Gross Salary

[JaEdBa]

.... yet this is just 1 less payment to make per month while they incubate whatever equity they have in the property .it will not make them financially secure
i did not set out to be mortgage free . i did not set out to be rich , i set out to be financially secure which is a totally different objective.

1 less payment to make per month - no mention of the ongoing commitment over years and years that you have no control over? not having a mortgage gives you more choice in life and a greater ability to take risks in your vocation, whether going for less secure higher value contract work or just doing a lesser paid job you love, not having that commitment of 30% of your salary going out every month makes a difference in life. that i do know.

fair point regarding your aspirations, and good luck.

 

[mr wilks]

Anyway,the ppl on here are a great bunch of folk,regardless of what any1 earns,or not

so true, i have never felt there is any difference in any Z4 owners, nobody comes across as rich or poor on here, we are all just z4 owners

agreed mate great way of summing up the collective

 

[bigdog]

can never understand why people are so obsessed with being mortgage free ?
in your mind you are free yet in reality no freer just one less payment yet the house is still not technically an asset ?
for that it would have to produce a return so better to remortgage the house & invest in other property to produce income 8)
yes / no ?

If you are willing to risk the home in which you live as well as your rental home. Then yes. Go right ahead and leverage the place in which you live. With the housing market collapse in the US there are fewer people willing to shill out big bucks for rent. I.E. they are looking to down size. There is a glut of empty homes. This drives the price of rent/homes down. If you are stuck with the payment on "your" leveraged house and no one is occupying your rental. You not only risk losing your rental property. But the one in which you live. It's fine to put business assets at risk should your business go bankrupt. You should however resist putting your own home at risk should your business venture not pan out.
By doing what my wife and I have done. We are able to "retire". If we do not have a lien on our home. It's not as big a drain on our pension. It is far easier to pay upkeep and taxes. Than upkeep, taxes, And a mortgage/rent. We took jobs that offered retirements and have invested privately as well. That's what will fund our retirement. We do not need to sell our home to fund our retirement. But should we need to sell our home to make ends meet. Such as down sizing. Those ends meet much easier when you don't own a kings ransom on the mortgage. That is what got the people in the US into trouble. They were leveraging their homes to the max. When they lost their jobs or had to take a pay cut. They had to sell their homes because every time they had equity. They borrowed to fund new toys and had ever higher payments. But as the housing bubble burst those homes weren't worth nearly what they owed.

I'll chime in as well about the great folk on this forum.

 

[pvr]

Anyway,the ppl on here are a great bunch of folk,regardless of what any1 earns,or not

so true, i have never felt there is any difference in any Z4 owners, nobody comes across as rich or poor on here, we are all just z4 owners

agreed mate great way of summing up the collective

Except the coupe owners of course

But yes - great bunch.

 

[Taz]

pvr,

 

[jonnyfive]

I have quite a bit of disposible income due to the fact i been redeveloping houses since my first house i lived in ,adding value than selling on , reinvesting the capital in a bigger property and so on but keeping my mortgage the same when i bought my first house, so now i have a very nice four bedroom house in a very nice part of Reading in the most desirible school catchment area with a very small morgage .Our plan is to sell in the new year down size to a two bed here and buy two flats in my partners home town of Limoge (France ) for long term lets and a flat / apartment on the west coast of france as a holiday let and personal use.

As all these propertys will be paid up so any income received is going to pay the small morgage left on the house here, so hopefully in ten years time when iam 50 sell the house here and of to france to retire live in the apartment/flat on the coast buy a few more flats and sit back and enjoy.

Thats the plan anyway.We need to look in the tax implications and so on but iam sure with some clever accounting that can be keep to a min.

Eg A flat in Reading costs about £140 to £200 and can get £650 + a month ,a flat /studio can be bought for about 30k to 40k euros and can be rented out for 380 a month much better investment and its not like here renting is very much the norm in France .

 

[RidgyDidge]

So I've just cast my vote, and I sit in Taz's 100k+ club, BUT as a household our combined incomes don't take us very much higher.

Don't get me wrong, we do OK, but my wife only works because she wants to, and she works part-time so that she can still have plenty of time for the kids. She didn't work at all for 8 years when the kids were babies / infants.

All of this was / is made possible because I happen to work in an industry sector that can pay very well when times are good. Equally when times are not so good (now!) it doesn't pay quite so well.

Money doesn't define me at all. I simply see it as something that allows you to experience different things; own a nice car (or two!), take nice holidays (Europe for Christmas), provide good schooling for children etc.

And I never take for granted how 'fortunate' we are

 

[original guvnor]

I'm worth a lot more dead than alive that's for sure. Good job I got divorced!!

Money isn't everything. I turned down a job in Moscow this year that would've made me approaching £10k a month after tax better off. But i didn't want to live in Moscow, I didn't want to be away from friends and family and as circumstances have turned out this year that proved to be a very, very good call.

