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CelestialScribe posted:You can get fixed mortgages but at max they're for 5 years, most are for 1 to 3. Why's that? As opposed to a 15 year fixed, that is.
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Dec 9, 2015 05:04
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Fixed rate mortgages have never been popular here. Banks make money in variable rate mortgages, I imagine.
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Dec 9, 2015 05:07
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It's the same in New Zealand 6 months to 3 years covers most fixed rates. There are banks offering up to 5 years and one offering 10 years fixed. The floating rates are usually 1.5-2% higher than fixed. Most people will move every 3-5 years to upgrade their house. It's unlikely I'll spend 10 years in my current house so fixing for a short term means less or no penalties if you sell. Some of my mortgage is fixed rate but I fixed for too long and rates have fallen. Could have saved a bit on interest. That is we don't have the low 2% rates available in the US or Europe as we're not in a complete economic disaster. I'm sure there are a few people with variable rates that don't realise they should fix part of the principle to pay less interest.
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Dec 9, 2015 05:37
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CelestialScribe posted:I know I've posted about Australian property prices a few times before, but I have a doozy. 25% of ~$100k gross income going to mortgage, what am I missing here that's more crazy than a kind of expensive house? Maybe taxes are really different in Australia idk
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Dec 9, 2015 05:39
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CelestialScribe posted:Fixed rate mortgages have never been popular here. Banks make money in variable rate mortgages, I imagine. BEHOLD: MY CAPE posted:25% of ~$100k gross income going to mortgage, what am I missing here that's more crazy than a kind of expensive house? Maybe taxes are really different in Australia idk 2. Their income is very uncertain and the $45k is not including taxes 3. 50% of household income on a mortgage is insane (not 25%) 4. Cost of living in Australia is high generally for all things. 5. They're probably paying $200 a month towards the principle and the rest is eaten up by interest (i.e 30 year loan). Suspicious Lump fucked around with this message at 05:51 on Dec 9, 2015 |
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Dec 9, 2015 05:43
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BEHOLD: MY CAPE posted:25% of ~$100k gross income going to mortgage, what am I missing here that's more crazy than a kind of expensive house? Maybe taxes are really different in Australia idk If one of them lost a job, or if she has a kid, they are hosed.
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Dec 9, 2015 06:23
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Remember, people in Australia don't have savings or unemployment funds. It's extremely common to save up the deposit you need, have that be all your savings, and dump it in the house. I have had friends who buy houses and literally have just $1,000 or $2,000 in savings. That is accepted as common practice.
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Dec 9, 2015 06:38
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CelestialScribe posted:Fixed rate mortgages have never been popular here. Banks make money in variable rate mortgages, I imagine. Fixed rates here seem to have a lot of limitations like fees or limits for extra payments and no-redraw, so it depends on what you want/need.
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Dec 9, 2015 07:11
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Monaghan posted:I live in the prairies and I am still lauging my rear end off at the moronic oil rig workers who bought a new f-150 every year and now, are crying about not having any money. I was in Wyoming a few years ago and during the oil boom and I'd guess 2/3 of every car on the road was a truck. Hardly any of them were basic F-150s, it seemed like everyone had a boner for F-250s and larger, almost all of them were jacked up. I guess the banks in the area were repoing the poo poo out of them, as the idiots would buy them, then blow all their money on booze and drugs, then lose their job.
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Dec 9, 2015 07:12
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CelestialScribe posted:Remember, people in Australia don't have savings or unemployment funds. I think I get what you mean but from your wording you make it sound like superannuation and Centrelink don't exist.
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Dec 9, 2015 08:16
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I suppose. Too many people use them as an excuse not to save though.
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Dec 9, 2015 08:56
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On the subject of BWM and ARM's, did anyone in the U.S. get screwed by their ARM's during the financial meltdown or did the Fed create a whole moral hazard thing by keeping interest rates so low for so long? Borrowers didn't seem to feel much pain going for the cheaper, riskier option. Aside from owing $100k more than their house was worth.
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Dec 9, 2015 15:11
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Krispy Kareem posted:On the subject of BWM and ARM's, did anyone in the U.S. get screwed by their ARM's during the financial meltdown or did the Fed create a whole moral hazard thing by keeping interest rates so low for so long? Borrowers didn't seem to feel much pain going for the cheaper, riskier option. Aside from owing $100k more than their house was worth. It wasn't strictly Apr that got people, it was loans that were interest free or low interest the first few years that would then have their rate jump up to high single digits. An awful lot of people budget based on hope they make more in the future and they got wiped out.
