While there is constant debate on housing affordability and policies that encourage more people to buy houses, there is very little discussion on the size of household debt.
Australia is ranked 5th most indebted households in the world. While there are ways to maximise our borrowings, should we take up these incentives? Elson Goh, from EG Financial Services, joined Lockie to have a discussion on good borrowing principles and how to prevent potential pitfalls when we are loading ourselves up with debt. “There is no magical formula that you can say is the right level.”
- Don’t be enticed by the options to buy a property fast. Saving the 20% deposit is a good test i
- Be pessimistic with your expenses. It’s normal to have abnormals (there will be many ‘once-offs’)
- Paying interest is just a bad as paying rent, let’s put this debate to rest.
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