30k personal loan (help) - Page 3

Racecraft · 04-01-2007, 08:00 PM

do you live at home?

mongoloid · 04-01-2007, 08:10 PM

Buying cars out right with cash is not always the smartest way to go.
Spending cash to buy an asset that will most certainly depreciate is not a good move. You should use your cash to make money, ie safe investments. You should use your income to service your debt. This is not my opinion btw, its a commonly held view shared by buisiness and individuals. This is especially the case if your company allows salary sacrifice on things other than your super.

dazAUSR · 04-01-2007, 08:14 PM

I totally agree with 4.9 EF Futura, stick with his advice and you won't go wrong. I think to go with a plan that is meaning you borrow the least possible and have flexible conditions on the loan. A $30,000 loan is really a huge amount when you take into account the interest on top. Also if you go for the loan, get some loan insurance just in case the unfortunate should occur...you don't need the worry of a debt with no way of repaying it.

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Bucknaked · 04-01-2007, 08:46 PM

Well I'm still saving money for chicks and booze. And I'm 36.

Beetus · 04-01-2007, 09:15 PM

Quote:

Originally Posted by D1XR2C

its only an au xr8 ute.

great input u helped alot

banarcus · 04-01-2007, 09:31 PM

Quote:

Originally Posted by XRQTOR

Funny part is ive been paying twice the amount of what im supposed off my original xr8 loan yet a few months back they wouldn't loan me another $2o,ooo so i could buy a BF i wanted, went to the commbank and i got approved on the spot and had the money at 9am the next day. Paid the loan out in 3 months.

Holy smoke mate, correct me if I'm wrong but thats over $6000 a month!! Thats more than what I get gross per month!! I should ask for a pay rise

XRQTOR · 04-01-2007, 09:33 PM

Quote:

Originally Posted by banarcus

Holy smoke mate, correct me if I'm wrong but thats over $6000 a month!! Thats more than what I get gross per month!! I should ask for a pay rise

That BF was an investment, i bought it to make money hence why i sold it so quick. I never even got to drive it either as i lost my licence......

A payrise would be nice but i don't see one coming any time soon.

MITCHAY · 04-01-2007, 09:39 PM

Mate seriously with the amount of dosh your earning $30k should be easily saved as I'm guessing you are living at home.

Nothing feels better than working your butt off and being rewarded later.

gtfpv · 04-01-2007, 11:24 PM

Quote:

Originally Posted by XRQTOR

I borrowed $35,ooo to buy my BA MKII xr8 when i was 19, i had the rest in cash. Since then iv'e spent another $2o,ooo on it between the blower, trim, brakes, wheels and what not. 2 & 1/2 year's later it's nearly paid off, i also now own a BF xr8 ute and as of tomorrow another Ba xr8 sedan. Sold a BF about 2 months ago i had bought and made $12,ooo on it.

A **** house in sydney is still worth $35o,ooo. Intrest only would be $5oo a week, thats half of what i take home each week in intrest only. For now i'll stick with my car's.............

this is off topic . but howabout buying the house and renting it out , then you rent somewhere, your rents will be tax deductable and you can live where you want . and still have the car you want.

poolkeeper · 05-01-2007, 01:22 PM

Quote:

Originally Posted by Beetus

great input u helped alot

All Im saying is getting a 30k loan, for mainly the ute, isnt worth it...

davocol · 05-01-2007, 01:32 PM

You only live once, borrow to the hilt get the best car you can and enjoy your life or do what everyone else is saying don’t borrow money and save for a house

The former sounds more fun.

merlin · 05-01-2007, 01:39 PM

Quote:

Originally Posted by mongoloid

Buying cars out right with cash is not always the smartest way to go.
Spending cash to buy an asset that will most certainly depreciate is not a good move. You should use your cash to make money, ie safe investments. You should use your income to service your debt. This is not my opinion btw, its a commonly held view shared by buisiness and individuals. This is especially the case if your company allows salary sacrifice on things other than your super.

Thank you a voice of reason....finally.

ED Classic · 05-01-2007, 03:48 PM

I Know Someone 32 who got married and got diagnosed with a terminal Brain tumor 2 weeks later. Mate enjoy your young life, thats what you work for. I know people in there 40's and 50's who have hundreds of thousands laying around and they still live like everyone else and have to work the same as they only get bored otherwise and have also fallen to the common "The more you have the more you want". As long as you are earning super on that high income (for your age especially) you will have tons of dough when you are older.

gtfpv · 05-01-2007, 09:16 PM

Quote:

Originally Posted by ED Classic

I Know Someone 32 who got married and got diagnosed with a terminal Brain tumor 2 weeks later. Mate enjoy your young life, thats what you work for. I know people in there 40's and 50's who have hundreds of thousands laying around and they still live like everyone else and have to work the same as they only get bored otherwise and have also fallen to the common "The more you have the more you want". As long as you are earning super on that high income (for your age especially) you will have tons of dough when you are older.

also a very very wise post . i know people who have incomes over 200k. working 2 jobs and they never give themselves days off . thier kids dont know them . they are tighter than a budgies bum , and miss everything the world can offer m. as soon as they have a day off . they organise some more work . how fun.

xbgs351 · 06-01-2007, 10:50 AM

Why would you pay off the loan on the van? It's tax deductible.

