What are the biggest financial traps in our current society?

clearview on 12/11/2021 - 14:58
Last edited 13/11/2021 - 07:22 by 1 other user

Hi All,

I believe there are so many financial traps these days some of them are deliberately designed.

For instance, I wouldn't visit a bank for a loan to purchase clothes, food, etc, but banks created a convenience of using credit cards rather than a loan.

Please share your thoughts and insights for better financial freedom

Few of the financial traps:

Credit cards/ Buy now pay later services
Car loans/ Personal loans/ Pay day loans
Home loans
Student loans

Although these products are helpful at times, but if we have too many financial liabilities that will undermine our freedom to make our own career/ life style choices.

Financial

Comments

      • meowsers on 13/11/2021 - 11:41
        +4

        Income protection for professionals is. Need "own occupation" not any occupation. If you are a highly specialised person making 6 or 7 figures you'd be a fool not to get income protection til age 65. On top of that it is tax deductible.

    • Halc on 13/11/2021 - 15:35
      +4

      insurance is a funny thing. people who can afford it don't need it and those who need it can't afford it

    • Bargain Slut on 14/11/2021 - 20:24
      +1

      This is IMO a terrible take.

      My income is realistically the most valuable thing I have, if I don’t insure that - should I really be insuring anything.

      I can comfortably afford income protection insurance, I could not comfortably afford to not have an income.

  • 2024 on 12/11/2021 - 18:22
    +14

    Being born

    • cashless on 12/11/2021 - 20:41
      +6

      Profound stuff.
      RU ok?

  • nephilim on 12/11/2021 - 18:32
    +4

    Being born into a rich area and believing you need to stay in a rich area.
    Pretty bad poverty trap, never be happy unless you can actually afford it.

  • Narull on 12/11/2021 - 18:51
    +1

    Not me and second hand information from a friend who runs a News Agency but keno is just a massive scam.

    She tells me daily of people who come in and spend hours spending hundreds on keno and have for years and never won anything. Mostly elderly people and they are always angry because they aren't winning. I know the quick buck is a big lure, but at least go to a casino and play a game that has better odds, keno is just horrible.

    Hell she has sold 4 lotto tickets over the last 8 years for people who won millions and they always come and do an interview at the agency for the news and give her a bottle of Champaign, ie she has seen more people win millions from lotto then from keno (although personally if I sold someone a ticket that won them 5 million bucks I'd be insulted by a bottle of Champaign}, almost seems like rubbing it in "You sold me something that made me rich, celebrate for me" (plus she doesn't drink lol).

    Not saying a big cash reward or such, but a bottle of booze is just shitty.

    • Antikythera on 12/11/2021 - 23:05

      yeah a bottle is pretty shitty when she doesn't make a cent from selling all those tickets….oh wait…

      • Narull on 12/11/2021 - 23:23

        She doesn't own the place mate, just works there. They sell or not she is still on minimum wage.

        • tensionday on 13/11/2021 - 12:28
          +2

          I don't understand the entitlement of why the person who sold the ticket deserves a cut? Just be grateful of the thought for receiving anything

          • Narull on 13/11/2021 - 12:48

            @tensionday: Because they are forced into doing a interview they don't want to do for the person who won millions. It's just expected that you do it because you're so lucky to have sold the ticket. I think if you're forcing someone to do an interview for your happiness that person should get something and again as I said first off I never said a cut, just not a stupid 'celebrate for me' gift.

          • Narull on 13/11/2021 - 13:01

            @tensionday: Just to be clear, you win money and move on no problem.
            You win money, come in for an interview for the news and tell the person how happy they must be that they told the winning ticket - You should give something decent as thanks, again not a sum of money but at least a nice thank you gift or some bs.

            Maybe I am entitled for thinking that, guess it's a matter of opinion.

            • buckethat on 13/11/2021 - 13:51

              @Narull: She should be given something 'decent' as a thank for doing a job as simple as selling a ticket? Why?

              Also, saying shes forced to do an interview is like saying shes forced to do her job. If it's that big of a deal to her, then find a job that won't require her to do that every time she sells a winning ticket. She's paid to do those interviews.. through her wage.

            • tensionday on 14/11/2021 - 10:40
              +1

              @Narull: I personally would be quite happy with a bottle of champagne, however if I worked in that industry I also wouldn't expect or feel entitled to anything.

              What do you think is an appropriate gift?

