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  • Originally posted by iwik View Post
    Is that how you two have a discussion - put the boot in when you look
    to be on the back foot - does the truth hurt ?
    I am not sure which truth you are talking about.
    The fact is a table mortgage charges the interest it does on the money outstanding.
    By paying a regular amount the capital payment slowly increase while the interest payment slowly reduces until,
    at the end of the term, all monies are paid back.
    You pay interest on the money outstanding at any time so I can't see how it is a rip-off.
    It may not be the best option in your case but still isn't a rip-off!

    The strategy of buying 20 and paying off 10 when the capital values have risen enough works best in a rising market.
    The faster it rises the faster it works.
    In a flat or falling market it doesn't work!
    Some people forget that these forums aren't frequented by Aucklanders only - there are actually other people in this country.

    Comment


    • Wayne, I have said numerous times this week in threads,
      which some you most probably have read that one of the golden rules
      is to buy wholesale, properties below RV or as I did through landlords.
      This hedges against property cycles, no bank to my knowledge will even
      let you have an interest only loan without decent equity.

      Before you get to carried away with your stereotyping I am from
      Christchurch not Auckland. (No doubt there are conservative investors
      in Auckland too)

      I share my experience on here for newbies - pointless giving advice
      to the experienced who maybe paying a table mortgage off cause they
      are at the end of their investing cycle. But I'm not going to sit back at
      a newbie's expense and say a table mortgage is the way to go.

      How have I come to My opinion ? Cause I have been there done that
      with table mortgages, struggled with the larger payments, looked back when
      went to interest only and said to myself "If only I had done it earlier I would have
      had a Much easier road all-round"

      Giving folk 4% on saving and lending it out at 21% on credit cards is also -
      it is what it is.

      If you think a loan that is structured where you pay predominately interest
      for the first 75% of the time of the loan is fair - "We beg to differ".

      Comment


      • Originally posted by iwik View Post
        If you think a loan that is structured where you pay predominately interest
        for the first 75% of the time of the loan is fair - "We beg to differ".
        Is an interest only loan "fair" in your opinion ?

        Comment


        • Originally posted by speights boy View Post
          Is an interest only loan "fair" in your opinion ?
          Between the two evils yes.

          Comment


          • iwik - maybe English comprehension is your issue?
            This little bit of the discussion started when you said
            Table mortgages are a complete rip off with the first 15 years of a 20 year loan mostly interest.
            While they may not be the best option under the circumstances they are still not a rip-off

            rip-off
            nouninformal

            noun: ripoff
            a fraud or swindle, especially something that is grossly overpriced.
            "designer label clothes are just expensive rip-offs"
            synonyms: fraud, swindle, fraudulent scheme,
            If you think a loan that is structured where you pay predominately interest
            for the first 75% of the time of the loan is fair - "We beg to differ".
            Taking an I/O loan for 20 years you will pay only interest for 20 years!
            Not predominately - only by definition.

            Maybe you didn't notice but I have already said that the best way (I think) is to take an I/O loan out
            and pay off capital as YOU are able rather than as the bank insist.
            In this way you have control.
            This doesn't work for people who are poor with money as they will spend the money instead of paying off capital.

            And as someone else pointed out a RC facility is great as you can take the money back out easily.

            Comment


            • Originally posted by iwik View Post
              Between the two evils yes.
              What are these two evils ?

              Comment


              • Originally posted by Wayne View Post
                iwik - maybe English comprehension is your issue?
                This little bit of the discussion started when you said

                While they may not be the best option under the circumstances they are still not a rip-off

                rip-off
                nouninformal

                noun: ripoff
                a fraud or swindle, especially something that is grossly overpriced.
                "designer label clothes are just expensive rip-offs"
                synonyms: fraud, swindle, fraudulent scheme,

                Taking an I/O loan for 20 years you will pay only interest for 20 years!
                Not predominately - only by definition.

                Maybe you didn't notice but I have already said that the best way (I think) is to take an I/O loan out
                and pay off capital as YOU are able rather than as the bank insist.
                In this way you have control.
                This doesn't work for people who are poor with money as they will spend the money instead of paying off capital.

                And as someone else pointed out a RC facility is great as you can take the money back out easily.
                So now you are starting with a personal attack as well and ending in one - "I thought you were bigger than that Wayne ?"

                You even have to quote a third party as back up - to make a point.

                I'm not going to spend all day trying to convince you - you keep paying that
                table mortgage, I do not know your situation.

                To Me, My Opinion, My thoughts, My experience - human being in the main have their
                eye constantly on money not time.
                The smart man uses the magic of time !

                (This should also answer your question SB - you two no doubt experienced enough
                to know how the magic of time works)

                Comment


                • Wayne.
                  Tee Hee
                  It appears our southern friend has wisely decided to stop digging.
                  Last edited by speights boy; 13-01-2015, 12:33 PM.

                  Comment


                  • Originally posted by iwik View Post
                    So now you are starting with a personal attack as well and ending in one - "I thought you were bigger than that Wayne ?"
                    No - I only started with one (unless I slipped one in I didn't recognise?).
                    But really I was just trying to explain your lack of understanding of what is at issue.

                    Comment


                    • Originally posted by speights boy View Post
                      Wayne.
                      Tee Hee
                      It appears our southern friend has wisely decided to stop digging.
                      Indeed .

                      Comment


                      • No definitely both time wasting trolls. Just the next in a long line that turn up here from time to time :-)

                        Comment


                        • No digging just enjoyment of paying only $300 a week
                          on a 300k loan 😛

                          What is the financial situation of you two ? Cause this tradesmen
                          does not wish to risk wasteing his time on a couple of apprentices.

                          Comment


                          • Originally posted by iwik View Post
                            What is the financial situation of you two ? Cause this tradesmen
                            does not wish to risk wasteing his time on a couple of apprentices.
                            I wish I only had $300k owing.
                            And it is wasting by the way.

                            Comment


                            • Is that as much of an open book you are
                              prepared to be ?

                              I paid 440k for 6 units - one day the 300k will
                              only buy a bedroom, then another day the toliet
                              floor area - what was some guy in here wowing on
                              about the majic of time ? ��

                              1.5 million in equity


                              Whats wasteing ?


                              Cause dead money interest only but one day will
                              be paid off with pocket money, true dead money
                              to me is struggling to have a decent lifestyle along
                              the way - paying $1000 per week to the bank and
                              “8 bucks plus“ comes off the principal for years.

                              Yes RC is better way to go if you want to pay some off.

                              Comment


                              • Originally posted by iwik View Post
                                Whats wasteing ?
                                I was wondering this also.

                                Comment

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