I believe in destiny and for whatever reason I wasn't meant to be in Russia now. Besides there will be other opportunities and I'll know when it feels like the right thing to do.

 

[theblues]

jonnyfive that's kind of what we had in mind we haven't had a mortgage now for over 12 years we had looked into buying a place in Porto Pollenca or Cyprus even in LA. Life was pretty good, then Erica was DN with MS and how life changed in such a short space of time.

We are so pleased we don't have a mortgage and we can enjoy what life we have. so our savings are in our home will have to see how we get on in 5 to 10 years but for the mo its just enjoy each day

 

[inkey$]

Interesting thread Taz. Think the moral of the story is it aint what youve got, its what you do with it that counts. Testament to the participants on this great forum. Th Zed truly is a classless car (did that come out right?!)

 

[bigdog]

inkey$. I've been told that I am classless as well

By the way. Is that car cover keeping the big smoke off your paintwork?

 

[Seb.F]

Only 23 here, so I'm not on masses at the moment, I have high expectations so really do try and push myself upwards.

 

[markeg]

I'm worth a lot more dead than alive that's for sure. Good job I got divorced!!

Money isn't everything. I turned down a job in Moscow this year that would've made me approaching £10k a month after tax better off. But i didn't want to live in Moscow, I didn't want to be away from friends and family and as circumstances have turned out this year that proved to be a very, very good call.

I believe in destiny and for whatever reason I wasn't meant to be in Russia now. Besides there will be other opportunities and I'll know when it feels like the right thing to do.

Scary - could have written that post word for word, except the divorced bit (although that would have happened if I'd taken the Moscow job the summer)


Tapatalking...

 

[Maniac]

I tell you something, if I was on the more than 100K bracket here, I'd be driving around in a Maserati as a Z4 would feel like an inexpensive toy rather than what it does, a money munching-most expensive thing I own after the house-monster!

 

[Machine monkey]

This is a really interesting thread. Its so true you can earn a fortune and still have no cash. I earn a good wadge my wife works and earns more than me. We have no kids we do own our own home well we own half and the bank owns the other half. Witch at 31 years old is bloody amazing. I live just outside Oxford and after all the bills are paid some savings put aside i usual have about £300 a month to play with. I wish it was more but its enougth and all the bills are paid and some saving. The Z4 is all the car i need and is actually just a toy a luxury i have to get the bus to work

 

[markeg]

Witch at 31 years old is bloody amazing. ...

Sorry, but I did laugh at that... Hope your wife doesn't read that post :lol:

Tapatalking...

 

[VvrooomM]

I tell you something, if I was on the more than 100K bracket here, I'd be driving around in a Maserati as a Z4 would feel like an inexpensive toy rather than what it does, a money munching-most expensive thing I own after the house-monster!

Might be affordable but at the expense of nice holidays and such like. I recently jumped ship into a Spyder and at just under 40k felt an obscene amount of money for a car. Zed cost me 31k and M3 before that 34k both at a year old. I'm desperately trying to pay my mortgage off to give the three of us a huge range of options. Got 60k ish left and two years at current rate, so I'll be 42. I'd have another MC tomorrow though I think, always wanted to scratch the Porsche itch and the Spyder is as out there as the MC if not more so.

Can't find a Porsche forum that gets remotely close to this one though and I feel a little odd browsing it purely for pleasure but I did learn a lot in five years of ownership and like to help out where I can.

It's not about the money but our obvious addiction to petrol fumes that divides and knocks down any financial barriers there might me.

 

[peddy]

We have had nice but not over the top things. We managed to pay off a 30 year mortgage on our first home in 18 years by making extra payments. Then sold it for double what we paid.

I never understood the fasination of clearing a mortgage so soon? Why not use that money and buy a second property. The rent would cover almost both mortgages. That's my plan and what I'm doing.

It is called risk. No mortgage means you owe nothing to nobody, so if the interest rate goes to 15%, it does not affect you. Bit like owning the car, nobody can take it from you.

There's always risk when trying to make money though? Rates will never jump to 15% over night andthere's always the option to sell. Prices (generally) always go up and the rental market is currently in favour of the Landlord.Collectively my mortgage is less than £1k but my rental is collectively above £2k.

 

[Machine monkey]

Witch at 31 years old is bloody amazing. ...

Sorry, but I did laugh at that... Hope your wife doesn't read that post :lol:

Tapatalking...

Mrs Monkey is not 31 and i will never divulge such information.

 

[peddy]

all this talk about salary/expenditure/disposable income reminds me of a book i read a couple of years ago .
only wish i had read it in my twenties though .
put's a great perspective on the way we live our financial lives & how to see things as assets or liabilitys :?
http://www.amazon.co.uk/Rich-Dad-Poor-Robert-Kiyosaki/dp/1612680003/ref=sr_1_1?s=books&ie=UTF8&qid=1354818275&sr=1-1

i still have it if anyone wants to read it . will happily mail it to you

Just ordered it.