Ever had a "luxury loan"?

[Forest]

Same sort of clown that if said clown were to win lotto (a big one) would pay off his mortgage, his folks mortgage, buy heaps of toys have a world trip and blow the rest !

Instead of thinking smart talking to the bank and work out what interest returns will come from it then invest that money At a safe rate !
Borrow money off where ever for however long it works out to be paid off by your safe interest returns and blow that lot wooohoooo !

Have fun spend money and at the end of it ya still have a mill in the bank !

If I won Lotto, I'd be down to my solicitor's office tomorrow to establish a trust. I'd then gift the winnings to the trust, have myself and my loved ones named as beneficiaries, and then live off the income the trust produced.

[mstriumph]

Well if there was any doubt about you being a racist I guess you cleared that one up


Keep it on topic aye




lol costly wobbly



What an absolute crock, don't mean to offend but that is nothing short of rubbish.

..................Chamberlane didn't see a problem with Hitler taking a few extra km's of sod either, pretty sure most here know how that one turned out.


"money is no different from anything else"??? Guess that's why the MASSIVE majority don't have sound financial sense. There is no mystique as far as im aware, just a lot of people with no clue, it's either a prudent purchase or stupidity personified.

ah - go out an ride mate .... it'll put you in a sunnier frame of mind

[Patch]

What an absolute crock, don't mean to offend but that is nothing short of rubbish.

It is people's right to post up and have an opinion, as you asked and expressed an interest to hear them in your first post.

Who or what gives you the right to sit on your high horse and dictate as to what people should do with their money??

Unless you're financially retired, have invested in every market, seen most market conditions, I hardly think you are qualified to make such statements as to advise on people's financial planning especially over the interweb.


Who gives a fuck that you've made a couple investments and worked behind a counter - who hasn't???


No such thing as a luxury loan. A loan is a loan. period. Its what you do with that loan that counts.


Nice one BooB

[awayatc]

How much is your time worth?
Lets say you want a bike but haven't got the cash, so you take a luxury loan for 4 years.
Yes you pay a lot of interest etc, but it is 4 years of enjoyment you gain......
How much is that worth to you?
4 years of your life that only come once......

Money is only good to pay for things you want/need, if it is worth it to you go for it.....
There is very very little we realy need,and the future never comes.....

[Griffin]

I guess almost everything Ive had a loan for could be classed as a luxury - as there is nothing I have borrowed for that I couldnt have lived without

[geoffm]

If I won Lotto, I'd be down to my solicitor's office tomorrow to establish a trust. I'd then gift the winnings to the trust, have myself and my loved ones named as beneficiaries, and then live off the income the trust produced.

Be aware that Auntie Helen will tak eher cut on anything gifted to the trust over $27000 PA. THis limit hasn't moved for years as it increases the tax takings.
If I won the big one, I would no longer be trapped in NZ - I would pay all the bills, mortgage, visa etc, then move overseas.

[oldrider]

If I won Lotto, I'd be down to my solicitor's office tomorrow to establish a trust. I'd then gift the winnings to the trust, have myself and my loved ones named as beneficiaries, and then live off the income the trust produced.

You had better start learning about "Trust" law, it doesn't quite work like that but thinking about it is good!

Get your trust sorted and then win Lotto with a ticket purchased by the "Trust". John.

[doc]

No such thing as a luxury loan. A loan is a loan. period. Its what you do with that loan that counts.

I think what he means is borrowing for an item that is not going to grow in value ie "assets". Unfortunately most people don't realise their biggest asset is their ability to earn ie "their health".

[Bonez]

Had loans for bikes, car and house. All payed. I've considered we've had our moneys worth out of all the items purchased. Now its cash up front usually on items folk consider "obsolete" or no interest for 12 month deals.

Learnt a lesson loaning to family member-never again.

Doc is on the money with the health thing.

Happen to have 3 year old ginger beard up for grabs. Be in quick as it's in the skip bin at 1800hrs. Think I'm starting to go though that mid-life crises thing.............Now where did I hide the Visa?

[alanzs]

Long term debt for long term purchases are fine, like a mortgage. Other than that, I live debt free. Use the credit card to pay for everything and pay it off every month. Keeps my bill paying down to a minimum. Cash is king in most regards.

[oldrider]

Pay cash for everything and you will find out that you have a piss poor credit rating!

This could be critical and embarrassing further down the line if you do apply for a serious loan.

It happened to us a couple of times earlier on in life! John.

[Boob Johnson]

Thats a pretty big generalisation you're making that all loans are expensive and all all people who take loans are idiots.

I guess in the last 10 years i've had over $100k in 'luxury loans' (not counting the mortgage) and not once have I paid more than 25% more than the initial purchase price, over the whole course of the loans. Each time it was worth it to have what I wanted, when i wanted it.

I think your moaning is misguided.

A single cent over the purchase price IS a waste of money, how could any sane person argue that fact? Lifestyle choices don't come into it at this point. Its either more money than you need to spend to get the item or you make a conscious decision to trade time for money, that however doesn't make it a "smart" move.