If you have your heart set on new toys, put the money gained from selling your MR2 towards the new toys and have a smaller personal loan. You really need to see your accountant about this loan/purchase.

I also suspect that you don't earn as much as you think you do. You are taking all of the following into account with your business?
Maintenance
Depreciation
Interest on loan
Work cover
Superannuation
Business insurance
Accounting fees
Book keeping fees
Office expenses
etc

Beetus · 06-01-2007, 09:28 PM

Quote:

Originally Posted by xbgs351

Why would you pay off the loan on the van? It's tax deductible.

If you have your heart set on new toys, put the money gained from selling your MR2 towards the new toys and have a smaller personal loan. You really need to see your accountant about this loan/purchase.

I also suspect that you don't earn as much as you think you do. You are taking all of the following into account with your business?
Maintenance
Depreciation
Interest on loan
Work cover
Superannuation
Business insurance
Accounting fees
Book keeping fees
Office expenses
etc

IM a subcontractor i do all my own stuff, m own bookwork tax the lot, office expenses=nil, work cover business insurance are 150 ish a month, i actually earn like over 5k a month the grand a week is after everything except fuel that i use....... i did accounting and stuff at school im not to bad with it really........i run a bisness im used to that kind of stuff..

Falcon_Phill · 06-01-2007, 09:29 PM

If you can do all that i doubt you need the advice of anyone here.

flappist · 06-01-2007, 10:02 PM

I have tried to read your "english" and this is what I have got.

You are an 18 year old self employed person who is sub contracting as a courier.
You have no employees so if you are hurt or are sick you have a BIG problem.
You earn $1000 per week after fuel expenses but have not mentioned if that is after provision for tax.
You have had several loans but is each case you have paid them off early by selling equipment.
You have not saved any money.
You do all your own accounting so there is no outside assurance that it accurate.
You do not have a house or any interest in aquiring one and therefore no collateral.

The reason why you are having difficulty is you are a HUGE RISK with an unsuitable credit history. You have no employement history because you are only 18 and have been doing this job for only a few months.

Lending institutions do NOT want their money back early, they want the interest. They also want to be sure that if it all goes pear shaped they can get their money back from your assets.

You could get hurt/sick/lose your contract/lose your licence/prang your van next week and your income will stop dead with no fallback.

If you change these things the banks will be falling over each other to give you money.

Of course you are generation Y and will not understand or believe this, so good luck with your hunting....

MITCHAY · 06-01-2007, 10:07 PM

Quote:

Originally Posted by flappist

You could get hurt/sick/lose your contract/lose your licence/prang your van next week and your income will stop dead with no fallback.

Another reason why it is good to buy a car outright. If I had of got a loan, I'd well and trully be up **** creek without a paddle since my income has been cut in half.

If I can't afford my car I can just sell it and not have to worry about paying back a loan.

4Vman · 06-01-2007, 10:30 PM

Boy o boy!!!!, some people really have some mixed priorities in life and some poor coaches along the way. Gen Y, the "must have it all now" generation.
The best thing i ever did was buy my first second hand car with cash i saved working part time, $3000.
It was a cheap modest vehicle but it lasted 7 years, and allowed me to also buy a rental property while i lived at home, to me the rental property repayments were like compulsary savings, i had to repay the load (the rent didnt cover it all), it taught me to manage money, and i used the equity i had in it to buy my first home later on.
People said it was boring and i missed out on holidays away etc... 20 years on i nearly own my own house, have another rental property, my own business and i collect GT Falcons... All my friends who whooped it up spashing their money around when they were young and told me i was boring for doing it my way are still renting to this day and envy my position now.
There's some great advice given in this thread, i hope some of it sticks....

smoo · 06-01-2007, 10:46 PM

I'll put my money down that the novelty of the modded XR8 ute will wear off after the first month when insurance, maintenance and possibly fines come into the equation. I've seen it happen to several work mates. The worst thing is, is that if they sell after realising what they've gotten into, there goes at least 3-4 grand depreciation in the space of a couple of months.
30 grand in debt... Maybe if it was a rare classic, but not some disposable 'appliance' such as an AU, or any modern car.

xbgs351 · 07-01-2007, 10:08 AM

Quote:

Originally Posted by Beetus

IM a subcontractor i do all my own stuff, m own bookwork tax the lot, office expenses=nil, work cover business insurance are 150 ish a month, i actually earn like over 5k a month the grand a week is after everything except fuel that i use....... i did accounting and stuff at school im not to bad with it really........i run a bisness im used to that kind of stuff..

