How much money do you owe ....

[DUSTY]

THANKFULLY I'M DEPT FREE.

 

[Bullit]

if u get stuck financially -- start calling local manufacturing companies. Some of them run seasonal graveyard shifts. And could use some general labour from like 11pm-7am or whatever. And that way you can work, make $12/hr or wahtever, and still have time during the day to look for jobs, interviews. etc. Just call around to find 'em or drive around to see manufacturing facilities with cars at 3am.

LOL.... good ol' nav always has the solution to all your financial woes.


Oh... and mortgages don't count.
Unlike credit card or school debt a mortagage is directly backed by the property.

 

[FreeballinDC]

I voted before I read the whole post. I owe approximately $32K on cards and $220K on my house.

Damn, I need to start playing Powerball.

 

[big_bad_buff]

I owe approximately $32K on cards .

OUCH!! buy a lexus with a creadit card?

 

[Honey Roasted]

So you invested it all in real estate and get income from renting or leasing?

How'd you convince the banks to loan you so much money?

LOL, not at all. This debt generates more income than it consumes in interest payments. I LOVE banks and all the money they have lent me

Considering I am a man of property and don't have to sell my labour for a wage, I sure do get called a communist a lot on this site, hehe.

 

[HansNZ]

So you invested it all in real estate and get income from renting or leasing?

How'd you convince the banks to loan you so much money?

Yes, banks are conservative, so I can only borrow such large sums in order to buy property.

I don't know what lending criteria is like where you live. In New Zealand I only need to provide 10% of the capital value of the property as security.

The interest payments on the property must not exceed 75% of the estimated yearly market rent, otherwise I have to have extra income to qualify for a loan.

As long as I have the deposit and meet the 75% requirement I can borrow as much as I like. The banks also operate on the basis of my credit history (which is excellent) and take a house by house see-how-you-go approach. If my investments weren't performing they'd hesitate to lend me more money.

NZ has the developed world's highest levels of immigration, so there is always a strong demand for housing. The building industry can't keep up. The average rate of capital appreciation on property in my city was 11% last year. As such, banks consider their money pretty safe, and are very willing to lend if you put it into residential property.

 

[MattTheSkywalker]

NZ has the developed world's highest levels of immigration, so there is always a strong demand for housing. The building industry can't keep up. The average rate of capital appreciation on property in my city was 11% last year. As such, banks consider their money pretty safe, and are very willing to lend if you put it into residential property.

Hans

I carry a similar amount fo bdebt - just under $1.1M US.

$1.1M is as much debt as you can carry and still deduct mortgage interst from your income tax in the US.

Are the taxes there more favorable than the US? Is there a ceiling, or any tax advantages for you?

Just curious.

 

[HansNZ]

Hans

I carry a similar amount fo bdebt - just under $1.1M US.

$1.1M is as much debt as you can carry and still deduct mortgage interst from your income tax in the US.

Are the taxes there more favorable than the US? Is there a ceiling, or any tax advantages for you?

Just curious.

The tax regime here is extremely favourable. I mean EXTREMELY. You can wipe off between 1.5 to 3 % of the capital value against your taxes (depreciation) as well as a number of other perks. There is no upper limit the sum you can write taxes off.

This favourable tax regime is extraordinary considering how much criticism there is of NZers putting all their money into property. It denies business of investment capital. The government and business leaders are always talking of ways to discourage property investment.

Unfortunately this is a political hot potato. NZ is a very middle class society and home ownership is considered a sacred cow for the average Kiwi. No politician would dare do anything to discourage people from buying houses.

Sadly since the stock market scandals in the USA and 9/11 the amount of investment going into property is increasing. People consider it a safe option. Too many people have been stung on the international stock markets. Most investors here have some money in overseas (particularly US) markets, so they've been burnt.

The result is that property here consistently goes up in price. The downside is that home ownership is becoming less and less attainable for average people. Having said that, the national average for a home here is only about US$100,000 so it's still pretty affordable by international standards.

That is probably another reason why it is appreciating in value so quickly. Unlike Europe, when you buy a house here most of the price you pay is for the house, not the land. Somewhere like London or New York, sometimes 80-90% of the price is the land value. I think NZ will follow this trend too.

 

[MattTheSkywalker]

The tax regime here is extremely favourable. I mean EXTREMELY. You can wipe off between 1.5 to 3 % of the capital value against your taxes (depreciation) as well as a number of other perks. There is no upper limit the sum you can write taxes off.

This favourable tax regime is extraordinary considering how much criticism there is of NZers putting all their money into property. It denies business of investment capital. The government and business leaders are always talking of ways to discourage property investment.

Unfortunately this is a political hot potato. NZ is a very middle class society and home ownership is considered a sacred cow for the average Kiwi. No politician would dare do anything to discourage people from buying houses.

Sadly since the stock market scandals in the USA and 9/11 the amount of investment going into property is increasing. People consider it a safe option. Too many people have been stung on the international stock markets. Most investors here have some money in overseas (particularly US) markets, so they've been burnt.

The result is that property here consistently goes up in price. The downside is that home ownership is becoming less and less attainable for average people. Having said that, the national average for a home here is only about US$100,000 so it's still pretty affordable by international standards.

That is probably another reason why it is appreciating in value so quickly. Unlike Europe, when you buy a house here most of the price you pay is for the house, not the land. Somewhere like London or New York, sometimes 80-90% of the price is the land value. I think NZ will follow this trend too.

Good info. Deprecitation here is 2% or so.

Interesting point about the government looking (behind the scenes) to disincentivize property ownership.

 

[alien amp pharm]

debt left:
new heat pump - $7,500 left
57" widescreen tv - $2,000 left

paid off:
house
2 cars

However I am thinking about taking a home equity loan and combine the heat pump, tv, and new 4X4 truck I'll be getting soon.

So basically I'll have about $30,000 in debt within a couple months.