5 Tips I Wish I Knew to Pay Off Mortgage Faster

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Комментарии • 36

  • @IreneZhu
    @IreneZhu  4 месяца назад

    Do you have other tips to pay off mortgage faster? 🔎Be a smart Value investor by using Seeking Alpha Premium to get 20% discount with 7-day trial: www.sahg6dtr.com/392M6MZ/R74QP/

  • @Woodland26
    @Woodland26 2 месяца назад +1

    in my time there was no offset account, so we lived on one wage and paying off above and beyond the normal monthly repayment with the other. The interest rate was around 8% at the time, so it was rewarding to pay it off ASAP. My daughter just bought hers and borrowed 490k with monthly repayment of 3k. When I can I will park some money into her offset so to reduce her interest burden.

  • @shanesimons5801
    @shanesimons5801 2 месяца назад +4

    If the bank says you can borrow 600k then borrow 300k live in a small house/unit, then pay off the loan at the 600k amount. You will pay off house in 7 years. Then upgrade house to a 600k house. At the same rate you will have a 600k house paid in 14 years.

    • @lengerer
      @lengerer 2 месяца назад

      That's a great idea, even better don't sell your old house when you buy the new one.
      Assuming you can afford it, which should be possible with rent from old house

    • @musemellow
      @musemellow 2 месяца назад

      This. When banks calculates how much the average joe can borrow, they try to predict how much a person can borrow without defaulting on the mortgage, yet at the same time, high enough so that they can't make extra repayments.
      When their customers can't make extra repayments = more profit to the banks
      Always borrow less than the amount you're allowed to borrow.

  • @MrTorcida1976
    @MrTorcida1976 2 месяца назад +2

    If you have a friend who has also purchased a house... You can move into each other's house and claim your house as an investment property. This way your interest payments, insurance, rates, repairs, plus depreciation can be claimed as a tax deduction.

    • @smsfsyd
      @smsfsyd 2 месяца назад

      Wont the Tax office question why the Rent is not being collected?

    • @MrTorcida1976
      @MrTorcida1976 2 месяца назад +1

      @@smsfsyd You both still collect rent as usual.

    • @MrTorcida1976
      @MrTorcida1976 2 месяца назад +1

      You pay $500 a week and your mate pays $500 a week. Even Steven, but "rent" is still going out of your bank into the home owner's account.

    • @smsfsyd
      @smsfsyd 2 месяца назад +1

      @@MrTorcida1976 Nice idea, Just don't have that kind of friend 🤔

  • @soicon711
    @soicon711 2 месяца назад +1

    Great video! Thanks Irene! I’m just curious if there’s a cut-off time for daily interest calculation, for example, the offset amount must be in the offset account until midnight or 5pm to be counted.

    • @IreneZhu
      @IreneZhu  2 месяца назад +1

      Thanks for watching! Most banks use the end of the calendar day, usually at midnight (11:59 PM local time), as the cut-off for calculating daily interest.

    • @soicon711
      @soicon711 2 месяца назад

      @@IreneZhu Thanks very much! I tried to find this info online but couldn’t. You’ve got a new sub 🙂

  • @dazza9360
    @dazza9360 2 месяца назад +1

    Set you loan up as a split loan to debt recycle into the sharemarket 😊
    The split loan if set up correctly will allow part of your mortgage to be tax deductible 😁

  • @zo_471
    @zo_471 2 месяца назад

    Hi Irene, great video. Do you have the spreadsheet you used in this video in your downloads?

    • @IreneZhu
      @IreneZhu  2 месяца назад

      You can find the downloads here beacons.ai/irenezhu/downloads

    • @zo_471
      @zo_471 2 месяца назад

      @@IreneZhu I looked there but there was no google sheet or excel sheet. Just links to all your affiliates

    • @IreneZhu
      @IreneZhu  2 месяца назад +1

      @@zo_471 It's the 5th from the top under the downloads column called

    • @zo_471
      @zo_471 2 месяца назад

      @@IreneZhu thanks

  • @slightfimulator4888
    @slightfimulator4888 2 месяца назад +1

    Shouldn't you compare the opportunity cost of paying off the mortgage faster vs putting the difference in an ETF portfolio?

    • @Woodland26
      @Woodland26 2 месяца назад +1

      can the ETF do better than 6.5% after tax?

    • @slightfimulator4888
      @slightfimulator4888 2 месяца назад

      The after tax part doesn't matter, because you pay when you sell (aside from dividends but you can avoid those or take advantage of franking) and get a capital gains discount or sell when you retire at a lower income threshold.
      You can also pay what you would have spent on extra mortgage payments into your concessional or non-concessional super contributions so this avoids CGT too.
      The expected nominal returns of a diversified ETF portfolio should be more than 6.5% yes, more like 9%.

    • @Woodland26
      @Woodland26 2 месяца назад

      @@slightfimulator4888 It is too late for me. I have paid off the mortgage long time ago, and cannot do any further non-concessional contributions as well.

    • @IreneZhu
      @IreneZhu  2 месяца назад +1

      @@slightfimulator4888 The exact video is being edited at the moment 😃

    • @slightfimulator4888
      @slightfimulator4888 2 месяца назад

      @@IreneZhu I look forward to it, but I'm asking about this video :p

  • @lengerer
    @lengerer 2 месяца назад

    Can you do a debt recycling or borrow to invest video please 😊

    • @IreneZhu
      @IreneZhu  2 месяца назад

      @@lengerer Thanks for the suggestion, will look into it!

  • @Nerdificationing
    @Nerdificationing 2 месяца назад

    Don't borrow to your limit and pick a place you can afford (e.g. can borrow 1mil, borrow 600k instead). Plan to pay double the repayment and you'll be done in 5-10yrs instead of 30.
    As silly as it sounds, earn more money 😂