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Dec 9, 2015 15:25
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mastershakeman posted:It wasn't strictly Apr that got people, it was loans that were interest free or low interest the first few years that would then have their rate jump up to high single digits. An awful lot of people budget based on hope they make more in the future and they got wiped out. Interest only's were a whole different breed of BWM. I mean, you can kind of justify an ARM if you're not planning on living somewhere very long. But interest only is 100% I-can't-afford-this-home-please-God-get-me-a-better-job-in-24-months. On the plus side at least you don't lose any home equity when you're eventually foreclosed on! And you got a tax deduction equal to all of your payments!
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Dec 9, 2015 15:37
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My brother in law is extremely BWM, despite he and his wife (my wife's sister) making like triple the amount of money my wife and I pull in. About 8 months ago, his job told him about an open position (he works in healthcare) in their CA office, which he interviewed for before being told they were experiencing a hiring freeze. This led to a fixation on them moving to CA and they both started looking for work out there. After a ton of trips (driving or flying) out there, he does not successfully land any other job, but his wife gets a really good position with a sister hotel and takes it. She moves out there, and lives for free in the hotel, while he continues to look for work from our state. He also starts Ubering to make extra cash. At this point I need to add a few other points: they own 3 cards, all of which are effectively underwater. There is a Nissan Z, Juke (which has a blown turbo), and a Versa. The Z sat on a driveway for 6 months because the brake rotors were going, although I insisted it was just the pads and could change them at the cost of those. He insisted it was the rotors and so it sat. Until a family of packrats built a cholla nest in the engine bay, which was discovered the day he was going to drive this car out to CA and it wouldn't start for some reason. Finally a driveway mobile mechanic is a called, and surprise, it's the brake pads! Rats get removed, pads replaced, a few more things, and for some reason it's still not working. So back to Uber: despite making like 75k and 60k collectively, he's ubering just to "make ends meet. This is because the place they decided to rent in CA is $3200 a month and they "just had to have it!" One of the reasons finding a rental was so difficult is because they own 3 large dogs. Two of which cost over $1000 each. One of his schemes is to breed them, so not quite Horse Equity, but still. Anywho, they have a roommate who pays like $700 a month in this new place, which is a loving steal, but really doesn't do a whole lot to offset their insane rent cost. So he finally lands a job out there, with pretty good pay, but at an admittedly sketchy place. The day he gives notice at his current place, he finds out why there was a hiring freeze. It's because they're being bought out by a huge insurance company, but since he just gave notice he's now not eligible for the 10k raises everyone around him got, OR the amazing insurance package. It's seriously like a Curb Your Enthusiasm episode. Westward ho! He drives out the day before his new job starts and shows up to work when requested, which was last Monday. They claim there are some issues with his currently license and say "well we can pay you about $12/hour in the meantime". So they now can literally only afford their rent, and that is IT after the wife's paycheck (insurance, 401k, etc), and his meager california income. This is ok, his plan is to drive back to our home state on the weekends and Uber for 3 days straight because he can pull in $1000 in that time. However, this makes absolutely no sense to me because of the time cost, increased driving risk of both the drive and ubering in general, and obviously the gas and wear and tear on the car. Maybe get a job serving or doing anything and not having to spend 12+ hours a week commuting across state lines? He drives out on Sunday to make another attempt at picking up the Z, but it doesn't work out for some reason, so he drives back all night to make it to work, literally wasting 12 hours on the I-8 for no reason. He shows up to work on Monday morning, where they inform him that his services are no longer needed, because of course this place would do that. So, time to pound the pavement and talk to every place in a 3 mile radius of their place to see if they're hiring? Nope! His plan is again, to come home and Uber a few days a week. But unlike a normal person, he doesn't really have a place to stay here. This is because his parents house, where they were both living (COMPLETELY RENT FREE) previously has all the utilities shut off, and even if they were on, they dont work because the hot water heater hasn't worked in months. He literally takes showers at the gym or community centers, like a homeless person, despite them making 100k+ a year. So he's going to drive out here, stay in a hotel, eat all his meals out, and then drive back to CA for some reason, because at this point they can't actually afford their rent. I'm seriously beside myself. They have no liquid savings that I'm aware of, and he's talked previously about taking out a 401k loan, which is always GWM. I offered to let him stay at our place, so we'll see what happens. The real kicker is they're both always lecturing us about how adult they are, and how they do all of this so they can travel all the time (which they also do, GWM), and blah blah. I'm leaving my full time job with amazing benefits in 3 weeks to go back to school full time+ while my wife works next year, and I'm confident we'll still end up in a better financial state than they do at the end of the year. There's a lot more, like how they don't cook, but think they save money by utilizing services like Freshly and Blue Apron instead of eating out every meal, spent 50-70k on their wedding, travel internationally once a year or more, and domestically constantly, but I think I'll leave it at that. I truly love the guy, but this is nuts. Is that a good first BWM post?
