Using cash or equity in rental?

[tomlemke]

Hey guys a few of you would of seen me posting about heading to europe in september 2015, i will need a fair bit of money for this trip plus an engagement ring how do you usually finance stuff like this? i should be able to save all the cash for it by then, which will offset the home loan. just wanted to check if thats the best way to do it or if i should use a combination of cash plus the interest free on the credit card first as I'm alway ontop of that. Would pulling equity out of a rental be another option??

 

[Blacky]

Chuck it on the credit card - then repay the cc with cash after the interest free days.

Don't take on personal debt for cra* like that. It just ends up costing so much - not just in money, but also time and opportunity cost.

If you don't have the cash to pay for it - buy something cheaper.

Blacky

 

[tomlemke]

Chuck it on the credit card - then repay the cc with cash after the interest free days.

Don't take on personal debt for cra* like that. It just ends up costing so much - not just in money, but also time and opportunity cost.

If you don't have the cash to pay for it - buy something cheaper.

Blacky

thanks blacky always hearing on here not to use your cash so thought id check and put it to the people! yeah had no intention of taking on a personal loan!

 

[Blacky]

thanks blacky always hearing on here not to use your cash so thought id check and put it to the people! yeah had no intention of taking on a personal loan!

I don't hear people saying that?

by 'personal' loan I meant 'non-deductible' debt. That is drawing equity in the form a loan. You can't claim the interest - its just costly all round.

Use the equity for another IP purchase - and claim the interest.

 

[Terry_w]

Always use cash for non deductible expenses - if you don't have the cash then you cannot afford the thing you want to use the money for.

 

[Jamie M]

an engagement ring

Dude! Does she read SS?

You better clear your browsing history if so!

Cheers

Jamie

 

[tomlemke]

Always use cash for non deductible expenses - if you don't have the cash then you cannot afford the thing you want to use the money for.

thanks terry and blacky that makes sense i got confused if i should of been using cash!

 

[tomlemke]

Dude! Does she read SS?

You better clear your credit history if so!

Cheers

Jamie

haha nar she hates reading!

 

[Bhp19]

That could make a good survey on here, 'Who's partner is involved in their property investing?'.

I know mine sort of listens to me when I get excited about a new property but other than that, so long as I don't lose all our money I don't think she cares.

 

[Colin Rice]

Buy a zirconia if you can get away with it which I doubt.

Been married 13 years and the wifes diamond ring sits in a jewelry box and my $20 stainless steel joby sits next to it.

 

[tomlemke]

That could make a good survey on here, 'Who's partner is involved in their property investing?'.

I know mine sort of listens to me when I get excited about a new property but other than that, so long as I don't lose all our money I don't think she cares.

hahaha my partners the same rang her at work and told her that the offer was just accepted on no5 her response was "as long as you think we can afford it'

 

[tomlemke]

Buy a zirconia if you can get away with it which I doubt.

Been married 13 years and the wifes diamond ring sits in a jewelry box and my $20 stainless steel joby sits next to it.

we joke that one of her friends would proberly pull out the magnifying glass they have on those pawn shows all the time!

 

[BayView]

Buy a zirconia if you can get away with it which I doubt.

Been married 13 years and the wifes diamond ring sits in a jewelry box and my $20 stainless steel joby sits next to it.

Agree.

The biggest waste of money you can have (other than a boat) is the engagement ring...

The heart says spend waaay more, but the financial head needs to be listened to if you are an aspiring wealthy person (hence being here on this site - otherwise why be here?).

The financial head says; spend about $2-$5k and that's it.

If the good lady is upset by that small sacrifice; she is not the good lady.

Those who are on six figure (and multiples of) incomes - ignore above.

 

[TMNT]

Agree.

The biggest waste of money you can have (other than a boat) is the engagement ring...

The heart says spend waaay more, but the financial head needs to be listened to if you are an aspiring wealthy person (hence being here on this site - otherwise why be here?).

The financial head says; spend about $2-$5k and that's it.

If the good lady is upset by that small sacrifice; she is not the good lady.

Those who are on six figure (and multiples of) incomes - ignore above.

Those that are too bitter to get married or get involved long term ..........also ignore

ooops. Just described myself

 

[Blacky]

Agree.

The biggest waste of money you can have (other than a boat) is the engagement ring...

The heart says spend waaay more, but the financial head needs to be listened to if you are an aspiring wealthy person (hence being here on this site - otherwise why be here?).

The financial head says; spend about $2-$5k and that's it.

If the good lady is upset by that small sacrifice; she is not the good lady.

Those who are on six figure (and multiples of) incomes - ignore above.

I know commenting on this is a complete derailment of the original thread - so sorry about that.

When I got engaged I didn't buy a ring. I proposed without it and took her shopping for it.
I have never had a fear like it! Walking into a jewellery store to purchase a diamond ring...of her choosing.
The guy selling the ring knows he has you by the short n curlies. She knows you can't say no.

I know that the 'tradition' or 'rule' is something like 3xmonths salary for a ring. Fortunately Mrs Blacky is far more reasonable and settled on a small stone which was very reasonably priced.
And yeah - since then it sits in her top draw 50% of the time as she is often nervous about wearing it around town.

And another boat is never a waste of money!

Blacky

 

[tomlemke]

Agree.

The biggest waste of money you can have (other than a boat) is the engagement ring...

The heart says spend waaay more, but the financial head needs to be listened to if you are an aspiring wealthy person (hence being here on this site - otherwise why be here?).

The financial head says; spend about $2-$5k and that's it.

If the good lady is upset by that small sacrifice; she is not the good lady.

Those who are on six figure (and multiples of) incomes - ignore above.

she would be happy with a burger ring! I'm the problem i want to get her the best ring i can afford , i guess people put value on different things id rather spend more on the ring and less on the wedding!

 

[tomlemke]

I know commenting on this is a complete derailment of the original thread - so sorry about that.

When I got engaged I didn't buy a ring. I proposed without it and took her shopping for it.
I have never had a fear like it! Walking into a jewellery store to purchase a diamond ring...of her choosing.
The guy selling the ring knows he has you by the short n curlies. She knows you can't say no.

I know that the 'tradition' or 'rule' is something like 3xmonths salary for a ring. Fortunately Mrs Blacky is far more reasonable and settled on a small stone which was very reasonably priced.
And yeah - since then it sits in her top draw 50% of the time as she is often nervous about wearing it around town.

And another boat is never a waste of money!

Blacky

haha carnet believe you signed your self up like! the jeweller would of been rubbing his hands together! everything i have ever bought for my partner she has never taken off so i know she'll get good use out of it!