|
Butt Wizard posted:1. Your house prices have been inflated for ages, there's a famous John Howard quote about no one ever complaining that their house rising in value making them richer. This is not a recent development. I completely agree with all your points! It's definitely not a recent development (the real trouble started in the 90s when the 50% discount on capital gains was introduced), and rising house prices in metro areas isn't a new thing at all. However, I think your second point is a result of a regulatory environment that encourages that sort of behaviour - when all the older and wealthier people around you made money from property, you're probably going to assume it's the quickest and easiest method to riches too (thus spurring demand for shows like The Block). Here's a bonus graph for Melbourne median house prices vs median household income. Bad at money - the idiots who broke into my car last night, had a good rummage around, and didn't bother taking anything. Bastards. Jokes aside, I'm reading this thread on reddit and just cringing: Parents are in debt about $15,000? Anyway I can help? posted:First of all, please direct me to the correct subreddit if there is another one better suited for this type of question. Thankfully the comments are all some variation of 'no, don't do it.'
|
#
?
Jul 27, 2014 04:42
|
|
|
|
| # ? May 14, 2024 00:34 |
|
|
Citizen Z posted:
Holy poo poo this is awful on so many levels.
|
|
#
?
Jul 27, 2014 05:08
|
|
|
Barry posted:Holy poo poo this is awful on so many levels. Yeah, I think my favorite is the "Let's just make ABSOLUTELY SURE that poor people can't afford to live here" angle.
|
|
#
?
Jul 27, 2014 05:31
|
|
|
froglet posted:I completely agree with all your points! It's definitely not a recent development (the real trouble started in the 90s when the 50% discount on capital gains was introduced), and rising house prices in metro areas isn't a new thing at all. However, I think your second point is a result of a regulatory environment that encourages that sort of behaviour - when all the older and wealthier people around you made money from property, you're probably going to assume it's the quickest and easiest method to riches too (thus spurring demand for shows like The Block). Here's a bonus graph for Melbourne median house prices vs median household income. Auckland is the same way - so many retirement nest-eggs are tied up in property that even if the market did correct itself, we'd still end up with a huge social cost. It's us, our countries are the people who are bad with money in the long run.
|
|
#
?
Jul 27, 2014 05:40
|
|
|
This whole Uber thing has introduced me to a whole new batch of... Well...agarjogger posted:I have excellent insurance with huge limits, but why even bother pointing that out if, as you say, it won't ever help me if I get in a wreck. The fact is Uber drivers have been in plenty of accidents on and off the clock, and almost all of their claims have gone through. Yes it sucks to be paying so much for a policy that could be so easily invalidated. Once I know I'll be making enough money to pay the premiums, I will look into commercial insurance. But I'm not even sure policies yet exist that could be sold to an Uber driver.
|
|
#
?
Jul 27, 2014 05:51
|
|
|
Being an Uber driver in general seems like a bad life choice/bad with money. Outside of San Francisco and New York, most of these people must be making minimum wage.
|
|
#
?
Jul 27, 2014 07:15
|
|
|
A job that requires a car which the
|
|
#
?
Jul 27, 2014 07:30
|
|
|
Agarjogger's posts in the e/n dating thread aren't financial, but they sure are something too.
|
|
#
?
Jul 27, 2014 07:33
|
|
i like nice words
|
Is there any other kind of uber driver besides stupid or desperate?
|
|
#
?
Jul 27, 2014 11:46
|
|
|
Anne Whateley posted:Agarjogger's posts in the e/n dating thread aren't financial, but they sure are something too. I tried reading, but the online dating thread alone has 10 pages of his posts, and as a non-dater, I can't slog through it. Any samples?
|
|
#
?
Jul 27, 2014 12:52
|
|
|
Aristotle Animes posted:Is there any other kind of uber driver besides stupid or desperate? Seems like the most practical way to do it would be to get a small business loan and start your own Uber fleet.
|
|
#
?
