Author Topic: Personal Debt  (Read 8577 times)

james22

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Re: Personal Debt
« Reply #30 on: May 26, 2019, 11:15:59 AM »
I paid cash for a condo last year just to avoid the mortgage paperwork.
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John Hjorth

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Re: Personal Debt
« Reply #31 on: May 26, 2019, 11:34:45 AM »
I paid cash for a condo last year just to avoid the mortgage paperwork.

James, It feels good to post this here on CoBF, right? [ ; - ) ]
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james22

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Re: Personal Debt
« Reply #32 on: May 26, 2019, 01:00:51 PM »
Well, it was easy to justify given last year's mortgage rates vs market expected returns, but yeah, it was nice to have the option.

It'll feel better to someday post how I just took out a low rate mortgage or HELOC and invested in the undervalued market.
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SharperDingaan

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Re: Personal Debt
« Reply #33 on: May 26, 2019, 01:43:31 PM »
I paid cash for a condo last year just to avoid the mortgage paperwork.

Everytime I try doing something like that, they think I'm money laundering ;D
Definately not the time or place for those used hundreds!

SD

sarganaga

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Re: Personal Debt
« Reply #34 on: May 26, 2019, 08:59:20 PM »
I don't see a problem with having a home mortgage if it's affordable, really affordable; same with a car loan, if you're young. It really feels great & is great to be totally debt free though. There is an extraordinary degree of flexibility when you're not worrying about paying things off.

« Last Edit: May 26, 2019, 11:32:18 PM by sarganaga »

Castanza

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Re: Personal Debt
« Reply #35 on: May 28, 2019, 07:48:08 AM »
I don't see a problem with having a home mortgage if it's affordable, really affordable; same with a car loan, if you're young. It really feels great & is great to be totally debt free though. There is an extraordinary degree of flexibility when you're not worrying about paying things off.

Personally I wanted to start with a clean slate. I will probably adopt an approach similar to what Greg previously said now that I'm comfortable with my debt/liquidity and debt/income rations. However, moving forward I won't ever take out another car loan. Mortgage I'll probably opt for a 15 year and aggressively pay it off balanced against investing (depends on rate, term, and total).
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Parsad

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Re: Personal Debt
« Reply #36 on: May 28, 2019, 06:27:13 PM »
I don't see a problem with having a home mortgage if it's affordable, really affordable; same with a car loan, if you're young. It really feels great & is great to be totally debt free though. There is an extraordinary degree of flexibility when you're not worrying about paying things off.

Personally I wanted to start with a clean slate. I will probably adopt an approach similar to what Greg previously said now that I'm comfortable with my debt/liquidity and debt/income rations. However, moving forward I won't ever take out another car loan. Mortgage I'll probably opt for a 15 year and aggressively pay it off balanced against investing (depends on rate, term, and total).

Do whatever lets you sleep at night!  There is no one way to behave with your money, nor is there just one way to make money.  You also have a life to live and other responsibilities...so each person should do what they feel is right for them and doesn't stress them the hell out! 

Some people can continue to function without a worry even if they are in debt to their eyeballs, while many consider bankruptcy or suicide when they get deeply in debt or over their heads.  It's not a fun thing when you are afraid of tomorrow.  So do what is right for you and your mental well-being!  Cheers!
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Lance

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Re: Personal Debt
« Reply #37 on: May 28, 2019, 07:58:20 PM »
My personal approach is exactly like Gregmal’s, but would reiterate what Parsad said, do what let’s you sleep at night.

Thanks
Lance

bizaro86

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Re: Personal Debt
« Reply #38 on: May 29, 2019, 12:53:23 PM »
I paid cash for a condo last year just to avoid the mortgage paperwork.

Everytime I try doing something like that, they think I'm money laundering ;D
Definately not the time or place for those used hundreds!

SD

LOL. I suspect by cash he meant "bank draft." At least that's what I do...

I wonder how a real estate conveyancing lawyer would react to a briefcase full of hundreds. I suspect if you filled out the correct paperwork it wouldn't be an issue, although he/she probably wouldn't appreciate the chance to deposit a few hundred k in cash into their trust account.

Parsad

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Re: Personal Debt
« Reply #39 on: May 29, 2019, 03:11:10 PM »
I paid cash for a condo last year just to avoid the mortgage paperwork.

Everytime I try doing something like that, they think I'm money laundering ;D
Definately not the time or place for those used hundreds!

SD

LOL. I suspect by cash he meant "bank draft." At least that's what I do...

I wonder how a real estate conveyancing lawyer would react to a briefcase full of hundreds. I suspect if you filled out the correct paperwork it wouldn't be an issue, although he/she probably wouldn't appreciate the chance to deposit a few hundred k in cash into their trust account.

They were doing it here in Vancouver, until they cracked down on the money laundering.  Basically, it was the service providers (lawyers, accountants, consultants, etc) that would take a cut to deposit the money into their trust accounts.  Then the money went into high-priced real estate, cars and luxury items.  They would ship the cars and luxury items back to China and elsewhere, sell them and cash out with clean money. 

Vancouver has more luxury cars per capita than anywhere else in the world.  No one blinks twice when they see a Bugatti or McLaren driving down the road.  Range Rovers are like sushi restaurants here...every corner has one.  Housing is getting hit in a big way since the crackdown...high end houses are selling for 50-70% of previous highs.  They just began cracking down on car dealers, and now there is talk they will be going after the luxury goods category. 

The first place they tackled were casinos...high rollers would come in with $1-2M in a briefcase, buy chips or play high stakes Baccarat, lose 5-10% and then cash out in clean money.  The maximum is $10K in cash now, and one of the newest, most posh casinos (the Parq), nearly went bankrupt after just 3 years because gaming revenues dropped off so much.  They just received a lifeline in financing about a month ago.  Cheers! 
No man is a failure who has friends!