I need approx 5k for appliances/furniture, where's the 'cheapest' money at?

mr fox on 18/09/2017 - 09:44

I've just refinanced a mortgage with ING Direct and extended our loan to cover renovations to the kitchen, bathroom, flooring etc. Unfortunately we're going to run around 5k short to cover the finishing touches - appliances and some furniture. I would like to borrow the 5-6k and pay it off in installments over the next, say, 4 years. I would prefer the ability to pay it off early without a significant penalty as next years tax return will (hopefully) knock a couple of k off it and our income fluctuates so we can potentially crush the debt ahead of schedule.

Ideas that come to mind are instore interest free finance, a personal loan or a credit card (points for flights would be nice but interest payments would no doubt negate the benefits.)

Thanks for any input :)

Financial

Comments

  • rompastompa on 18/09/2017 - 09:46
    +2

    Just do without specific appliances until you can afford them? (or at least they're on a sale, then find the $$$$).

    • mr fox on 18/09/2017 - 09:50
      +1

      I love your commitment to the OzBargain mindset but a new kitchen without an oven/stovetop/rangehood would be a pretty sad state of affairs. Inviting friends around for dinner to show off the new kitchen and then microwaving a meal would also be a faux pas :D

      • ShortyX on 18/09/2017 - 09:51
        +3

        If they are critical appliances like that, then interest free finance sounds like the best bet. Perhaps package it all up at one store to have some buying power for negotiating.

        Good luck and enjoy the renos!

      • tsunamisurfer on 18/09/2017 - 11:45

        What is faux pas is budgeting for a kitchen reno and excluding an oven, stovetop and rangehood.

        • mr fox on 18/09/2017 - 12:24

          Sort of. We budgeted for removing a wall, engineered floorboards, air-con, landscaping and a fence. Because I'm friends with tradies our dollar has stretched significantly so we can afford a new kitchen, but we're just shy of the money for the appliances.

  • smashed on 18/09/2017 - 09:53
    +1

    A purchase in-store at 0% finance is highly likely to be significantly more expensive than finding the same item on-line. Seems convenient, but you overpaying and then repaying it over years.
    It is difficult to say without knowing the cost and type of items involved. You need to do the maths and decide what you are comfortable with :)

  • benny082 on 18/09/2017 - 10:01
    +2

    You can try peer-to-peer lending/borrowing like ratesetter.com.au generally lower rates for unsecured loans with ability to pay off earlier

  • [Deactivated] on 18/09/2017 - 10:10
    +1

    You are nuts buying appliances (which have an almost zero value second hand) on finance.

    • mr fox on 18/09/2017 - 10:19

      I realise it's not ideal but what's the alternative?

      • [Deactivated] on 18/09/2017 - 10:28
        +2

        Wait til you have money?

  • pyramid on 18/09/2017 - 10:15
    +3

    Get amex. Spend 5k and pay back in 55 days. Receive 100k qff and sell it for $1k

    • mr fox on 18/09/2017 - 10:17

      Interesting… pay with the card, get points, then pay it off with a ratesetter loan. Means I don't sacrifice bargaining power which is ample. Another reason to get a Amex Explorer?

      • pyramid on 18/09/2017 - 10:22
        +2

        Not sure about "ratesetter loan"

        • mr fox on 18/09/2017 - 10:23

          Suggested above by @Benny082

      • tomsco on 18/09/2017 - 11:13
        +5

        Just be warned, after extending your loan (credit enquiry) and applying for a credit card (credit enquiry), by the time you get to Ratesetter, they may put you in a higher risk category.

  • ely on 18/09/2017 - 11:16
    +2

    Get a virgin money / citibank credit card (ideally high flyer or equivalent with high available balance), use the cheque to self option to withdraw 80% of your balance (details vary a little, but they're currently offering me 0% fee with 0% interest for 15 months).

    Note: Virgin High Flyer card (the one I got this offer on) is currently offering 120k bonus points as well, subject to minimum spend of $3k/month for three months, more details at https://www.pointhacks.com.au/credit-cards/virgin-money-velo…

    And some details about "cheque to self" - https://www.citibank.com.au/aus/cheque-to-self.htm - it's basically just a credit card balance transfer without actually having a credit card to transfer the balance from, they just give you cash out. The promo that they offer you (% fee for transfer and then % rate pa) varies, but 0%/0% is quite common as far as I understand.

  • majuks on 18/09/2017 - 11:38

    Get Amex explorer,then proceed to cashrewards to buy $5-6K worth of woolworths gift card at 5% discount to stores that accept the gift cards. for example, using wooloworths gift cards to buy good guys gift cards. When haggling with Goodguys, buy a few items and ask the best price they can do, typically they can do 5-10% off the price, and sometimes even those items on sale.

    Best time to buy appliances would be on boxing day.

  • nomunny on 18/09/2017 - 13:42

    Clean-up week in the richer suburbs, pretty much equivalent to a nice furniture store, just a few years old!

  • Dont Care on 19/09/2017 - 21:39

    buy at aldi or costco then take back.

  • Archi on 22/09/2017 - 15:12
    +1

    buy it on a credit card do a 0% interest balance transfer..
    when the balance transfer period is up do it again.

  • McBanjo on 23/09/2017 - 12:11

    Dude go to Gumtree. Got an oven worth $900 for $300 from a rich household upgrading their kitchen to 2 x 900mm ovens and stoves. Bought an induction stove for $500 when they were about $1199 at IKEA.

  • echelon6 on 23/09/2017 - 14:17

    Go to one of those ritzy jewelry stores in Martin Place, ask to see a nice big diamond, swap it with an ebay replica of the same size while they look away, then sell it to me.

  • Dont Care on 23/09/2017 - 17:36
    +1

    Think they are looking for ginger sperm donors. So die your hair and get wanking. 40 dollars a pop

  • Easton on 23/09/2017 - 23:01

    Do you have a low income? If so, you can get a 0% interest loan for household goods. See: http://nils.com.au/

    Low income = <$45k/p.a. or have a health care card

  • glicks on 20/07/2018 - 22:49

    Just buy the appliances you would afford until you can go for them.

  • [Deactivated] on 22/07/2018 - 15:37

    Check in the free column of Gumtree, if you have no money. There are often appliances and furniture. Or buy second hand.

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