Gross Salary

[Taz]

if i drop dead my house belongs to my kids, not a mortgage company

My life insurance does that though ? Or is that what you are talking about ?

i have no life insurance so my house is my insurance for my kids

 

[ranski]

if i drop dead my house belongs to my kids, not a mortgage company

My life insurance does that though ? Or is that what you are talking about ?

i have no life insurance so my house is my insurance for my kids

Snap - I was loathed to pay (another) premium - although we don't have children

 

[mr wilks]

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 ?

of course it's an asset.

think of opportunity cost, not just straight return.

its not an asset . it doesn't produce a return & fundamentally it costs you money every day,week ,month , year
it may have equity which can only be released through borrowing against or by selling the house & buying a cheaper one 8)

 

[markeg]

If I drop dead, the wife becomes pretty wealthy..... It's why I always check the car over before driving off...


Tapatalking...

 

[Z4M-2006]

But over the term of that mortgage arent you paying £1.80ish for every £1 borrowed??

Thats enough excuse for me not to want carry on paying it..

 

[pvr]

If I drop dead, the wife becomes pretty wealthy..... It's why I always check the car over before driving off...


Tapatalking...

Don't give Taz any ideas ...

 

[Bing]

if i drop dead my house belongs to my kids, not a mortgage company

My life insurance does that though ? Or is that what you are talking about ?

How long is that insurance though? It won't pay forever ...

As long as the mortgage, assuming I continue to pay the premium... Though obviously the value reduces every year by default.

 

[mr wilks]

if i drop dead my house belongs to my kids, not a mortgage company

My life insurance does that though ? Or is that what you are talking about ?

i have no life insurance so my house is my insurance for my kids

most folks only have life insurance to pay off any large borrowings so if your house is paid for then its not as important .
ideally though the insurance is to leave them able to continue living in the house with debt paid & a lump sum ?
in actual costs life insurance is relatively cheap for the average person .
think mine is £11 or £12 a month for £120,000 of life cover

 

[JaEdBa]

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 ?

of course it's an asset.

think of opportunity cost, not just straight return.

its not an asset . it doesn't produce a return & fundamentally it costs you money every day,week ,month , year
it may have equity which can only be released through borrowing against or by selling the house & buying a cheaper one 8)

you're wrong boss, it is an asset, and it does produce a return.

if you have a house fully paid for then you pay nothing to live in it. if you didn't have that house fully paid for you would pay rent or mortgage interest to live in it. so the return on the asset is the saving made on the cost of not having that asset.

and arguably, over the course of time, you return capital growth.

your contention assumes you don't need a house. most people need a house.

 

[pvr]

My life insurance does that though ? Or is that what you are talking about ?

How long is that insurance though? It won't pay forever ...

As long as the mortgage, assuming I continue to pay the premium... Though obviously the value reduces every year by default.

Life insurance is a fixed value though, irrespective of the remaining mortgage value.

I still have a number of life insurance policies running (no mortgage though), but they all are for a fixed value until they expire (in about 5 years or so). When I took them out it was to ensure my wife / children would have a fund to live from.

 

[theblues]

don't think I have ever been paid more than £22,000 a year. I first started work as a 20 year old in 1978 getting about £1200 a year and finished work when I was 49 in 2009 mostly did 9-5 made sure I finished on time and straight over the golf course.

 

[mr wilks]

"pay nothing to live in it" ? think about it ? i know we all need a place to live & i,m not saying your own house paid for is not better than a mortgaged or rented house but its still a liability as it costs money each year to maintain & service .
the equity which can accumulate in property is only accessible through borrowing against the value or by downsizing to release spare funds .

 

[craig3.2]

Interesting thread indeed...does show that as a whole,z4-forumites are a wealthy bunch...but as others have said,its not what u earn,but what u do with it,what overheads/outgoings etc u have.
Eg.i know of ppl who earn twice what i do,yet have a similar house(value wise),and a car worth alot less than mine(ditto there wifes),and dont live any more/less a pleasant life than me and mine.

