## Determining the Monthly Payment of an Installment Loan

– WELCOME TO A LESSON
ON THE LOAN PAYMENT FORMULA. THE GOAL OF THE VIDEO
IS TO DETERMINE THE PAYMENT FOR A FIXED INSTALLMENT LOAN. INSTALLMENT BUYING IS WHEN YOU
PURCHASE SOMETHING TODAY WITH A LOAN THAT YOU PAY BACK WITH EQUAL PAYMENTS
OVER A PERIOD OF TIME, USUALLY MONTHLY
FOR A PERIOD OF YEARS. THE TWO MOST COMMON EXAMPLES
WOULD BE FOR A CAR LOAN OR A HOME MORTGAGE LOAN, AND WE’LL TAKE A LOOK
AT AN EXAMPLE OF BOTH OF THESE. HERE IS THE LOAN PAYMENT FORMULA FOR FIXED AMOUNT
OF EQUAL PAYMENTS WHERE R IS THE ANNUAL NOMINAL
INTEREST RATE EXPRESSED AS A DECIMAL, T IS THE TIME IN YEARS, N IS THE
NUMBER OF COMPOUNDS PER YEAR. P IS THE AMOUNT OF THE LOAN, AND PMT REPRESENTS THE MONTHLY
PAYMENT. LET’S TAKE A LOOK AT
WHERE THIS FORMULA COMES FROM. IT COMES FROM THE COMPOUNDED
INTEREST FORMULA AND THE VALUE
OF ANNUITY FORMULA. SO IF YOU’RE THE BANK
OR THE LENDER YOU WOULD USE THE COMPOUNDED
INTEREST FORMULA TO DETERMINE THE RETURN
ON YOUR INVESTMENT. AND IF YOU WERE THE PERSON
TAKING OUT THE LOAN YOU COULD USE THE VALUE
ANNUITY FORMULA WHERE P IS IN REPLACE WITH PMT
FOR PAYMENT TO REPRESENT ALL THE PAYMENTS
THAT YOU WOULD MAKE TO COVER “A” YOUR LOAN AMOUNT, PLUS ALL THE INTEREST
YOU’D ALSO BE CHARGED. SO THE LOAN PAYMENT FORMULA COMES FROM COMBINING
THESE TWO FORMULAS OR SETTING THEM EQUAL
TO EACH OTHER. AND SINCE THESE ARE BOTH
EQUAL TO “A,” WE CAN SET THE RIGHT SIDES
OF THESE EQUATIONS EQUAL TO EACH OTHER. AND THEN IF WE SOLVE FOR PMT
OR PAYMENT, WE SHOULD HAVE OUR LOAN PAYMENT
AND TAKE A MOMENT AND DO THAT.   SO LET’S GO AHEAD AND MULTIPLY
BOTH SIDES OF THE EQUATION BY R/N. SO IT WOULD SIMPLIFY NICELY
HERE. SO WE’D HAVE P x R/N. I’M ACTUALLY GO AHEAD AND MOVE THIS QUANTITY
DOWN TO THE DENOMINATOR SO IT’LL CHANGE THE EXPONENT
TO -NT.   LET’S GO AHEAD AND CONTINUE THIS
ON THE NEXT PAGE. NOW, TO ISOLATE PMT I’M GOING
TO DIVIDE OR MULTIPLY BY 1/1 + R/N TO THE NT POWER – 1.   SO LOOKING AT THE RIGHT SIDE
THIS WOULD SIMPLIFY OUT AND WE’RE LEFT WITH THE PAYMENT. SO WE ISOLATED PMT FOR PAYMENT. LET’S SEE WHAT WE HAVE
ON THE LEFT SIDE. OUR NUMERATOR’S STILL GOING
TO BE P x R DIVIDED BY N. HERE WE’RE GOING TO MULTIPLY. WE MULTIPLY 1 + R/N
TO THE -NT POWER x 1 + R/N TO THE +NT POWER. WE ADD OUR EXPONENTS AND THAT WOULD GIVE US
AN EXPONENT OF ZERO. SO THIS FIRST PRODUCT
IS EQUAL TO 1, AND THEN WE HAVE – 1 + R/N
TO THE -NT. AND THIS IS THE FORMULA
THAT WE USE TO DETERMINE THE PAYMENT AMOUNT
FOR A GIVEN LOAN IN THE AMOUNT OF P. LET’S GO AND TAKE A LOOK
AT OUR EXAMPLES. DETERMINE THE MONTHLY PAYMENT
FOR A 30 YEAR MORTGAGE LOAN OF 150,000 WITH A 5% FIXED
INTEREST COMPOUNDED MONTHLY. THEN DETERMINE THE TOTAL
INTEREST THAT WILL BE PAID OVER THE 30 YEARS. SO MONTHLY PAYMENT IS GOING
TO BE EQUAL TO P THE LOAN AMOUNT x R DIVIDED BY N,
THAT’LL BE 0.05. IT’S COMPOUNDED MONTHLY
SO N IS 12. AND DIVIDE ALL OF THIS BY 1 – 1
+ R/N TO THE -N x T POWER. WELL, N IS 12 AND T IS TIME
IN YEARS SO IT’LL BE 30. SO OUR EXPONENT HERE
IS GOING TO BE -360. LET’S GO AHEAD
AND EVALUATE THIS. WE’LL PUT OUR NUMERATOR
IN A SET OF PARENTHESIS.   SO THERE’S OUR NUMERATOR AND WE’LL DIVIDE THIS
BY OUR DENOMINATOR.   AND WE CAN SEE
THAT OUR MONTHLY PAYMENT IS GOING TO BE APPROXIMATELY
\$805.23. NOW, THE SECOND PART ASK US
DETERMINE THE TOTAL INTEREST THAT WILL BE PAID
OVER THE 30 YEARS. WELL, WE’RE GOING TO MAKE 360
PAYMENTS OF \$805.23 FOR A LOAN IN THE AMOUNT OF \$150,000. SO LETS FIRST DETERMINE
HOW MUCH MONEY WE’RE PAYING OVER THE 30 YEARS. IT’LL BE 805.23 x 12 MONTHS
A YEAR x 30 YEARS. SO WE’RE GOING TO PAY
\$289,882.80 OVER THE 30 YEARS FOR A LOAN AMOUNT OF \$150,000. SO IF WE SUBTRACT \$150,000
FROM THIS AMOUNT THE REST WILL BE THE AMOUNT
OF INTEREST PAID. SO THE TOTAL INTEREST THAT WE’LL
BE PAYING OVER THE 30 YEARS IS ALMOST \$140,000
OR \$139,882.80. SO NOTICE THAT WE’RE PAYING
ALMOST AS MUCH INTEREST AS THE TOTAL LOAN AMOUNT. NOW, FOR OUR SECOND EXAMPLE WE
WANT TO COMPARE THE SAME LOAN, BUT NOW INSTEAD OF A 30 YEAR
MORTGAGE WE’LL TAKE A LOOK
AT THE DIFFERENCE IN PAYMENTS AND INTEREST AMOUNT IF WE HAVE
