A lot of economic talk around in media these days, so I would like to ask about your loan.
I don't mean to be too curious, don't mention anything specific if you don't feel like it :)
At this forum, there's a pretty good coverage between different nationalities, so I was thinking to ask how it's done in your place.
Personally, I live in a pair house and I have around 7 more years to go paying it.
7 years is not the whole truth, because I think I need a bigger house for my family in a couple of years but I hate the idea of "baking a loan cake" of 20+ years :(
If you live on rent, or have paid it already (or live at parents, some other etc.) mention it also :)
I live with my mum. House is paid, she got it from their parents and had to pay out her siblings. She took a credit for that and paid I think 7 years. My dad also got a house from his parents and paid out his sister, also with a credit but that one is still running for (I think) 3 years.
Im paying cheap rent for really basic appartment(Im still young so I can "afford" to rent at the moment) but Ive been thinking about my own house, because theres no difference whether you pay someone else money for their appartment and only rent or you build your own house and pay something to bank, depending on how much youve funded yourself and how much loaned from bank.
Actually, there is huge difference - its your property and not someones else!
Latvian banks make shitloads of money too, but its weird that houses in OZ can be expensive given that at some places climate there isnt harsh so you should have cheaper houses with less insulation and so on?
But when or if I go into debt, then I wouldnt feel comfortable of payinf for more than 5 or 7 years, thats my opinion at the moment.
In fact, Ive been researching eco house building on the cheap recent months and that idea has been in my mind for couple of years tho. I dont see myself paying bank huge amounts of money to buy pre-fabricated house or to buy used house somewhere. Building yourself, if you have a time and really WANT to do so is much much cheaper and fun!
Hmm, I´m bad in english when it comes to banking terms...
Well, the so called marginal in here is the fixed percentage, which will be taken by the bank that grants loan.
Even, if the general loan interest rate sinks to 0%...
For example, I have about 0.7% of marginal (which will always stay the same, almost...) added with about 1.6% of Euribor 12 month (which pumps up & down).
Rates were about 6% also in here, when I took the loan.
Well id say the max someone can commit himself is 15years. Else you end up paying too much interests Although I am aware that house loans can get terms as long as 30 years (max) where I live.
Auckland NZs biggest city with over 1 million people and 1/4 NZs population the average house price is $375,000 US or $500,000 NZ
Cost of living in NZ is very high, party because of our location and the number of people ( 4.4 million ) so we don’t have the economics of scale places like Europe and the US have.
Its no wonder we have the “brain drain” to Oz: the pay is better, housing and living is cheaper…
I am currently a student (IT) and will probably finish studying with a loan of $15-20K (interest free) and should manage a job earning over $40K US if I do well so if all goes well that will be paid off in under 2 years.
Although I am aware that house loans can get terms as long as 30 years (max) where I live.