To Mortgage or Not To Mortgage?

nzfiona · Jan 10, 2008 10:54 pm

That is the question. Whether it is nobler in the mind to suffer the slings and arrows of outrageous home loan rates, or to stay mortgage-free.

LOL

Seriously, though, we will be able to have our (almost) dream home and have no mortgage. We know we're lucky, but dh wants an eco-friendly car (electric but they're not really commercial - read: they cost too much - so hybrid), which will chew up more than our remaining dosh. We will need two cars when we move to our new home, and we're loathe to won two gas-guzzlers.

So.

Do we have a mortgage so we can have more $$ spare for costly hybrid car, or keep ourselves mortgage-free and simply take out a small (read: to be paid off in a couple of years) loan to buy the rest of an eco-car?

What would you do?

Fiona

dynamictiger · Jan 11, 2008 8:02 am

Simple math problem.

Mortgage loan rate is lower.

Car loan rate is higher.

Take a mortgage you can pay at the car loan payment and clear in 4-5 years without penalty. This should be the best scenario possible.

THere is a proviso though look into the loan costs on both loans and make sure the mortgage isn't being loaded with invisibles the car loan wouldn't be.

lrhodes1 · Jan 14, 2008 3:59 pm

I'd also look for a demo model or ex-government sale car. Govt cars don't do many miles and are well looked after.

That should save you a pretty penny!

PS Don't forget a car loses value as soon as you drive it out of the showroom, might as well get a demo model or a govt car and save yourself!

Good luck!

3timesbuilda · Jan 14, 2008 5:08 pm

Ask ANZ about an equity manager account (Think that is what it is called from memory. ) Slightly higher than standard mortgage rates 0.5 to 1 % I think - much better rate than a car loan. Basically it is like an overdraft facility but using some of the capital in your home as security. As long as you don't go over the agreed amount, pay it off at the rate you want.

Generally, get the facility set up for more than you expect to need and then if you get sick or unemployed etc, you can miss repayments and just increase the size of your loan. No intrest ispayable on undrawn amount so you don't lose anything by having a larger facility.

Yak_Chat · Jan 14, 2008 8:00 pm

All of the above.
Just make sure if you do use the home mortgage to buy the car - that you actually pay it off in the 5 or so years to get the advanatges of the lower rates.

Re the electic car.

Is dh aware of the new commercial EV to come out of armidale in a few months. they are building 200,000 of them. Commuters first, then 4 seaters, then a bigger one eventually.

I can't wait.
Steve

nzfiona · Jan 14, 2008 10:10 pm

Steve,

Yes, I was aware.

What I WANT to know is this: what's the bloody price gonna be?!?

:roll:

Fiona

Yak_Chat · Jan 15, 2008 11:34 pm

Ditto.
But given the Hyundai Getz from Blade http://www.bev.au is in the $32K range - Id say it will be something like that. '

But as they are building a custom designed car, and not retro fitting it - perhaps the energetique it will be mid $20's.
Here's hoping.

Steve

nzfiona · Jan 26, 2008 6:29 am

Actually, I thought it was a case of paying for the car and THEN the extra $32,000 to have the conversion.

So it's really $32,000 for the whole shebang, then?

Fiona

thlo · Nov 01, 2008 3:47 am

nzfiona

Actually, I thought it was a case of paying for the car and THEN the extra $32,000 to have the conversion.

So it's really $32,000 for the whole shebang, then?

Fiona

How about a city car that runs on air? Surely free air at the compressor beats electric. I wouldn't call it a family car, though.
http://www.themotorreport.com.au/5732/t ... w-me-down/