[SE7EN335]

Originally Posted by jmg

I don't own my house since I'm still paying off my mortgage. That's okay, since I have the title, and I "own" the appreciation, which is currently beating the interest and tax.

As for cars, I've owned and leased a multitude, with different cars being better off leased and others owned, title in hand. I've only owned 2 BMWs out of the 9 I've had the pleasure of parking in my garage. I'd say I only regret not owning one of them, but the others, I came out on top with great lease rates and the ability to get in and out easily. They might not have always been the best financial decision, but then again, the best and most memorable moments in my life weren't defined by how financially practical they were. It's usually quite the opposite.

My definition of owning the "title" is if your income is sustaining your livelihood in the home that you are physically occupying. Eg, your income is actively going towards the mortgage repayments of the home that you are living in. Even though the bank has the security interest in the property, you are entitled to the "title" of the home.

In the situation where you own properties and renting them out so that the rental income will cover for the mortgage repayments, those properties are not considered part of your "networth" until they are fully paid off after the loan term has finished.

I own 3 other properties (collectively worth about 4.2 mill AUD) and renting them out. I won't ever considering having title to those properties until they are paid off after my 20-25 year loan terms are over. Under my definition, I have legal title to the house that my wife and I are occupying at the moment and using our income to repay the mortgage repayments together.

Once I am well into my 40s and 50s, the properties are paid off, and hopefully the properties have skyrocketed, I will sell them all and buy a Bugatti Chiron and Porsche 918 Spyder. Probably wont afford it then because the Chiron and 918 Spyder would be at least double the price it is today! But a man has got to have goals

[Forzanerazzurri]

Its always fascinating to see people be so forthcoming about their personal financial status on a forum full of strangers.

[geko29]

Originally Posted by SE7EN335

My definition of owning the "title" is if your income is sustaining your livelihood in the home that you are physically occupying. Eg, your income is actively going towards the mortgage repayments of the home that you are living in. Even though the bank has the security interest in the property, you are entitled to the "title" of the home.

I am admittedly not an expert in Australian Property Law, but at least in the US this isn't even close to the definition of owning the title. That requires there to be no liens on the property. You generally will know if you own the title, because the actual deed (title) of the property will be in your physical possession.

If it is possible for circumstances to arise (loss of source of income, etc) that would result in a bank evicting you from your home, you do not own the title.

Originally Posted by SE7EN335

In the situation where you own properties and renting them out so that the rental income will cover for the mortgage repayments, those properties are not considered part of your "networth" until they are fully paid off after the loan term has finished.

This also conflicts with the actual definition of net worth, which is an accounting term with an exact meaning. Net worth is literally total assets minus total liabilities. So any given rental property's contribution to your overall net worth is its market value, minus the remaining amount of any mortgage. Essentially whatever equity you have in the property; or put another way, the cash you would walk away with if you sold the property and used the proceeds to pay off the mortgage.

[SE7EN335]

Originally Posted by geko29

I am admittedly not an expert in Australian Property Law, but at least in the US this isn't even close to the definition of owning the title. That requires there to be no liens on the property. You generally will know if you own the title, because the actual deed (title) of the property will be in your physical possession.

If it is possible for circumstances to arise (loss of source of income, etc) that would result in a bank evicting you from your home, you do not own the title.



This also conflicts with the actual definition of net worth, which is an accounting term with an exact meaning. Net worth is literally total assets minus total liabilities. So any given rental property's contribution to your overall net worth is its market value, minus the remaining amount of any mortgage. Essentially whatever equity you have in the property; or put another way, the cash you would walk away with if you sold the property and used the proceeds to pay off the mortgage.

I agree on all your points. Here in Australia, our Torrens Title system makes it that the bank owns the "title" until the mortgage is paid off. But when I have discussions with people, I am always a firm believer that the property that you are physically occupying should be counted as part of your networth, whether you paid off the property or not. If you lose the property due to loss of income, the net asset proceeds (assets minus liabilities) from the property is added to your networth. If there is no such event, I believe the whole property should be part of your networth because you are actively using your labour income to pay off the mortgage.