            • Bargain Slut on 14/11/2021 - 23:21
              +1

              @Narull: Lol you think that the news agent/lottery reseller hates the free publicity? You're doing the interview for your boss or the lotto themselves, not for the person who won the ticket

              You're lucky if you get anything, or do you want people coming and hitting up the cashier for a % of their losses too?

              This is their job, it's not like slapping twenty bucks of your mates coin through a brickies laptop. You aren't somehow entitled to a cut.

              • Narull on 15/11/2021 - 09:47

                @Bargain Slut: Again I never said they deserve a percentage, and I don't see how forcing these interviews helps a employee on minimum wage helps her at all, I said be grateful you won and give the person you're bragging too a nice gift.

                But I'm okay with being entitled on this one, that's how I see things and if I won a few mil I'd happily give someone a nice gift (even a gift basket is better then a bottle of booze).

                I don't see how her boss getting free publicity helps a normal worker, who gets no bonus and doesn't work on commission or anything, but each to their own, clearly I'm the unpopular opinion so fair enough.

                As for a % of their losses, you're dreaming if you don't think she cops daily abuse from the keno/lotto fools who lose constantly.

                • Bargain Slut on 15/11/2021 - 12:33

                  @Narull: I don't think you read my post - if she hates the work there's never been a better time to leave your job than now.

                  Provided you're willing/able to work in any of the in demand industries.

  • Bid Sniper on 12/11/2021 - 19:02
    +1

    Trash you see advertised all the time; gambling, pay day loans, lotto, crypto.

  • idonotknowwhy on 12/11/2021 - 19:03

    Same shit it's always been, have a read of this book:
    https://www.goodreads.com/book/show/1052.The_Richest_Man_in_…

  • field1985 on 12/11/2021 - 19:37
    +4

    At the moment it's buying property at the insane prices. When interest rates inevitably rise over the coming months/years the million dollar mortgage muppets are all going to be monumentally screwed. The market will crash and the banks/wealthy/foreigners will buy up the property for a fraction of what it costs now.

    But yeah FOMO!!!!

    • buckethat on 13/11/2021 - 13:53
      +8

      As much as I hope that to happen, it probably never will. People have been shouting the same thing for the last 2 decades, yet prices keep rising.

    • petrichor on 15/11/2021 - 20:53
      +2

      Let's hope so

  • DiscoJango on 12/11/2021 - 19:50
    +4

    Bunnings warehouse.

    I cant walk out of there without spending big $

    • PurchaseAnxiety on 12/11/2021 - 21:24
      +11

      Personally I'm more partial to popping into IKEA to get a pepper grinder and leaving with $300 worth of impulse purchases.

    • umoddbro on 15/11/2021 - 09:49

      Yeh Ive probably spent $350 on plants and gardening supplies from bunnings in the past month.

  • cashless on 12/11/2021 - 20:44
    +7

    Paying RRP

  • LoserScott on 12/11/2021 - 20:54

    I would say brain cells, but hay that's me. 😋

  • FSTB on 12/11/2021 - 21:18
    +1

    Buying a boat brand new

    • Cluster on 13/11/2021 - 14:53

      My employer bought a boat, because most other people in his profession had a boat. He kept it for three years, hardly used it, had to pay enormous insurance and maintenance fees, and then sold it.

      Yes, absolute money pit if you buy something decent. Better make sure you're rich enough that $10k is pocket change.

    • meowsers on 13/11/2021 - 19:30

      Buying a yacht. They always say the happiest day is the day you buy and then the day you sell your yacht.

    • Buckshot on 16/11/2021 - 14:43

      Buying any boat you need to park in a Marina and spend $3000 a day on fuel to run it.

  • bobbified on 12/11/2021 - 21:33
    +4

    Credit cards/ Buy now pay later services
    Car loans/ Personal loans
    Home loans
    Student loans

    I wouldn't really call them "traps". They're products designed to suit certain people in certain circumstances. Not all products are suited to everyone. It's up to each person to understand the product (or get advice) and work out whether it's suitable for them.

    • whatgift on 13/11/2021 - 17:28
      +1

      Totally agree, they can be used effectively and for the right reasons.

  • ECE on 12/11/2021 - 21:37
    +1

    Tax and mortgage 😷

    • macrocephalic on 15/11/2021 - 17:12
      +1

      Nobody likes paying tax, but I can assure you that things would be a lot worse if we didn't have it.