You are paying yourself super? I know a lot of business owners who haven't and it's really bit them in the long run.

Why haven't you included fuel in that figure? Depreciation was the main cost that I was hoping that you had included.

chich · 07-01-2007, 12:03 PM

I honestly don't understand the problem here - you boast about clearing $1000 a week yet you need a loan to buy a $20K car? Sit your a$$ down, manage your money properly and before you know it you'll be able to buy the car you want outright in 8 or 9 months time. If i was in your situation i'd be doing things a little differently by leasing a work van and writting it all off on tax.

In regards to buying a house you do understand that you'll need to do it sooner or later don't you? These days $350K buys you something decent in most cities.. in 10 years time that figure will be $500K. Don't know about you but i'd much prefer paying interest on $350K..

4Vman · 07-01-2007, 01:03 PM

The best thing i did was buy property as soon as i could, and as a priority over having toys. toys and luxury items can come after property.
If people don't get themselves into property of some form (own or investment) by the time they're around 25 they're going to make life very hard for themsleves later on, the longer you delay it the harder its going to get, unless of course they have an above average source of income...

MITCHAY · 07-01-2007, 01:21 PM

Quote:

Originally Posted by 4Vman

The best thing i did was buy property as soon as i could, and as a priority over having toys. toys and luxury items can come after property.
If people don't get themselves into property of some form (own or investment) by the time they're around 25 they're going to make life very hard for themsleves later on, the longer you delay it the harder its going to get, unless of course they have an above average source of income...

I bought toy before house ;) I can sell it later on to contribute towards a deposit and all things going good I should finish school this year and start earning good money.

All else fails I can still bludge it up at home

:

PHATXR8 · 07-01-2007, 01:27 PM

As I said earlier, there is some fairly ordinary advice been given here.... Get some professional advice and it will pay for itself many times over!

chich · 07-01-2007, 02:00 PM

Quote:

Originally Posted by 4Vman

The best thing i did was buy property as soon as i could, and as a priority over having toys. toys and luxury items can come after property.
If people don't get themselves into property of some form (own or investment) by the time they're around 25 they're going to make life very hard for themsleves later on, the longer you delay it the harder its going to get, unless of course they have an above average source of income...

Agree 100%. Unfortunately not many people understand how important it is to set yourself up early and plan ahead as far as possible. Its all about planning, planning and more planning.

I'll be 25 in a few months and am currently in the process of buying an investment property where most of my mates are busy buying cars and spending money on other irrelevant BS. Some of them have almost paid off their depreciating asset and other aren't even close, however the one thing they have in common is they'll be spending the next 4-5 years saving up a decent deposit in amongst finding a partner and modifying their cars.

In that time the property market will start to gain momentum once again and you'll be looking at paying $500K for a basic house on a small patch of land 20kms away from the Melbourne CBD.

In a nut-shell they've done their balls all at the ripe old age of 24..

xbgs351 · 07-01-2007, 02:33 PM

Quote:

Originally Posted by 4Vman

The best thing i did was buy property as soon as i could, and as a priority over having toys. toys and luxury items can come after property.
If people don't get themselves into property of some form (own or investment) by the time they're around 25 they're going to make life very hard for themsleves later on, the longer you delay it the harder its going to get, unless of course they have an above average source of income...

And if you buy the toys first, you need to buy a more expensive property in order to store them all. Take it from me, houses with four car garages are expensive :hihi:

You don't have to buy a house, you could invest in managed funds. It doesn't really matter how you accumulate your wealth as long as you make a start as young as possible.

LilMissDrift · 07-01-2007, 02:38 PM

I was just 17 when I went in for my first loan which was $5000. Payed it out before I went in for another loan to buy my AU, which i only borrowed $7000 for because I already had the rest saved.. I've had the AU for a few months and only owe $2700 on it now. I got told by the bank that they'd let me borrow anywhere up to $35000, on the wage I'm on. Personally, dont go borrowing too much money, you'll lose out. My mate bought a F6 Typhoon brand new, thru ford credit... and like 2 months later he coulda got the same car like $10,000 cheaper!

4Vman · 07-01-2007, 02:54 PM

Quote:

Originally Posted by xbgs351

And if you buy the toys first, you need to buy a more expensive property in order to store them all. Take it from me, houses with four car garages are expensive :hihi:

You don't have to buy a house, you could invest in managed funds. It doesn't really matter how you accumulate your wealth as long as you make a start as young as possible.

True, as long as your saving and the money is "working" for you.

Yes 4 car garage houses are expensive, ive got a double and im looking at building another 2 car garage at the moment!!