A 15 YEAR MORTGAGE INSTEAD. SO EVERYTHING IS THE SAME HERE
EXCEPT NOW T, THE NUMBER OF YEARS, WILL BE 15
INSTEAD OF 30. SO OUR EXPONENT HERE IS GOING TO
BE -12 x 15 NOW INSTEAD OF 30. SO LET’S SEE HOW THIS AFFECTS
OUR MONTHLY PAYMENT, AS WELL AS THE TOTAL INTEREST
PAID OVER 15 YEARS. HERE’S OUR NUMERATOR.   AND, AGAIN, OUR EXPONENT HERE
IS GOING TO BE -180.   SO FOR A 15 YEAR MORTGAGE THE
LOAN PAYMENT WOULD BE \$1,186.19. SO GOING BACK AND COMPARING THIS
TO THE 30 YEAR MORTGAGE, LOOKS LIKE OUR LOAN PAYMENT
WENT UP MORE THAN \$350 BUT THE PAYMENTS WOULD ONLY BE
FOR HALF THE TIME. LET’S ALSO COMPARE THE INTEREST
PAID OVER 15 YEARS COMPARED TO THE 30 YEAR
MORTGAGE. SO WE’LL BE MAKING THIS MONTHLY
PAYMENT FOR 15 YEARS OR 12 TIMES A YEAR FOR 15 YEARS. SO HERE’S THE TOTAL AMOUNT PAID
OVER THE 15 YEARS, AND THEN WE’LL SUBTRACT OUT
THE LOAN AMOUNT, AND THAT’LL LEAVE US WITH
THE AMOUNT OF INTEREST PAID. SO WE’LL BE PAYING \$63,514.20
OF INTEREST OVER THE 15 YEARS. AGAIN, COMPARING THIS
TO THE 30 YEAR MORTGAGE WE’LL BE PAYING OVER \$70,000
MORE OF INTEREST IF WE SELECT
THE 30 YEAR MORTGAGE. LET’S GO AND TAKE A LOOK
AT ONE MORE EXAMPLE DEALING WITH A CAR LOAN. SO DETERMINE THE MONTHLY PAYMENT
OF A FIVE YEAR CAR LOAN OF \$20,000 WITH A 5.5% FIXED
INTEREST COMPOUNDED MONTHLY. SO IT’S THE SAME FORMULA
THAT WE HAVE. \$20,000 x 0.055 DIVIDED BY 12
AS OUR NUMERATOR. OUR DENOMINATOR’S GOING TO BE 1
– THE QUANTITY 1 + 0.055 DIVIDED BY 12
RAISED TO THE -NT POWER. WELL, N IS 12 BECAUSE IT’S
STILL COMPOUNDED MONTHLY. AND IT’S FOR FIVE YEARS
SO T IS 5. SO OUR EXPONENT HERE
IS GOING TO BE -60. LET’S GO BACK TO OUR CALCULATOR. OUR EXPONENT HERE IS GOING TO BE
-12 x 5 THAT’LL BE -60, AND THERE’S OUR DENOMINATOR. SO OUR MONTHLY PAYMENT WOULD BE
APPROXIMATELY \$382.02. THEN, AGAIN, THE TOTAL AMOUNT OF
INTEREST PAID OVER FIVE YEARS, WE’LL DETERMINE
THE TOTAL AMOUNT PAID AND THEN WE’LL SUBTRACT
THE LOAN AMOUNT OF \$20,000. SO WE’LL HAVE \$382.02 x 12 THAT’LL BE THE AMOUNT PAID
PER YEAR x 5 YEARS, SO \$22,921.20
IS THE TOTAL AMOUNT PAID. MINUS THE LOAN AMOUNT LEAVES US WITH THE AMOUNT
OF INTEREST PAID. SO ALMOST \$3,000 OF INTEREST
OR \$2,921.20. I LIKE TO MAKE A COUPLE CLOSING
COMMENTS ON MORTGAGE LOANS. SOME MORTGAGE LOANS HAVE
ORIGINATION FEES OR POINTS. FOR EACH POINT THE BUYER
MUST PAY A COST OF 1% OF THE TOTAL LOAN. AND SOME MORTGAGES
WILL ALSO REQUIRE AN ADDITIONAL MONTHLY PAYMENT
INTO AN ESCROW ACCOUNT TO PAY YEARLY PROPERTY TAXES
AND INSURANCE. IT’S IMPORTANT TO BE AWARE
OF ALL OF THE COST WHEN TAKING A LOAN. I HOPE YOU FOUND THIS VIDEO

## Debt Pt. 2: Paying It Back

This episode is sponsored by National Debt
Relief, a Better Business Bureau A+ accredited business with over 13,656 client reviews and
of what you owe if you qualify. Get a free report comparing all your debt
relief options at nationaldebtrelief.com/HTA [♪♩INTRO] In part one of our two part series on debt,
we talked a little bit about different kinds of debt. In part 2, we’re going to talk about a couple
strategies to get out from underneath it. First off, though, I think it’s important
to take a moment to address some of the psychological responses that owing money elicits. Debt has a nasty way of making you feel fearful
and full of self-loathing, but neither of those responses are actually helpful. When you’re in fight-or-flight mode, you are
not equipped to analyze a situation and formulate an effective plan of attack. So, just like you wouldn’t let an alcohol-drunk
friend drive a car, don’t let an adrenaline-drunk you drive your brain. Do your best to stay calm, so you can be at
your best when you need to think critically. Remember, you are more important than your
debt, and if you’re struggling, you’re not the only one. So let’s dig in, get uncomfortable, and
talk about some strategies for dealing with debt. Strategy Prep: Create a Budget
The first step to any financial plan is to understand what’s going on with your money. Creating a budget is a way to take a look
at how much money is coming in, how much is going out, and where it’s going. Check out the description for links to a few
