Extra Cash/wage-mortgage%

XYGTHO · 29-02-2008, 03:19 PM

G'day. Just heard today that the average percentage of people's wage that go's into house repayments is upto 37.5%. This is a middle figure and i know everyone that had bought in the last few years would probably love this percentage.
My repayments are 52% of my wage and it's only a 200g loan for a little house.
Now i'm looking at ways to get a little extra cash. Get some money to put away for the car etc. Have been looking at jobs that i can do nights and or weekends but can't find a whole lot. I used to maintain, service and clean trucks weekends but not much of that available either.
I am a draftsman so could maybe get some contract drafting?

Curious into what percentage peoples repayments are, how they are travelling with it and coping and also:
what people are doing or idea's for some etra income. Anyone in the reserves? I have been looking into this but it's bot in my area.

Cheers.

cupic · 29-02-2008, 03:34 PM

Brutally tough especially in the major cities(Sydney being a NO1 destination)

But if ppl are prepared to move out of the inner CBD housing trends to be cheaper

vandrsxr6 · 29-02-2008, 03:52 PM

If you need some extra cash how about working in a drive thru bottle shop. Pays not to bad cause it's after hours and pretty easy work.

XYGTHO · 29-02-2008, 03:56 PM

Quote:

Originally Posted by vandrsxr6

If you need some extra cash how about working in a drive thru bottle shop. Pays not to bad cause it's after hours and pretty easy work.

Not a bad idea mate. Will look into it.

rag top · 29-02-2008, 04:18 PM

Was that 37.5% pre or post tax??

I started a 2nd job prior to purchasing my house in '99 - still doing it in '08. Helps to pay for my toys.

XYGTHO · 29-02-2008, 04:26 PM

Quote:

Originally Posted by rag top

Was that 37.5% pre or post tax??

I started a 2nd job prior to purchasing my house in '99 - still doing it in '08. Helps to pay for my toys.

Not sure. I'd say after tax. That how i see it.
Yer i really want to get some more work, so i can put money away for things. Working full time and studying its not to bad if i get another job, but then i have friends, family and a relationship that i would like to put first which makes it hard as i don't want to be seen as a workaholic, although i do enoy working. LOL.

Powdered Toast Man · 29-02-2008, 05:46 PM

Stocking supermarket shelves on night/late shift. Thats what I'm thinking of doing as a second job and I dont even have a mortgage!

I'm an Engineer and am also thinking of doing contract drafting, but I dont want to have to deal with all of the responsibilities owning your own business entails.

DoreSlamR · 29-02-2008, 09:57 PM

I'm about to commit myself to a mortgage and it's gonna take quite a fair percentage out of my wage.
I've already got some ideas to help pay, boarding a room out and cash work on weekends/afternoons.

The bottle shop idea is a good one as long as you allow yourself enough rest time...I did the 2 job thing a few years ago, problem was i decided to do pizza delivering and wasn't getting home until after 11-12 o'clock after doing 10 hours laying limestone blocks each day. It caught up to me eventully.

bingoTE50 · 29-02-2008, 10:01 PM

Guess am one of the lucky ones , mortgage under a 100k and repayments 25 % of my nett salary. But..... kids private school cost 8k a year so sort of balances it out ..
Believe me the more you earn the more you spend ...

DoreSlamR · 29-02-2008, 10:18 PM

sheesh under 100k, Couldn't buy land for that here...Cheapest houses are tiny 20+ year old units..and they're 300k!

schnoods · 29-02-2008, 10:29 PM

Not wrong there.

I'll be looking to commit, perhaps when there is a few more rate rises, people who are already stretched may look at downsizing or selling while they still can.

A mate just bought a small town house (villa or what ever its called) and just paid $285k for it and it doesnt even have a yard! though its 5 minute walk from the shops and 10 from the pub so I know where i'll be crashing.

old_mate · 01-03-2008, 02:28 AM

we are at about 33% between myself and the mrs. Not sure what we are going to do when we decide to have kids actually...

...i have started scrapping old cabling i remove when im doing shop refits (elec and security). 2.30-3 a kilo means beer money (could make more if i was a real hawk)

**ebxr8240** · 01-03-2008, 12:57 PM

While mortgage & interest rates are high I put ALL my pay into that account and lived on credit card with $2.500 limit... Still do the same with rental properties, except these days it's tax deductable...No point in having money in savings account where they vertually charge you for spending your money..Besides while interest rates are high its better on mortgage getting 8% reduction...

sleekism · 01-03-2008, 02:24 PM

I'm only renting and between me and the mrs we spend 6% of our income on renting.

Unfortuantely looking at property that 6% will likely jump to 50%+ if I get a mortgage for a place.

Thus why despite the frustration of our parents we are not looking at property until we are at least 21. I don't want to give up the fun yet.

