How big is your mortgage?

Michelle · Sep 18, 2007 2:10 pm

I DON'T HAVE ONE! :z:

perthgirl · Sep 18, 2007 6:25 pm

Not fair Michelle! Do you want to share mine

Michelle · Sep 18, 2007 6:41 pm

perthgirl…..the pros and cons of divorce!!! :lol:

But if it makes you feel better, I have a 20k car loan for my new Subaru!! :cry:

stupidhumour · Sep 24, 2007 11:34 pm

To all the nay sayers, well ok maybe we're in the very uncommon column, but we borrowed 105% of our 265k house last Sep - Going to market v soon for 360k (to get 345k-355k) after spending collectively 12k. Mind you there is no other state I would comfortable doing that in tho apart from QLD atm - and we picked a great area (of course I 'knew' what I was doing it...)

Sale (sounds easy) will clear all debts 35k left over - will borrow 97%/3% on something bigger on lower rates. No qualms borrowin a high LVR with the Brisbane market like it is!

lrhodes1 · Sep 26, 2007 4:42 pm

I'm paying 62.5% of my after tax wage on my mortgage of $309,000, about to go up a little to about 68%. I'm taking a calculated gamble - single, young, female on second property bought for $370 now worth $380k, building a $180k house should be able to sell for around $730k = profit of around $170k after agents fees. Thats a lot of years work!

Hopefully then I can build my dream home www.ecobodes.com.au !

It's a 5-7 year plan though, I want to hold it to get some capital growth. Sale prices in the street are around $700 for 1970's houses, so I estimate I could sell it the day after handover for $730 - if I get sick of eating beans and noodles and never going out! (PS exaggerating a little, sometimes we get a Lean Cuisine when they're on special! HA HA HA)

sneakersss · Sep 26, 2007 5:17 pm

-mick-

Sorry I'm ranting. We were spending probably 50% of our graduate wages on the mortgage but now just under 12 months later its less than 30%.... which is nice and comfortable. Thats after tax too.... I don't know how people talk in pre tax dollars, its not money you ever get to see.

Maybe using pre-tax dollars is a better way to compare figures as some have other deductions like HECS fees and the like?

So, two people who have borrowed exactly the same amount and earn exactly the same won't necessarily have the same ratio/percentage if one has HECS deductions and one doesn't.

Then again that could be totally irrelevant.

Don't mind me. I'm just one of those people still paying back their HECS. Hehe

stonecutter1309 · Sep 26, 2007 5:38 pm

stupidhumour - it sounds like you thought things through.

I only worry about those people borrowing 105% after being talked into it by a mortgage broker or salesperson

I just don't like paying mortgage insurance - we borrowed 90% for our first unit - but will definitely have 20% deposit on our new home - mortgage insurance on a $1m+ loan would have been a nightmare!

vpande · Sep 26, 2007 11:04 pm

Stonecutter,
We are in the same boat as you. current house paid off.. will have mortgage of approx 660k after construction, but selling first home for approx 500k would bring it down to 160 k..
What do u plan to do with the current home? we feel that keeping both properties will add to debt and we will lose a lot due to capital gains tax. Our 230 k property has almost doubled so perhaps selling is better option.
Any thoughts?

-mick- · Sep 27, 2007 8:59 am

YSSIM

-mick-

Sorry I'm ranting. We were spending probably 50% of our graduate wages on the mortgage but now just under 12 months later its less than 30%.... which is nice and comfortable. Thats after tax too.... I don't know how people talk in pre tax dollars, its not money you ever get to see.

Maybe using pre-tax dollars is a better way to compare figures as some have other deductions like HECS fees and the like?

So, two people who have borrowed exactly the same amount and earn exactly the same won't necessarily have the same ratio/percentage if one has HECS deductions and one doesn't.

Then again that could be totally irrelevant.