  • morse on 12/11/2021 - 21:52
    +1

    Credit cards, after pay, keeping up with the Jones (an oldie that has stood the test of time), fomo and living week to week if you don’t need to.

  • Kranbone on 12/11/2021 - 22:26
    +6

    I feel a credit card is a tool and if you use it wisely it can be beneficial.

    I get a reasonable interest free period.
    no annual fee
    airline miles
    convenience (as compared to cash).

    I've never paid interest on a credit card before as I've always paid the balance in full. The biggest mistake I made was staying loyal to a bank/brand. Quite simply put, they don't care. If you find a better deal, consider switching/churning, it's not that hard. Companies very rarely reward loyalty these days.

    • buckethat on 13/11/2021 - 13:55

      Yeah.. honestly I thank those people who can't control their spending and are paying for credit card interests because they allow people like me to reap the benefits of churning and other free bonuses.

  • Momoni on 12/11/2021 - 22:27
    +1

    Consumerism and buying what we don’t need. Or buying things for short term use, and then set it aside or throw away versus making do. Not buying quality when we should. Not getting enough use out of things we buy.

  • Brodo Faggins on 12/11/2021 - 22:56

    Biggest rorts:

    • School education not teaching anyone about basic finances or taxes, yet we learn geography 101 hmmm.
    • Majority of uni degrees & their costs.
    • Aust taxation system taxes us 3 times when you spend (Gross wage, less tax, less Super = Net. Net income X income tax. Actual remainder - pays 10% GST on everything.
    • Super is a rort in the sense that some don't accumulate jack all by the time they retire.
    • Banks lending $500k to 21yo coffee baristas who have 5% deposit.
    • Actual inflation - not the bullshit figure that the media tells you.
    • Stonks pumped up by printed money.
    • Printed money.

    Straya moiteee

    • [Deactivated] on 13/11/2021 - 08:12
      +4

      School education not teaching anyone about basic finances or taxes, yet we learn geography 101 hmmm.
      Majority of uni degrees & their costs

      Most schools definitely do. Whether students pay attention is a different story.

      Majority of uni degrees & their costs

      Depends on if you value education based on how much money it gives you. Cost depends on if you're talking about CSP or not.

      Banks lending $500k to 21yo coffee baristas who have 5% deposit

      Yeah well it worked out well for them didn't it (for anyone who did it years ago)

    • buckethat on 13/11/2021 - 13:58
      +2

      Aust taxation system taxes us 3 times when you spend (Gross wage, less tax, less Super = Net. Net income X income tax. Actual remainder - pays 10% GST on everything.

      I get the GST bit but could you explain the first 2 bit..?

      Gross wage, less tax, less super = net

      This makes sense.. but whats with the next part?

      Net income X income tax.

      ?? no? or am I missing something here

      • wimphrel on 16/11/2021 - 18:19

        Is Brodo referring to payroll tax?

        I find payroll tax (NSW state-based), kinda odd - it's like a company gets hurt when they hire 'too many' people.

    • theophilusthistler on 13/11/2021 - 21:42
      +2

      Think you're a bit confused on the taxes.
      Your wage is taxed yes, but your net pay isn't taxed again. Your annual tax is just balancing any overs or unders.
      By having a GST we have lower marginal rates than we would otherwise. On average you'd still pay the same amount. There are still the same number of hospitals, schools etc to fund.

      • macrocephalic on 15/11/2021 - 17:18

        Australia actually has a fairly low tax wedge amongst our culturally similar nations: https://data.oecd.org/tax/tax-wedge.htm

        Check the numbers for AU, UK, US, JP, DE. Australia pays only a fraction of a percent more tax than the USA, but less than the OECD average, and less than UK, JP, and DE.

    • wimphrel on 16/11/2021 - 18:28

      pays 10% GST on everything.

      GST doesn't get applied to some basic necessities (although the website can be vague in some areas)

      That's why it's a technically one of the 'better' taxes - it's a non-compulsory tax:
      If you don't want to pay GST - don't buy stuff you don't really need :D.

      https://www.ato.gov.au/print-publications/gst-and-food/?page…
      https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-not-to)/gst-free-sales/

  • [Deactivated] on 12/11/2021 - 22:56
    +3

    Everything is meaningless when you're in the ground

    • [Deactivated] on 13/11/2021 - 08:13
      +1

      What if you have kids and loved ones

      • meowsers on 13/11/2021 - 19:31
        +1

        Well since there is a good chance we are just living in a simulation I'll take the risk.

