I would have to agree with the personal loan idea obvisouly you have the discipline to pay the money I think it is a good option I have seen a few people do this to get a foot in very sucesfully. If you look at the personal loan as a way to force you to save you will find a bank that will lend you the money for the home loan easily enough just all depends on what you can afford etc.
Advice on how to save $10,000 fast?
- Thread starter kristy77
- Start date
I have to qualify HandyAndy888's comments by pointing out that he's been investing for 3 years, when the Brisbane market has been very good, and (up until recently) non-conforming lenders have been giving rates almost identical to full-doc big bank rates.
The latter, certainly, cannot last (and has already started to change). Using a personal loan as a deposit means more borrowing. The more borrowing, without a proven savings record, the more risk you are taking. This would work in certain circumstances (a strong market and you having a rising income or at least stable savings rate, say). But in a negative situation it's much riskier.
Ask yourself why a bank wants a savings history. It's to prove to them that you know how to save money so that you can cover the shortfall. If you don't have much of a savings history, forget the bank, how do YOU know you can save? Property investors generally don't go bust because of declining markets: they go bust because they can't make the mortgage payments.
Alex
The latter, certainly, cannot last (and has already started to change). Using a personal loan as a deposit means more borrowing. The more borrowing, without a proven savings record, the more risk you are taking. This would work in certain circumstances (a strong market and you having a rising income or at least stable savings rate, say). But in a negative situation it's much riskier.
Ask yourself why a bank wants a savings history. It's to prove to them that you know how to save money so that you can cover the shortfall. If you don't have much of a savings history, forget the bank, how do YOU know you can save? Property investors generally don't go bust because of declining markets: they go bust because they can't make the mortgage payments.
Alex
Don't mean to be devil's advocate Kristy, but if you have the frugal skills you mention, I wonder how you have not been able to save anything to date, and how you ended up with debt to pay off. And boy, if you cannot save big time when paying $40/wk for rent, then.....
Re the diesel car, it isn't more fuel efficient than a medium sized family sedan. Though with diesel costing 10c/L more, you'd only save around $100 a year with ULP if you really only do 200km a week. Keep an eye on those trips down to Rocky or Yeppoon though. But if you look after the diesel, it should last 15 years.
As for home schooling, I know several people that do that. I have mixed feelings about it. I reckon kids that get home schooled don't learn the socialization skills often so necessary to get on with others later in life, and I really wonder if parents can reflect the negative and positive reinforcement discipline of the world. Though I understand why people are drawn to home school. I honestly believe life is about finding values to give us the greatest survival advantage. One could argue that the public and private school systems cannot have the same priority, as it compromises to meet the values of those who do not aspire as determinedly. Further, even the best schools cannot employ teachers who can draw the best out of every child's individual learning strengths and weaknesses.
Though having some insight into the public school systems of mining towns, I can understand why you might be motivated to home school.
Apart from that Kristy, consider that home schooling is not free or saving you anything. It is costing you $50k a year, an opportunity cost for you not working and improving your own work skills.
Don't mean to be devil's advocate Kristy, but if you have the frugal skills you mention, I wonder how you have not been able to save anything to date, and how you ended up with debt to pay off. And boy, if you cannot save big time when paying $40/wk for rent, then.....
Re the diesel car, it isn't more fuel efficient than a medium sized family sedan. Though with diesel costing 10c/L more, you'd only save around $100 a year with ULP if you really only do 200km a week. Keep an eye on those trips down to Rocky or Yeppoon though. But if you look after the diesel, it should last 15 years.
As for home schooling, I know several people that do that. I have mixed feelings about it. I reckon kids that get home schooled don't learn the socialization skills often so necessary to get on with others later in life, and I really wonder if parents can reflect the negative and positive reinforcement discipline of the world. Though I understand why people are drawn to home school. I honestly believe life is about finding values to give us the greatest survival advantage. One could argue that the public and private school systems cannot have the same priority, as it compromises to meet the values of those who do not aspire as determinedly. Further, even the best schools cannot employ teachers who can draw the best out of every child's individual learning strengths and weaknesses.
Though having some insight into the public school systems of mining towns, I can understand why you might be motivated to home school.
Apart from that Kristy, consider that home schooling is not free or saving you anything. It is costing you $50k a year, an opportunity cost for you not working and improving your own work skills.
We have only been up here with this job for 18 months. Before that my hubby was making a 'normal' wage of $37,000 (being a surveyor). The reason for such a lot of debt: we had a daughter who was born too early and hospitalised for 10 weeks until she died. the costs of me living in Melbourne to be near her and all the other expenses revolving around a child being hospitalised, my hubby having to drive to and from Wagga (NSW) every time the doctors said she wouldn't make it through the night, and then of course the funeral, the list goes on. Yes, we have always been very careful with money, but we have concentrated on getting rid of the debt that reminds us of that terrible time rather than saving.
Also, íf I went out to work, not only would I have to pay for schooling for my 7 yr old (note: I don't pay for the curriculum my daughter is currently doing - and there are 87 other homeschooled kids she has regular contact with too), I would also have to pay for Daycare for my 2 and 3 yr old. Plus, I already made the decision years ago that I would be a stay at home mum - time with my kids is much more important than money (a lesson I learnt the hard way when our daughter died).
Anyway, emotions aside, I was just looking for some advice without critisism about my life choices.
Any financial advice would be very welcome.
Don't mean to be devil's advocate Kristy, but if you have the frugal skills you mention, I wonder how you have not been able to save anything to date, and how you ended up with debt to pay off. And boy, if you cannot save big time when paying $40/wk for rent, then.....
