Ed is the GOAT!

Awesome video. These ads are all over my social and I had a suspicion that this was all they were doing. Appreciate this sort of information going out there. Cheers!

Thanks for your help! There’s no secret sauce when it comes to this sort of stuff its just hard work!

Oh, so I just need to have enough money to afford extra mortgage payments. Why didn't I think of that? So glad that the only thing that increases over time is my pay and not things like gas, electricity or food

@119Agent

24 күн бұрын

he says just that at 9:00. It isn't easy to come up with extra mortgage payments when you care barely afford to eat and are only maying a mortgage to build equity and avoid rent. It also is not easy to avoid investing that extra cash instead when your mortgage rate is around 3%.

@opes_partners

3 күн бұрын

This is a great question. It's definitely tough with the rising cost of living at the moment. Important to keep in mind though that since 2000 incomes have risen twice as fast as the cost of living. And I'm not suggesting all your pay rise goes towards your mortgage. Just that if your mortgage makes up 33% of your income, keep it that way as your income grows. Thanks for watching! Ed

Great video! Well presented and very clear. I've always wondered what those ads were about.

Thanks Ed! Another great video. Much appreciated!!

Thank you. Great content as always.

Things like this is why we have trusted OPES to guide us on our property journey.

Love your videos!! Thank you so much for this one 😊😊 Love the intro. I wasted an hour on one of those webinars - what a complete waste of time

Very appreciative of you running a video highlighting this is a scam and giving the info away!

Nope, no pay rise, but multiple interest rate rises! So I used to pay an additional $100 a week, now I can’t afford any extra 😢

Okay, but the same year you get a 4% pay rise, the cost of everything is up by 4% from last year due to inflation (by design). So you’re going to have to make cuts to your lifestyle somewhere.

Awesome video Ed. You're gonna save a lot of people thousands of dollars and disappointment.

Very useful, thank you. So, is it better to collect all your saving at the end of the year and put it to your main mortgage rather than increasing your revolving credit?

Most people's pay goes up by around 4% each year, but inflation goes up more than that. So suggesting that people have an extra 4% of their pay available really just isn't true.

Appreciate the video! ❤ I’ve watched a lot of these videos and still don’t see the benefit of depositing money into the mortgage if it’s already sitting in the offset doing its job? Is it just to avoid being tempted to spend the offset?

So what do you live off if your weekly pay is sitting in the mortgage offset acct?

Alternative strategy. Knock up a spreadsheet and some PowerPoints. Sell 5k seminar tickets to dumb wage slaves. Also make 7k on every mortgage you write. Seems easier that the mystical never ending payrises with no children or cost of living.

Thanks Again guys... you just saved me over 6k

Whats the difference between having an offset for your revolving credit account vs just having all your money go into your revolving credit account?

You have just made a client for life. Thanks mate. I actually listened to one of those adverts and smelled a scam. Luckily I didn't buy into it. Keep up the good work!

@Greeno84549

Ай бұрын

Saaaame! Totally agree. I love Opes. They're so awesome

No mention of inflation in any of these

@joachimpetersen2301

Ай бұрын

If inflation is high generally interest rates are high. But yea inflation is high means living expenses are also high making it way harder to pay off mortgage faster. Pretty much the situation most people including myself are in.

@jonathanroy5924

Ай бұрын

@@joachimpetersen2301 that and also in 20 years you 200k mortgage will probably be the same value as a cup of coffee so I would not rush to pay it off so quick.

The first ad on the left is so popular, lol

Isn't there an extra to the revolving credit method, where you pay for everything for the month on credit card, and then pay it off fully at the end of the month. Therefore not paying any interest on your credit card and as your income is sitting in your revolving credit account it also offsets interest in that account that you would otherwise pay.

@gevans2679

Ай бұрын

That’s exactly what I do. I budget so I’m not spending on crap I don’t need. I have one credit card which pays points (so the bank pays me to use my credit card). All the bills etc go onto the credit card, and I pay it in full on pay day. It’s so simple! I have two bills that get paid each month. 1. Credit card 2. Mortgage. And the bonus is all the money I get from the points. I usually get a couple hundred dollars every couple months to spend on groceries or petrol which helps me save more money.

Why do you need to create a second mortgage account for the offset? Can't you just leave the money in an offset on the main mortgage? Also why do you need to pay off the mortgage periodically instead of just leaving it in the offset doing the same job?

Revolving credit = an offset account?

@NoRegertsHere

Ай бұрын

No. Looks like a redraw facility instead of an offset facility. Works the same way as far as a broker or a bank is concerned, but for tax purposes (in Australia) they are very different things.

What's the purpose of the Revolving Credit,in an offsetting strategy?