        • [Deactivated] on 13/11/2021 - 19:46

          'good chance', do you have the probability/evidence to back that up or do you just tell yourself that to make yourself feel better and do whatever you want

          • meowsers on 13/11/2021 - 19:47

            @[Deactivated]: I think I'm just lucky enough to be able to do whatever I want regardless. In a good sort of way. Not creating dependent children is one of those ways, and having successful self-sustaining family members is another.

            • [Deactivated] on 13/11/2021 - 19:52

              @meowsers: By whatever you want, I mean people who use excuses like the world is ending and stuff to say, steal, litter or just not give a damn about anyone else or the future and actively work against it rather than trying to participate in the solution.

              • meowsers on 13/11/2021 - 21:25
                +1

                @[Deactivated]: I'm just saying you don't need to live each moment of your life pinching pennies. Not sure where you got steal litter or not give a damn out of that.

  • pogichinoy on 12/11/2021 - 23:10
    +1

    Keeping up with the Joneses

  • uhohpotato on 12/11/2021 - 23:51
    +18

    Shout outs for your dog's Instagram from twitch streamers

  • whitfords on 13/11/2021 - 00:03
    +1

    I don’t think credit cards are necessarily always a trap. With all the different no annual fee for first year, and cash back offers available they can really be quite the opposite if you’re making purchases and you have the cash to pay them off within the interest free period.

  • Jugganautx on 13/11/2021 - 00:32
    +1

    Laziness to do your own research.

  • Aneurism on 13/11/2021 - 02:03

    Biggest financial trap starts with a V and ends with an a. Although it's a trap that's existed for a very long time, not just modern day.

    • rektrading on 13/11/2021 - 06:12
      +1

      C22H30N6O4S?

    • macrocephalic on 15/11/2021 - 17:20
      +3

      I don't know what you call "modern day" but Victa mowers are actually pretty reliable and are a good long term investment, but they've only been around since 1952.

  • Blakus on 13/11/2021 - 07:32
    +1

    For me it’s been micro cap shares. Invested in a Macquarie small cap fund that got wiped out during the GFC. Also bought into a few investment newsletters from dubious publishing companies and overall lost money. I still carry the capital loss each year on tax, it’s 5 figures.

    I try to look at it as if I paid for a financial education.

    • dtrinh on 13/11/2021 - 14:12

      Which ones were good vs dubious if you don’t mind sharing?

      • Blakus on 13/11/2021 - 15:11
        +1

        Small publishing companies can be dubious. It was a newsletter called diggers and drillers to be specific. The company also had one called small cap investigator that I made money from, so it was mainly that the D&D author at the time got many calls wrong. I think Alan Kohler has one that is well regarded, but these days for direct shares I just use ETFs.

  • pikapika on 13/11/2021 - 07:53
    +3

    Life

  • malich on 13/11/2021 - 08:24

    Currently, bnpl is the biggest trap out there. The lack of regulation has made it far to accessible by the financially illiterate.

  • reactor-au on 13/11/2021 - 08:49
    +4

    When I go to the stealership to buy a car, the stupid finance guy is only concerned about getting an answer on "what kind of monthly repayment" Im looking at, won't dare discuss the price of the car, the finance charges, or total repayment.
    This is indicative of how things are these days, people only concerned about "affordability" and not about real cost or value. This is why BNPL is such a trap I left behind more than a decade ago, hopefully never to be suckered into again.

  • mlbrooke on 13/11/2021 - 08:55
    +3

    Subscriptions, nothing electronic is owned anymore. The move towards subscriptions for all thing is happening, printer ink, servers (unlockable storage /performance), razors, cars (unlocking features), when you stop paying you lose access…….

    • whatgift on 13/11/2021 - 17:36
      +2

      While you have a point, the accumulation of media (books, dvds, cds, digital media etc) is not useful these days - the formats are constantly changing, and with the amount of content being released, there is always new media to consume. I got rid of all my owned media (of which I had a lot) and am quite happy in the streaming age.

  • StalkingIbis on 13/11/2021 - 09:34
    +1

    The biggest trap is spending more than you earn and paying interest.

