What do you want?
Aug 25th 2009, 4:26 am
#31
Demi-God
Joined: Oct 2008
Location: Far North Queensland
Posts: 2,812
Re: What do you want?
Disagree. Pay off your mortgage then look at investments. Your next invbestment may be another mortgage, but that will be then.
Look at it this way. If you don't own a property you can either pay rent or you can buy a home. Right. So let's say that either way it will cost you $1000 a month either in rent to a landlord or interest in a mortgage. Right.
So if you earn 5000 dollars a month, your actula income is $4000 right?
If you rent you can never change this.
If you buy a property you are able to eventually pay if off without incurring any extra cost. Interest goes down with time and rents go up.
At an interest rate of 5% you can pay off 100,000 dollars worth of your mortgage and you increase your income by about $414 a month. Tax free, since you've already paid tax on it.
Plus you've lowered a cost that you must pay.
And, believe it or not, you own more of your property, so if the worst comes and you have to sell then you'd be unlucky not to realise a profit on your home, which will net you even more money. And in Austlia you don't pay tax on capital gains from your own home, so that is safe too.
There is no other investment that can gain you so much.
Until you own your own home that is.
Look at it this way. If you don't own a property you can either pay rent or you can buy a home. Right. So let's say that either way it will cost you $1000 a month either in rent to a landlord or interest in a mortgage. Right.
So if you earn 5000 dollars a month, your actula income is $4000 right?
If you rent you can never change this.
If you buy a property you are able to eventually pay if off without incurring any extra cost. Interest goes down with time and rents go up.
At an interest rate of 5% you can pay off 100,000 dollars worth of your mortgage and you increase your income by about $414 a month. Tax free, since you've already paid tax on it.
Plus you've lowered a cost that you must pay.
And, believe it or not, you own more of your property, so if the worst comes and you have to sell then you'd be unlucky not to realise a profit on your home, which will net you even more money. And in Austlia you don't pay tax on capital gains from your own home, so that is safe too.
There is no other investment that can gain you so much.
Until you own your own home that is.
Do the sums. Look at every single way you can invest your money. Get your calculator out and do the sums.
Don't forget tax and inflation.
Aug 25th 2009, 5:03 am
#32
BE Forum Addict
Joined: Jan 2009
Location: Woodvale, WA
Posts: 1,674
Re: What do you want?
I'd probably save most of it but blow some of it on a once in a lifetime trip or cruise.
Aug 25th 2009, 5:15 am
#33
Joined: Oct 2007
Posts: 9,668
Re: What do you want?
By the way. A financial advisor, unless they are a close personal friend, will try to talk you out of paying off your mortgage. That's because there is nothing in it for them. Never forget that your financial advisor has a vested interest in getting you to buy into financial "products".
Do the sums. Look at every single way you can invest your money. Get your calculator out and do the sums.
Don't forget tax and inflation.
Do the sums. Look at every single way you can invest your money. Get your calculator out and do the sums.
Don't forget tax and inflation.
I have been doing the sums, doing a lot of reading too. And not forgetting tax and inflation, there ARE ways of making your money work better for you than blowing it all in a mortgage. Just my personal opinion of course.
Aug 25th 2009, 6:07 am
#34
Demi-God
Joined: Oct 2008
Location: Far North Queensland
Posts: 2,812
Re: What do you want?
I don't agree about the close personal friend thing! I got some excellent advice recently regarding that very thing from someone whom I'd never met before in my life!
I have been doing the sums, doing a lot of reading too. And not forgetting tax and inflation, there ARE ways of making your money work better for you than blowing it all in a mortgage. Just my personal opinion of course.
I have been doing the sums, doing a lot of reading too. And not forgetting tax and inflation, there ARE ways of making your money work better for you than blowing it all in a mortgage. Just my personal opinion of course.
Edited to add: Of course, you can probably make five times more money, but at a hundred times the risk.
Last edited by Burbage; Aug 25th 2009 at 6:14 am.
Aug 26th 2009, 6:04 am
#35
Joined: Oct 2007
Posts: 9,668
Re: What do you want?
Aug 31st 2009, 8:52 am
#40
Auntie Fa
Joined: Nov 2006
Location: Seattle
Posts: 7,344
Re: What do you want?
Can you get a mortgage on a pyramid? 
Aug 31st 2009, 9:32 am
#41
small steps long journey
Joined: Aug 2003
Location: A river somewhere
Posts: 3,451
Re: What do you want?
a thinly veiled "I got a 100k cash and have everything I want" thread
Aug 31st 2009, 9:32 am
#42
small steps long journey
Joined: Aug 2003
Location: A river somewhere
Posts: 3,451
Aug 31st 2009, 9:41 am
#43
can't lose the tie
Joined: Aug 2009
Posts: 233
Re: What do you want?
You're saying you have everything you need so why not invest. I hear this guy in the US called Madoff is a genius in getting you a high rate of return.