Jul 27, 2014 13:23
|
|
|
April posted:I tried reading, but the online dating thread alone has 10 pages of his posts, and as a non-dater, I can't slog through it. Any samples? Just read his posts in that thread, skip everyone else's. Use the magic ?. That thread is like 20% trolling, 5% good advice and 75%  His understanding of interpersonal dynamics is novel and off putting, let's put it at that.
|
|
#
?
Jul 27, 2014 13:30
|
|
|
BigDave posted:Seems like the most practical way to do it would be to get a small business loan and start your own Uber fleet. I was under the impression that it could be an alright source of side money if you had the time and a decent vehicle already.
|
|
#
?
Jul 27, 2014 15:49
|
|
|
Citizen Z posted:I was under the impression that it could be an alright source of side money if you had the time and a decent vehicle already. I think Uber requires you to have a recent year model in a certain color or something like that.
|
|
#
?
Jul 27, 2014 16:26
|
|
|
Boris Galerkin posted:I think Uber requires you to have a recent year model in a certain color or something like that. But it's alright because for the low low price of $200 down you can buy a new Lexus.
|
|
#
?
Jul 27, 2014 16:27
|
|
|
Boris Galerkin posted:I think Uber requires you to have a recent year model in a certain color or something like that. Only for the towncar type-service. I think you can do the basic one with whatever as long as it's in good shape.
|
|
#
?
Jul 27, 2014 16:46
|
|
|
I was under the impression most people did it during the weekends. Is that not the case?
|
|
#
?
Jul 27, 2014 17:01
|
|
|
I use Uber all the time in SF. I wouldn't say they're all new cars, but they're certainly clean. None of the drivers I've talked to ever bought a car for Uber. It's pretty much they had a car and wanted to make some money.
|
|
#
?
Jul 27, 2014 18:04
|
|
|
Had an idiot "friend"/coworker who was "carefree" and "fun times, you guys!" but worked at the mall at minimum wage. She spent alllll of her cash on rather expensive clothes (but we got a discount, so it's not that big of a deal, right?) but would complain that she had been running on e on her car for the past week (still not sure how that works). These are the clothes she would buy because she didn't "feel like doing laundry." She had filed bankruptcy at 21 and had a baby, whom she never even mentioned unless convenient. (Her mom took care of the baby, if that helps sheds any more light on her inability to take responsibility for anything.) If she wasn't dating dudes for living space, she was completely content on riding it out as things fell apart. She always whined about wanting to finish school and not having the money but instead worried more about her failed modeling career in a local, poor man's Suicide Girls company. She is attractive, so things normally worked out for her. And I did just recently see her on craigslist begging for a place to stay--"preferably with guys. NO HOOKUPS." She won't pay a dime, fellas.
|
|
#
?
Jul 28, 2014 00:36
|
|
|
BurritoTheif posted:but would complain that she had been running on e on her car for the past week (still not sure how that works). Running on fumes is really stupid, you don't save anything except for carrying slightly less weight around in your car but the repair bill when your engine is damaged more than makes up for it.
|
|
#
?
Jul 28, 2014 00:56
|
|
|
Here's one for the pile. I have a relative who is a musician. As far as I can tell she does pretty well of it, she teaches music during the week, plays gigs on her own and does backup for other musicians. Each on its own might not be enough to get by, but together she has a pretty busy schedule despite her city not having much of a music scene. The problem is that she's perpetually broke for various reasons. Either it's a new instrument, or she's gotten herself into some vehicle trouble (fines, engine trouble, she's rather accident prone and has had several accidents), or the work has dried up. The other day she broke the immobiliser in her car key. She calls my uncle who drives 40 minutes to help her out, then she turns around and admits she has no fuel so she'd probably be unable to get home. He fills up the car for her because he's not about to leave her stranded at 3am. Then the car won't start, possibly because it's been running off fumes for so long. My uncle was pretty upset with her, he's recognising that she's taking advantage (or at least, not planning ahead because hey my uncle will bail her out).
|
|
#
?
