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Do you feel like the bank owns you?

Discussion in 'Investor Psychology' started by Ace in the Hole, 2nd Sep, 2015.

  1. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I just read a thread about someone about to pay off their PPOR and get the title.

    How do others here who have PPOR debt feel in general, do you constantly feel like the bank owns you until you have the title?
    Or, do you not even acknowledge them once they've lent you the money and consider that you already own your own home.
     
  2. Hodor

    Hodor Well-Known Member

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    Never thought about it. Figure at least the bank will keep the title safe for me.
     
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  3. KMD

    KMD Well-Known Member

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    Have never actually given this much thought although I always say I own my own home when talking to people.
     
  4. bob shovel

    bob shovel Well-Known Member

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    It's a take take relationship. They take the interest, i take the borrowed money to invest so one day i can cut ties with the bastards! In the long run, and done right we both win, but i win betterer! No point getting hung up on a piece of paper if it's not being used to it's potential
     
  5. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    I don't even think about it.
     
  6. Beelzebub

    Beelzebub Well-Known Member

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    I was told to never take the title. You leave it in the bank for safe keeping.
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It's not a bad idea - free, secure storage :)
     
  8. EN710

    EN710 Well-Known Member

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    Hmm, I always think that I can sell any of my property if needed so never think too much. I do say to other people that bank own the investment property if topic on IP came up.

    With PPOR, I prefer to put money on offset, feels like ownership enough ;)

    On that note, I wonder how many people have ever seen the title of their own property? Never seen one, never touch one, almost like unicorn to me
     
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  9. MTR

    MTR Well-Known Member Premium Member

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    I have, but I am probably older than you:)
     
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  10. EN710

    EN710 Well-Known Member

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    You look younger and prettier than me in the avatar :rolleyes:
     
  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Ownership is overrated. To me it's all about control ;) It's like having assets in a trust, you don't own those assets either, but still get all the cream from them.
     
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  12. HUGH72

    HUGH72 Well-Known Member

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    Despite having no ppor debt for a number of years I only bothered to get the title his year.
     
  13. willair

    willair Well-Known Member Premium Member

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    The good part about taking the title out from the bank was many years ago as it was the first one we owned outright and i never wanted to put the ppor on the block,it was a large paper with all the previous owners something to keep in the safe all the rest are still with bank that way i know they are safe..
     
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  14. chylld

    chylld Well-Known Member

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    My thoughts exactly :D

    My parents are very very big on property ownership, but both they and I understand that their priorities were very different having a much tougher upbringing and less readily available financial expertise. They were very proud to be debt-free but they don't push that ideology onto me (or rather I didn't let them haha)
     
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  15. srirang

    srirang Well-Known Member

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    We are proud of having our own place but also aware that the bank owns most of it at this stage.

    We are working towards owning more of it than them :)

    It is also a free and secure way to hold the titles. If they loose it (which they've done once), its their risk.
     
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  16. chylld

    chylld Well-Known Member

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    Without any disrespect, I always wonder where this mentality comes from. Why would a person be happy to have more of something than someone else?
     
  17. EN710

    EN710 Well-Known Member

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    Control? i.e. i don't care is someone own more apples than me, it doesn't affect me. But if someone own most of my house and can affect my life, then I'd feel more in control if I own more :) just enough to make sure I am not in bad situation if proverbial hits the fan ;)
     
  18. srirang

    srirang Well-Known Member

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    @chylld, I meant we are owning more of our house since we are paying it off with extra principal payments. Not quite sure what you mean by that question.
     
  19. chylld

    chylld Well-Known Member

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    My safe LVR is 75-80, I feel that I have enough 'buffer' when things go a bit sour. I guess for some others their safe LVR is 49 :)
     
  20. HUGH72

    HUGH72 Well-Known Member

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    No longer paying non deductible interest each month.
    Frees up cashflow greatly to leverage into more assets which cost considerably less to hold. Ppor debt often holds people back from investing seriously for many years.