  • yellowfever on 13/11/2021 - 09:47
    +7

    I don't really see credit card as a financial trap.
    If you play by the rules, it actually helps you save on interest in either a/ save interest on your home loan with offset, or b/ increased interest on an interest account

    Say you normally spend $1000/month on living expenses.
    And you pay cash or debit. Money is taken from your account straight away.
    But if you had that $1000 parked in your offset home loan account, and use the credit card to pay for purchases, before the time you need to pay off the credit card balance, you would have parked that $1000 for a full month untouched.
    This buys time to decrease interest on your home loan. This scenario is about $30 saved on 3% interest rate. $30 could be lunch money for a few days.

    And also consider reward points earned on a credit card, which adds to more savings for future use.

    All my purchases are credit card. Zero cash. Zero debit. (Unless it's one of those tax dodging business that take cash only..)

    However, if you are not disciplined and don't play by the rules, yes you are putting yourself in dangerous debt.

  • Mrgreenz on 13/11/2021 - 09:55

    I really dislike the payday loans, especially the ones who push the idea that your just accessing your money early.

  • jrvb42 on 13/11/2021 - 10:06
    -6

    Absolutely, hands-down, these are the biggest traps:
    1. Divorce
    2. Marriage
    3. Children
    4. Housing
    5. Tax

    Apart from psychological indoctrination by society - you don't need any of these.

    Housing can always be rented, plus you can move where you want, avoid financial stress, maintenance, etc.
    Children (certainly in excess of one) are not only a crazy decision, but environmentally irresponsible. Excess population is the ultimate cause of pollution, global warming and water/resource shortages.
    Marriage is utterly stupid - suddenly you have to consult before spending money you earned? also more likely to suffer from divorce, children and the need for permanent housing.
    Divorce is a likely consequence and huge risk associated with Marriage, Children, and Housing stress. It is a huge and uninsurable risk. Avoid it - avoid it's causes.
    Tax is not paid (significantly) by the wealthy - you think that's just luck?

    Best thing to do is invest in your career, your experiences, your friends, your family.

    Don't buy into societal norms. Think for yourself.

  • snooksy on 13/11/2021 - 10:10
    +4

    I would like to add Social Media as a negative influence on people’s finances. The idea that other people have more than you and you also need to have more to keep up. Also seeing people on holiday or with new things constantly.

  • LieAngels on 13/11/2021 - 10:37
    +3

    Student loans are the furthest possible thing from a financial trap (in Australia)…

    If you had $50,000 to pay for your course, but chose to put it on a student loan, you would be making more money by investing it almost anywhere else.

    If you didn’t have $50,000 to pay for your course, you’re given the option of tuition where it would not be otherwise available, with a loan that does not increase in value over time (relative to inflation), and is only mandatory to pay when you are making over a standard wage, which should be more than achievable for someone with a tertiary degree.

  • imcold on 13/11/2021 - 11:03
    +4

    Not always but depending on your situation

    +Gym membership contracts.
    +Mobile phone contracts especially those with extra data fees.
    +Car contracts
    +Some uni degrees
    +Bank account with excessive overdraft fees.
    +Fare evasion fines
    +Multi level marketing sales jobs
    +Solar panel installation from Phoenix companies
    +Online car purchases without in person inspection / and background checking of all vin too see if car is stolen or a lemon.
    +Poor planning when moving between rental properties, which results in loss of bonds.
    +Investing in random cold called investment schemes such as IPO.

    Always seek advice from family and friends before doing the above.

    • rektrading on 13/11/2021 - 11:16

      Family and friends are the last people that one should listen to for financial advice.

      The majority of them are chained to mundane 9 to 5 jobs unable to escape the treadwheel.

    • imcold on 13/11/2021 - 11:27

      True, but they say once bitten twice shy. So if they are older they might have fallen into these traps themselves.

      • Not having an absolute minimum of $500+ set aside for emergencies nd to avoid interest fees on your bank account
      • A little advice on the fair evasion part. Always have auto recharge or maintain a reasonable minimal balance to avoid situations where you it's impractical for you to top up.
        • Failing to keep your paperwork in order such as tax, licensing etc
          +Depositing money in the wrong account or to an impersnator. Recommended depositing a small amount before any large transfer
  • morebunnings on 13/11/2021 - 11:12
    +3

    Something not listed here yet: Retail investing in the stock market.

    Retail investors almost always loose. I'm in the top 7% of Selfwealth investors, and all my portfolio does is track the market. That means 93% of their users are making less than the market average.

