Sunday, November 8, 2009

A home fiance example for real

Let's name our leading character He.

He bought a piece of land and built his own home. Despite the horrible Fenshui, it is 25Km distance to the downtown and no public transportation around. He moved in the new house 1 month after it is established -- which means he paid one more month of rent, simply because the fence hadn't been setup. During that one month, his home was broken in and some kitchen stuff were stolen. Anyway, he still owes about 220K home loan to the bank.

He had a new 1.6L car 2 years ago. He then bought a new 2L car this year for family use. (BTW, a family of two). The second car is financed. He is paying 7% interest rate -- compared to 5%+ home loan rate. (Bank is so happy)

Last month, he was considering to quit the current job. Fortunately, he found a new better-paid job, which locates 1-hour-drive away. Therefore, he decided to buy a second home, closer to the job site, for about 390K. This shall be totally financed by the bank, because he spends more than 60K p.a. which left him no saving at all.

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