I'm a financial idiot - what should i do?

[Smoke Pursuit]

Originally Posted by Dash_XR

Good advice, now you own your house AND have a 2014 F6.



I think they were in G6E up and an option in everything else. So the mk1 has two curtain airbags and the mk2 has 4?

Mk1 has no curtain airbags standard. Just the ones in the dash, steering wheel and seats.

[Dash_XR]

Originally Posted by NTF6

Yep.

I despise paying interest, as young bloke growing up I reckon I wasted so much money paying interest on things I didn't really have too. About 20 years ago I stopped paying interest on my credit cards and always payed off the closing balance in full, I still spend a heap per month on my card, I just pay it all off come the due date that's all. And now I reckon that has saved me heaps of interest.

Yeah me too, people forget if you take 30 years to pay it off it costs 3 times as much.

[STINKY NINJA]

You must already have cash on hand because id love a 2013 turbo for 20g!

[323Turbo]

26g mate

[323Turbo]

Originally Posted by NTF6

It's all about paying as little interest as you can to the banks/lenders. I stuck by this theory for many years and managed to pay my house completely off in 14 years and I didn't have to bust a nut working heaps of overtime or second jobs to do it.

I had about 90k in the bank about 4 months ago and while it's nice to sit there and look at it, it's nice to look at my payed off home and now I'm already back up to 15k in savings again.

yep, my job is cruisey.
if i lived in a real nice $500k house away from the city I would be mortgage free, but at the moment I have a 1 (plus the rental) 5kms from the city.
Once my kids finish school in a few years i might move down south tho :-]

[Trump]

Keep in mind that if you use the redraw facility, you can own the car outright.

The big question I'd be asking myself is does it make sense to fund the purchase of a rapidly depreciating new(ish) car by borrowing?

[NTF6]

323Turbo: Once my kids finish school in a few years i might move down south tho :-]

Yep, those suckers can bleed money out of you faster than the best illusionist.

I'm lucky, my last one kicked off to Uni 3 weeks ago so I'm laughing.

And I only have a half full wheely bin on bin day now and strangely more food in the fridge.

[sbutler]

Originally Posted by usernametaken

I get scared when I read posts like this...

Why, I had 5 at one stage, never lost a cent on any of them, Made money on the two I sold & the tenets help pay the payments. So I now only have 3 houses & will be selling 2 at over double what I paid 7 years ago. & will be thinking of taking an early retirement.
So what scares you??

[Ben73]

Originally Posted by usernametaken

Mate, you owe 400k on your house.

That's a lot of money.

How secure is my job - that's the first question I'd be asking myself.

A lot of money? Well that depends on his personal situation. If his household income is 200k a year, 400k is not heaps. If his household income is 50k a year, then yes it is a lot.
Job security is an important one though. I wouldn't finance anything if I had a slight suspicion I would be jobless in the near future. Surely most people think like that. Especially people who already have a mortgage. I did notice I became a lot more financially responsible after getting a mortgage

[usernametaken]

Originally Posted by sbutler

Why, I had 5 at one stage, never lost a cent on any of them, Made money on the two I sold & the tenets help pay the payments. So I now only have 3 houses & will be selling 2 at over double what I paid 7 years ago. & will be thinking of taking an early retirement.
So what scares you??

Um..... because house prices will not always go up.

You were lucky.

[99AUXR]

Most people with the capital required do very well out of property.

[richo77]

Originally Posted by usernametaken

Um..... because house prices will not always go up.

You were lucky.

Long term property prices have increased since Moses wore short pants. There will always be ups and downs in the market but long term have always been positive.

[usernametaken]

It doesnt mean it will continue.
It's not sustainable

[richo77]

Past performance is the best indicator of future performance.

[ebxr8240]

Put it on house and pay it off in 4 /5 years .. Your mortgage will come down too... As its calculated over full term of loan.. BUT DONT do that ! As said pay it off in much shorter time ..

[sbutler]

Originally Posted by usernametaken

Um..... because house prices will not always go up.

You were lucky.

Your kidding right? House prices always go up. Yes they can stumble at times, but they never go down, unless they were worthless in the first place & you bought next to a coal mine or something. How many times in your life have you heard I could have bought that 5 years ago for only XXX & now its worth double that?.
Ever heard the saying "Invest in bricks & morter" Nothing has changed. Just some people take a few risks in life & some take no risks.

[usernametaken]

Yep, this is sustainable.

Like I said - you were lucky.