@_nz_diy_

Ай бұрын

Short answer: they do the same thing. But there is a difference that means one is more functional and user friendly than the other. I'll explain. An I'll list some of my actually data at the end because i can't post a picture in here. A revolving credit facility is a single account. Lets say you borrow a total of $250,000. You fix $200,000 at 7% for 30 years. The last $50,000 is revolving credit at the floating rate of 8.4%. You get your wages deposited into that account. Let's stay you earn $1500 nett per week. Over a month you can essentially reduce your 50k to 44k. But what about my bills you say? The aim is to keep as much money paid off your revolving facility for as long as possible. You pay your bills on their due dates as you would normally. Most people would use a credit card with a 55 day interest free period for daily expenses. Supermarket, fuel etc. Then pay the balance each month. You use the account like a chequing account, with an eftpos card. To use offsetting, you have your fixed amount and the offset mortgage, which like the revolving credit facility, is on the floating interest rate. The difference is (at least with BNZ) you can have as many individual accounts as you like ( or maybe 20 or up to 50). The balances in all of these account offset the amount owing in your floating mortgage (the 50k). I have a food account, and a fuel and other weekly expenses account on my eftpos card. All other money that has to be set aside for upcoming bills goes into my various other bank account. I have an account for vehicle maintenance, rates and insurance, power, internet, and mobile phone plans and so on. All of the money can't be accessed easily from my card, I'd have to log in and transfer. But because this money is distributed weekly into my various accounts, its like I've already spent it. I never touch this money. Upcoming bills are on automatic payment directly from their respective accounts. Now some real details for my offset mortgage. Owing: 32978 Total offsetting: 7587 Paying interest on: 25391 Floating rate: 8.69% Effective rate: 6.69% Amount offset: 23% Total interest saved: $4,846 (Since 1st April 23) (I would normal have 10k in an emergency fund but have only 2k after having use my emergency money) Personally I feel that having a portion of your mortgage offset is safer that revolving credit facility. This is because you can layout your funds how you like and actually see what money has been set aside for separate things. You are less likely to overspend. When I had revolving credit it felt like having a 50k credit card. With another credit card alongside it. I ended up maxing both out. Defeating the purpose. Also, if you had any emergency funds set aside, this amount did not offset your credit facility. With an offset mortgage, your money in your account is not debt. It's actual savings, and it reduces how much you pay interest on. You can even have all the balances of your partners accounts offset your joint mortgage if you're both with the same bank. Hope this helps.

@NoRegertsHere

Ай бұрын

Redraw facility. Not offset

fell in to one of those scammers based in Christchurch, paid 500 before the session and was suppose to pay 4500 after the session. After the session I told the guy that he hasn't helped me one cent and I'm not gonna pay the rest. he threatened me with legal actions so I told him that I'm going to report him to FMA so he fucked off... lost my 500 though

Thank you always wondered what that Secret was that some unscrupulous people were trying to sell. One other strategy that does have a little bit of difference is to switch to fortnightly or weekly payments instead of monthly payments. As interest is calculated on a daily basis, by paying more frequently, the principle goes down. Not a massive amount in saving, but hey if you can go buy a meal with that instead of paying the bank, why not 😅

@alex98b627

Ай бұрын

This is not always true. If you are paid monthly then there is no benefit in paying the mortgage weekly or fortnightly. It’s all based on how often you are being paid. If you are being paid weekly but only paying your mortgage monthly, then yes in that situation you should change your mortgage payments to weekly. If you’re wanting to maximise the benefit of your salary against your mortgage then biggest benefit comes from having an offset account and using that for your salary and all your life expenses. Don’t have another account for spending, just use the offset account.

Not really sure with 4% pay rise each, have to minus income tax as well?

@patriceking9583

Ай бұрын

Plus inflation is usually rising at the same time therefore your cost of living is also rising (currently at a rate higher than wages)

One less carton of cigs, one less six pack of beer. I'm sending extra 25 a month

Unless you’re in a consolidation phase paying off your PPOR is not a good idea as it means you’re not leveraging your capital to buy investment property or leveraging tax minimisation strategies. The mentality of paying off your PPOR is so 1960s.

Are these genuinely the ideas these guys are selling for $5000??!! I’d as for my money back. These are so obvious.

Would NZhl help me

years ago boubled the amount each monthand a 25 year finished in 5 years ,but property prices wernt like they are now,but a months payment was still a scale related to wages and borrowing power.NOWevery way you can even all the loose change get rid of c/cards etc

@donaldlyons17

Күн бұрын

Situations change and some factors are just out of an individuals control!!

A lot of these online mortgage brokers upsell investment into townhouses and offsetting the profit against your existing mortgage. Is this realistic? To good to be true? The fees of $5000 to join a webinar and online support is a lot to risk. I'm keen to reduce my mortgage as I have 8 yrs left on it, based on a personal loan at 5.9% $359,322 left owing, paid back at $1200 per fortnight.

@Travio247

Ай бұрын

Your maths doesn't math

None of this makes sense if you don't include inflation. $500k some time in the future isn't the same as $500k today. If you borrow at 7% and the risk free rate is around 5%, all you gain by paying back early is a grand 2%.

My mother tells a story of a farmer who used to lift his bull calf every day. His plan was, that if he kept lifting this calf every day, one day he'd be able to lift the adult bull. This sounds a lot like that. First, we're pretending we get a 5% cost of living adjustment, second we're pretending we don't have a 7% cost of living increase. Revolving credit is insane, explain to me the interest cost on that? I think this whole shebang boils down to 'if you have lots of spare money, you can pay off your mortgage fast.' which we all knew anyway. Mate you're tone deaf.

Can i have you email for business purpose?