Jul 28, 2014 01:17
|
|
|
Scapegoat posted:Running on fumes is really stupid, you don't save anything except for carrying slightly less weight around in your car but the repair bill when your engine is damaged more than makes up for it. Poors think it's changes the difference in the amount of money spent on fuel. This is false. You simply go to the gas station sooner and pay for fuel pumps more often. Afterthought: maybe it does cause engine issues on non-German cars... German cars have sumps and syphons so the pickup stays wet always. Down to a quarter gallon or less.
|
|
#
?
Jul 28, 2014 01:53
|
|
|
EugeneJ posted:My cousin goes to a well-known college out of state (because heaven forbid he go to an in-state school that doesn't have prestige!). I had a roommate like that, except instead of a bad trip that prevented him from getting a degree, it was getting super intoxicated on something and beating a guy in a parking lot until he almost died for "stealing my parking spot". He was in jail for 5ish years last I heard, but he has a trust fund that pays him like $60k a year for the rest of his life so not like he needs to work anyways.
|
|
#
?
Jul 28, 2014 14:06
|
|
|
I was just reading an article on CBC.ca about paying off your mortgage faster, and I don't fully understand one point they're trying to make. http://www.cbc.ca/news/business/paying-off-your-mortgage-faster-can-pay-huge-dividends-1.2719753 CBC posted:Since mortgage payments are made with after-tax dollars, putting extra money down on a debt with an interest rate of 3.49% is equivalent to getting a guaranteed, risk-free return of over five per cent. If your mortgage rate is higher, so would the return be. What investments aren't after-tax for the average worker? I have a high-marginal, so I'm putting money into my RRSP (even though I have a pension) to reduce my taxable income. This usage of after-tax money will allow me to defer taxation to later years by providing me with a refund (which I will also plop into my RRSP) and hopefully provide me with at least a 5-7% annual rate of return, which is higher than my mortgage rate. If I put that after-tax money onto my mortgage, it would save me 2.89% interest annually. Unless my mortgage rate goes up, where are they deriving this magical 3.49% = 5% calculation? Am I really missing something here? edit: I meant to post this in the Canadian Finance thread. Rick Rickshaw fucked around with this message at 15:31 on Jul 28, 2014 |
|
#
?
Jul 28, 2014 15:09
|
|
|
No I think they're spouting nonsense, especially because interest is effectively paid pre-tax and extra mortgage principal payments reduce the amount of interest paid and thus your level of tax break. If you have a mortgage over inflation it still makes sense to pay it down faster than the amortization schedule, but I don't understand what they're saying either. And at a 3.49% mortgage I'm not sure I'd bother putting extra on it unless I was maxing retirement accounts and building a nice taxable account and had money left over, that's pretty close to inflation.
|
|
#
?
Jul 28, 2014 15:12
|
|
|
Nail Rat posted:No I think they're spouting nonsense, especially because interest is effectively paid pre-tax and extra mortgage principal payments reduce the amount of interest paid and thus your level of tax break. If you have a mortgage over inflation it still makes sense to pay it down faster than the amortization schedule, but I don't understand what they're saying either. But, if you were maxing retirement accounts and building a nice taxable account/investments and had money over, you would put money into it, right?
|
|
#
?
Jul 28, 2014 15:17
|
|
|
silvergoose posted:But, if you were maxing retirement accounts and building a nice taxable account/investments and had money over, you would put money into it, right? Well yeah of course(as I said).
|
|
#
?
Jul 28, 2014 15:19
|
|
|
Yes, I would too. At my current mortgage rate, my order of priority goes: Beer > RRSP > TFSA > Hookers > Mortgage > Non-registered account investments edit: I meant to post that article in the Canadian Finance thread. But I guess it applies here.....might as well post it there still too. Always fun making fun of CBC. Rick Rickshaw fucked around with this message at 15:32 on Jul 28, 2014 |
|
#
?
