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Thread ID: 76883	2007-02-19 08:13:00	$$ Morgages	dots (24)	PC World Chat

Post ID	Timestamp	Content	User
525793	2007-02-19 20:39:00	I've wondered. What's the diff of buying a huge house with a desposit or buying a tiny house without a deposit?	Nomad (952)
525794	2007-02-19 21:04:00	I've wondered. What's the diff of buying a huge house with a desposit or buying a tiny house without a deposit? 1) Huge house, huge repayments, high costs 2) Small house, large repayments, moderate costs *Costs = Insurance, Rates, Maintenance etc. Under option 1, if you lose your income you are probably stuffed and into a mortgagee sale after defaulting on payments. Under option 2, the outcome under option 1 still applies but might be deferred long enough for you to get back into gainful employment. Plan to live within your means, don't count unhatched chickens, and always assume that what could go wrong, might. Cheers Billy 8-{)	Billy T (70)
525795	2007-02-20 00:41:00	It must be very difficult for young people these days to buy their own house. I heard somewhere the other day that the average house price is 6 times the average wage, years ago, in the 'good old days' :) at least in the UK, it used to be 3 times the average wage. Not only that but there used to be 'permanent building societies' that were generally happy to lend 90% mortgages over 25 years, with the proviso that repayments should not exceed 25% of income. In those days, wives income was not counted, only husbands income. (Single income households were much more common then, and women knew their rightful place by the kitchen sink and nappy bucket :) www.redhotjazz.com) The 25% rule is still applicable today as a rough guide to what you can comfortably afford. As repayments are initially nearly all interest, with little principal paid off, it works like this; Suppose you earn $60,000 pa. Maximum repayments =$15,000 pa. With a mortgage at say 8%, the amount borrowed would be $187,500. If you have saved 10% deposit, then the house price would be $208,000 If your mortgage repayments are more than 25% of income, the likelihood is that you would find it a struggle.	Terry Porritt (14)
525796	2007-02-20 10:01:00	$208K won't buy you much these days.	legod (4626)
525797	2007-02-20 18:52:00	$208K won't buy you much these days. Indeed, no it wont. That's why it is is difficult for younger people to buy a first house, even with joint incomes. There is no easy solution.	Terry Porritt (14)
525798	2007-02-20 19:05:00	$208K won't buy you much these days. All depends where. My son living in Auckland would need a minimum of $300K. However he could transfer to his works branch in Christchurch and only need $250K.	pctek (84)
525799	2007-02-20 20:54:00	$208K won't buy you much these days. The bare land could easily reach this price in some newly developed area in Hamilton, and it ain't big either :horrified	SKT174 (1319)
525800	2007-02-20 21:35:00	It is almost as if it is cheaper to rent for the rest of your life. A $300,000 mortgage on a very average house for 30 years is $1,000 per fortnight. You can probably rent a house worth $100,000's more for only $300 per week. Rentals (www.trademe.co.nz) You then have $400 per fortnight over to save for your retirement, or clear your student debt. In 30 years at a real rate of return of 2.5% that would be $462,000. Not a bad nestegg.	KiwiTT_NZ (233)
525801	2007-02-21 12:08:00	It is almost as if it is cheaper to rent for the rest of your life. A $300,000 mortgage on a very average house for 30 years is $1,000 per fortnight. You can probably rent a house worth $100,000's more for only $300 per week. Rentals (www.trademe.co.nz) You then have $400 per fortnight over to save for your retirement, or clear your student debt. In 30 years at a real rate of return of 2.5% that would be $462,000. Not a bad nestegg. Ah. But you cannot offset the value of a House compared with the "lost" rent you have paid.	Tux (606)
525802	2007-02-21 13:28:00	Ah. But you cannot offset the value of a House compared with the "lost" rent you have paid. But if you pay rent you will not need to insure the house, pay for maintenance of the house, pay the rates & etc. You need to insure the contents of the house if you own contents. If you are buying a house to live in for the rest of your life then it is a worthwhile propostion depending on where you want to live. And maybe you lose your income as the place you just worked for shut down. If you buy houses to rent them out you need to be careful about absconding tenants. Possibly too about what damage they could cause to the house before they move with no forwarding address in some cases. Good idea to be multiskilled. Possibly a "Jack of all trades and Master of none." Education (from whomever it comes) is a good idea.	Sweep (90)
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