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How to pay off a mortgage in ten years ! (Read 2031 times)
fractalign
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How to pay off a mortgage in ten years !
Jun 21st, 2014 at 7:32pm
 
This is a really simple one but if you are not prepared to leave the city behind it won't happen. While city property values sky rocket country property values often remain stagnant.

I was looking through the local paper to find a free standing house near where I live listed for 165,000 dollars. What does that amount get you, you might be wondering.

Try a free standing four bedroom brick veneer house with a back yard BBQ area, garden sheds and carport. What does 165,000 dollars get you in Sydney ? oh thats right absolutely nothing at all !

If 165,000 dollars is a little out of your price range try a free standing federation style house for 116,000 dollars. Only three bedrooms with this one but with a double carport, garage and dual driveway access,who's complaining. Oh did I mention it sits on a 1,701m2 block with mountain views.

If 116,000 dollars is still too high try a basic 2 bedroom house for 65,000 dollars. A somewhat bland house but structurally sound in a nice street.

Last year the place next door to me was bought for 160,000 dollars. It needed major renovations but being a three bedroom brick house with a built in garage, carport and several sheds it turned out to be good value for it's new owners.
I should also add that the property includes eight acres of land.

Here are some simple loan calculations on the 116,000 dollar property. At a standard 5 percent rate, a ten year loan will amount to a weekly repayment of $283 dollars per a week.

Even a childless couple on Newstart could pay off that amount in that time frame. With a combined income of around 520 dollars a week they would still have 237 dollars a week to pay their bills. That amounts to around 119 dollars each.

That is of course the worst case scenario, assuming one or both couples gain employment then their level of deposable income would be much higher.

As of the March quarter average weekly rents for Sydney units and houses were 490 and 500 dollars a week respectively.

In other words for 120 dollars a week less you could actually own your home in a town like mine or for 120 dollars a week more you could own nothing in a place like Sydney.

Of course I can imagine the usual arguments, Cities are better than country towns because they have more culture and a better lifestyle. They are better because they have more employment opportunities than towns.

Well for one thing you need a high paying job just to live in Sydney whether you are renting or buying. If one or both of you loses your job, chances are you will lose your property if you are unable to find other employment.

Where I live a double income is not the be all end all to pay off a mortgage. I payed off my property in under nine years and in that time almost all of my employment was on a casual basis.

When the compound interest was factored in no inroads were
made in my mortgage for the first four years. In 2003 I still owed as much in my property as I did when i first purchased it in 1999. But by 2008 I had payed my last repayment on it.

So when that is taken into consideration i actually payed off the full amount in only five years. I should add that i am single so had I been in a live in relationship and my partner has also been in employment as well then with her income the property could have been payed off in less than four and a half years.

One thing I should mention is that I do not live in the out back, I am right near the Snowy Mountains half way between Sydney and Melbourne. There is employment where I live but its not a be all end all towards owning your own home.

Something else I should add is that because demand in country areas is usually lower, prices are often negotiable. So the 116,000 dollar house I mentioned might only ending up costing you 110,000 dollars if it has been listed for a while.

Of course the opposite is the case in Sydney.

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« Last Edit: Jun 21st, 2014 at 7:39pm by fractalign »  
 
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John Smith
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Re: How to pay off a mortgage in ten years !
Reply #1 - Jun 21st, 2014 at 7:36pm
 
so what town are you in?
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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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fractalign
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Re: How to pay off a mortgage in ten years !
Reply #2 - Jun 21st, 2014 at 7:40pm
 
A place called Batlow !
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John Smith
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Re: How to pay off a mortgage in ten years !
Reply #3 - Jun 21st, 2014 at 9:00pm
 
fractalign wrote on Jun 21st, 2014 at 7:40pm:
A place called Batlow !


Been there ...... nice town ....

the biggest problem with smaller towns is suitable employment ... I know lots of people that would love to move to a small town (myself included) but I don't because it would mean a big cut in my income


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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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Bobby.
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Re: How to pay off a mortgage in ten years !
Reply #4 - Jun 21st, 2014 at 9:56pm
 
Batlow - a town with no jobs - great idea.
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fractalign
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Re: How to pay off a mortgage in ten years !
Reply #5 - Jun 22nd, 2014 at 11:52pm
 
Actually there are jobs here but the point of this thread was say that it is possible to pay off a mortgage here without one. What is the point of a high paying job if it takes you 30 or 40 years to pay off a mortgage.
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fractalign
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Re: How to pay off a mortgage in ten years !
Reply #6 - Jun 22nd, 2014 at 11:57pm
 
John Smith wrote on Jun 21st, 2014 at 9:00pm:
fractalign wrote on Jun 21st, 2014 at 7:40pm:
A place called Batlow !


Been there ...... nice town ....

the biggest problem with smaller towns is suitable employment ... I know lots of people that would love to move to a small town (myself included) but I don't because it would mean a big cut in my income

One of my friends works at the nearby Visy Mill and he earns 90,000 thousand a year. My neighbour works at another mill and gets by on 80,000 thousand a year. If you think this is a pay cut you must be doing well.

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MumboJumbo
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Re: How to pay off a mortgage in ten years !
Reply #7 - Nov 19th, 2014 at 6:51pm
 
Wow, cool idea. If we could make better use of our land, the cities wouldn't be so clogged as well.
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See Profile For Update wrote on Jan 3rd, 2015 at 2:58pm:
Why the bugger did I get stuck on a planet chalked full of imbeciles?
 
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gone
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Re: How to pay off a mortgage in ten years !
Reply #8 - Mar 14th, 2015 at 12:48am
 
Why would you pay a lot of money for land that you never own? You may have paid it off, you got a title to your name, but you still don't own it. The government Nazis tell you what you HAVE to do on "your" land and what you are not allowed to do. You also gotta keep paying rent(rates) to them or they'll take your house away. The Nazis also decide HOW MUCH rates you have to pay to them. You have no say or bargaining power whatsoever.

You are NEVER a property owner in Australia under current laws. You are merely a
"premium tenant"
. A tenant with a few more privileges than an ordinary tenant.

To be more specififc (legalese). "The Commonwealth Of Australia" is a corporate entity. It's beneficiaries are the creditors of the national debt (The European royal bankers). Your name(your birth certificate) is a corporate entity, owned by The Commonwealth Of Australia. Don't believe that? Try to change your name and find out that you have to beg The Commonwealth Of Australia for permission to change it.

If you owned your own name, you wouldn't have to beg any c.nt for permission. You would simply change your name and then send the government a notice of your name change.

So this is how the hierarchy under International Commercial Law works:

1. Your name owns the property title.
2. The Commonwealth Of Australia owns your name.
3. The bankers "own" (are the beneficiaries of) The Commonwealth Of Australia.
4. You (your body) own nothing. You're just the collateral. You're the one to sweat'n'slave for the benefits of the greedy bankers.

Still wanna slave hard to "own" property in Australia? By the way they can take your land away anytime they want. All they need is a a bit of a chaos, like a war for example,  and they can just confiscate "your" land whenever they feel like.
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« Last Edit: Mar 14th, 2015 at 1:05am by gone »  
 
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