how do people get loans with a low paying job, ive seen people here getting like vx's,and later models with only a crappy job paying like less than 400$ a week. how do they get loans?
A car is not worth getting a loan for buddy, i reckon the majority of posts above and experiences from the members above is saying "not to get a loan for your car". Going into debt for a car is a triple whammy - 1. you end up paying more with interests, 2. your car depreciates as time goes by 3. a car continually costs you to keep it running.
I do agree with your notice of many young people driving around in cars that appear beyond what they can afford (i wonder about it all the time), and sure, factors like living at home and gaurantors etc...may be the reasons, perhaps it is as simple as they can afford it or is pouring everything they earn into owning it.
However, i can say with a high degree of confidence the main factor would be that it is just too easy to get a loan or finance these days. There is current discussion of morality, in media etc., that financiers are getting more reckless and irresponsible in their lending. It has never been as easy as today to get a loan - from car finance, credit cards, personal loans to home loans. The lending market has never been so competitive, lenders are signing people up at "unsustainable" rates and value, as mentioned by experts in the market such as lending principals, realty agents, finance commentators and reporters.
For example, some are lending people up to 105% of property value to customers without deposits whatsoever, young people are able to sign up for new cars they previously would have no chance for.
With my knowledge of this issue, little as it may be, i speculate this is to prop up their balance sheets to show how much business they have.
Leasing is another matter, but that is more to do with tax purposes, which i honestly, have no experience in and can not comment in detail.
In the 'wise' (cough) words of Paul Clitheroe, Pay off your mortgage, put money in the bank and save. Investments are only for the rich and I'm rich you're not.
He should be shot.
yes, shoot him now.... considering you only have to have some of your mortgage under control and don't have to have any more money to get investments... who is he? hell im a school teacher and i can shoot his theory to bits!!!!
He's the dikhead that was offering financial advice on one of the auction type tv shows. Did a lot of radio spots a few years ago as well. Not around much on air any more....wonder why.
I just have to respond to these comments.
To insult Paul Clitheroe as such, that is a big call, and it smacks of arrogance and disrespect!
Clitheroe is a long respected financial commentator, publisher and multi millionaire doing what he preached for decades.
http://money.ninemsn.com.au/article.aspx?id=100346
I'm sure the Packer family did not allow a "dikhead" to run a show for almost a decade on their television network, which in no doubt have helped thousands of ordinary people managed their finances to riches they otherwise may not have.
I am not a sponsor of Clitheroe nor have I adopted his advice however, his mantra of financial management is safe, sound and applicable to everyone, and not bias to any social class as you have unjustly mentioned - the rich, and this sort of tone usually has connotations of "envy" with it.
The problem with that is that whatever you sell it for you will be paying almost that much to buy another anyway. The best thing to do is hang on to it for at least five years to built up some equity and pay some loan off and you won't have to borrow as much next time. Worked for us, we have a 400k + house that we still only had the original mortgage of 130k of 5 years ago. This gave us the equity to buy two investment properties that the rent takes care of.
I'm 38 and own 70% of 3 houses. Didn't follow his advice because he considered what I had in mind too risky. Not that he knew of my circumstances, but in his theory I was taking a risk. I just don't like his thinking on money thats all. I read a book called 'Rich Dad, Poor Dad', changed my life. I think it may have been a bit unnecessary to call him a dikhead. Sorry Paul.
Oh and for the record, I built my first house at 32. (not literally of course). If I took the advice of bankers I would still be in my first house and no better off apart from not having to worry about tennants.
I wonder how many houses "dikhead" Clitheroe has or can afford with his lifetime of financial advice and financial management?
So you're of the few who've been fortunate to have a good run with your investments, but to put it as such may give a false sense that property investment is such a sure thing when the fact is the majority are struggling with current interest rates and cost of living. I hope you'll still be ok if interest rates goes up a few more points in the coming years....as predicted by the people in-the-know.
The fact is, household debt is at unprecedented and unsustainable levels. Australia's economic prosperity is also unprecedented however, history has shown time and again, following every boom is a bust........and a bust is looming.
With all due respect to you abba fan, perhaps you wouldn't mind posting more details of your 70% ownership of 3 houses over a period of 6 years (32yrs old to 38) so i can analyse/comment for truth?
You are 38 (older than me), perhaps you can show some more respect, grace and maturity such that the bulk of young members may emulate or learn from (i'm also referring to some past posts/threads).
yes, someone who has their head screwed on properly and who knows how to manage money is a dikhead..
did you happen to watch the show on ten where he was helping people save money? he has some of the best advice and tips for getting ahead in life. i know i would rather follow his advice and own 3 house by the time im 50 then to try and go at it alone and still be paying off the first house at that same stage in life.
atleast his advice isnt to get yourself into thousands in credit card debit at age 19 and then be paying it off 5 years later and having no chance at ever owning a house because you have such a piss poor credit rating
Here! Here!
Give credit, where credit is due.
