Cutting down on frivolous spending to keep up with first home mortgage wasn't easy; But he doesn’t regret the sacrifices made to enable him to get on the ladder and build wealth in Sydney's housing boom
Tweet Topic Started: 16 Sep 2017, 11:42 AM (1,825 Views)
Somehow using 'equity' to withdraw cash or to make purchases on holidays or materialistic goods isnt considered frivolous.
TBH I hardly ever see that. Usually equity is withdrawn for more investments, inject cash into the business, maybe buy a vehicle, renovate the home, very rare for people to just waste their money on rubbish they can't afford or don't need.
It stretches belief that people who don't own a house constantly assume that all those who do own a home make stupid decisions with their finances, when circumstances tend to demonstrate the exact opposite.
Take risks - if you win you will become wealthy, if you lose you will become wise
I find that when people pay with their own money it is rarely done frivolously.
For example Only f***wits with mortgages would pay $300,000 over the reserve
Nobody ever mentions that if someone pays $300K over the reserve and it can't be substantiated it won't value up for the bank, and they won't get finance, unless of course the market price is $300K over the reserve.
Newspapers love these $300K over the reserve auction result stories, but I doubt that are the norm. There may also be other considerations that the journo doesn't mention or even know about.
Nobody ever mentions that if someone pays $300K over the reserve and it can't be substantiated it won't value up for the bank, and they won't get finance, unless of course the market price is $300K over the reserve.
Newspapers love these $300K over the reserve auction result stories, but I doubt that are the norm. There may also be other considerations that the journo doesn't mention or even know about.
I remember when it was a fight to get the bank to lend me 75%. They were going the whole hog and virtually demanding I take 110% so I could 'cover' stamp duty, legal, and buy some nice furniture etc.
I'm pretty sure banks actuarials have costed in a % where they allow banks the generosity to finance $300k over the reserve to keep the wonder stories stimulating the dullards flights of fancy.
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
TBH I hardly ever see that. Usually equity is withdrawn for more investments, inject cash into the business, maybe buy a vehicle, renovate the home, very rare for people to just waste their money on rubbish they can't afford or don't need.
It stretches belief that people who don't own a house constantly assume that all those who do own a home make stupid decisions with their finances, when circumstances tend to demonstrate the exact opposite.
What circumstances Rufus?
That's just you sprouting anecdotal rubbish again.
Shadow spent a whole thread with others in tow telling me the virtues of using equity on the very things I mentioned as it's a 'smart' way to enjoy your 'never ending' equity apparently.
I would also think the car industry, white goods and electrical industry along with travel agents would go into free fall if the general population couldn't uses equity to buy descretiinary items.
This is also the underlying issue in Australia, tapping equity means debt is not getting paid down.
I'm pretty sure banks actuarials have costed in a % where they allow banks the generosity to finance $300k over the reserve to keep the wonder stories stimulating the dullards flights of fancy.
And I am pretty sure that when a buyer purchases at auction above the reserve price it is because another bidder was willing to pay just a little less than them. So that makes two of them.
Shadow spent a whole thread with others in tow telling me the virtues of using equity on the very things I mentioned as it's a 'smart' way to enjoy your 'never ending' equity apparently.
I would also think the car industry, white goods and electrical industry along with travel agents would go into free fall if the general population couldn't uses equity to buy descretiinary items.
This is also the underlying issue in Australia, tapping equity means debt is not getting paid down.
Quote:
What circumstances Rufus?
That's just you sprouting anecdotal rubbish again.
I'm more included to listen to an anecdote from Rufus who sees how hundreds of equity withdrawals are spent than you who have seen, how many?
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