Tax Rates (2 Viewers)

[synthesisFR]

ok fair, im sure some do exist. i might just have high expectations.
regardless, even 1 million for a house requires a high income

but like u dont just get a 1 mil loan ur meant to have a solid deposit no?

 

[scaryshark09]

but like u dont just get a 1 mil loan ur meant to have a solid deposit no?

yeah like between 5-20% i think

 

[scaryshark09]

i just realised our HECS debts are gonna be annoying to pay off. this year they are being indexed at 7%, i feel this can very quickly add up over the years...
also why are degrees so expensive? mine is 60k before indexation

 

[Trebla]

ok fair, im sure some do exist. i might just have high expectations.
regardless, even 1 million for a house requires a high income

It’s actually not as high as you think, once you take into account that most people do it with partners for a combined income.

If you and your partner are earning like at least $90k each (before tax and inclusive of bonuses) then it is possible to get a mortgage to cover a $1 million house with a 20% deposit under today’s interest rates. Back when interest rates were much lower you could have covered a $1.3 million house.

Back to the main topic, actually very few people earn above $200k, especially as taxable income. Sure, you can tax it higher but because there are so few people on that it just adds pennies to the government budget in totality (not to mention people at that level will find ways to get around it anyway).

 

[synthesisFR]

It’s actually not as high as you think, once you take into account that most people do it with partners for a combined income.

If you and your partner are earning like at least $90k each (before tax and inclusive of bonuses) then it is possible to get a mortgage to cover a $1 million house with a 20% deposit under today’s interest rates. Back when interest rates were much lower you could have covered a $1.3 million house.

but who wants to be in debt for decades trying to pay off the house they are living in

 

[carrotsss]

i just realised our HECS debts are gonna be annoying to pay off. this year they are being indexed at 7%, i feel this can very quickly add up over the years...
also why are degrees so expensive? mine is 60k before indexation

tbh i dont really consider it that bad of a thing like your degree will provide far far more than 60k worth of value to you over your career

also your degree is like double the cost of mine thats crazy

 

[Trebla]

but who wants to be in debt for decades trying to pay off the house they are living in

For starters, lenders are legally obliged to check that you can afford their mortgage purely on today’s income before they lend to you.

However, your income is usually not static over time. For most people, it goes up over time as you get promoted or find other ways to earn money investing etc. Not only that, your interest payments also typically go down over time as your balance owing falls. This means that all else being equal, the mortgage payments get far more manageable over time. It’s only toughest in the first couple of years.

The whole point of being in debt is to bring forward the purchase of the house as most people won’t have the cash to purchase it upfront (and you get to ride the appreciation in value of the house earlier). If the idea of being in long term debt scares you, then good luck trying to buy a house with cash upfront.

 

[synthesisFR]

For starters, lenders are legally obliged to check that you can afford their mortgage purely on today’s income before they lend to you.

However, your income is usually not static over time. For most people, it goes up over time as you get promoted or find other ways to earn money investing etc. Not only that, your interest payments also typically go down over time as your balance owing falls. This means that all else being equal, the mortgage payments get far more manageable over time. It’s only toughest in the first couple of years.

The whole point of being in debt is to bring forward the purchase of the house as most people won’t have the cash to purchase it upfront (and you get to ride the appreciation in value of the house earlier). If the idea of being in long term debt scares you, then good luck trying to buy a house with cash upfront.

it doesnt scare me mf im barely an adult ight i dont have a clue whats going on in the adult world ik its horrible tho
its just annoying to be in debt cus it is a long haul especially with how house prices r right now

 

[Average Boreduser]

it doesnt scare me mf im barely an adult ight i dont have a clue whats going on in the adult world ik its horrible tho
its just annoying to be in debt cus it is a long haul especially with how house prices r right now

live rural

 

[synthesisFR]

live rural

hell no
ill just live with my parents idk why ppl say its a bad thing (when ur way older then probably its bad)

 

[Trebla]

it doesnt scare me mf im barely an adult ight i dont have a clue whats going on in the adult world ik its horrible tho
its just annoying to be in debt cus it is a long haul especially with how house prices r right now

The alternative would be to rent long term. You technically won’t be in long term debt but you’re effectively making regular payments to live in a place in pretty much the same way as if you had a long term debt.

Unless you live with your parents rent-free forever then you will inevitably have some form of expense going towards living in a place…either paying a mortgage or paying rent.

 

[synthesisFR]

its alr i just need to geta high oaying job or become famous ezz

 

[carrotsss]

live rural

city slickers am I right smh

 

[idkkdi]

tbh i dont really consider it that bad of a thing like your degree will provide far far more than 60k worth of value to you over your career

also your degree is like double the cost of mine thats crazy

mines triple then W

 

[Average Boreduser]

city slickers am I right smh

in all honesty tho, ppl in sydney do not know what they're missing. Like none of this traffic bs, none of that going 40kms to school bs... its a simple life. Although note never has any good educational facilities. In terms of like retirement and stuff I would love to spend my last yrs rural. I miss the view I had in my old house fr. We only bought the land for that one reason and it pains me when I don't wake up to it anymore smh.

 

[Average Boreduser]

Also I love how both of us moved in the same yr lmao the irony in that alone lol

 

[totally_screwed]

the topic of tax is beyond me my yr 9 math students are currently doing financial maths and im waiting for the day we can move on to a diff topic bcz to this day I don't understand tax calculations

 

[carrotsss]

in all honesty tho, ppl in sydney do not know what they're missing. Like none of this traffic bs, none of that going 40kms to school bs... its a simple life. Although note never has any good educational facilities. In terms of like retirement and stuff I would love to spend my last yrs rural. I miss the view I had in my old house fr. We only bought the land for that one reason and it pains me when I don't wake up to it anymore smh.

yeah same, I like the energy and opportunities of the city but when I’m older I definitely wanna go back to the country