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  1. #11
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    We have quite a lot of debt - but it's all mortgages (we have 3 properties), no credit card debt or car loans etc.

    Our investment properties are interest-only repayments so we're not paying the debt down. The plan is to rely on the property value & rental income to increase, which it has. We carefully selected our investments to suit this strategy.

    We're not particularly interested in getting debt-free, it's not the way we're approaching things at this stage.

  2. #12
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    Quote Originally Posted by Cue View Post
    We have quite a lot of debt - but it's all mortgages (we have 3 properties), no credit card debt or car loans etc.

    Our investment properties are interest-only repayments so we're not paying the debt down. The plan is to rely on the property value & rental income to increase, which it has. We carefully selected our investments to suit this strategy.

    We're not particularly interested in getting debt-free, it's not the way we're approaching things at this stage.
    Do you ever feel trapped by this strategy? I'm not being negative, please don't think I am! Its just that I feel like my tiny mortgage ties me to decisions like staying in well earning jobs, when i'll go back to work with bubs at home, how much we can travel and adventure etc. I think I'd feel terribly trapped if there was more on the line. Its a big part of why i don't want much debt. Do you ever feel this way?

    Sent from my GT-S7500T using The Bub Hub mobile app

  3. #13
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    We just have our home mortgage which we can pay on 1 income. I wouldn't feel comfy having any more till our kids are much older.



    wifey of hubby who is always away. mother of two girls who are always amusing.

  4. #14
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    Total repayment of up to roughly a third of our total income.

    32yo and yet to contract any debt.

  5. #15
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    I'm 26 and have $190k mortgage. I pay much more than the minimum payments and am hoping to pay it off within ten years. Approximately 50% of my wage goes towards my house repayments. I can afford it at the moment as dd is only 2 and has very few expenses.

    Ive Never had a credit card, bought my car outright 6 years ago. I'll having to upgrade my car either this year or next year. It's starting to fall apart, but I'm putting it off for as long as possible. I think cars are a (necessary) waste of money. I dont want to get a loan, I'm hoping I'll be able to buy outright again.

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    We have zero debt atm. We dont own a home and arent looking to anytime soon. Have no credit cards and paid for our car outright.

    We have savings in a term deposit.

    Sent from my GT-I9305T using The Bub Hub mobile app

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    Potentially with our investments our next few moves could put us well over 1million in debt, but the equity is greater so we don't owe more than we own. Yes the figure sounds scary but it's not really. I think it's only scary when you have more debt than asset, so if you play cards right it shouldn't be an issue.

    I am tempted to throw in the towel whilst we have young children and have 1 low mortgage on the family home and smash that down then reinvest later but we'll see.

  8. #18
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    We have a mortgage and a car loan( debt consolidated also) and a small credit card. The car loan will be paid in less than 5yrs and credit card could be paid off in a couple of months if we wanted to. Our mortgage however I see us finishing in our 50s or early, but definitely want to look into investing in properties when we have more equity in the house

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    I am not overly comfortable with my current debt status. It's a car and a personal loan- all in all, probably about $30K. I hope to have the personal loan paid off within 12months, and the car 3years. I'm a single parent so I will be lucky to even be in my own house let alone have it paid off by a certain date. I hope to be able to buy my own house in my 40's. Oh, how depressing!!!

  10. #20
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    Quote Originally Posted by NAT256 View Post
    Do you ever feel trapped by this strategy? I'm not being negative, please don't think I am! Its just that I feel like my tiny mortgage ties me to decisions like staying in well earning jobs, when i'll go back to work with bubs at home, how much we can travel and adventure etc. I think I'd feel terribly trapped if there was more on the line. Its a big part of why i don't want much debt. Do you ever feel this way?

    Sent from my GT-S7500T using The Bub Hub mobile app
    No I don't. It actually gives us more opportunity to do things in the future. I think I'd feel more trapped if I was sinking money into rent which doesn't give me any benefit besides somewhere to live that week. When you pay a mortgage you gradually gain more and more ownership of the property & it's value, which gives you more options financially. Then you can borrow money for a car or holiday or whatever against your mortgage at much cheaper interest rates than credit cards or personal loans.

    Also, we haven't taken on anything that we can't manage and we always make sure there is a healthy amount of savings sitting in our offset account. This helps reduce the interest on the house we live in and gives us something to fall back on if needed.

    The equity we have in the house we live in enabled us to borrow against that mortgage to add a granny flat to one of the investment properties - so while we've got debt, it is working for us by creating income and adding value to our properties.

    It's definitely a balancing act! But hey, if something dramatic happens we can always sell up or renegotiate with our lenders. There are always options.

    Of course, it's not for everyone and we have had to work hard and make sacrifices to get there (and still do). You have to do what you're comfortable with at the end of the day but I would encourage you to do your homework and understand the concept of good vs bad debt.

  11. The Following User Says Thank You to Cue For This Useful Post:

    NAT256  (06-03-2014)


 

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