Agree! I have bought several bikes on tick, all with MTF being the finance company. Have never paid excessive interest, and most have been paid off early.
Eat, drink and be merry, for tomorrow you may die.
I would rather pay some interest to have a few luxuries, than be a fart skinning mingy cunt having no fun. You can't take it with you

MTF are great as far as finance goes. Not a finance company in the traditional terms as they are a collective of motor vehicle dealers. Def one of the cheapest forms of vehicle finance for sure but still doesn't make it a wise move.

My partner & I only purchase when the deal is zero interest & no repayments until x date. I tell 'em I wont pay any damn booking fees either. We place a nominal deposit and keep our money earning interest until payment is due. I bought a Plasma TV for $2999, put $500 down and made 7% on the saved money that eventually rose to $2499 for 18months.

Using past appreciation profits from property has paid for our luxuries and keeping those luxuries 'real' (like a '95 Duc instead of a new one) helps keep the balance of payments favourable.

We have borrowed against our equity in the past to purchase bargain items and onsold them for nice wee gains.

You can't take it to the grave and there ain't no prizes for the richest person in the cemetary...but sensible money management can make life a bit more fun in the long run I guess.

Nice one Andy, pretty much exactly what im getting at.

If I won Lotto, I'd be down to my solicitor's office tomorrow to establish a trust. I'd then gift the winnings to the trust, have myself and my loved ones named as beneficiaries, and then live off the income the trust produced.

Great in theory, but not quite how it works.

It is people's right to post up and have an opinion, as you asked and expressed an interest to hear them in your first post.

Who or what gives you the right to sit on your high horse and dictate as to what people should do with their money??

Unless you're financially retired, have invested in every market, seen most market conditions, I hardly think you are qualified to make such statements as to advise on people's financial planning especially over the interweb.


Who gives a fuck that you've made a couple investments and worked behind a counter - who hasn't???


No such thing as a luxury loan. A loan is a loan. period. Its what you do with that loan that counts.


Nice one BooB

Interesting post Patch, a fair of hostility there. I do unreservedly apologies if I came across as a horses ass. Its a subject I feel quite strongly about as you can no doubt tell.

Who am I you ask? I've lost count, but some where in the vicinity of over 400 clients who have paid me for my advice so if I dear to be so bold & arrogant as to say so, I agree with my clients when they say they got good value for money.

So that's who I am.

It is peoples right to post up what they like just as much as it is my right to disagree with it if it happens to be a complete load of rubbish.

As for your last sentence, I doubt you will get many people pay for THAT advice.

What do you do for a job Patch?

How much is your time worth?
Lets say you want a bike but haven't got the cash, so you take a luxury loan for 4 years.
Yes you pay a lot of interest etc, but it is 4 years of enjoyment you gain......
How much is that worth to you?
4 years of your life that only come once......

Money is only good to pay for things you want/need, if it is worth it to you go for it.....
There is very very little we really need,and the future never comes.....

Your post seems to assume you won't have a bike over that 4 yr period?

Be aware that Auntie Helen will tak eher cut on anything gifted to the trust over $27000 PA. THis limit hasn't moved for years as it increases the tax takings.
If I won the big one, I would no longer be trapped in NZ - I would pay all the bills, mortgage, visa etc, then move overseas.

That's per person, so a couple can "gift" twice that

You had better start learning about "Trust" law, it doesn't quite work like that but thinking about it is good!

Get your trust sorted and then win Lotto with a ticket purchased by the "Trust". John.

There's no flies on John

Long term debt for long term purchases are fine, like a mortgage. Other than that, I live debt free. Use the credit card to pay for everything and pay it off every month. Keeps my bill paying down to a minimum. Cash is king in most regards.

Even that is debatable! Calculate how much you pay for your house over the term of a loan, then its value at the end of it. A typical 30 yr loan will see you paying 3 times the value of the house, about roughly what it will be worth in 30yrs time. That's not a black n white situation, luxury loans however are.

Pay cash for everything and you will find out that you have a piss poor credit rating!

This could be critical and embarrassing further down the line if you do apply for a serious loan.

It happened to us a couple of times earlier on in life! John.

Once was the case, not really applicable these days. As long as you fit the criteria of XYZ finance company you will get the loan. A credit rating as such isn't as important as it once was.

[Pussy]

I'll decide if it's a wise move to borrow money for a luxury item for me. You may see yourself as a financial guru, but Gareth Morgan you're not.

[Boob Johnson]

I'll decide if it's a wise move to borrow money for a luxury item for me. You may see yourself as a financial guru, but Gareth Morgan you're not.

I don't compare myself to anyone John but will happily take a place under Gareth


You can decide whatever you like. The decision is yours, as are the end results. Are you arguing that because an individual "decides" something its automatically a wise move?


I think the point is being missed, anyone can JUSTIFY a decision in anyway they see fit. If they are personally ok with paying XYZ over and above the purchase price then that is your right to do so, no one is calling you on that. It is also your right to stand on top of a bridge & throw money off of it. Your rights are not being argued here John. When you talk this way don't expect anyone with half a financial clue to call it for what it is.


As mentioned ive got a lot of clients who have paid for my advice, the ones as arrogant as you don't usually need finance though.

[awayatc]

Wel Boob Johnson,
Sad to see that the almighty dollar seems to be the only way you measure things by.
From that point of view you may be right......

We as humans however add up to more then just an ability to accru maximum amounts of bling ......some of us at least.

Lots of bling does not make you rich....