    • rektrading on 13/11/2021 - 11:22

      Someone being in the top 7% is impressive.

      What is the 1Y PnL for people in the top 7%?

    • scanuck on 13/11/2021 - 11:28
      +6

      Less than the market average doesn’t translate to losing though

    • Blakus on 13/11/2021 - 15:17

      I listed it above, but cool, curious why do you bother actively investing then?

    • SpotTheOzzie on 14/11/2021 - 02:17

      Love for further discussion on this.

      So what your saying is that you are currently making market average (and are in the top 7%) indicating the remaining 93% make below market average? Am I understanding this correctly?

      Even if that's true if the Market Average is on the climb doesn't that mean people below you could still be making more, just not anywhere near High-End Investors and Companies?

      But you're main point is that the market appears to be heavily influenced by the big dogs right?

      • High End Investors / Companies pouring money into the market are dominating and have a higher influence
    • DrScavenger on 14/11/2021 - 04:15

      What do you mean?

    • macrocephalic on 15/11/2021 - 17:24

      Which market. My portfolio pretty much tracks the market, most of my money is in broad index funds with a fraction in some narrower ones. Mine pretty much sits exactly in the 50% percent mark. Sometimes it's above, and sometimes (like since China started meddling in their tech sector) it's below, but never far off the average; never anywhere near the top 10%

  • OzHunterNSW on 13/11/2021 - 12:22
    +1

    The Jones'… and your ego.

  • blewey on 13/11/2021 - 12:58
    -1

    Capitalism

  • burningrage on 13/11/2021 - 13:38
    +1

    I think any form of loan is a financial trap.

    • buckethat on 13/11/2021 - 14:07
      +4

      Not if you're somewhat financially literate.

      • burningrage on 13/11/2021 - 18:49
        -3

        It is only a trap. Smart people know how to avoid it.

        • rektrading on 13/11/2021 - 19:38
          -1

          Loans are one of the best tools to avoid taxes.

    • malich on 13/11/2021 - 22:10
      +3

      Not if you're taking a loan to improve you're financial position.

      Loan on a house, you usually come out on top.

      Personal loan for a holiday, boat loan, you're in for a bad time.

      • shnookums on 16/11/2021 - 08:43

        It's interesting you don't include a cars in the same category as 'holiday, boat loan'. Any reason or just left out by chance?

        • malich on 16/11/2021 - 08:58
          +3

          Some people need a car loan to achieve mobility.

          I'm not talking about Mr Westpac banker who borrows $100k to impress clients, but some may borrow a modest amount because they don't have the savings.

          I'd argue that nobody ever 'needs' a loan for a holiday or boat. However there's situations where someone may need a loan for a car.

    • burns13 on 14/11/2021 - 18:33

      Borrowing money is powerful thing in the right hands. Dangerous in other people's hands.

    • citybargainhunter on 15/11/2021 - 13:55

      There are good debts and bad debts

  • godofpizza on 13/11/2021 - 14:30
    +2

    paying for parking in shopping centres.

  • [Deactivated] on 13/11/2021 - 14:55
    -1

    The Internet?

    I mean, if it wasn't around we wouldn't be spending money online.

    The less you see, the less you buy.

    • rektrading on 13/11/2021 - 15:14

      The faster the Internet I get the less I spend shopping online.

      I've stopped buying widgets/goods entirely in the past 18 months.

  • haggertm on 13/11/2021 - 15:01
    +3

    The way the majority of people treat home loans. I used to work in a bank and almost every time I would give indications of how much someone could borrow they would end up just looking at house at their maximum borrowing capacity, even if they came in with a cheaper property in mind already. Then most people only pay the minimum repayment which results in them paying it off over 30 years. I would suggest finding a property well below your maximum capacity and paying as much extra off as you can. Even an extra $50 a week on a $500k mortgage will see you paying it off 5 years faster. That's 5 years worth of $2200 monthly repayments. That $50 a week over 25 years will amount to $65k but the 5 years worth of repayments you would save would be around $130k. I guess this also partially fall under complacency.

    • Blakus on 13/11/2021 - 15:15
      +5

      I get it. But recent history would suggest buying the most expensive house you can afford with other peoples money is a good strategy, given the capital gains.

      A trap might be actually going too cheap and buying the wrong house for the future you - eg not big enough for a future family. Then you might need to change houses and pay the associated expenses, eg stamp duty.

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