial advice I have heard anyone give, ever! This will be by far your defining moment, your legacy if and when you retire from the forum game. It's also in complete contradiction to your number 4. You've also given an example of accessing a line of credit which contradicts my OP where the home is not used as collateral for anything, which is the majority of home owners.
2. This is true but again contradicts your number 4. Another example of accessing a line of credit which contradicts my OP where the home is not used as collateral for anything, which is the majority of home owners.
3. You've left out the interest component paid over the life of the larger home, this is dead money once you downsize again and is an expense you need to account for.
4. Will not occur if you do any of the above.
You see high house prices do not make individuals who own a PPOR, who don't leverage off it or get any line of credit or reverse mortgage but just pay down the mortgage and live in it, wealthier. For these people, who are the vast majority, house price rises do not make them wealthier but they are lead to believe it does, some morons here believe it to be true also.
In fact as we've seen high house prices effectively make the majority poorer
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