SUNBIZ

To Save Or Borrow

Why debt?  We enter into debt because we make large purchases that we cannot afford something with what we currently have. We have debts because we want to own a
16 May 2015 09:02
To Save Or Borrow
budget advice

Why debt?  We enter into debt because we make large purchases that we cannot afford something with what we currently have.

We have debts because we want to own a house, a motor vehicle, to pay for unpredictable events such as funeral costs, to pay for wedding expenses, a holiday and the list goes on.

But the question is, ‘Are we able to live without some of the purchases we make or are some of the things we take a loan out for, actually matter?’ You may long to own your own home by 30. You may want to open a practice by the time you are 35.

The first step toward turning your financial fantasy into an achievable goal is calculating the dollar value of your dream.

Take for instance: A home. So the minimum household income needed to purchase a home in Fiji for example a home priced at $50,000 attracts a loan repayment of approximately $170.00 a fortnight.

A home priced at $100.000 would basically double to $340.00 a fortnight and so on. This is based on a typical 25-year, fixed-rate mortgage at 7.25 percent and assuming a 10-20 percent down payment.

A basic calculation for the value that one can afford is 3 times your annual salary. Meaning one got $10,000 a year they may qualify for $30,000 home.

A New Car. Expect to make a down payment of 10-20 percent on a new automobile. To buy a $20,000 car, you will need to have from $2,000 to $4,000 in cash.

$150 a fortnight as a minimum which will depend on variables example a home priced at $50,000 attracts a loan repayment of approximately $170.00 a fortnight.

A home priced at $100.000 would basically double to $340.00 a fortnight and so on. This is based on a typical 25-year, fixed-rate mortgage at 7.25 percent and assuming a 10-20 percent down payment.

A basic calculation for the value that one can afford is 3 times your annual salary. Meaning one got $10,000 a year they may qualify for $30,000 home.

A New Car. Expect to make a down payment of 10-20 percent on a new automobile. To buy a $20,000 car, you will need to have from $2,000 to $4,000 in cash.

$150 a fortnight as a minimum which will depend on variables like; number of years of loan ranging from 3-7 years, Interest rates averaging 8% and the type of vehicle.

Start Today!

Start today !!! Pick an amount generally the first number that comes to mind and start. The amount after long periods of say 6 or 12 months will be large and will be a motivator in itself.

– This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Treasurer at HFC Bank, Peter Fuata.

 



Fijisun Ad Space


Get updates from the Fiji Sun, handpicked and delivered to your inbox.


By entering your email address you're giving us permission to send you news and offers. You can opt-out at any time.


Subscribe-to-Newspaper