Do they exist? Is anyone out there stacking while they have a personal home mortgage? I started in stacking and moved into investment property and am now contemplating getting a home of my own (building another deposit). I have this sad feeling that once I've got that home mortgage, its gonna be lights out on the stacking front for a while... Wondering what others thoughts on the matter are, my opinion would be any debt thats costing me money would have to be paid off before investing in metals... Thoughts? Cheers.
I have a mortgage and I'm stacking... It's hard not to get blinded by that cheap silver tho and easy to spend to much... Stack on a budget... I'm shooting about 200usd month.
Yes, ideally all depts. paid off. Mortgage, vehicle loans, credit cards, have one year of food and heating fuel, as well as other utilities. Ah, the perfect world. For me, no mortgage, vehicle loan, credit cards (used for less than 30 days only to maintain credit rating). But them I am retirement age. Most stackers say "Buy no PM on credit.", yet do have debt. At least from what I have seen. Each will find their own level, based on their circumstances. Do you eat at restaurants, instead of paying on your mortgage - shame on you. Play golf, go to movies, pro ball games, have a collecting hobby, instead of paying on the mortgage - shame on you. Some people stack as a form of entertainment 'It makes me happy.', so the debt issue is not so important. Some people buy rounds and coins onesies - twosies, so not the same as one tube or monster box at a time. I like a tube a month, fits my budget of discretionary income As with most things in life, it all depends.
Depends on your situation. To be frivolous and not be able to pay your bills is ridiculous. It's also ridiculous to go through life without experiences because your entire being is focused on paying off a mortgage. Make your payments, but still have fun.
see you in 30 years then. I'm paying off a mortgage and stacking. The way i see it is i don't want to forego the chance to gather what i think will be useful in the future. Chances are if things go really pear shaped and i lose my home because of a very bad depression or such it's going to happen before i get it payed off since i'm only 3 years into the mortgage, so i want some assets that aren't in the banking system.
Get the first 5 year term on interest only. Most banks will do this for you. It will ease you into the repayments with interest only being very similar to rent at the moment. Put any left overs either into your stack or your offset account, that would be up to you.
Get a house that has a rental suite. That way your tenant pays most or a portion of your mortgage. Rental property will provide you with endless positive cash flow n hopefully that will take care of your stacking need.
Methinks it depends from your mortgage rate. If it's very low (say, below 2.5%), then no need to pay it back. Can as well stack. If it's above 3%, don't stack, pay it back.
I have a moderate stack, not as large as it once was, and for the last 2 years have focussed on paying down debt. I occasionally (very occasionally) buy metals for fun but keep it below 10oz silver or equivalent. My priorities have changed and metals is not my focus, only fun. I see metals as a way of savings as opposed to get rich. It won't do that in my opinion unless you invest heavily. You are better off getting out of debt and only having to manage rates, general living expenses or investment properties that someone else is paying off.
Pay off all debt as fast as possible, long term debt (house) needs to be managed with a plan & any extra income can be used to lower the debt faster. I do my stacking with the extra cash (overtime etc.) once my mortgage reached a certain limit, now mortgage is all but paid off I'm looking to sell & buy a bigger house on acreage for less then the selling price of my current house in the berbs. The stack is hopefully going to be a better investment for the future than the super which I no longer have any faith in.
Yes you should buy an over priced house just as the mining investment boom comes off and our terms of trade fall. The massive capital flight from Australia as shown by the recent plunge in the aud is very bullish.
It depends if you want to be cash rich or asset rich imo. I'm paying my house off as well as stacking. If I didn't buy a house I would have nothing but a stack and no where to live. As it stands I have a mortgage a stack and a house where I have made more money with the house with a mortgage than the stack at this point in time. Who knows what the future will bring, nobody knows. You could be hit by a bus tomorrow so do everything now and enjoy.
i have 2 mortgages but they're not personal, my tenants service the loans for me, they also buy me around $5K of metal every month in 2 more years they will have repaid me my entire investment outlay and everything from then on will be pure gravy
I have a mortgage, gee, need to take advantage of the manipulated low interest rates. when PM's go up, I'll be happy I stacked with the spare money we have from low interest rates. If the FED are blabling about keeping the rates low until late 2015, early 2016, I'm keeping my mortgage and stacking more PM's. 3 year close at something like 2.6% or so, can't beat that.
Im no math wizard and Im sure there holes in my logic but ill give it a go. Assuming Aussie home mortage of around 300k (most would start higher) and assuming your paying interest only with an offset account, your yearly interest may start around 15k (@5~%). 15k/365 = ~$41.10 a day interest to begin with. Now lets say you had $2750 worth of discretionary income that could either go into the offset or into metals and lets say interest and spot doesnt change and no capital growth. $2750 x 12 = $33k in discretionary income per year. ==================== Option A: Offset. > After 1 yr, interest on 267k (300k-33k) (@5%) would be around $36.57 a day. > After 2 yrs, interest on $234k (267k-33k) (@5%) would be around $32.05 a day. # 66k in offset equity # Saving ~$9 a day on your initial interest payments = $3285 saving a year (now paying ~$12k p/yr interest) # 234k worth of debt. ==================== Option B: Silver After 2 years - Still interest only. # 66k worth of silver 3348 ounces @ todays spot # No savings on interest (~15k per year) #300k worth of debt ==================== Obviously no capital growth, no change in spot and no change in interest rates are ridiculous and its the guys who can predict these factors that will ultimately be able to come out ahead here. However for me, I think the lowest risk play would be to pay into the offset...I do like my shinies though!
I stack and have a mortgage, more interested in paying down debt at the moment, I like having silver and think in the future it will pay off. If silver drops more in the future I will add to my stack a little bit at a time.
I currently live with a friend in his house. Extremely cheap rent $325 US a month with everything included. I'm using this opportunity to build up a nice safety net in cash, silver/gold and other assets. I have no other dept or payments. After I move out if the time is right I will look into getting my first house and feel much better about it knowing I have some money saved. I will probably still stack when I have a mortgage!
