shackonthehill
WOW!! that sorts that out bigtime eh.
This means the car loan for a bog standard dunnydore or falcoon is valued by the bank at 80k. (gee don't we all wish that. Lol.)
80k liability value that is, not asset value. There's a huge world of difference between the 2. Residual?? what residual ! It's a loss making object not a profit making object.
I'm assuming the same ratio works for credit cards as well.
To me this means if someone is really serious about wanting a house, they will...
Get rid of the flash newish car (an take the loss on the deal as you always owe more than the market value of the car).
Start foregoing the holidays/dinners/playtoys etc on the credit cards and clear them as soon as possible. (once you have a mortgage you WILL get used to foregoing these luxuries Lol). Then cancell the cards !!
Save Save Save !!! That dinner for 2 at $60 each once a week equals $480 a month that could go into the savings accnt which equals almost $3k for the year. same applies for smokes, beer, bought lunches etc
Budget. Has anyone ever heard of these things?? Heaps of us have.
Has anyone actually done one? Not many of us.
Has anyone actually stuck to theirs? One hand in a football stadium goes up. Lol.
I tried a budget once years ago and i was so shocked at where my money was really going that I've never gone back to one since.
Anyway enuff of my waffling and ranting, it's my b'day today and I'm having an old fart attack ,
back to the original question the answer is yes. It will affect your borrowings application, more than you would ever believe.
Cheers Roger
P.S. After you get your house don't fall into the trap of "We have a new house so we MUST have a new car in the driveway". Cant have a bunky car parked there in case the neighbors wont be impressed by us eh.
Mine is a 1979 car that I keep in good nick and it still looks the part in our driveway. Lol
This means the car loan for a bog standard dunnydore or falcoon is valued by the bank at 80k. (gee don't we all wish that. Lol.)
80k liability value that is, not asset value. There's a huge world of difference between the 2. Residual?? what residual ! It's a loss making object not a profit making object.
I'm assuming the same ratio works for credit cards as well.
To me this means if someone is really serious about wanting a house, they will...
Get rid of the flash newish car (an take the loss on the deal as you always owe more than the market value of the car).
Start foregoing the holidays/dinners/playtoys etc on the credit cards and clear them as soon as possible. (once you have a mortgage you WILL get used to foregoing these luxuries Lol). Then cancell the cards !!
Save Save Save !!! That dinner for 2 at $60 each once a week equals $480 a month that could go into the savings accnt which equals almost $3k for the year. same applies for smokes, beer, bought lunches etc
Budget. Has anyone ever heard of these things?? Heaps of us have.
Has anyone actually done one? Not many of us.
Has anyone actually stuck to theirs? One hand in a football stadium goes up. Lol.
I tried a budget once years ago and i was so shocked at where my money was really going that I've never gone back to one since.
Anyway enuff of my waffling and ranting, it's my b'day today and I'm having an old fart attack ,
back to the original question the answer is yes. It will affect your borrowings application, more than you would ever believe.
Cheers Roger
P.S. After you get your house don't fall into the trap of "We have a new house so we MUST have a new car in the driveway". Cant have a bunky car parked there in case the neighbors wont be impressed by us eh.
Mine is a 1979 car that I keep in good nick and it still looks the part in our driveway. Lol
piscean
well said roger
Im sure there's at least a few fellow old farts here (I include myself in that LOL) that can identify with what you're saying and we had to do those things to put together a house deposit and things like credit cards, new cars and dining out regularly were out of the question if you ever wanted to get there. Ive never had a car loan in my life and only use the credit card for shopping convenience but it gets paid off each month with no balance left on it. apart from a mortgage which is now paid off, Ive never had any debt and I like it that way. Having credit card debt or a car loan would bug the heck out of me until it was paid. The way I've always looked at it, is every time you put something on credit or loan because you dont have the money, you're paying a bomb for it once you factor in the interest.
Im sure there's at least a few fellow old farts here (I include myself in that LOL) that can identify with what you're saying and we had to do those things to put together a house deposit and things like credit cards, new cars and dining out regularly were out of the question if you ever wanted to get there. Ive never had a car loan in my life and only use the credit card for shopping convenience but it gets paid off each month with no balance left on it. apart from a mortgage which is now paid off, Ive never had any debt and I like it that way. Having credit card debt or a car loan would bug the heck out of me until it was paid. The way I've always looked at it, is every time you put something on credit or loan because you dont have the money, you're paying a bomb for it once you factor in the interest.
You don't have to be "an old fart" to have the same morals as Roger.
My DH and I are proof of that!
We live such a frugal lifestyle that it would shock MANY people these days!
Just my two cents!