videos on creating a budget. Strategy One: Adjust Spending
Now that you’ve made your budget, one of the most theoretically simple ways to save money
is to adjust your spending habits. And yes, that is code for spend less money. Remember that there are a lots of people who
get paid lots of money to get you to spend more money, and they’ve got tools to make
you feel like you need stuff that you probably don’t. Your budget is a tool to help you recognize
some of those tricky money pitfalls, and it can feel empowering to identify them, and
cut spending in non-essential areas. Each adjustment you make can be one step towards
putting a little more of that debt behind you. However, no one who inhabits the real world
seriously believes that you’ll be able to buy a house or pay off large student loans
just by skipping avocado toast, no matter what some rich Australian guy says. Adjusting your spending is most likely going to work in concert with other strategies,
and doesn’t mean that you’re a bad person if you buy a latte every once and awhile. Strategy two: Create Additional Income. The flip side of adjusting your spending is
getting new income. This can seem kind of daunting, especially
if you’ve never done it before, but depending on your situation, side-hustling these days
can be pretty accessible. This can mean many different things. You can monetize a hobby like making jewelry
or painting, tutor students or teach english, drive for a rideshare service, run errands
for someone, or even start your own business. Just make sure you keep track of all the income
you receive, and the expenses you incur for tax purposes. That can bite you later if you don’t. Now the next strategy is less about trying
to pay more on your debt, and more about trying to arrange your payments so they do the most
work. Strategy three: Snowballs and Avalanches. If you have multiple sources of debt, and
can afford to pay more than the minimum payment on each, you are faced with the choice of
what percentage of your money to send where. Rule number one, research seems to indicate,
is to focus on one loan at a time. This applies to both avalanches and snowballs. In the snowball method, you pay the minimum
amount on all sources of debt, and use anything left over on the smallest debt. Once you finish paying off that debt,
add its minimum payment as well as the extra money to the next smallest debt, until you’re
putting all of those minimum payments and leftover money towards one large debt—a
magnificently large snow boulder rolling towards being debt-free. This strategy has the benefit of giving you
quicker milestones to celebrate, and a visible amount of progress made. However, it completely ignores interest rates,
so you might actually end up paying more money overall. The avalanche method is similar to the snowball
method, except instead of paying off the smallest debt first, you pay off the debt with the
largest interest rate first. This strategy has the benefit of reducing
the amount of interest you have to pay overall, but it isn’t necessarily as motivating as
the snowball effect, because the results are often less visible. If you feel highly motivated, or you have
a loan with an extraordinarily high interest rate, the avalanche method is probably the way to go. But studies have shown that the snowball effect
may have better long-term outcomes, because we’re human and we don’t always behave rationally. If you feel your motivation flagging, consider
knocking out a smaller debt first. So mix and match depending on your circumstances. They both have snow-based names so your metaphor
so much if you have some extra money to put towards your debt. But what about if you’re barely making ends
meet or just making the minimum payments on your maxed out credit cards? If you feel like you’re not sure which path
you should take, it might be worth calling in an expert. Right off the bat, though, while there are
many credible and helpful services out there, there are also services that are unhelpful
