So is it worth it to get a mortgage in this current market ?

So continuing on the last post.

Is it worth is to get a mortgage for a home in this current environment?

There are two parts of the equation as explored in the last blog.

To buy or not to buy that is the question?

The reasons why it is the right time to buy.

• Record low interest rates mean that the repayments for the home will amount for more mortgage being paid off. (Less interest eating up you repayments)

• Banks are willing to lend at incredibly low rates (in which case you can shop around for cheaper rates.)

• If you don’t enter now you never will (the argument that Sydney has a housing shortage, because Sydney is the most livable city in the world (that is debatable).)

These are the reasons as you should not buy.

• Too many speculators in the market.

• Deposit for a 1 bed room apartment in the city is ridiculous (imagine paying $500 000) for a 20 year old apartment in the city with no garage)

• If interest rates suddenly move up then your payments will be effected too (you can’t have your cake and eat it too)

There are also life style choices to consider too

Single, de-facto couples, starting a family.

There are many things to consider for them and their situation.

• When someone is alone they may decide to rent or share a house because they want to travel or explore themselves etc.

• De-facto couples may explore the idea of buying or renting together in order solidify their relationship.

• Families that are starting out that decide to buy a home, to make a nest for their future.

These are some of the examples of various stakeholders in a housing market. That are represented here, there are also others to consider too. Eg (speculators, government housing etc).

To summarise there are factors for and against buying house and it is dependent on the type of life style and  people wish to live in, that factors in the purchase of the house.

Next I will talk about the relationship between housing prices and interest rates.

Till next time.

Coconutman

So what does it mean to buy a house these days ?

The question is a quite a broad ended one.

Let us start at the beginning as to why we buy a house?

These are the good reasons for people to buy a house.

• It is a roof that is defiantly owned by you.

• You have something to your name.

• It is a centralized location in which your immediate family knows about.

• It is used as a status symbol.

• It ties down your money to something that is physical and can hold its value ( to some extent).

• It is a home in which you raise your family in.

And so on……  

Why it is hard or difficult to buy a house to live in ?

• It is tedious to go to auctions and open house places every weekend. (Time consuming)

• It takes a significant amount of savings to even put a dent into your home loan deposit.

• Unstable family issues (divorce and separation issues).

• Interest rates are subject to change every month (RBA cash rate).

• Other people driving you out of the market (eg. foreign investors).

• Annoying neighbors.

And so on….

To the top 5% of the population that has the wealth this is not so much of an issues as it can be quite easy to buy and lease all the time. 

However those who are of middle-class it can be quite a challenge and a significant part of one’s life will go towards servicing the debt of the home.

Which brings another question.

Is it worth it to get a mortgage for a home?

The answer yes and no.

Why two answers?

I will give you the answer in the next blog.

TCM

Holding Frame

Why do you have to hold frame?

This is the best way I can answer this question.

When you hold your frame. It is a way to show that you are committed to a cause. It defines you as a person as well as showing others that you mean what you say. It shows your intention as well as your qualities as a leader.

People will want to change you tell you something different. Ask your self are you willing to give full control of your life to people who don't have the same intentions that you do?

When you do something always do it with your full intention never half-heartedly you will always take a decision swayed on another person’s interests?

If you can't back yourself up then why do you expect others to take you seriously? 

The golden rule here is to :

1. Back yourself to follow through with anything.

2. If you fail or lose you have no regrets.

3. Repeat if neccessary.

This build your confidence over time allows for you to make a significant impact in your life.

This is what it means to hold your frame.

I hope you like my post and stay tuned for more.

Eating food

What is good for you and what is bad for you ?

This phrase is thrown around quite frequently, when it comes to various aspects of life but lets stop and consider the issue of food.

The reason why I don't say nutrition is because of the following reasons.

1. I am not a dietetics professional by trade.

2. Nor do I have anything significant to say about studies or data published in the area.

However I do want to say something about my personal journey with food and what I have learned.

A little recap

When I was in my younger and well into my late teens. I would always indulge myself to the point of no return. In my High school years from (13-18) I would go from being roughly 78kgs at age 13. Then when I finished high school at 18 I weighed in at 117kgs. That meant I put on about 39kgs in a period of 6 years.

When I went to my doctors visit after the HSC finishing my major exams. I was told that I was very obese (no sugar coating here). I had the potential to have very serious problems past the age of 25 if I kept on going the way I was going. In short things would get really bad if I continued with the food I ate on a daily basis.

Okay I got given the bad news now what ? What should I do to give myself the best shot of not eating my way into a web of problems ?

The message is simple cut out the carbohydrates keep the foods that give you energy as well as sustain you during the day.

It also helps to have foods that are full of fiber so that you will feel fuller for longer.

I'll talk about more things to do with this post later on.

I thought I would share my story with food.

I hope you get some use out of it.

Thanks