I know blokes who are laborers and welders etc. who have a mortage and a family and they are living one week at a time. A lot of them work night jobs as well to make do.

Working 7:30 to 5:00 in a fabrication shop and then 8-12 packing shelves. I don't know how the poor blokes do it.

bingoTE50 · 01-03-2008, 07:43 PM

Quote:

Originally Posted by DoreSlamR

sheesh under 100k, Couldn't buy land for that here...Cheapest houses are tiny 20+ year old units..and they're 300k!

My house is worth 450 - 500k , I am 45 so I have done the hard yards.

110 k mortgage in 1990 at 17.5% that was pain. Earning 60k between the girl and I.. Labour Gov't then guys...

**ebxr8240** · 01-03-2008, 10:32 PM

Quote:

Originally Posted by bingoTE50

My house is worth 450 - 500k , I am 45 so I have done the hard yards.

110 k mortgage in 1990 at 17.5% that was pain. Earning 60k between the girl and I.. Labour Govt then guys...

Yea but how much did you pay for it and 17% back then would have been on $80k..If that ... Like Fraser said, Life wasn't meant to be easy.. Interest rates where on the way up before Bob...

To the younger guys that are worried about buying a home...
I bought the house I live in for $65.000 in 1983. Its worth around $500k now... Then in 1994 I bought my first investment property for $130k when that bank valuation became $350k I borrowed against that and bought another..
What got my mortgage down real quick was when I bought my first investment property I could work all the overtime I could knowing at the end of financial year I could get most of what it cost me back, plus the tax on over time.. With in 3 years I paid my first house off real quick. Made it worth it working on call outs in all the rain and storms... Inflation has helped me big time..
The most important part is not to buy a too expensive house in the first place and live where you can afford...

T3ts50 · 02-03-2008, 03:00 PM

Quote:

Originally Posted by rag top

Was that 37.5% pre or post tax??

I started a 2nd job prior to purchasing my house in '99 - still doing it in '08. Helps to pay for my toys.

I would say that is before tax. Where I work, we have a Debt to Service Ratio of 40%.

eb91xr6 · 02-03-2008, 03:40 PM

theres heeps of night jobs, im an aprentic sparky and it payed sweet f all so i work as a bar tender at night on the weekends, dosnt realy afect my social life as most of my friends pop in for a beer quite oftan or i join them for a beer during the week.

night jobs pay well as alot of people dont want to do them,

jobs easly avalable
bartender
dish picks
waiters
i belive u can be a removilest at night
cleaneing
drive through attendent

the list is endless just pick one you dont mind doing. just weekend work put's another $350 in my pocket pw

eb91xr6 · 02-03-2008, 03:41 PM

or you can do what the indians do, 24/7's servos, taxi driving, heeps and heeps more

bingoTE50 · 02-03-2008, 11:38 PM

[QUOTE=ebxr8240]Yea but how much did you pay for it and 17% back then would have been on $80k..If that ... Like Fraser said, Life wasn't meant to be easy.. Interest rates where on the way up before Bob...

House cost 123k ..borrowed 110k ... Sold for 185k 12 years later...

Next house 290 k sold two years later for 428k .... Good timing !

Paid 390 for the current one...

The hardest part is getting in the game.. Hence the title of the thread..

% of income per mortgage.

XYGTHO · 03-03-2008, 10:35 AM

Yer, i'm not to worried now that i'm in the market, just not saving much money for the things i'd like to do.
I also feel for everyone else who would like to buy and interest rates going up may or may not help? It won't help me thats for sure. Just hear all the time what peoples repayments are and they are huge. Some like $500-$700 a week. I bought the cheapest house that suited me and i'm happy as.
Might look at getting part time work at supercheap. Then i also get a 25% discount.
There is a lot of really hard working people out there that are struggling, however there are also some people doing it real easy. I just want to see the hard workers get somewhere as they deserve.

blueoval · 03-03-2008, 10:54 AM

Im a drafter also.

My mortgage takes up 37.6% of my wage after tax. Im just coping. I bought a cheaper car with the intention to sell my subaru to help pay off other debts as well as other things.

Pinch · 04-03-2008, 04:09 PM

My wife and my mortgage is 17% of gross combined income, or 24% of take home income.

Only problem is our 2 bed courtyard unit is tiny. 110sqm total includes the 30sqm courtyard and 16sqm garage. I also had to gut it and completely redo it and have only just finished after 4 years which was paid for separate to mortgage. Also have to rent another double garage for the ‘toys’ as I have no driveway. On the plus side its only 50min door to door to work via reliable fast train, 15min to the beach and 5 min to the boat ramp.