and scams designed to take advantage of you while you’re feeling vulnerable. Before you dive into any service, make sure
you do plenty of research, and read everything carefully before signing. The Federal Trade Commission has a pretty
good guide for researching services, link in the description. Credit counselors will review your budget
and provide education about debt management. They may also suggest enrolling in a debt
management plan—a strict repayment schedule that may result in lower interest rates or
other benefits, depending on your individual circumstance. Some credit counselors charge for their services
you owe but you may be able to do it at a lower interest rate. And finally, debt settlement programs — like
National Debt Relief, who sponsored this episode—can also be a helpful resource. These programs charge you a portion of your
debt in exchange for negotiating with creditors on your behalf to reduce the amount you owe
and consolidate your debt into a single lump sum. You’ll have to see if your situation qualifies,
but if it does, you could pay back a fraction of what you owe in less time compared to making
minimum payments over the next ten to twenty years. Debt settlement is a good option if you’re
drowning in a large amount of unsecured debt. National Debt Relief recommends their program
to folks who have over \$10,000 in unsecured debt—which is the kind of debt we talked
about in part 1 that doesn’t have collateral behind it. And remember, the very best thing you can
do to combat debt is to educate yourself, so just by searching Youtube, watching this video, you are already off to a good start. For this series we partnered with National
Debt Relief, a debt settlement program with a Better Business Bureau A+ accreditation
and over 13,656 client reviews from folks who are no longer drowning in debt thanks
to their services. They’re completely performance based and
charge no fees until their clients see their debt reduced, and offer a free savings estimate
that can show consumers how much they can save with no obligation. Visit https://www.nationaldebtrelief.com/HTA
to get a free report comparing all your debt relief options. So just like you wouldn’t let an alcohol-drunk friend drive a car, don’t don’t let an adrenaline-drunk brain… drive your brain… [laughter] Theoretically simple ways to heff—hevffhevff And they’ve got tools to make you feel like you need stuff that you probably don’t or to spend money when you probably don’t have to or even want to, you just do it because they’re so good at manipulation things… They’ve done lots of research on you. They’ve done so much. SciShow Psych: we talk about that a lot. We talk about that a lot. There’s a thing, there’s a whole—I probably shouldn’t do it but there’s a whole—like, we keep doing it. Like, I like these—these—where it’s like, “Here’s how it works… and why it works… and it’s still going to work” How much they s— [garbled] Visit https://www.national— Can I just say National Debt Relief.com? Ok
[laughter]

## How to Pay Off \$10,000 of Debt in 1 Year

Hi guys, Bridget here and I wanted to talk
to you about the suckiest thing that I ever had to do and that was pay off tens
of thousands of dollars of student loan debt. When i graduated from my bachelor’s
degree, I owed almost \$21,000 in student loans and I was
working part-time with Apple Store for \$14/hr. My debt balance
was soul-crushing and I had no idea how I was going to pay it all off. But 22 months later I was completely debt-free, had tens of thousands of dollars saved for
retirement and was investing in the stock market. I want to share with you
how I did it so if you’re struggling with tens of thousands or even over a
hundred thousand dollars of debt you can feel inspired and motivated to
pay it off in record time. It is totally possible to pay off over ten thousand
dollars of debt per year, as long as you’re committed and you follow these
strategies. The first might seem a little obvious, but a lot of people don’t do it
and that’s maximizing your income. It’s no secret that the more money you
