Finance

 Hi all, im just about to purchase a new boat. Can anyone recommend a good finance company with a good interest rate. Any help would be much appreciated.


Posts: 3925

Date Joined: 01/02/10

 I use a broker. Luke at New

Wed, 2019-07-24 05:59

 I use a broker. Luke at New Start Finance is really easy to deal with. Yamaha have some good deals. 

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Does anyone know where the love of god goes, when the waves turn the minutes to hours?

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Date Joined: 24/02/15

 Thanks Dodgy, Ill give him a

Wed, 2019-07-24 06:42

 Thanks Dodgy, Ill give him a yell

ricey's picture

Posts: 633

Date Joined: 24/12/09

not sure of your situation

Wed, 2019-07-24 09:27

but the best finance would usually to be restructure your home mortgage and redraw the amount for your boat.

 

This would give you 4% or better interest rate. 

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Wise man says - first take the plank out of your own eye before trying to take the speck out of somebody else's.

Posts: 3925

Date Joined: 01/02/10

4% over 20 years is quite a

Wed, 2019-07-24 09:32

4% over 20 years is quite a bit more than 7% over 5 though.  

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Does anyone know where the love of god goes, when the waves turn the minutes to hours?

Jackfrost80's picture

Posts: 6124

Date Joined: 07/05/12

You can pay back a home loan

Wed, 2019-07-24 09:51

You can pay back a home loan top up as quickly as you like:
 
$30k @ 7% over 5 years at $594/month will see you pay $5.6k in interest
 
$30k @ 4% over 5 years at $552/month will see you pay $3.1k in interest
 

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If catching wrasse is cool, consider me Miles Davis

Posts: 3925

Date Joined: 01/02/10

As long as you have the

Wed, 2019-07-24 09:55

As long as you have the financial self control to not just pay the minimum required.  

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Does anyone know where the love of god goes, when the waves turn the minutes to hours?

Rob H's picture

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Date Joined: 18/01/12

 Jack speaks the truth

Wed, 2019-07-24 09:57

 Jack speaks the truth here.

If you have the discipline and wherewithall to pay it back as though it were @ 7% but using home equity, compounding will work for you.
Most people dont however...

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 Give a man a mask, and he'll show you his true face...

 

 

The older you get the more you realize that no one has a f++king clue what they're doing.

Everyone's just winging it.

 

Jackfrost80's picture

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Date Joined: 07/05/12

Definitely the best option

Wed, 2019-07-24 09:42

Definitely the best option and it’s what I did to free up the $12k I was short of the boat I wanted but there are pitfalls to watch out for. Best to be in a position so that your debt and what you want to borrow is less than 80% of the value of your home otherwise you are up for mortgage insurance which is getting difficult in the current housing market and that aside, you need the self-discipline to treat it like a personal loan and pay it back as such over a set timeframe otherwise you will pay the interest over the life of your home loan which will probably cost you double what you borrowed. 
 
Lastly, and I caught out the bank on this one recently when I wanted to free up $15k to do some home improvements, make sure you check the life of the refinanced home loan. I have 19yrs remaining and the sneaky buggers slipped in a 30y term in the paperwork which I picked up and made them change to 19 years. Their comment  was that “most people prefer the lower repayments that 30 years offers”… thanks but no thanks, I want to pay off my home in ≤19 years as planned.
 

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If catching wrasse is cool, consider me Miles Davis

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Date Joined: 17/06/10

Come on now I don’t believe the banks

Wed, 2019-07-24 19:35

The banks wouldn’t be shifty like that surely.....or would they. 

rob90's picture

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Date Joined: 06/02/13

 Don't make billion $ profits

Wed, 2019-07-24 20:21

 Don't make billion $ profits being nice guys

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 Hi my name is rob............. and I'm a........... fishaholic

Ayamigo's picture

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Date Joined: 18/11/17

 Your home loan is (for most)

Wed, 2019-07-24 23:03

 Your home loan is (for most) the cheapest money youll ever get. Refinancing and getting a longer term just means less minimum repayments... meaning more discretionary money at your disposal.

Some people spend that discretionary money on stuff, some invest, some spend it on paying down debt. Sitting that money in your offset account does the same as having a lesser term, you won't pay the extra interest, but gives you the freedom to withdraw for a (good) reason without having to go back to the bank to refinance once again.

But... The banks rely on you not being able to resist spending that money in the offset.. all about discipline. 

... And don't get me started on voluntary super contributions for anyone less than 50 years old

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 Stop playin' with yourself, Hooper. Slow ahead, if you please.

ricey's picture

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Date Joined: 24/12/09

I want to get you started on voluntary super contributions

Thu, 2019-07-25 07:52

on voluntary super contributions for less than 50 year olds....

 

surely this his is a great idea as you get taxed at 15% instead of say 32 or 37%.... so making 17% on your $$$ ... even if mortgage takes longer to pay off... at this stage of life you would be wanting to put more in your super but it is capped.

 

if mortgage is 4% hopefully your super matches or beats this... you have a 17% head start anyway.

