tinytawnykitten Posted November 13, 2008 Report Share Posted November 13, 2008 I am 34 and living in Wellington. We are married with one child and both working full time. Our house's GV is $455,000 and our mortgage is about $300,000 (it was only $250,000 when we bought the house but we have added to it, landscaping, removating, life, etc). We have had this house for 9 years. A friend of mine, slightly younger has just bought a $900,000 house, and 4 other friends have houses worth about the same plus rental properties. I always thought that was the exception rather than the rule but now I am beginning to wonder? There were two Porsche Cayennes parked outside kindy this afternoon at pick up time. Does this seem 'normal' or do I just have extraordinarily rich friends? I thought we were pretty lucky to even have our own home at our age and yet there seem to be lots of so and so hasn't even paid off their mortgage yet, so and so's adding to their rental portfolio, so and so's going bach shopping this weekend? I am sick of hearing about it. I despise the rich image some people portray and all that comes with it, fancy cars, etc etc. But that aside there is no way we could or would ever buy a brand new car or a million dollar house. Do I just need to get new friends??? Quote Link to comment Share on other sites More sharing options...
Ghaz Posted November 13, 2008 Report Share Posted November 13, 2008 people just have more money now, inheritance, smart career choice or just plain lucky, personally i bought a house 6 months ago, i work full time and dropped out of polytech when i was 21, im 23 now. i support my partner who is studying at the moment, and paying my mums bills as she has just had surgery and can't work and ACC won't pay out. And im a car enthusiast(boy racer to some ) so i have nice cars. yet i don't show it off too much, but i do like to occasionally cos i worked very hard for it all. my mum left my father when i was 6 and we were in and out of womens refuges till i was about 12, and i've had a job since i was 11. so if you've worked hard for it i say show it off, but what annoys me is when people who have inherited money and show that off, they haven't worked for it, i find alot of my friends are the type with rich parents who haven't had a job in their life, and they live off their parents success. always been jealous of them. but i'm glad im not them cos im sure i wouldn't be as smart as i am now. Quote Link to comment Share on other sites More sharing options...
David R Posted November 13, 2008 Report Share Posted November 13, 2008 Once you've got money its easy to make money. Instead of upping their mortgages for landscaping and "life" your friend possibly took a gamble and upped theirs for their first rental. TBH it sounds like a bit of jealousy to me. If you don't like someone because they have flash cars or because they're more successful than you then what kind of friend are you? I'm sure if it was the other way round (not liking them because they're poorer than you) you wouldn't have even made the post. [no offence or anything, I'm hardly loaded myself...] Quote Link to comment Share on other sites More sharing options...
lmsmith Posted November 13, 2008 Report Share Posted November 13, 2008 tinytawnykitten, I know what you mean. I go to uni full time, work and own my own business. My partner and I were going to buy a house next year (we're both 19), but instead have chosen to put the money into the business. We've chosen to live spending less so we can have more money later. We will probably rent for the next 5 yrs because it will increase our earning potential. However, lots of our friends are getting their student loan living costs (that they have to pay back) and using it to buy flashy things. They don't have as much money as we do (because we work 18hr days and save our money), but they're the first to go out there and buy $800 designer sunglasses on credit. It's easy to be jealous of these people, but you have to remember that they're living in debt, and are living way outside their means. I assume you'd find that's the deal with your friends also - they have big mortgages, huge credit debt, and probably buy things on HP as well. Outwardly, they live a flashy life, but in reality, they probably are in debt for most of the house, the cars and all of their other things too. Quote Link to comment Share on other sites More sharing options...
livingart Posted November 13, 2008 Report Share Posted November 13, 2008 be happy with the life you have it is yours and no one elses and you are in control of it Quote Link to comment Share on other sites More sharing options...
