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Thread ID: 88496	2008-03-29 19:40:00	Do you find your mortgage crippling?	pctek (84)	PC World Chat

Post ID	Timestamp	Content	User
654034	2008-03-29 21:32:00	I would suggest that the $120000 income is gross, that is before tax. So nett income is probably about $80000 to $85000. If that were the case and it doesn't say before tax in the article, then the $900 / Week, & the $375,000 will also have to be Before tax - so it all evens out. What is interesting in that article is the couple approached banks for a 100 per cent $375,000 loan the couple had money to spare, but the mortgage has put a stop to that - and their social life. "We always had that bit of extra cash. SO why didn't they save money if they had extra cash towards a home if they knew they were going to purchase one one day ? If you went to a budget consultant, a bit like the banks they look at what you earn, compared to your outgoings and you have to have a percentage left over - Now if people are dishonest and kind of forget to mention the huge credit card bill or the $$$$ spent on going out every weekend etc - there's the money gone.	wainuitech (129)
654035	2008-03-29 21:37:00	I would suggest that the $120000 income is gross, that is before tax. So nett income is probably about $80000 to $85000. I suspect Richard's idea is correct. So that does bring down the available "spending money." But the way today's "must have it now" mindset has been pampered by lenders still amazes someone like me - reared in a climate where you had to first show your own efforts before anyone would even consider lending to you. Forget about 100% mortgage - or car finance or suchlike. You first needed at least 20% you'd saved as a deposit. Not only did that show you were capable of managing your money, but the lenders safeguarded themselves from losing money if they had to foreclose when prices had fallen. I'm staggered at how easy it seems to have been recently to buy a house without putting in any of your own cash up front. Surely an obvious recipe for disaster? Edit: I see Wainuitech has just beaten me with similar thinking.	Laura (43)
654036	2008-03-29 22:02:00	I laugh at this article as we are currently in almost exactly the same financial situation. We saved our butts off and managed to have a $60k deposit for our $400k house. Combined income of $100k (before tax) and we still have more than enough money to cover the bills and live comfortably. It is all about making sacrifices. You cannot expect to get everything on a silver platter, and you cannot expect to live your previous mortgage free ways. All these articles about kiwis not being able to afford a home are ludicrous. Young people (like myself) need to wake up and pull their heads out of the sand. Just my thoughts.	theflyingsurfer (12111)
654037	2008-03-29 22:14:00	I'm staggered at how easy it seems to have been recently to buy a house without putting in any of your own cash up front . Surely an obvious recipe for disaster? Yes, I am as well and it's all going to come to a head one of these days . Surfer Joe posted not long ago about how the US banks were getting into trouble because people couldn't afford their repayments and mortgagee sales weren't recovering the amount loaned because the houses were devaluing so much . Young people nowadays just can't get away from the "want it now" mindset because their parents are the same . Nobody seems to believe in saving up for what they want now because it is too easy to get a loan . The trouble starts when people lose their jobs or overextend themselves and can't repay their loans .	FoxyMX (5)
654038	2008-03-29 22:28:00	No, but far too many people want to keep up with the Jones' at any cost. That was my point,in which case they must expect to pay the price. I wondered when this soft touch generation would come home to roost.	Cicero (40)
654039	2008-03-29 22:49:00	Is that compulsory? I do believe that it is. I do not have to look far to see a young couple I know that will never be able to save enough for a house. They have trouble paying their rent. They should have put off having children until they had a deposit. They cannot afford to drink and smoke. The young child has more toys than most toy shops and impulse buying is a natural attribute. There are some people that need to be taught how to look after their money. It is not the amount you earn as much as it is about the amount you spend. People who earn $100,000 are just as broke as people who earn $30,000, but they are broke at a higher level.:rolleyes:	Roscoe (6288)
654040	2008-03-29 22:57:00	I do believe that it is. I do not have to look far to see a young couple I know that will never be able to save enough for a house. They have trouble paying their rent. They should have put off having children until they had a deposit. They cannot afford to drink and smoke. The young child has more toys than most toy shops and impulse buying is a natural attribute. There are some people that need to be taught how to look after their money. It is not the amount you earn as much as it is about the amount you spend. People who earn $100,000 are just as broke as people who earn $30,000, but they are broke at a higher level.:rolleyes: I wouldn't mind being broke on $100,000,send it down and I will give it a go!	Cicero (40)
654041	2008-03-29 23:25:00	Its so true when my parents finally bought a house all the furniture was donated by friends a family, over half of mine was too but now the young generation have to have new, why?	gary67 (56)
654042	2008-03-30 00:03:00	The problem has been caused by low interest rates in the past, and people not planning on the rates rising in the future, which is poor planning. Low interest rates meant that people were able to borrow more than they had been, which meant that people selling houses have been able to ask more for their houses, hence pushing up house prices to excessively high and unsustainable levels. The media aldo hasn't helped, as they have been publishing stories stating that if you don't buy now, you will never afford a house, which makes me sometime wonder if they are not in bed with the agents. interest.co.nz predicts house prices to drop 30% in the next few years, and for house prices not to reach the prices seen in 2007, until about 2017! Therefore buying a house at the moment would not make good financial sense, as you will probably end up owing more to the bank than the house is worth in a few years, which is when the banks get very uneasy. In 5 years I would say that houses will be far more affordable.	robbyp (2751)
654043	2008-03-30 00:06:00	Its so true when my parents finally bought a house all the furniture was donated by friends a family, over half of mine was too but now the young generation have to have new, why? Some old furnture is far more cool and far better made, than the rubbish you buy in these big box retailers. Have you noticed taht when you walk into a furniture store such as Harvey Normans, how you get hit by a toxic nausating smell when you walk in the doors, which I assume is the chemicals and materials they use in the furniture. I wouldn't want that in my house.	robbyp (2751)
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