The properties that you have bought with mortgages from the bank, and using rental income to pay it off on whatever circumstance, negative or positive gearing, should not be counted as part of your networth until you have sold the property, minus whatever you owe the bank.

[Luk]

lots of rich kids

[luckylingy]

Originally Posted by Forzanerazzurri

Its always fascinating to see people be so forthcoming about their personal financial status on a forum full of strangers.

.. or, more broadly, how much of our lives we devote to impressing people we don't like -- or even know -- in working to earn income to pay for goods and services that exceed our basic needs. Mind you, a G8x (or any BMW, for that matter) goes way beyond basic transportation. But I own one for how it makes me feel, more so than any image it projects to other drivers.

[MichaelB1969]

Originally Posted by luckylingy

But I own one for how it makes me feel, more so than any image it projects to other drivers.

Me too, or at least me too once mine is produced, transported, transported again, shipped, transported, and transported yet again. Something like that.

That said, I can't say the same for when I was younger. I think when I was in my 20's and 30's, it was about the image as much as anything else. That started to change in my 40's. And in my 50's, it's all about how it makes me feel.

[GoneIn4Secs]

Biggest ownership group is 16-23 section 😂

Did I wander into the trust fund baby section of bimmerpost , no wonder they absolutely adore the design, half of them have their own pronouns

[Forzanerazzurri]

Originally Posted by luckylingy

.. or, more broadly, how much of our lives we devote to impressing people we don't like -- or even know -- in working to earn income to pay for goods and services that exceed our basic needs. Mind you, a G8x (or any BMW, for that matter) goes way beyond basic transportation. But I own one for how it makes me feel, more so than any image it projects to other drivers.

Agreed.

[Higgs Boson]

Originally Posted by GoneIn4Secs

Biggest ownership group is 16-23 section ��

Did I wander into the trust fund baby section of bimmerpost , no wonder they absolutely adore the design, half of them have their own pronouns

Pretty sure that's called tainted results, lol. Not exactly a controlled and monitored poll.

I got my license in 1995 and my buddy and I said if either of us ever won the lottery we would buy each other M3s. Neither of us played it once and BMWs quickly fell off our radars until, for me, I bought a 2019 M5 Comp and when the G80 came out I was appalled at the grill, lol. Saw one in person and thought, hey it actually looks kinda cool.....then I bought a G82 and it was super good, now I really like them.

I even have a couple kids and a real natural born female wife!! Amazing! To be honest, never even seen a trans around here, I'd imagine the surgery wouldn't hold up riding all these horses we got for gittin around.

[Habber]

Let’s check back in 6 months and see the numbers.

Not sure how long grandma will be able to afford her grandsons insurance

[Forzanerazzurri]

Originally Posted by Pilla

No one is really doxxing themselves, not to mention why would anyone here care. Don't upload your SS and W2 and you're good.

Exactly, why would anyone on here care.

[LuvMyE92]

Sorry I didn't go through all 9 pages of the thread...

Originally Posted by G80.Flame

not gonna lie I don't understand why you older folks are salty as hell lol. We should all be happy to be able to even own this car regardless of age. Everyone cost of living , situation and lifestyle is different

We're jealous, not salty.

Originally Posted by Pilla

To play devil's advocate, we (and by we I mean the top 5% of earners in our age bracket) can afford cool cars at a young age sure, but buying a house is a pipedream for most. Whereas just 50 years ago a single dude with a family could own a suburban home w/ a stay-at-home wife and kids on a regular salary.

How true. In my 20s, my first priority was buying a house. Then buying a second house. Then once I started making decent money and had the student loan paid-off, and 3 months living expenses in the bank, I started buying "cool" cars.

Originally Posted by Forzanerazzurri

Exactly, why would anyone on here care.

Yeah, we're all a bunch of poseurs anyway.

The kid in the supply department here at work was quizzing me this morning, "so how many cars do you have, exactly?" and when I tell him that I have two BMWs, he's like, "why"?

It's a valid question from someone who makes (I guess) less than $40K a year and lives at home. He's a "kid" because he's under 40. LOL

My answer is that each has it's purpose, one a comfortable DD and the other a track monster. And since I actually go to the track, I'm hopefully not in that poseur category.