tinytawnykitten Posted November 13, 2008 Author Report Share Posted November 13, 2008 [no offence or anything, I'm hardly loaded myself...] No offence taken, no I feel really blessed, and I wouldn't want to be the type of person who needs to fill a gap in their life with a $200,000 car My Dad left when I was 4 and we never had anything for years. My Mumn is still struggling to buy the basics like groceries, so when we have spare money we often give it to her. My Dad is very wealthy (overseas trips every year, 4 prestigious cars, harbour views etc) but he must be one of the nastiest and most unhappy people I know, and doesn't have a generous bone in his body. I don't dislike people cos of what car they drive but I do find it amusing. It is hard to listen to people complaining that '***(husband) has left them the task of choosing the leather colour on the new car' or the 'oh god our new house is so big it is going to cost us a fortune to furnish it' etc. :lol: Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted November 13, 2008 Report Share Posted November 13, 2008 It is all about what you find important and everyone has different priorities. You may find in one year or two peoples circumstances (including your own) have changed. A lot depends on how much equity people have in their assets. The banks were loaning 100% on properties and when the value drops by 25% the banks may not feel like renewing loans when the house is worth a lot less than the mortgage. Rental properties are not bought for cash and many people are now mortgaged to the hilt and sweating hard. All was revealed in the share crash in the eighties when people were paying $10 for shares with an asset backing of next to nothing. Soon they had a bowl of custard. Quote Link to comment Share on other sites More sharing options...
supasi Posted November 13, 2008 Report Share Posted November 13, 2008 Im guessing here(cos theres no such thing as a rich person in WangaVegas,lol) Do these people own the assets? I bet most is owned by the banks, and they will be the first to start worrying with the stae of the economy. Just my 2cents, and we know what 2c buys these days :lol: Quote Link to comment Share on other sites More sharing options...
A-town... Posted November 13, 2008 Report Share Posted November 13, 2008 depends coz Im 19 and am going to venture into buying a house sometime next year (fingers crossed) the only reason that I can possibly do it is the fact that I am theee biggest tight arse you will ever meet when it comes to money! Everyone thinks I have done well especially for my age but I dont drink or smoke which saves heaps of money to. depends what your goals arethat you set yourself in life. Everyone thinks Im wierd coz I have my life sorted out? yea it might not go according to plan but you gota mix the good with the bad. Quote Link to comment Share on other sites More sharing options...
Barrie Posted November 13, 2008 Report Share Posted November 13, 2008 Good on you Luke Well done Quote Link to comment Share on other sites More sharing options...
David R Posted November 13, 2008 Report Share Posted November 13, 2008 No offence taken, no I feel really blessed........ I see where you're coming from and understand fully. In your first post it sounded like you envied their wealth, but now I see you're disliking them because they're rich w****rs. I know the feeling all too well... Quote Link to comment Share on other sites More sharing options...
tinytawnykitten Posted November 13, 2008 Author Report Share Posted November 13, 2008 I see where you're coming from and understand fully. In your first post it sounded like you envied their wealth, but now I see you're disliking them because they're rich w****rs. I know the feeling all too well... :lol: totally. Quote Link to comment Share on other sites More sharing options...
reef Posted November 13, 2008 Report Share Posted November 13, 2008 Most people live for today not tomorrow, many cars, houses are financed and can give the perception that people are well off. The current financial climate will change all that when reality sets in and people will realize that things have to be paid back. Quote Link to comment Share on other sites More sharing options...
A-town... Posted November 13, 2008 Report Share Posted November 13, 2008 Good on you Luke Well done thanks Barrie Quote Link to comment Share on other sites More sharing options...
Barrie Posted November 13, 2008 Report Share Posted November 13, 2008 The current financial climate will change all that when reality sets in and people will realize that things have to be paid back. That Reef is the most important reason that student loans need to be paid back. Each and everyone of us needs to learn that lesson for sure and the earlier people learn it the better off they are Quote Link to comment Share on other sites More sharing options...
David R Posted November 13, 2008 Report Share Posted November 13, 2008 My GF has a huge student loan ($40k+ from 4 years of study to become an accountant) and paying it back is about the lowest priority for us, behind saving for a house, going on holiday and buying arowanas. There's no point because we won't gain anything by paying it off faster than the minimum, we'd rather save to get a house and them pay off the mortgage asap while the student loan just ticks away at the minimum amount. Shot Luke for being able to afford a place in Auckland at your age!!! Quote Link to comment Share on other sites More sharing options...
reef Posted November 13, 2008 Report Share Posted November 13, 2008 The world today is all about borrowing. that is why we have a better lifestyle than our parents. The problem is that many people will never pay back the debt. Its a real problem as Banks have been lending money that they never had. it’s like a pyramid selling. Quote Link to comment Share on other sites More sharing options...
lmsmith Posted November 13, 2008 Report Share Posted November 13, 2008 David R, I agree that paying off student loans is low priority. Other things that do incur interest are are greater priority. I'm getting my living allowance and saving it. Every week I get $150 + interest, which will be a nice house deposit, business set up amount, holiday or fish buying fund. I can choose to pay it back as a lump sum. If I do that (my plan) then the few hundred I have earned in interest helps to pay my actual loan. It's completely legit, and while it is probably contributing to the rescission, I don't really care because I've saved enough to get through the rescission fine. It's something the government should have thought about before passing the law. While it's a pretty ruthless, capitalist approach to take, there's no reason why anyone else couldn't be doing the same and using their time and abilities to do the same thing. Quote Link to comment Share on other sites More sharing options...