Don't mind me. I'm just one of those people still paying back their HECS. Hehe

Fair point actually! I suffer HECS syndrome too so I understand the point :lol:

Infact I have a debt for one degree and am adding as I finish no.2

Its been worth while for me though.......

stonecutter1309 · Sep 27, 2007 9:14 am

vpande

Stonecutter,
We are in the same boat as you. current house paid off.. will have mortgage of approx 660k after construction, but selling first home for approx 500k would bring it down to 160 k..
What do u plan to do with the current home? we feel that keeping both properties will add to debt and we will lose a lot due to capital gains tax. Our 230 k property has almost doubled so perhaps selling is better option.
Any thoughts?

hi vpande,

our current home is an apartment - so we think we should get about $350k from the sale - leaving us with about $660k after we sell our unit.

we've talked with our financial planner about the options for our apartment. it's not tax effective to keep it - there's no tax deductible debt we can use for negative gearing as it's pretty much paid off. we'll definitely sell - then maybe in 1-2 yrs time use some of the equity in our new home to purchase an investment property.

the current plan is to live in our apartment until the house is finished - then sell. I think under CGT law we have 12 months to sell after we move and not be hit with tax. so selling is the most tax effective option.

that's why people who buy a dilapidated place, move in, renovate then sell make the most $$ - each reno place is their primary residence and they don't pay CGT.

vpande · Sep 28, 2007 12:15 pm

Thanks Stonecutter. I am glad we r on the right track.

stupidhumour · Oct 01, 2007 2:11 pm

stonecutter1309

stupidhumour - it sounds like you thought things through.

I only worry about those people borrowing 105% after being talked into it by a mortgage broker or salesperson

I just don't like paying mortgage insurance - we borrowed 90% for our first unit - but will definitely have 20% deposit on our new home - mortgage insurance on a $1m+ loan would have been a nightmare!

To be honest I have been lucky - I moved up here last July with no deposit, and a car loan.... picked a house we liked and went for it figuring the sooner we got on the wagon, the better.

I know what you mean about LMI though - and yes, a 3% premium on $1m is alotta moola!

The way I look at it though is that in this current market in Brizzy, I would rather pay LMI upfront than rent and try to save a deposit. I am terrible at saving anyway, so it's a no-brainer for my situation....laters

joeygbh · Apr 18, 2008 11:31 am

We were in a position of 120k cash reserve, no mortgage (Jul 07). Then we said we would upgrade the house by building another one. While we were doing that we should also buy a small rental property (<$250k) to payoff while we were waiting for the house to be completed. Short/no so short story later, we had a 900k mortgage (105%) on two properties (Sept 07), and about 135k in an offset account. If we had just stuck to the original plan of just building a new house we would have been halfway through the mortgage for the new house by the end of this year (2008).

As is, we have 700k owing, with about 40% after tax income going to the mortgage. *sigh*

A warning to the people out there, don't let the meglomanic women in your house do the financial planning. ;-p

FionaL · May 16, 2008 3:58 pm

We brought our first house in Broken Hill for $20,000 lol.. We did nothing to it and sold it last year for $75,000. Needless to say, we had a nice deposit for this place. We are a single income family and pay around 30% wage onto the home loan which is now $210,000. We brought wisely and had been following the market here for 6 months before we decided on this property.

Southies · May 16, 2008 6:43 pm

Well, we have no mortgage !

We bought a knockdown for $650,000 & the total build will probably be about $380,000.

In our mid 20s, we were lucky to buy a "squat" back before the stockmarket crash of '87. We bought our Edwardian "squat" for $109,000 in '86 with a $30,000 loan at 17%. We paid it off in 7 years with my husband on about $40,000pa & 3 children.

We slowly renovated the dump by doing everything ourselves. We sold it at a nice profit 6 years ago.......& yes we could have done even better if we knew what the market was going to do. No regrets though

We haven't looked back since.

Now in our late 40s, we are building for the very 1st time & doing it with cash. And in the area we wanted to live in 25 years ago.

Yes & having read your posts, I do realise how fortunate we have been. Though we did live very frugally, as our kids often remind us. :cry:

I wonder how our children will manage financially , when it's their turn?

Eager · May 16, 2008 10:23 pm

Our first house, which we bought in 1984, cost $42000. The vendor invited me to buy his pristine XY Falcon GT and the house for $50,000. I said no because we were already stretched.

::crying::

That car would now be worth around $200,000. ::crying::

Anyway, we sold that house 14 years later for $43,000!

We almost doubled our money on our present house over 10 years.

Our loan amount, after construction, will be less than $140k. Hope to pay it off in less than 10 years.