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Dec 9, 2015 16:17
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quote:The day he gives notice at his current place, he finds out why there was a hiring freeze. It's because they're being bought out by a huge insurance company, but since he just gave notice he's now not eligible for the 10k raises everyone around him got, OR the amazing insurance package. It's seriously like a Curb Your Enthusiasm episode. I think this is my favourite part of that story.
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Dec 9, 2015 16:24
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That's when you go back into your boss's office and say "pretty good joke, huh?" And then beg for your job back
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Dec 9, 2015 16:43
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Oh he did that. But they'd already approved someone's transfer to his position from another state. He even offered to train them, with temp status and no benefits but they already know how to do the job. Klezmer music plays constantly in my head whenever we're on the phone at this point, I'm not even kidding.
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Dec 9, 2015 17:41
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That is an amazing post. Why couldn't he uber in his new CA town?
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Dec 9, 2015 18:19
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He's a 'Zoni, isn't he?
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Dec 9, 2015 18:33
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Henrik Zetterberg posted:That is an amazing post. I asked that very question and there was a really long winded answer that I stopped listening too. So driving across states makes the most sense. Noggin Monkey posted:He's a 'Zoni, isn't he? Technically he's from NYC but yes he's a 'zoni from childhood on. We're not all bad I swear! I was born and raised here and I'm mostly normal, just a little heat-addled. Can't wait to leave this horrible state when I'm done with school. At least it's pretty cheap to live here!
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Dec 9, 2015 18:55
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In for "we make way more than that dude and there's no loving chance we'd rent for $3,200/mo." i was going to prepare a long rant about how Arizona is full of the worst people and I wish someone would tell ISIS that the root of all capitalism could be found in Scottsdale, but then I thought about where I live in CA and those people fit in perfectly.
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Dec 9, 2015 19:27
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CelestialScribe posted:It's not exactly a palace, but it's fine. Three bedrooms, nice lounge area. Parts of it are renovated, parts aren't. It's 40kms out of the CBD, lots of grass. A mid-size pool. Houses on the street are going for $600k. Keep in mind, sometimes people get help from parents/relatives and don't particularly want to advertise that. I don't know if that's the case here but plenty of the supposed BWM situations here might come from inherited wealth.
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Dec 9, 2015 22:10
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Eldred posted:Keep in mind, sometimes people get help from parents/relatives and don't particularly want to advertise that. I don't know if that's the case here but plenty of the supposed BWM situations here might come from inherited wealth. I doubt it, but wouldn't surprise me. There was a report earlier this week showing inherited wealth and monetary gifts from relatives for buying houses is increasing wealth inequality in Australia. I can't tell you how common it is for people to say, "just borrow the money from your parents", or "have your parents be a guarantor on the loan".
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Dec 9, 2015 23:11
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I'm thinking this is unintentionally OK with money, despite being BWMReddit posted:I was putting money into my RRSP account (thinking it was like a savings account until I actually claim the amount with CRA). Then I tried to take some money out to pay for a car purchase and only then learned about "withholding tax". What's my best strategy? Should I just get a car loan? I want to take out about $43,000. Thanks. Hopefully he can be convinced that is a terrible idea.
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Dec 10, 2015 00:01
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Iron Lung posted:despite them making 100k+ a year. A friend of a friend is an Uber driver in Philly. He's telling us that an average Uber driver can make something close to $25/hour working peak hours. There are 6-7 peak hours in a day and they're not evenly distributed, so you either have a 3 hour window or working regular rate in off peak hours. It's a lovely system. I'm dying to hear as to why he can't just drive for Uber in the new city, or anywhere closer.
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Dec 10, 2015 07:49
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Nitrox posted:Is that how much they make after he lost that job? I'd guess it has to do with in-state licensing or insurance or something, and some reason for wanting to avoid CA residency (higher state income taxes, maybe?).
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Dec 10, 2015 08:32
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I just submitted a claim to USAA for an oopsie my wife had with her car. The FIRST question they ask on the claim site is 'Is this car used for ridesharing services like uber/lyft' I'm thinking that question is the third rail insurance companies use to zap your rear end off.