Jul 28, 2014 15:26
|
|
|
EugeneJ posted:Edit: oh yeah, precious snowflake also has both a private psychologist and private psychiatrist - I can't even imagine how much that costs. When my cousin doesn't like what the psychologist is saying, he just goes to the psychiatrist instead.
|
|
#
?
Jul 28, 2014 15:47
|
|
|
Nail Rat posted:And at a 3.49% mortgage I'm not sure I'd bother putting extra on it unless I was maxing retirement accounts and building a nice taxable account and had money left over, that's pretty close to inflation.  BRAG POST! A couple years ago I received a letter from my mortgage holder that they could do a streamline refinance with almost no costs (~$300 for the title work) and they would give me the rate of 2.75%. I jumped all over it.
|
|
#
?
Jul 28, 2014 15:57
|
|
|
Aristotle Animes posted:Is there any other kind of uber driver besides stupid or desperate? 
|
|
#
?
Jul 28, 2014 15:58
|
|
|
gvibes posted:Uh, what is the alternative to a private psychologist/psychiatrist? Pretty sure it's like a private chef, the kid is their only client.
|
|
#
?
Jul 28, 2014 16:11
|
|
|
Nocheez posted:What about a rate of 2.75%? That's pretty loving awesome. Having that instead of 5.5% would save me over $250 a month in interest right now 
|
|
#
?
Jul 28, 2014 16:18
|
|
|
ranbo das posted:He was in jail for 5ish years last I heard, but he has a trust fund that pays him like $60k a year for the rest of his life so not like he needs to work anyways. Imagine the bender he will go on when he gets out and has 300k sitting in his checking account. Make sure to post it here!
|
|
#
?
Jul 28, 2014 21:08
|
|
|
You can get a 25 to 35 year fixed-interest-rate mortgage here in Japan for about 2.05% at the moment. If your company has a sweet deal with its banks, you can get that knocked down to 1.6% or so. The downside being that your house will be worth zero after 1 year and the land is unlikely to have any real value at the end of the term unless you paid  ^infinity for it in the first place.
|
|
#
?
Jul 28, 2014 23:20
|
|
|
Weatherman posted:The downside being that your house will be worth zero after 1 year and the land is unlikely to have any real value at the end of the term unless you paid
|
|
#
?
Jul 29, 2014 00:11
|
|
|
Japan is dying
|
|
#
?
Jul 29, 2014 00:46
|
|
|
Dawncloack posted:Hey, can you please give details about this? How come the land and the property won't have any value once you paid them? Not sure about the land, but houses in Japan are typically torn down and rebuilt instead of maintained. (Check http://en.wikipedia.org/wiki/Housing_in_Japan#Home_ownership) It's a cultural thing, from what I understand. I think that people will tear down a house on a lot that they bought instead of living in the house that was already there. So after 1 year, the new owners would just tear the house down anyway. But again, I don't know if/how that applies to the land's value.
|
|
#
?
Jul 29, 2014 01:16
|
|
|
Solumin posted:Not sure about the land, but houses in Japan are typically torn down and rebuilt instead of maintained. (Check http://en.wikipedia.org/wiki/Housing_in_Japan#Home_ownership) I was curious about this too, and searched on google and found this. http://www.japantimes.co.jp/life/2008/09/28/to-be-sorted/a-step-by-step-guide-to-owning-a-home-in-japan/ quote:Land with an existing old house on it Many plots are sold with an old house on them, and are usually cheaper than empty plots. This is because buyers are expected to pay for demolition of the existing house before building a new one. Japanese houses have a very short life span, with half demolished around 40 years after construction, according to a study by Yukio Komatsu, professor at Waseda University’s architectural department. So it looks like the land loses value because whoever buys it is going to have to pay for demolition to build a new house, and wouldn't have to do that on an empty lot. Japanese home ownership is weird.
|
|
#
?
Jul 29, 2014 01:55
|
|
|
|
| # ? May 14, 2024 00:34 |
|
|
I remember people fixating on the age of apartments and houses last time I was in Japan, but I didn't realize it went THAT far.
|
|
#
?
Jul 29, 2014 02:32
|
|