Re: Home Loans

[anonymousmoose]

I remember seeing adds on TV where they find the best one to suit your needs and they don't even charge you because they get commission from the banks, no idea what the company's name was now though sorry.

All brokers work this way. If they try to charge YOU fees of their own, walk away fast.


/posted via mobile device\

 

[anonymousmoose]

Hmmm.... unless of course it takes you 40 years to pay off the loan, in which case most of your mates are dead, and buying an old Xbox 360 to impress those that are still alive will be a mute exercise because a) the old farts wont be able to see or hear it, and b) the Xbox 7000 has just been released for a bargain price of $10,500 (but still has overheat problems causing red ring of death- just like the old Xbox 360 from 40 years ago) .

Thats a negative way to look at it. Make is 32 years old and is very close to paying off his mortgage. He bought a relatively small townhouse, nothing flash, with his brother. Then when they both paid off the mortgage by the time he was 31 he refinanced and bought the 2nd half from his brother. The guy lives very very cheap. A bit annoying at times cause he doesn't spend money to go out etc and drives and old toyota. But in a few years from now, he will be set for life. He could already positively gear his property.

/posted via mobile device\

 

[UFO]

Thats a negative way to look at it. Make is 32 years old and is very close to paying off his mortgage. He bought a relatively small townhouse, nothing flash, with his brother. Then when they both paid off the mortgage by the time he was 31 he refinanced and bought the 2nd half from his brother. The guy lives very very cheap. A bit annoying at times cause he doesn't spend money to go out etc and drives and old toyota. But in a few years from now, he will be set for life. He could already positively gear his property.

/posted via mobile device\

umm.... I think you missed the sarcasim in my post . I thought the "xbox 7000 for $10500" and still having issues like the current one was the dead giveaway .
Nothing wrong with paying off your mortgage quick mate, I completely agree.

 

[Jesterarts]

Not to hijack, but what are people's thoughts about "Equity Insurance" products?

It makes sense to be if you're in a position where you're planning on making money on the sale of the property in the near future OR when house prices drop say 10 - 20% and you have to sell for some reason then it will avoid a situation where you end up with no house but still an outstanding debt?

Thoughts?

 

[CSP]

House prices aren't going to drop any time soon (and it's not likely they ever will). Certainly Canberra is still on the RISE! Demand is far outstripping supply.

Given it's such a low chance of that happening, I wouldn't bother with insurance against it. Worst case is if it ever were to happen you'd file for bankruptcy. And I'm happy with it being such a low (near non-existent) risk for that to be my out if I needed it.

 

[Reaper]

Not to hijack, but what are people's thoughts about "Equity Insurance" products?

It makes sense to be if you're in a position where you're planning on making money on the sale of the property in the near future OR when house prices drop say 10 - 20% and you have to sell for some reason then it will avoid a situation where you end up with no house but still an outstanding debt?

Thoughts?

Unless you are speculating in the very short term I wouldn't bother. I can't see Victorian metro prices going substantially backwards in the medium/long term. Victoria has been under supplied in the housing sector for the past 5 years and there is a lot of pent up demand. Even if interest rates do skyrocket people will scale back their expectations - that 35 square premium mcmansion will be scaled back to a 20 square run of the mill (ie cheaper) house.

What that means is the top end of the "affordable" market will flatten out or experience a minor decline in prices and other sectors will flatten out. The top top end of the market will also flatten out a bit but I wouldn't expect wholesale drop in prices overall. It will take a major shock (such as the GFC) to affect this part of the market although it did recover quite quickly and we are experiencing a mini boom in that sector as projects put on hold are now well under way.

Of course there is always a risk that interest rates will skyrocket but we have plenty of world wide issues to keep demand in check. America seems to be showing some tentative signs of recovery however Europe still have a long way to go. I suspect there will be a few more shocks from European governments where the reality of overwhelming sovereign debt and excess spending will catch up with them.

The other clouds on the horizon is China and it's ability to manage both it's economy and expectations of the population who are seeing all this great stuff they manufacture for the west and want a piece of the action. This inevitably puts upward pressure on wages and threatens their competitive advantage. The natural adjunct to this is demand for our minerals etc however that market would likely shift to another emerging manufacturing power such as India and the like.

Reaper

 

[rob_phill]

First piece of advice I would offer would be not to ask for advice on a car forum! however there have been some great responses that I am sure will be useful to you.

the only one I can really strongly disagree with is this one.

ING has some good cheap loans
Tell anyone who try's to sell you a loan with an annual fee to stick it up their rectum.

you have to factor your own situation in with the interest rate, and any other charges.

for instance in my situation I plan on having my mortgage paid off after 7 years. I pay a $10 monthly fee, but my interest rate is very low.
i will have paid almost a thousand dollars in annual fees by the end of the mortgage but will have saved several thousand in interest compared to a "no fee" mortgage.

also looks into the difference between a redraw and a 100% offset account and find which will work best for you. lots of people get caught up in the idea of saving money with a 100% offset account and then find that the easy access to their funds actually has them spending more than they otherwise would.

You mentioned that you have never owned property before. if you plan on purchasing with your partner you will need to make sure that she also has not purchased property before. both parties need to be first home buyers to get the grant.
There are a few sneaky ways around this however they are in my opinion very dangerous and i wouldn't do it with anyone short of immediate family.

 

[double_d]

someone mentioned pay fortnightly ------ i pay weekly cause some months there are 5 weeks = extra repayments
someone mentioned credit card/offset loans------- if your the type that wants stuff and just goes and gets it with out saving dont do this you will get nowhere fast
but if you are a tight arse and can do without things then yeah its a good idea
banks dont bring out new ways of paying loans unless they can make money,, they know we are greedy and want stuff without having the money first
anyway just do your research have a look at the aussie dollar
most times when it goes up the interest rates go up to stop spending
things like that to look for aswell

daniel d