If you can drop $500k on a car that is not your primary mode of transport $50k on a gearbox shouldn't be a problem
Prestige cars are a different proposition to planes and boats. The running costs of the latter are well known and mean they're not possible for people with superficial wealth. In my experience, 80% of prestige car owners have superficial wealth only. The car is on the home mortgage, they have enough income to support the interest cost and servicing but not major repairs. How often do we see people who encounter unexpected $50K or more bills, then unload the car soon after? Another example is the manic focus on low mileage. Too many people want the image of wealth, but they're paranoid about the resale value impact of actually driving their status symbol. The most common complaint I used to hear from FCA members was "the restaurants you choose are too expensive". I rest my case.
Sounds like me!! 95% Except I genuinely prefer to drive my Audi than the 360. It’s better comfort. but I looovvere the beautiful design and Ferrari. Just like having it to look at .. I like to watch long time
+1 Not everyone is as wealthy as they make out to be. Tip most of these people driving around $500K Ferraris upside down and nothing would fall out of their pockets.
Ok, maybe 50% then lol. I don't know, but in today's world with social media EVERYONE pretends to be wealthy to show off to their family and friends etc. I watched a video on Facebook of a real-estate agent who rents exotic cars every day to meet potential buyers at properties in Sydney. Seemed like a nice fella in the video. He openly says he can't afford to buy an exotic car, so he rents them because he looks the part when he shows up to try and sell these properties. His dream one day would be to have his own exotic car he said. There is a lot of wealth around these days, but everyone is so fake these days also. And it's easy for some people to lease a $500K Ferrari @ $5000 a month, but not have $2 in the bank to cover the cost of major repair.
Surf clubs are getting very upmarket lately, true. Maybe in these difficult times a drive to the local Red Rooster is a better idea.
I have enough money to look after my car PROPERLY !!! I DRIVE my car a LOT !!! I see NO point in owning these beautiful cars just to look at. Drive the ****ing things !!! No wonder Enzo hated his customers if they behave like losers and show ponies Anyhoo, I'm off for a drive with ALL 8 cylinders working now
I think this is definitely one of those generational things - most of 'our' cohort would have saved and paid cash for our cars, and budgeted for maintenance. We also paid off our mortgages ASAP. Current generations is all just debt to the max they can afford on current income and actually own nothing... And can anyone explain why banks are giving 30 year $500k housing loans to 43 year olds whose current net worth is probably sub $200k???
The average loan runs 7 years and all lenders now need to ask and print the borrowers' exit strategy. 500k over 30 years is around 3k per month or 36k p/a leaving plenty on a 200k loan depending on other debt and commitments! perhaps we should ALL have NO ambition -live in a 1 bedroom flat and work in a rice field!
30 years. Because that’s the only way servicing calculations are met. They are either paid off earlier or refinanced on to the next property.
I am 44 and the bank just lent me $450K over 30 years, I didn't question it, but I will be 74 years old if this loan goes full term. I have a lot more net worth than $200K, but I still found it interesting that not once they asked if I would try and pay it out early etc or did I plan to retire at 65 and use my Super to pay out the remainder of the loan etc etc. I didn't ask and they never questioned me. I wonder if I was 54, with the same net worth, if they would still be keen to give me a $450K loan over 30 years.
I don't think that's true of the younger generations- the person I'm thinking of has had 2 previous properties over 20 odd years and obviously paid off very little of the mortgage...
It is true, case in point my 27 year old daughter. She’s paying it off faster than she has to, meanwhile equity in the joint increase, add capital gain and her “wealth” and borrowing power increases. Who cares if the mortgage isn’t paid off anyway? You need to live somewhere
Banks are like a casino “the house never loses” . A bank will never lend you money unless they can get it back by whatever means…..Like all good Greeks you have equity- houses, cars, super and cash……..”the bank never loses”.
That's good man, I will have paid mine off in around 20 years all up, all of them give or take a year or two either side. Tell her to keep investing in property and shares and give Super a miss. Only a matter of time before they lower that new tax bracket BS from $3M down to $2M because they know x-amount of people have $2M+ in Super and then they will work out there's even more people with $1M in Super, so they will come after us also. And they might even hit the people under $1M in Super one day also the dogs!
Indeed. Whom gives a **** if you are lying in your coffin having paid off your mortgage in three years? Do they give you a guard of honour? **** that. Enjoy life as much as you can. Buy everything you can. Drive it, fly it, sail it, live in it, holiday in it, travel the world, and when you fail to wake up one day so ****ing what if there’s a bill outstanding.
100% I tell everyone to spend up and enjoy, you only live once. Just tonight I went out to dinner with some mates and one was showing me a $90K Ford Musting for sale in Brisbane that he wants. I told the fool to get it, "you only live once ****" lol He's still thinking about it, but I hope he buys it. He will get $40K trade in on his Ford Ranger, so it's a cheap 'change over' into the Mustang.
Bang on. You only have to own one decent house. Everything beyond that is an indulgence, and if you’ve worked hard (especially if you came from nothing) why shouldn’t you enjoy life? So you die owning a $2m house and there’s still $200k owing on it. Gee. How terrible for the poor bastard whom inherits it…
Can’t say I agree Pap. Super is the best free kick around for most people. And super is not an investment, it’s an investment vehicle. By all means have investments outside of it, but if you don’t at least maximise your concessional contributions you’re doing yourself a big disservice.
