it come in my 1st year of uni [
]Most universitys will offer you a up to 25% discount if you pay up front.
Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Phobia,
You’re right- it is a 25% discount for upfront payments and extra lump payments of $500. All Universities are regulated by Fed Govt legislation governing HECS, PELs etc.
kay henry
rolo, something else you can do while a cash poor but time rich student….
most students go and work for less than $15/hr for someone else in their considerable spare time. consider the following…
Steve McNight’s greatest wisdom in my view is that a positively geared property is better than a negatively geared one. plus there are less of them nowadays.
So put your thinking cap on and think about how you can turn your current house into a positively geared one. I’d encourage you to check with council and a town planner whether you can whack a second dwelling down in the backyard, if a big enough block. If not, then a lot of councils in Qld let you put a free standing granny flat in. You can then rent the two things out separately, increasing the property’s potential yield by 60-70%. You can then get it revalued and it would give a lot more than 80k equity.
So, if you know anyone with building skills, get them to go builder, and you and your mates do the labour. This way you learn some very very valuable building skills on a smallish project, you make yourself a job that returns much more than $15 an hour, and it isn’t taxed. Plus you increase your equity, and create a very desirable very rare cash flow positive property.
Now run along to your uncle and scab $15k off him for building materials. If you scabbed around and got seconds of everything, I am sure it wouldn’t cost you more than $10k, including slab.
Secondly, my recommendation is that you don’t worry about paying off HECS now. Many lenders don’t worry about HECS debts. Suppose they believe the uni education compensates for the added debt risk.
Bruce
Mooloolaba, Qldhttp://www.capa.edu.au/briefing/impact_of_student_debt.doc
The above paper has a section (2 pages) on HECS debt and access to mortgages :o) It’s not a bad read.
kay henry
The following will now occur:A HECS repayment threshold of $35000 in 2004-5 and $36184 in 2005-6. This ups the original repayment threshhold from the amounts mentioned of $25348.
Will this affect only new graduates, or people who previously had a HECS debt as well?
Allan.
Back to the talk of s.i.s’s investment statement on his signature, (which we all get to read often enough…) you can find a calculator here –>
http://www.theenlightenedway.com/tools/mil_calc.shtml
This is a nifty little thing, and it beats using excel or worse… a pen and paper.
cheers
timMoney is an elastic resource, it can be created. Time is not.
Allan,
I thik it should affect all of those people who currently hold a HECS debt. As it’s part of a taxation policy (in effect) it should apply to all.
kay henry
Hi Blowie,
thanks for the link, im having heaps of fun with it…[
][][]cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”Dear All,
Why would you care about HECS if you want to be wealthy, isn’t it investing is all about. If you turn millionaire then HECS is just a drop that you don’t even know.
Back to property investing.
Kind regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Hi Blowie – that calculator is fun to play with, but I don’t think it accounts for inflation.
Though ‘millionaire’ has that magic ring about it, it does not imply financial independence. Neither (in 20 years time) will it imply much more wealth than average.
Let’s say we saved $20/day, which is a pretty good effort for someone on a low-middle income. You’d become a millionaire in 2040.
But assume inflation is 3% pa and apply the Rule of 72, and that $1m is worth less than $250k in today’s money. Not a trivial sum, but not a fortune either.
My main worry is that sometimes compound interest can be overstated (neglecting inflation) and people can be lulled into a false sense of security.
Regards, Peter
Chan,
That’s all good, but people were asking about HECS, And in fact, there is anecdotal evidence that lenders are reluctant to lend to people with HECS debt for mortgages. It’s kind of relevant.
And some of us are not millionaires and probably never will be. There’s space for all of us here.
kay henry
Guys,
If you really want to factor in inflation, just subtract the inflation % from your yearly return %. This will give a relative dollar value.
I believe that the title of ‘millionaire is more of a milestone rather than a destination, whether their million is worth less than todays (or yesterdays) dollar is irrelevant when you conceive it as a goal rather than a monetry value. If you really want to factor in inflation, just subtract the inflation % from your yearly return %. This will give a relative dollar value.
However, the purpose of a calculator such as this is to inspire, not discourage. For this reason it is very simple. Let the masses know it is possible and all they have to do is find a way. Then they can deal with complications. After all, its the starting that stops most people.cheers
timps. congrats on all those pretty gold stars s.i.s
Money is an elastic resource, it can be created. Time is not.
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