MORTGAGES/LOANS.

What is written below, is my personal opinion, which may differ from yours.

When I am looking at applying for loans, I will always calculate the interest at 25% p/a.

The reason being, if I am unable to afford the loan at the above rate, then I will not apply.

I have found when people apply for a housing mortgage, they fail to factor in interest rates increases, council rate increases, taxation, maintenance costs, insurance, etc.

Rents should not increase more than the cpi, or 5%, whichever is higher, annually.

Too many either neglect to factor in the above, or will ignore them, saying:

“I will deal with it if it occurs.”

I have also noticed, many people, when they purchase a property, will furnish it with many trending items.

Honestly, when you purchase a property, the best way to start seek out previously loved items, then as time goes on, gradually replace each piece, by paying cash, not going into further debt.

Patience is a virtue.

Keeping up with your friends is not a good thing, either mentally or physically in the long run, because you will be working much harder to pay off your debts.

So these are some furniture suggestions:

Fold up picnic table and fold up chairs.

Camp chairs to watch the television, as some have beverage holders.

Plastic sliding drawers, with a plank on top to sit your television and DVD player.

These drawers can be useful to place various household items in.

Instead of purchasing food and beverages at work daily, make your lunch in advance, say on a Sunday, this will save you money.

In the past, when I ate animal products: Sundays, I would cook mince and vegetables (frozen), then portion in to microwave safe containers. I would then cook chicken and vegetables again. I would cook 5 of each, as this provided 2 meals per day, one at work, the other when I arrived home for my evening meal.

Minimise going out on weekends, to once per month, especially where you plan to spend money. By doing so, you may enjoy the occasion better.

When I was growing up, I was never taught anything about saving for a house, or possibly in time, using the equity built up to purchase either an investment property, a new car, or pay for an overseas holiday/vacation.

I also suggest, before looking to purchase a property, seek a business opportunity.

The reason being, many financial institutions look favourably upon applicants with more than one income.

If you are in Australia and partake of a business opportunity, I highly recommend applying for an ABN, because there are numerous benefits to holding on.

Now, before anyone starts being negative, most Australians, 18+ are eligible to hold an ABN as an Individual/Sole Trader.

By planning ahead with several contingency plans, you might be fine.

I have told this story before, however, will tell it again:

Back in the late 1980’s I was a courier, and we had an unknown client, well they were then, who I did a lot of work for.

One Friday afternoon, I was allocated a job from them to Sydney CBD. I arrived so quickly; the item was still being processed.

The manager, whom I knew well, asked if I would like a coffee and quiet chat, which I accepted. Yes, I thought the worst with him.

However, once he handed me my coffee, we sat to talk.

He advised the business was going to list on the stock exchange in coming months and invited me to buy some shares when they did.

N.B. At the time, I had $1,000 sitting in my bank earning very little interest.

I was interested in this, however, made the mistake of deciding to discuss it with my parents.

I advised the manager, which was accepted.

Soon after the item was ready, I completed the paperwork, then departed.

Once I arrived home decided to talk to my parents about this proposal, however, my father advised, I would be better off withdrawing all the funds and investing???????? in the pokies/one armed bandits/slot machines/fruit machines.

Against what my heart desired, I did what he advised.

Guess what? I lost all the money, including over $2,500 I won on a jackpot.

The company listed. Today, my $1,000 could be valued at over $250,000.

The company is one the most popular companies in the world.

N.B. I will not reveal the company name for privacy reasons.

Finally, I have not written this blog to be nasty or treat anyone like a dummy, only trying to help, by providing information, I have gathered over the years