Hi there,
ok i have just got my loan approved to build a house. designs are been drawn up and building should start in about 2 months. im a first time buyer btw.
i have $110,000 in the bank and i need to put down the deposit and i need a car.
Now would it be a better idea to buy the car cash OR borrow money from the bank as part of the mortgage and use that cash ($27000 is the price of the car im looking at) to offset the interest on the mortgage.
I figured that if the offset idea is better than i could afford a better car too, as well as making interset on the cash in the bank?
good idea? or just a terrible idea?
Any expert thoughts would be very appreciated. cheersHi!
27k would get you another deal
Seriously, look at your car needs and go for something reliable thats about 3-4 years old. Less likely to need repairs.If you get the car through the mortgage, your paying 10% interest on that 27k for the next 20-30 years. Considering cars generally die after 10 (or cost to much to keep on the road), you still have 10-20 years of car debt to pay.
Alternatively, if its an investment your building (to sell) then get a crap car for the next 12 months or so and reward your hard work once the place is sold
I'm currently selling my VZ commodore and got a 3-4 year old ute to get me around (and pick up cheap materials) while I build my portfolio.My 2c worth
Cheers,
Ross.Thanks for your reply mitchell
my girlfriend insists on a 4×4 so we are looking at a 2004 territory Ghia. That way its a reliable(?) car but still has some luxuary and a decent size. i just bought myself an old car to get myself around in for $6k.
The house we are building is to live in and we want to pay it off withing 10-15 years so any way of bringing down the interest has got my attention right now. 27K is a lot of cash to part with and i want to make sure its the right decision!
what rmitchell said
if you are even remotely self employed,or have a second job, or an abn no
have a look at leasing , the depreciation is worked into your monthly payment and can be (in my case anyway ) 100% tax deductablemy observations are a used car usually requires a deposit ( like 1/3 ) where as a new car only needs your first months payment
sadly the bank dont see my 4×4 as a money making opportunity and factor it into my borrowing limit…..
after the last lease ran out i was able to sell the ute and apply the money to our next house AND buy a brand new ute for the same monthly payment (nice!)
orrrrbuy a cheap rocket stick a $200 stereo in it and four new tyres and be happy
only a fool would finance something that GOES DOWN in value
WITH THEIR OWN MONEYif you have a car and your girlfriend "insists" on a luxury 4WD , isnt that her problem ?
you dont quite understand how a relationship works do you yarpos…
suave – explain this 'leasing' that you speak of. do you mean financed through a bank etc? im a contractor in the IT industry, would it be worth getting an ABN?
to simplify my question: i need a decent 3-5 year old car. i have the cash to buy it outright, but is there a better option.
cheers
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