Personally i dont care what any1 earns;theres more to life..for example i earn less than 30k,having previously earned more than i do now,yet am on my 2nd z4,with the 1st one being less than 2yrs old and over 20k..have a very small mortgage(% wise),and have a good life.
It would be nice to earn more,but would it make me any happier? probably not.

Hence why i am having a dilema at the moment as wether to take a job offshore at double my current Salary...given the safety issues and working conditions that come with working on an oil rig,lol
Thers more to life than money,folks :roll:

 

[sam1832]

My life insurance does that though ? Or is that what you are talking about ?

i have no life insurance so my house is my insurance for my kids

most folks only have life insurance to pay off any large borrowings so if your house is paid for then its not as important .
ideally though the insurance is to leave them able to continue living in the house with debt paid & a lump sum ?
in actual costs life insurance is relatively cheap for the average person .
think mine is £11 or £12 a month for £120,000 of life cover

Ours is £25 a month for two people on 250k mortgage

And the insurance is literally to pay the mortgage off if one of us is to die

So she still can leave here

It's decreasing which means you pay less, but the insured value goes down over time

So in 25 years time when we nearly own the house the insured value is for what is left to pay off


Sent from my GT-I9300 using Tapatalk 2

 

[Bing]

^^^ this is like mine PVR. I have another one, plus 'death in service' benefits from my employer. My wife and son will not have to worry if I drop dead. Would have to rethink if a new employer did not offer the same benefit ...

 

[JaEdBa]

"pay nothing to live in it" ? think about it ? i know we all need a place to live & i,m not saying your own house paid for is not better than a mortgaged or rented house but its still a liability as it costs money each year to maintain & service .
the equity which can accumulate in property is only accessible through borrowing against the value or by downsizing to release spare funds .

by pay nothing i meant no rent or mortgage interest. so therefore your original remark regarding people's fascination of being mortgage free is incorrect - you may assume that to keep mortgaging and renting property is clever finance and it could be, but to leverage yourself so highly with illiquid stock is not sensible at the moment, as someone else posted, it comes down to risk.

a house is an asset - there are no two ways about it. it may come with the odd liability, but the liabilities associated with a house are generally discretionary liabilities - you have a choice.

i think you may need to revisit your accountancy text books. is a garage's stock of cars a liability because they have to pay holding costs and someone to polish them occasionally? just because the return from a house is not in many liquid installments it does not mean that no return is made.

 

[craig3.2]

On another point mentioned.......
Those earning a gross 100k plus will take home around 60-70k(aprox),and will more than likely have a large house/mortgage to go with it,etc etc...plus many of the higher earners have probably owned their z4's since new/nearly new,when they would have cost between 30 and 40k+,and not the 20k that i paid for my 1st z4.

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

 

[mr wilks]

"pay nothing to live in it" ? think about it ? i know we all need a place to live & i,m not saying your own house paid for is not better than a mortgaged or rented house but its still a liability as it costs money each year to maintain & service .
the equity which can accumulate in property is only accessible through borrowing against the value or by downsizing to release spare funds .

by pay nothing i meant no rent or mortgage interest. so therefore your original remark regarding people's fascination of being mortgage free is incorrect - you may assume that to keep mortgaging and renting property is clever finance and it could be, but to leverage yourself so highly with illiquid stock is not sensible at the moment, as someone else posted, it comes down to risk.

a house is an asset - there are no two ways about it. it may come with the odd liability, but the liabilities associated with a house are generally discretionary liabilities - you have a choice.

i think you may need to revisit your accountancy text books. is a garage's stock of cars a liability because they have to pay holding costs and someone to polish them occasionally? just because the return from a house is not in many liquid installments it does not mean that no return is made.

my original remarks are still correct . ask anyone who has a mortgage & the majority will say they can't wait to be mortgage free . 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.

 

[Taz]

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

 

[theblues]

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

nice one Taz