Another Interest Rate Rise!!!!!

[Swordsy]

the trick is to get a cheap house with a lot of cheap fix ( or hard work on your behalf) problems and get it to a standard that YOUR happy with. don;t borrow too much and have a good deposit.

All these people that i refered to spending too much money isn't mine nor your fault, it's a public thing that we don't have any say over. we can suggedt a cut back by people but ultimatly, its the majority that are spening beyind their means.

 

[1991_Vn2nV]

I was working the average 40 hrs a week when I bought the Below average house that needed more than just renovating, I spent $40,000 on a house that cost me less than $190,000, however after all that work and interest rate rises, My house is only worth $220,000, which leaves me in arrears!!
I have worked hard for what I have without being greedy, and still end up in the sh!t!! That's my point!!

I was very comfortable for the first 12 mnths, however the last few rises, have been a bit of a concern ,As when will it Stop?? My point Exactly!!!!!

Do we all need to loose our homes to stop the Banks from lifting Rates??
I know a few have been on spending sprees, but it's not all of us!!

So to what extent did you consider interest rate rises when you looked at purchasing a house?

As has already been said, expecting interest rates to stay at record lows for 20 years while you pay off your house is ridiculous.

Interest rates have been 3x their current rate in recent decades, yet so many people seem to be incapable of handling a rise of a mere 3%... Alot of people are going to lose their homes because interest rates WILL get higher.

 

[1991_Vn2nV]

your generalising here....

i cant work the majority of hours i want, id love to work a 38 hour week, a full time job would be sweet, but im at uni, i rent, in fact, i have alot of if not all the bills a normal household would have but the difference is, im studying at uni... i get centrelink which isnt much because i work, id rather earn my money which intern decreases the amount of money i have avaliable to me at the end of the day.

Interest rates affect me, i have a p/loan and a c/card which i have to deal with and its not just a matter of plan this save that all the time. I cant just live at home, in fact, my original home is well over 150kms away from where i study which wasnt by choice as my campus only offers the major i want.

Most uni students feel my pain, mummy and daddy didnt buy em a car and then they needed to move out to go to school to earn the wage... when i get out of uni i can earn my 120k a year... but for now im stuck with the rate issue and it sucks... fast food doesnt pull that much a year.

Please stop generalising that this only applys to people who CAN work a full time job without any other commitments, ie. Full time tertiary education.

aZk.

Being a uni student doesn't prevent you from earning a decent wage though. I work 35 hours a week and do full time uni, my ex works 2 jobs and over 40 hours a week and is doing full time uni.

Personally I think I have it pretty good. I know a few girls at uni that are single mums, have 1 or 2 children. They have full time uni, kids and employment and somehow they manage to balance it all and get great grades doing it. And yes they have mortgages too. These people deserve huge respect for what they do, and they seem to be great mums and they have great kids. For me, a mortgage is not a realistic goal at the moment, all I can do is rent. But by the time I finish my honours degree i'd like to have a 50k deposit ready, and then i'll be in a situation to re-evaluate where I stand, i'll still have 2 years of uni left but if I think I can afford a mortgage I will, but I will be looking at small, cheap houses away from the city to minimise what interest I do pay. I dont want to spend that 2 years paying off interest, i'd like to make some sort of dent and get somewhere on a smaller mortgage and be in a good position to work my way up.

Still, I have no social life because I work basically every friday, saturday and sunday night either 3 til 11pm or 11pm til 8am. I might get one of those nights off every few weeks... In fact I had my first full weekend for about 6 months a few weeks ago. Many times I have started work at 11pm, finished at 8am then gone to uni from 9am til 3pm before I go and drive an hours trip home and sleep and wake up at 9pm to do it all over again. But thats what uni is about as far as im concerned. Im not a kid anymore, im not in high school. I dont go and study for a few hours then maybe have a few hours of work a couple of nights a week so I have lunch money for the next day. Im an adult and I have to be dedicated, if I want to get through uni and one day earn 6 figure sums then I have to work for it. It may not be easy now, but hopefully in 15 years it will be. I'll have that new HSV, i'll have that nice house, i'll have my own practice. And maybe...in the back of that 3 car garage hiding under a car cover....I'll still have that VN

 

[minux]

Being a uni student doesn't prevent you from earning a decent wage though. I work 35 hours a week and do full time uni, my ex works 2 jobs and over 40 hours a week and is doing full time uni.

Personally I think I have it pretty good. I know a few girls at uni that are single mums, have 1 or 2 children. They have full time uni, kids and employment and somehow they manage to balance it all and get great grades doing it. And yes they have mortgages too. These people deserve huge respect for what they do, and they seem to be great mums and they have great kids. For me, a mortgage is not a realistic goal at the moment, all I can do is rent. But by the time I finish my honours degree i'd like to have a 50k deposit ready, and then i'll be in a situation to re-evaluate where I stand, i'll still have 2 years of uni left but if I think I can afford a mortgage I will, but I will be looking at small, cheap houses away from the city to minimise what interest I do pay. I dont want to spend that 2 years paying off interest, i'd like to make some sort of dent and get somewhere on a smaller mortgage and be in a good position to work my way up.