 

 

 

 

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Wise man says - first take the plank out of your own eye before trying to take the speck out of somebody else's.

bradz's picture

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Date Joined: 29/10/07

Tax

Thu, 2019-07-25 08:15

Riceys on the money...so to speak. For most people you are saving at least 17% and often 22% on the contributions to super. Thats before you get any level of return. Sure, you cant get it until you are 60, but so what. Nothing stopping you from doing some super contributions and some extra mortgage repayments. Best of both worlds.

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I did then the best that I knew how. When I knew better, I did better.

Rob H's picture

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Date Joined: 18/01/12

Mortgage or super

Thu, 2019-07-25 09:25

Mortgage or super contributions-the pros and cons have been debated by experts for years.

Simply put, either is better than neither!

Especially if you are fifo, make your time count towards something tangible

____________________________________________________________________________

 Give a man a mask, and he'll show you his true face...

 

 

The older you get the more you realize that no one has a f++king clue what they're doing.

Everyone's just winging it.

 

bradz's picture

Posts: 617

Date Joined: 29/10/07

Mortgate versus super

Thu, 2019-07-25 09:53

 Based purely on numbers super wins out every time (for at least the last 20 years).

To get $1000 into your mortgate you have to earn about $1500 (on the 32.5% tax bracket).

That same $1500 contributed as salary sacrifice to your super only get taxed $220, which gets $1280 into your super. Thats an extra $280 for every $1000 going into you mortgage.

With returns on the average balanced plan in super being greater than the average interest rate on mortgages since at least 1998 the only consideration is really an emotional one and how soon you can get access to it.

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I did then the best that I knew how. When I knew better, I did better.

pelagicyachts's picture

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Date Joined: 23/02/11

I think the piece you all

Thu, 2019-07-25 10:39

I think the piece you all need to consider about super is - do you really trust the govt not to change the rules on you?
When I say change the rule,
Every single ffff time they need money for a shortfall due to their lack of fiscal discipline they go after retirees or super, I have no trust in them, just my 2 cents worth but have seen enough disparaging behaviour over the years to suggest that the rules are very likely to change and unlikely to be beneficial - depending on when you were born you reach preservation age between the age of 55-60 which means you can access your super as long as you are permanently retired or otherwise after 65
There is already talk of moving this to 67 - which means in 10 years time there will be a actuary study that says - yes people are living longer - so lets move it to 70 -
Fk that , my money , I will access it when I want, I have super but only what my previous employers have contributed - I personally would never contribute to it but you need to asses your own personal circumstances ! (read = disclaimer!)

bradz's picture

Posts: 617

Date Joined: 29/10/07

Permanently retired??

Thu, 2019-07-25 10:48

You dont need to be permanently retired or otherwise be over 65 to access your super. Even if you simply resign from your current job and are over 60 you can grab all of your money. And after 60 its completely tax free. If you have reached your preservation age (most likely 60) you can currently grab up to 10% of your balance per year (also tax free) without having to resign or even reduce your hours. Its called transition to retirement. 

Nobody is saying put everything into super...but there are really good reasons why you should at least consider it.

Rules for things change all of the time. With Super a little more than it should I will admit.

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I did then the best that I knew how. When I knew better, I did better.

Ayamigo's picture

Posts: 14

Date Joined: 18/11/17

Yep. I've had many debates

Thu, 2019-07-25 21:30

Yep. I've had many debates over this. The rules around super in the short term are good, and many who are/can tap into it have benefited from a short term lock out of thier money.
No argument with a 17% head start and 6-9% accrual in recent times. But those getting the real benefits now haven't had compulsory super thier whole life so it makes sense to give them a few incentives in the short term to take some pressure off the pension (understanding the huge retirement aged population at the moment)

Those younger need to keep in mind...super is effectively a welfare system which the government forces you to invest so you don't need to mooch off welfare later in life. From a government perspective taxing people with too much super tucked away will always be fair game because thier benchmark will always sit around wanting people to have just enough to reasonably retire. So pelagicyachts your concerns are spot on imo. If you throw too much money into super now and 20years it accrues to a level that's above average, prepare to be taxed on the money you could never access in the first place.
Super funds are also made up of complacent investors that keep jamming 9.5% into the system every pay check, almost no matter what happens. Bam 9.5%. bam 9.5%. it's a system that breeds complacency because the money just keeps rolling in. The super funds keep on investing because they have to, this most likely creates a false value in what they investing in. This will correct one day for a whole bunch of reasons, so your super will have a whole chunk washed off in one foul hit. But don't worry, everyone will be in the same boat. This might happen more than once in your lifetime if you are young enough.
The moral of the storey is if you are older it makes good sense now to benefit from the tax perk, but if your young there is way too much water to go under the bridge to not see you money for 15-50 years. After all you still put your 9.5% in and there's nothing stopping you investing your extra contributions yourself and focusing on making you own money for retirement, making super just an extra buffer.

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 Stop playin' with yourself, Hooper. Slow ahead, if you please.

Jackfrost80's picture

Posts: 6124

Date Joined: 07/05/12

I don't think royboy was

Thu, 2019-07-25 21:58

I don't think royboy was planning on buying a boat with his super 

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If catching wrasse is cool, consider me Miles Davis