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| Thread ID: 106691 | 2010-01-19 06:35:00 | Mortgage question. | Nomad (952) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 849921 | 2010-01-19 22:50:00 | Yep, they would take a decent amount of deposit. I am fortunate still living at home, I think that is the only way I can get a better start with the mortgage - to save for the deposit. I did some maths a while back, that is if I were renting, and paying other costs, it may take a couple a good 5yrs to get a decent deposit and then sign up for a 30yr mortgage. Maybe 25yr if you be frugal. Given you are not wasting rent away and that you have an asset it works despite paying interest. Interest could be 2x the cost of the house. So you end up paying 3x in total. Not adj for inflation. My old man says poor souls like me can eat cabbage and potatoes and ride bicycles for the rest of our lives while he capitlise his rental income and his appreciated asset and run his knife through his steak and eat crayfish :annoyed: |
Nomad (952) | ||
| 849922 | 2010-01-19 23:59:00 | You can also rent out the rooms of any house you buy for additional income. What you can do is split the mortgage into fixed (eg 25 year interest only) and a revolving credit and have your pay go directly into the revolving credit. This means your income is saving you interest from day one. Do some detailed scenarios in excel, you'd be surprised at what is possible :) | utopian201 (6245) | ||
| 849923 | 2010-01-20 00:11:00 | You old man is switched on, but i would be pissed off if my old man was doing that and taking the piss and never taught me to handle money or how to invest. You should start watching what he his doing |
Gobe1 (6290) | ||
| 849924 | 2010-01-20 00:42:00 | I did some maths a while back, that is if I were renting, and paying other costs, it may take a couple a good 5yrs to get a decent deposit and then sign up for a 30yr mortgage. My old man says poor souls like me can eat cabbage and potatoes and ride bicycles for the rest of our lives while he capitlise his rental income and his appreciated asset and run his knife through his steak and eat crayfish :annoyed: Naturally he is joking. The thing with a mortgage is you borrow a fixed amount. After 10 years or so that amount seems pitiful in comparison to current house prices and your wages. Which is how people pay it off quicker than the original term. Then you get to eat crayfish too. If you're into that sort of thing, personally I can't stand the stuff. |
pctek (84) | ||
| 849925 | 2010-01-20 01:10:00 | Yes that is true also, i remember the first house i brought 15 years ago was $110k, was **** loads of money then, now a house is like $400k and i think WTF, but in 15 years i will look back and laugh Well i hope so anyway... |
Gobe1 (6290) | ||
| 849926 | 2010-01-20 02:19:00 | Yes that is true also, i remember the first house i brought 15 years ago was $110k, was **** loads of money then, now a house is like $400k and i think WTF, but in 15 years i will look back and laugh Well i hope so anyway... Thats where the gambling is, if you bet on house prices always gaining, and that those gains will be uniform over time. Infact prior to thee late 90's house prices prises had been mediocre. It is largely due to the labour introduction of the 39% tax rate that caused house prices to jump in the 2000,s, as high income earners put their money into properties to then claim the loss, which they could then reduce their tax liabilities. If you buy a house, you are buying it to live in, therefore when you sell, you will usually be buying another in that same market, so really the gain in it's market worth doesn't really matter. As NZ house prices are so out of whack, compared to our income, which makes NZ houses some of the most unaffordable in NZ, and this will correct itself eventually. One thing is fairly certain and that is that property laws are going to change, which will affect house prices. There is likely to be a 0.5% pa land tax introduced, and possibily a CGT on investment property. Also investors may not be able to claim losses and depreciation againest their pesonal income. Also they are looking at reducing personal tax rates, which may mean that that the benefits of property investment may disappear. |
robbyp (2751) | ||
| 849927 | 2010-01-20 02:45:00 | One thing is fairly certain and that is that property laws are going to change, which will affect house prices. There is likely to be a 0.5% pa land tax introduced, and possibily a CGT on investment property. Also investors may not be able to claim losses and depreciation againest their pesonal income. Also they are looking at reducing personal tax rates, which may mean that that the benefits of property investment may disappear. I support some of that even if I am saving for my house deposit. I think CGT exempted from the home you live in but not in your investment home. Althou how does determine if it's their work home batch, ie., they may live in the rural but have a small batch in the city or it might their own holiday home :confused: :thumbs: |
Nomad (952) | ||
| 849928 | 2010-01-20 03:00:00 | Yea will be a small handful of people that legitimately live in two houses, I guess if neither are rented out they could be exempt from CGT. Keep in mind many that have investment property do so under LAQC. To claim tax back the location of the investment property is given along with a crap load of other stuff. |
Battleneter2 (9361) | ||
| 849929 | 2010-01-20 03:04:00 | Yeah but some gain capital from house price rises, that's a fair chunk as well. Some also rent places without legitimate contracts, ie., its doesn't involve Housing NZ. Under the table thing. I must say that if it wasn't renting, you have more freedom, you can drill some holes and not be told off or change that oven or hot water heater or install a heat pump and not deal with unhelpful landlords. |
Nomad (952) | ||
| 849930 | 2010-01-20 03:33:00 | Probably it would be best if you consulted a mortgage broker. | Sweep (90) | ||
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