Still, I have no social life because I work basically every friday, saturday and sunday night either 3 til 11pm or 11pm til 8am. I might get one of those nights off every few weeks... In fact I had my first full weekend for about 6 months a few weeks ago. Many times I have started work at 11pm, finished at 8am then gone to uni from 9am til 3pm before I go and drive an hours trip home and sleep and wake up at 9pm to do it all over again. But thats what uni is about as far as im concerned. Im not a kid anymore, im not in high school. I dont go and study for a few hours then maybe have a few hours of work a couple of nights a week so I have lunch money for the next day. Im an adult and I have to be dedicated, if I want to get through uni and one day earn 6 figure sums then I have to work for it. It may not be easy now, but hopefully in 15 years it will be. I'll have that new HSV, i'll have that nice house, i'll have my own practice. And maybe...in the back of that 3 car garage hiding under a car cover....I'll still have that VN

Agree there, i am back at uni this year full time, while i continue to work full time. It means i wont have a life, for the next 4 years, however, it also means around 50k a year(minimum) extra for me. Things can always be done, you just need to sacrifice and WANT to succeed. Dylan, your defiantly heading in the right direction, it's great to see.

 

[vlv8vic]

Agree there, i am back at uni this year full time, while i continue to work full time. It means i wont have a life, for the next 4 years, however, it also means around 50k a year(minimum) extra for me. Things can always be done, you just need to sacrifice and WANT to succeed. Dylan, your defiantly heading in the right direction, it's great to see.

And i'll second that. The old "poor uni students" thing is only as true as the uni student wants it to be. I worked hard, i know i did, but i still feel as though i had and still have a good like.
You get out what you put in in all things.

 

[vlv8vic]

Work hard to get what you want. That is the connection.

 

[MasterOfReality]

Do not underestimate the power of the deposit.

I recently bought my first house in Brisbane, paid $355k for it, put down a deposit of $80k. Repaying around $560 a week, with 20k left in the bank for incidentals. I'm 28 and only recently returned to work after 4 years doing postgrad. I got my loan approved instantly after only being in my current job for 2 months. Why? It was the deposit.

I worked out I can afford up to 15% interest rates on my current salary, before I have to start tightening the belt.

The problem with people today is that its all about champagne taste on a beer income. I work in mining, so my salary is quite good, however it makes more sense to me to start off small and build up. Sure, I could have had the 500k house and the new BMW in the driveway but I would still be paying it off in 30 years time, instead of the 10-15 years I plan for, factoring in salary increases.

Interest rate rises do concern me, obviously I want to keep as much cash as I can. On the other hand, my parents are reasonably wealthy retirees. They live off the 1k per week they earn from their investments, have zero debt and obviously want the interest rates to rise.

 

[Bravotwozero]

Do not underestimate the power of the deposit.

I recently bought my first house in Brisbane, paid $355k for it, put down a deposit of $80k. Repaying around $560 a week, with 20k left in the bank for incidentals. I'm 28 and only recently returned to work after 4 years doing postgrad. I got my loan approved instantly after only being in my current job for 2 months. Why? It was the deposit.

I worked out I can afford up to 15% interest rates on my current salary, before I have to start tightening the belt.

The problem with people today is that its all about champagne taste on a beer income. I work in mining, so my salary is quite good, however it makes more sense to me to start off small and build up. Sure, I could have had the 500k house and the new BMW in the driveway but I would still be paying it off in 30 years time, instead of the 10-15 years I plan for, factoring in salary increases.

Interest rate rises do concern me, obviously I want to keep as much cash as I can. On the other hand, my parents are reasonably wealthy retirees. They live off the 1k per week they earn from their investments, have zero debt and obviously want the interest rates to rise.

Good for you mate, you've got your head screwed on right. Some people who have posted in this thread need to learn the meaning of empathy. I'm sure the original poster was looking for other members in a similar situation who he/she could empathise with. But instead got replies from members who felt the need to tell everybody how good they think they are. I'm not having a go at you or anything but some of the crap replies that have been posted in here have really ****ed me off. And most of them have been from people who should know better.

Anyway, hope all goes to plan for you and you reach the goal you've set yourself.

 

[jules]

the trick is to save your money and invest it, such as in a house, as early as possible.

i wasted money for the first few years of my employment, renting and going out drinking a lot, and it cost me a lot of money.

if you take out a $10k loan for that VX commo instead of putting it towards a house, it will cost a lot more, maybe $100k by the time you retire. that's called an opportunity cost.

wealth studies have consistently shown that inheritance aside, starting early is the surest way to build wealth.

 

[Kikki]

And you fellas recon us females are bitchy and cry babies..... LMAO

So some do better than others good for them. My sister is 7 years older than me, has 2 2007 Landcruisers and a $1.8 mil home in a flashy area and all the kids go to a well known private school which is costing her around $30,000 per year, she dont care about the intrest rates coz her hubby has a very well paying job.... see me bitching? NO why? Coz Im happy for her and she did the correct things while I was out partying and drinking.

Oh and coz I married a mechanic and she didnt LMAO!