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Dec 10, 2015 15:30
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BloodBag posted:I just submitted a claim to USAA for an oopsie my wife had with her car. The FIRST question they ask on the claim site is 'Is this car used for ridesharing services like uber/lyft' Doesn't Uber offer insurance while you're hauling passengers? I guess that still doesn't protect you if you get into an accident outside of Uber, but have previously used the car for Uber, and the insurer asks that question.
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Dec 10, 2015 15:35
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Krispy Kareem posted:Doesn't Uber offer insurance while you're hauling passengers? I guess that still doesn't protect you if you get into an accident outside of Uber, but have previously used the car for Uber, and the insurer asks that question. I think the issue where you potentially get screwed is if you're looking for passengers or driving to pick one up as you aren't yet covered by Uber's insurance and you are most likely violating the terms of your personal policy.
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Dec 10, 2015 15:47
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asur posted:I think the issue where you potentially get screwed is if you're looking for passengers or driving to pick one up as you aren't yet covered by Uber's insurance and you are most likely violating the terms of your personal policy. This is the issue. I love the app aspect of Uber, and wish it was something that taxi dispatch companies would adopt, perhaps big ones subscribing to a central app for a small fee. However Uber itself in how it treats its drivers and how it violates your insurance policy is a terrible company.
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Dec 10, 2015 16:06
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I love being able to get to and from downtown for less than $20, but I'd pay a lot more to know that the person I'm driving with isn't actively being screwed by their employer
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Dec 10, 2015 16:41
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I read that Uber is investing heavily in driverless car technology. They know they can't sustain the current model - either drivers will quit or rates will have to rise. The answer is an automated car to your house instead of Tom with his late model Highlander. They'll hire some flunky for minimum wage to sit in the car in case an override is needed.
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Dec 10, 2015 16:45
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The other big issue with the Uber style systems besides actively screwing their employees is that it completely shirks any handicap accessibility, and they are the ones that need access to cheap flexible transit the most.
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Dec 10, 2015 16:53
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Krispy Kareem posted:I read that Uber is investing heavily in driverless car technology. They know they can't sustain the current model - either drivers will quit or rates will have to rise. The answer is an automated car to your house instead of Tom with his late model Highlander. They'll hire some flunky for minimum wage to sit in the car in case an override is needed. They are, and that's their endgame. Recruiting drivers and shifting costs onto them is currently the best way to undercut taxi service.
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Dec 10, 2015 16:56
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Krispy Kareem posted:I read that Uber is investing heavily in driverless car technology. They know they can't sustain the current model - either drivers will quit or rates will have to rise. The answer is an automated car to your house instead of Tom with his late model Highlander. They'll hire some flunky for minimum wage to sit in the car in case an override is needed. Probably not, the drivers barely make minimum wage after expenses anyways. The business model of uber is to recruit drivers who either can't understand the real costs of depreciating their vehicle and liability versus the nominal income flow of driving, or need the money badly enough that they are willing to convert their car into cash by driving it into the ground.
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Dec 10, 2015 17:00
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Not a Children posted:I love being able to get to and from downtown for less than $20, but I'd pay a lot more to know that the person I'm driving with isn't actively being screwed by their employer Call a black car service or UberBlack, walla.
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Dec 10, 2015 17:11
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Chin Strap posted:The other big issue with the Uber style systems besides actively screwing their employees is that it completely shirks any handicap accessibility, and they are the ones that need access to cheap flexible transit the most. Is this any different than a taxi company or are they required to have special cabs that can be called?
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Dec 10, 2015 17:20
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asur posted:Is this any different than a taxi company or are they required to have special cabs that can be called? Most cities have regulations about cabs for exactly this.
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Dec 10, 2015 17:22
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Krispy Kareem posted:Doesn't Uber offer insurance while you're hauling passengers? I guess that still doesn't protect you if you get into an accident outside of Uber, but have previously used the car for Uber, and the insurer asks that question. I looked in to driving for Uber to make some extra bucks, but the answer to your question is Basically No. The famed Uber "1 Milllllllion dollar!!" insurance policy is "if for some reason your primary insurance isn't available". So in reality if you're Ubering and something happens or someone gets hurt, Uber tells you to take it up with your insurance co (who is gonna be pissed and they'll be hosed if they're paying a dime). It's theoretically possible that Uber might pay, but it never happens. What happens is you get screwed and if you make a stink they fire you ("remove you from their list of preferred drivers"). So while Uber claims to offer insurance, it's supposed to be after your insurance that you paid for yourself handled everything. Which never happens, cause as far as your personal insurance is concerned you were committing fraud by doing commercial driving on personal insurance. Uber doesn't pay for squat.
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Dec 10, 2015 17:25
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