[dragons90]

Originally Posted by sbutler

Your kidding right? House prices always go up. Yes they can stumble at times, but they never go down, unless they were worthless in the first place & you bought next to a coal mine or something. How many times in your life have you heard I could have bought that 5 years ago for only XXX & now its worth double that?.
Ever heard the saying "Invest in bricks & morter" Nothing has changed. Just some people take a few risks in life & some take no risks.

I bet the people in the US said that before there price of houses crashed through the floor

[STINKY NINJA]

Originally Posted by 323Turbo

26g mate

Im looking for an fg turbo at the moment and im in perth,i havent seen any even close to that price.

Edit that...

I have told a lie,i have seen the car/s you are talking about but 80000km is high imo,good luck though!

[sbutler]

The GFC was bought on by the US banks, lending more money then the house was worth in the first place. It never effected our market at all.. Oh & BTW the average house price has risen 12% in the last 6 months, in most regional towns & city, & will do for some time to come. With interest rates at an all time low, you only have to budget on them going up at some stage. So if you do that you will be fine... If not you'll head down the USA's road & your house will be worth less than you paid..

But anyway you play it safe & be happy.

[INJECTED_250]

Is it the low interest rates /cheap finance thats helping house prices go up.... seems to reason once interest rates go up house prices should go south???

[Yellow_Festiva]

Originally Posted by INJECTED_250

Is it the low interest rates /cheap finance thats helping house prices go up.... seems to reason once interest rates go up house prices should go south???

Not easy to answer - so many variables to consider but yes low rates are a large factor.

Perhaps start a new thread if you want this discussed ;)

[nuthin' fancy]

Originally Posted by Loud_Noises

Keep in mind that if you use the redraw facility, you can own the car outright.

The big question I'd be asking myself is does it make sense to fund the purchase of a rapidly depreciating new(ish) car by borrowing?

^^^

This

Personally, I think the idiocy is buying a whole lot of depreciation when you owe $400k.

$19,000 at 7% = $376.22 pm x 60 payments = $22,573 total pay.

Car is then 8 years old - 2007 BF Xr6 Turbo avg value $12k at a quick glance.

Don't buy the car, pay $376.22 extra on your mortgage and you pay an extra $25,585 off the mortgage over the period.

Mind you, money is cheap and the money is yours.

Hope all the advice helps you decide.

[usernametaken]

Originally Posted by sbutler

The GFC was bought on by the US banks, lending more money then the house was worth in the first place. It never effected our market at all.. Oh & BTW the average house price has risen 12% in the last 6 months, in most regional towns & city, & will do for some time to come. With interest rates at an all time low, you only have to budget on them going up at some stage. So if you do that you will be fine... If not you'll head down the USA's road & your house will be worth less than you paid..

But anyway you play it safe & be happy.

Read this.

Then read it again.

http://www.news.com.au/finance/econo...-1227264688359

[sbutler]

No.

[323Turbo]

Originally Posted by STINKY NINJA

Im looking for an fg turbo at the moment and im in perth,i havent seen any even close to that price.

Edit that...

I have told a lie,i have seen the car/s you are talking about but 80000km is high imo,good luck though!

yep 77000kms is high for a 2013 - they are ex cop cars after all, but that doesnt worry me, they have a year of factory warranty left & i will do about 5000kms a year (at most!) in it, so after a few years the kms on most other cars will catch up :-)

[323Turbo]

Originally Posted by nuthin' fancy

^^^

This

Personally, I think the idiocy is buying a whole lot of depreciation when you owe $400k.

$19,000 at 7% = $376.22 pm x 60 payments = $22,573 total pay.

Car is then 8 years old - 2007 BF Xr6 Turbo avg value $12k at a quick glance.

Don't buy the car, pay $376.22 extra on your mortgage and you pay an extra $25,585 off the mortgage over the period.

Mind you, money is cheap and the money is yours.

Hope all the advice helps you decide.

great post, but I actually owe $1 million with the investment property.


by the way, cool signature - i love Joe Walsh

[ebxr8240]

Best DONT look at nice cars and NEVER go into car yards !
Too tempting!
I had an XD 351 and EBXR from 1980 till just recently ! Ok I spent some $$ on them but NOTHING was borrowed ! Over that time I've paid off my home and have 3 investment properties way in positive gearing that I can retire .. The money I saved on negative gearing helped big time paying ( 4years) my home I live in off..
I don't mean to brag but see the difference in handling $$$

[323Turbo]

well i went and had a look at 3 of these cars yesterday, test drove 1 and to be honest i was a little underwhelmed by the power & disappointed these 2013 build cars had no reverse camera.

anyway I bargined down to a reasonable price & then got cold feet & left lol.

fg turbo mark 2's drive beautifully though, would much rather one over my 2008 bmw 335i that i sold last year