David R Posted November 13, 2008 Report Share Posted November 13, 2008 My sister did the exact same thing, and I think thats a perfect example of why a universal allowance is a stupid idea (thank goodness its not going to happen now!). The only motivation for her to pay it back is the temptation to leave here for a high paying job in the UK which would mean she'd be charged interest on it, but the pay rise she would get would more than cover the interest... Quote Link to comment Share on other sites More sharing options...
jim r Posted November 13, 2008 Report Share Posted November 13, 2008 I am extremely rich, I have a beautiful wife,2 wonderful children and 2 georgous grandchildren. I also get to drink beer and look at my fish tanks while playing darts and the electrified fence keeps the nosey neigbours at bay. Quote Link to comment Share on other sites More sharing options...
sharronpaul Posted November 13, 2008 Report Share Posted November 13, 2008 Nice one Jim R We all have the potential to be extreemly rich - but I think what Jim is referring to is wealth is not always measured in money, but in family and lifestyle. We have just bought our first home (earlier in the year, before the interest rate drop!) and are squeezing our 4 children into a 3 bedroom house and sleepout. I guess it's how you prioritise things, and how you choose to live pre-homeowner. Quote Link to comment Share on other sites More sharing options...
markoshark Posted November 13, 2008 Report Share Posted November 13, 2008 I have no money, an overlimit credit card :oops:... (but making those payments ...) Don't care. I have a roof over my head, i'm going away on a 2 week roadtrip round the south island feb next year, i have loyal friends, a fun job, very little stress, a low maintance car, and a kickass fish tank. I know that i'm unlikely to ever own a house, I have a good credit rating, but I very much live for this thing called "today", and why the hell not. According to the ASB, I can borow 87,000 towards a house on my current salary. Hooray. Be grateful for what you have, don't look to the stars for the things that you have no control over. Quote Link to comment Share on other sites More sharing options...
tinytawnykitten Posted November 13, 2008 Author Report Share Posted November 13, 2008 I am extremely rich, I have a beautiful wife,2 wonderful children and 2 georgous grandchildren. I also get to drink beer and look at my fish tanks while playing darts and the electrified fence keeps the nosey neigbours at bay. That's how I feel (with the exception perhaps of the electrified fence!). It is true about credit too, especially with the revolving credit mortgages which are so popular now. I think it creates a false feeling of wealth. We purposely don't have a revolving credit mortgage, and have very little disposable income and lots of our friends appear to have loads, but if we counted all the principle we have paid on our mortgage in the last 9 years as 'available funds' we would feel a lot better off but it is false. As for the student loan, I have one too, but I have a job I LOVE, and I manage to have a very low net income so I don't make the threshold for making payments. It rocks. Quote Link to comment Share on other sites More sharing options...
chilli Posted November 13, 2008 Report Share Posted November 13, 2008 well i dont owen a house not even close not even trying to be honest some older friends tell us the amount of money we spend on crap,toys(rc cars helicopters etc)buying bikes tvs,mp3, funiture and buying tanks and fish and reptiles and spoiling our 2 and a half yr old daughter with everthing that WE WANT.we could owen a house BUT it will be empty and we woundnt have all those fun memorys (and not so fun memorys(crashing pit bike oops) were young and have enough time too buy a huge farm and no naighbors and win lotto(i like to dream) not saying that home owners dont hav fun but we live in nz and were all so lucky this is paradise(to glasgow) that even if i never own a home (or win lotto) live couldnt be greater(unless i won lotto hahah) well im blabing on but just remember that we got the great weather,beaches,etc etc and the youngest country in the world and if your down a always say "well it could be worse" Quote Link to comment Share on other sites More sharing options...
markoshark Posted November 13, 2008 Report Share Posted November 13, 2008 I'm going to laugh @ RC helicopters. Crashed yet? I bought one 2nd hand (Kyosho gas), cheap as chips, replaced a couple of servos, and then about the 20th time flying it, got caught by a gust of wind, flipped over and landed rotors first into the ground. Repair bill of 3k+, I laughed. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.