Re the diesel car, it isn't more fuel efficient than a medium sized family sedan. Though with diesel costing 10c/L more, you'd only save around $100 a year with ULP if you really only do 200km a week. Keep an eye on those trips down to Rocky or Yeppoon though. But if you look after the diesel, it should last 15 years.
As for home schooling, I know several people that do that. I have mixed feelings about it. I reckon kids that get home schooled don't learn the socialization skills often so necessary to get on with others later in life, and I really wonder if parents can reflect the negative and positive reinforcement discipline of the world. Though I understand why people are drawn to home school. I honestly believe life is about finding values to give us the greatest survival advantage. One could argue that the public and private school systems cannot have the same priority, as it compromises to meet the values of those who do not aspire as determinedly. Further, even the best schools cannot employ teachers who can draw the best out of every child's individual learning strengths and weaknesses.
Though having some insight into the public school systems of mining towns, I can understand why you might be motivated to home school.
Apart from that Kristy, consider that home schooling is not free or saving you anything. It is costing you $50k a year, an opportunity cost for you not working and improving your own work skills.
We have only been up here with this job for 18 months. Before that my hubby was making a 'normal' wage of $37,000 (being a surveyor). The reason for such a lot of debt: we had a daughter who was born too early and hospitalised for 10 weeks until she died. the costs of me living in Melbourne to be near her and all the other expenses revolving around a child being hospitalised, my hubby having to drive to and from Wagga (NSW) every time the doctors said she wouldn't make it through the night, and then of course the funeral, the list goes on. Yes, we have always been very careful with money, but we have concentrated on getting rid of the debt that reminds us of that terrible time rather than saving.
Also, íf I went out to work, not only would I have to pay for schooling for my 7 yr old (note: I don't pay for the curriculum my daughter is currently doing - and there are 87 other homeschooled kids she has regular contact with too), I would also have to pay for Daycare for my 2 and 3 yr old. Plus, I already made the decision years ago that I would be a stay at home mum - time with my kids is much more important than money (a lesson I learnt the hard way when our daughter died).
Anyway, emotions aside, I was just looking for some advice without critisism about my life choices.
Any financial advice would be very welcome.
Please excuse me if I come across too cynical Kristy. I don't mean it that way. I am just passionate about people waking up to the light of day and 'getting' where money comes from. Thanks for sharing your history. I have nothing but the noblest respect for the choices you made...and hope you can move forwards financially.
As a surveyor, your husband should never have a shortage of work, anywhere in the world. And I am gobsmacked that someone would value his services at $37k pa.
If you have 87 kids in town doing home schooling, seems like there'd be room in there to share the load with the other parents......maybe even form an independent school yourselves. Minimizing duplicated services is what has helped the western world develop.
You guys could even get some form of co-op running....start with pooling buying power for meat and wholesale groceries. I have seen this go from strength to strength in the USA. Eventually, it becomes a way to save money and for aspirational like mindeds to meet, share ideas (book lending, financial mx and investor club), and socialize. Mining towns are big on services for the average Joe (hotels, worker's clubs, poker macines, booze), but the more enlightened need to find like mindeds and self initiate.
And I can say all this Kristy as someone familiar with Blackwater
As a surveyor, your husband should never have a shortage of work, anywhere in the world. And I am gobsmacked that someone would value his services at $37k pa.
If you have 87 kids in town doing home schooling, seems like there'd be room in there to share the load with the other parents......maybe even form an independent school yourselves. Minimizing duplicated services is what has helped the western world develop.
You guys could even get some form of co-op running....start with pooling buying power for meat and wholesale groceries. I have seen this go from strength to strength in the USA. Eventually, it becomes a way to save money and for aspirational like mindeds to meet, share ideas (book lending, financial mx and investor club), and socialize. Mining towns are big on services for the average Joe (hotels, worker's clubs, poker macines, booze), but the more enlightened need to find like mindeds and self initiate.
And I can say all this Kristy as someone familiar with Blackwater
Kristy, probably a good idea to sit down and spreadsheet your future.
A lot of smarties who go to BW get seriously deluded within 3 years.
If you can set yourselves some goals- educational, financial, etc, and pal up with like mindeds, you'll use your time and emotional energy there a lot better, and won't end up leaving in a negative mind state.
Remember, 80% of the workforce in a mining town are going to be low skilled and/or low aspirations. Though about 5-10% are absoluate gems trying to get a jump start financially. They're the ones you need to socialize with.
If you and several of your friends start up some more intellectual pursiots, you;'ll eventually find them. Trivial pursuit nights, health, finance topics always sieves the hay from the chaff. And often you can turn a lot of chaff into hay
A lot of smarties who go to BW get seriously deluded within 3 years.
If you can set yourselves some goals- educational, financial, etc, and pal up with like mindeds, you'll use your time and emotional energy there a lot better, and won't end up leaving in a negative mind state.
Remember, 80% of the workforce in a mining town are going to be low skilled and/or low aspirations. Though about 5-10% are absoluate gems trying to get a jump start financially. They're the ones you need to socialize with.
If you and several of your friends start up some more intellectual pursiots, you;'ll eventually find them. Trivial pursuit nights, health, finance topics always sieves the hay from the chaff. And often you can turn a lot of chaff into hay
Hi Kristy,
So sorry to hear about your daughter. It was obviously a tragic time for you and your family. You are right, our children are the most important asset we will ever have! As the father of a 3 and a half year old I don't think I could cope if something happened to her. Your story was very moving.
Regards Jason.