XAGSV8 · 04-03-2008, 08:39 PM

I must be the biggest loser, just worked it out and 76.9% of my income (net) goes into my mortgage's. I cringe at the moment when interest rates go up. In a couple of months though my mortgage should be around 20%.

Slightly off topic: My problem with the reserve bank raising interest rates to slow inflation is the people with mortgages are not the ones spending. Its all the 20-30 years olds with no property and lots of disposable income.

Pinch · 04-03-2008, 09:02 PM

Quote:

Originally Posted by XAGSV8

Slightly off topic: My problem with the reserve bank raising interest rates to slow inflation is the people with mortgages are not the ones spending. Its all the 20-30 years olds with no property and lots of disposable income.

Hear, hear! I don't know what the answer is... but to me, hitting the 30% of people who have a mortgage who don't have that much disposable income to begin with seems strange. Yet the people who benefit from interest rates, those with plenty of cash, just get more interest, so spend more, interest rates go up again, so then get more, so spend more... Also the same with live at home tweens (20 somethings acting like teens).

To me it seems that discretionary and luxury items like the much maligned plasma etc should be taxed more and other areas of non-discretionary spending, like the GST on CTP insurance and petrol for example, reduced. It is clear that increasing interest rates does not slow discretionary spending - those that are doing it don't have mortgages.

PS. the 'mort' part of mortgage comes from the latin meaning 'to death'. Touche'...

**ebxr8240** · 04-03-2008, 11:36 PM

The way to slow inflation down and not affecting people with mortgage is to increase GST... AS most food is GST free.. But in other ways 10% GST is enough...

XYGTHO · 05-03-2008, 10:44 AM

Quote:

Originally Posted by Pinch

Hear, hear! I don't know what the answer is... but to me, hitting the 30% of people who have a mortgage who don't have that much disposable income to begin with seems strange. Yet the people who benefit from interest rates, those with plenty of cash, just get more interest, so spend more, interest rates go up again, so then get more, so spend more... Also the same with live at home tweens (20 somethings acting like teens).

To me it seems that discretionary and luxury items like the much maligned plasma etc should be taxed more and other areas of non-discretionary spending, like the GST on CTP insurance and petrol for example, reduced. It is clear that increasing interest rates does not slow discretionary spending - those that are doing it don't have mortgages.

PS. the 'mort' part of mortgage comes from the latin meaning 'to death'. Touche'...

Interesting. Never thought about it that much.

XYGTHO · 05-03-2008, 10:48 AM

Quote:

Originally Posted by XAGSV8

I must be the biggest loser, just worked it out and 76.9% of my income (net) goes into my mortgage's. I cringe at the moment when interest rates go up. In a couple of months though my mortgage should be around 20%.

Slightly off topic: My problem with the reserve bank raising interest rates to slow inflation is the people with mortgages are not the ones spending. Its all the 20-30 years olds with no property and lots of disposable income.

Very true mate, very true. Geese mate, you are doing it tuff at the moment. Escpecially with a new born. Will be worth it when the new place is ready.
There is a friday night cruise this week mate with the car club if your interested. I'm just hoping the XY will start. It's been 2months since its moved.

XR06T · 05-03-2008, 01:31 PM

we bought our place 2 years ago and my mortgage is right on the average. Mortgage includes all loans but so i guess we are a bit ahead.

it would be impossible to have a mortgage @ 35% of your earnings if you are single mind you!

I also agree with the others re the interest rates affecting the people without money and mortgages already. the idea that increasing interest rates increases savings just doesn't hold any more imo. There are many different types of investments that will give way more than 7% return.

Its definatly not the time to be getting mortgaged to the hilt, looks like rates are still on the rise!

DanXR6T · 05-03-2008, 02:47 PM

As a part of a mid-20's couple with no mortgage, who are considering looking at houses, this thread to me is interesting.

Our combined monthly post-tax income - $5300/mth.
Rent - $1000/mth - 19% of our disposable income.

The average basic house here is $260,000 (range $170,000 to $350,000).

So even on a $230k mortgage, the repayments are: $1800/mth - 34% of income. Probably comfortable with a few cut backs. 5-8 years back the average house price here was $100-120k.

We are like the standard couple - two newish cars, two incomes, living to the extent of our means.

The last few weeks I have been moving the discussion into the financial realm and if we can free up money. Considerations are:

Going back to one car? Even one new car is worth less than both our cars together. Savings in fuel, servicing and finance costs. Her being from a Holden family and me being from a Ford family arguments aside.

If we decide to have kids in a few years. If she lost her income, then the above mentioned figures would increase to 61% - a figure I consider not comfortable. And there is additional costs which I do not pay as part of renting, such as repairs and rates - which in an older house, could be very substantial in 5-10 years time.

It's a big decision to make I guess. Add that to not having great job satisfaction at the moment, and it makes it even harder.

Daniel.