Most likely Selling the Legnum

[jaygore]

Hey guys,

I have made a decision once i have gotten my legnum upto scratch she is going up for sale.

Things have changed in life, im 22, and i have a loan for a car when i really should sell the car, and pay off the loan, get a much more economical car and the main reason is to get a house.

Im trying to think of my future and one day having a family and i want to be prepared and set up for that instead of spending all my money on something that will just continue to fall in value.

Plus with the band and doing gigs, i will be travelling alot and a legnum is just going to cost way tooo much on the petrol bill, so looking at going for a falcon or commodore wagon on gas, plus if something goes bung, then i will be able to fix it for alot cheaper

 

[Tom]

It's a good plan, I'm the same age, and in the same boat.. Except, I don't want to get rid of the car lol

I'm building up my funds to be able to put down a deposit for an investment property while I still can and living at home.. It's harder with a car that's costing so much, but I'm determined to do it

Good luck with it dude!

 

[VR4sum]

can I join this thread for a comment or do I need an evo bonnet too?

:sad::sad::sad:

But seriously, if there was EVER a reason to sell a legnum and buy a (cough cough) commonwhore then you have found it mate.

Can't shoot you down for being smart. I'm 31 and have the house so now I get to play

 

[jaygore]

yea im in the same boat living at home, but with 14 grand first home buyers at the moment and the house im looking at is 130 000 3 bedroom, solid home and plenty of potential with an already brand new kitchen in it.

But to get the first home buyers i must live in it for at least 6 months so wont be able to afford both for a long amount of time. And i will then start renovating the whole house (if i get it) pushing the walls out on all sides and making it bigger

 

[jaygore]

ahhh haha you can join in lol

 

[VR4sum]

yea im in the same boat living at home, but with 14 grand first home buyers at the moment and the house im looking at is 130 000 3 bedroom, solid home and plenty of potential with an already brand new kitchen in it.

But to get the first home buyers i must live in it for at least 6 months so wont be able to afford both for a long amount of time. And i will then start renovating the whole house (if i get it) pushing the walls out on all sides and making it bigger

$130K!! Geeeez, that wouldn't get you a parking spot in sydney!
Where abouts mate? (investment potential?)

 

[Tom]

yea im in the same boat living at home, but with 14 grand first home buyers at the moment and the house im looking at is 130 000 3 bedroom, solid home and plenty of potential with an already brand new kitchen in it.

But to get the first home buyers i must live in it for at least 6 months so wont be able to afford both for a long amount of time. And i will then start renovating the whole house (if i get it) pushing the walls out on all sides and making it bigger

A home loan broker told me a plan.. Get the home loan, with an extra 20k above the cost of the property I plan on buying (if possible) and use that 20k to clear my current car loan, that'll put everything in to the one loan just on a smaller interest rate.. Then, when people move in to the property, they'll be paying for the car AND property, and whatever the rent doesn't cover over the monthly repayments, it becomes a tax offset

It's just a matter of building the funds to get enough for a deposit!

 

[VR4Rocket]

$130,000!!! HOLY SHIT!!! I am trying to save for a place myself and we look at around the $350,000+ ..... I think I have to move to Victoria!!

 

[Tom]

$130,000!!! HOLY SHIT!!! I am trying to save for a place myself and we look at around the $350,000+ ..... I think I have to move to Victoria!!

LOL think $400,000+ for something like that in Sydney unless if you move way far from the city haha, and I mean real far LOL:001_unsure:

 

[jaygore]

well i live in ballarat and houses are much cheaper, but the property im looking at also has huge potential to end up being worth well over the 250 000 mark so i am really keen to buy it, it does need a bit of work such as re stumping, but i know people who can do this for me dirt cheap, and my aim is to get this one paid off asap!!! then rent it out go to a slighty better house get it to the point where the rent it [aying it off, buy a block of land and build my dream home

 

[Lateralus45]

What kind of price would you be looking at and how many k's are on it now?

 

[jaygore]

its at around 87 000 regular servicing and so on and i will be looking at around 15 000, but i will obviously be flexible, thecar isnt up for sale as of yet but it will be most likely in the next 2 months

 

[cyber_scriber]

Sad to hear that the car has to go but you have to do what you have to do.

I agree with the point of getting your appreciating assets set up before you buy depreciating assets. It makes even less sense to use bad (i.e. non-deductible) debt to acquire depreciating assets like cars.

A home loan broker told me a plan.. Get the home loan, with an extra 20k above the cost of the property I plan on buying (if possible) and use that 20k to clear my current car loan, that'll put everything in to the one loan just on a smaller interest rate.. Then, when people move in to the property, they'll be paying for the car AND property, and whatever the rent doesn't cover over the monthly repayments, it becomes a tax offset

Tom, your loan broker has given you incorrect and negligent advice.

The portion of your loan used for non-income producing purposes (i.e. paying off your car loan) is not tax deductible and cannot be offest against your income tax. It is also an administrative head ache if you are using one loan to mix both investment and personal purposes.

 

[jaygore]

i agree with you their bruce, there is no way i would put my car loan onto the house, i dont think its a very good move, i would much rather sell the car and have a much smaller loan (much easier to pay off) more economical car and the house, it will then allow you to be able to do alot more work to your house

 

[Tom]

Oh wow, really? I think I'll have to bring that up hmm.. Talk about leading me to believe something completely wrong! OMG

 

[dr-25-lt]

A home loan broker told me a plan.. Get the home loan, with an extra 20k above the cost of the property I plan on buying (if possible) and use that 20k to clear my current car loan, that'll put everything in to the one loan just on a smaller interest rate.. Then, when people move in to the property, they'll be paying for the car AND property, and whatever the rent doesn't cover over the monthly repayments, it becomes a tax offset

It's just a matter of building the funds to get enough for a deposit!

first of all, i work for bankwest and ive been told no-one does 100%loans anymore, so it wouldnt be possible to borrow over that...

technically everyone here is right and mixing loans are a headache, but u could work around that easily... for example, the $14k first home grant could go towards the car loan and u dont need to put it on the loan...

and whether the broker is a tosser, or there was miscommunication, all that is tax deductible is the difference between interest paid compared to rent recieved...

for example, $200/ week rent
$250/ week interest you pay on loan
$500/ week mortgage repayments

ALL you can claim on tax is $50/week (not $300) because the interest is the expense of having the investment...

but enough of this crap, back to cars... lol...

good luck with the sale (if it eventuates), looks the money...

 

[MooIsTaken]

I'm in the same boat except with two cars. A prelude which no one wants to buy and a Galant which I don't want to sell

Good luck with the sale!

 

[Tom]

It was probably miscommunication haha but thanks for clearing it up! I thought it was too good to be true, things usually are right? *tear*

 

[Guest]

as off tonight my car is paid off in full,

and the better half and I bought a house a month ago, moving in in 17 sleeps
http://www.ozvr4.com/forums/showthread.php?t=6518

from one dept to another LOL,
usually i sell the car when its paid off and move on, but getting old a more responsible now.

good luck with what ever you decide to do,
and if i had been a little wiser at your age i could have owned most of my house by now if i hadn't wasted so much money on cars and bikes.

definitely the right decision IMO

 

[ygoslo]

Hey mate if you wanna sell the bonnet let me know...