Quote:
Originally Posted by Steel_Tomb
1.99% interest... sounds great doesn't it. Only catch is you need a minimum of 40% deposit. I mean who the **** has say about 80 to 90 thousand quid to put down as a deposit these days?
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well it is a trade off... you can get a higher interest rate with a lesser down payment as well. but think of a down payment this way... a down payment is liquid cash you simply lose that you could have used for other things.
for example i just purchased a truck recently... i had the choice of paying about $27,000 after tax, with no money down and a 2% interest rate.
OR
i had the choice of paying $21,000 after tax with no money down and an 8.9% interest rate.
the interest his high, but the principal is less... also im out no money down so i can use my down payment money as a cushion to pay for the first few months of ownership premiums and maintenance etc.
of course this is for housing...
My wife and i have been saving and building our assets for 7 years... i would say we are about 70% of the way saved up for a home downpayment.
the hard part about being in your 20's is that nobody takes you seriously on a financial note unless you have a near perfect credit score and a substantial and often unrealistic income.
they view you as just some "kid".
what i did to build credit through my teens and twenties was to go out and take advantage of all of those 0 payments for 12 months, 0% interest for 12 months type of deals... and i saved up my money until it was equal to the principle... when the first bill came in the mail - i paid the whole loan off.
i was the only 21 year old on my block with a credit score in the 700s, of course im sure it is shot now... simply because of all of the business related borrowing i had this year. (thankfully im nearly out of that too)
virtually every homeowner i know spent the first 5 to 10 years of their professional lives saving up for a down payment.
it takes time to build an empire