have, the easier it is to pay off your debt. The first thing you should do is
maximize what you’re already earning. This might mean working overtime or
taking extra shifts, or it might mean negotiating your salary for higher pay.
The most important thing is just that you increase the amount of money coming in and you put it towards your debt. The second tip that you should do after
increasing your income is to keep living like a student. After I graduated from my
degree, I didn’t go out and buy a car or buy house. I really just stayed in the same
apartment that I was in and kept the same bills that I had as a student. By
not inflating my lifestyle, my money went a lot further — especially because I
didn’t have to pay tuition anymore! When you’re trying to pay off debt, it will
require some sacrifices in lifestyle, but remember it’s only for a short time
and you can absolutely do it. You should be spending at least 15% of
your net income on repaying your debt. If you’re not it’s time to increase those
payments until you are. The third tip I suggest is to use cash windfalls towards
your debt and what I mean by cash windfalls are unexpected large amounts
of cash that can really put a dent in your debt. Because I paid for my school
myself, I had tons of tuition credits at tax time. This meant when I filed my income taxes, I usually got a fairly large return. Instead of taking it on a trip to Mexico
or buying myself some designer clothes or a new computer, I put it all towards my
debt. This let me pay off thousands of dollars in one payment. If you receive
any kind unexpected large amounts of cash, whether it be from a tax refund an inheritance or even birthday money, don’t blow it! Use it towards your debt.
Finally, one of the best things you can do is devote a single income stream
towards debt repayment. This goes hand in hand with the earning more income. If you
can find a second or part-time job, or a hobby that you can do for money use that just for debt repayment. A few
months after I graduated, I got a really nice cushy job with a good paycheck that
meant I didn’t have to work two or three jobs at a time anymore, but I still kept
tutoring chemistry at the university I graduated from. I could charge
\$25 to \$35 an hour and see three or four students a
week, which gave me hundreds of dollars more each month to put towards my debt.
Tutoring chemistry was actually the best way to put my degree to use to pay off
the student loans that got me it in the first place. If you can find a small but
consistent income stream, direct that entire income towards paying off your
debt and you’ll see the balance go down super fast. Altogether, these strategies will let you
pay off \$10,000 or more of debt each year. It might seem impossible now, but
you can pay your debt off. If you need any extra help you might want to check
out my free Debt Crusher eCourse. I’ll leave a link in the
letting me know how much debt you have, and what you’re doing to pay it off.

## Perth’s Top 5 Areas for Growth in 2020

– Want to know the top five
Perth areas for growth? Well, the Perth property
market is undeniably in recovery now, so stay tuned as I share the top five areas for
growth for 2020 in Perth, but first, let me introduce myself. G’day, guys. My name is Tim Guest. I’m Australia’s leading financial educator and the founder of Infinite Wealth. Welcome to our #JustAskTim video series, where you can get all your
questions answered on anything finance, real estate,
investment related, and more. Now please like, comment,
tuning in, welcome along and thanks for joining us. And don’t forget to follow or subscribe wherever you’re seeing this. So, the Perth recovery is back on track, having faltered in the lead-up
to the federal election. Like many locations across
capital city Australia, Perth paused amidst the
uncertainty created by the election and the prospect of a Labour victory and major changes to property taxes. Tighter finance and a highly
negative media also contributed to putting the brakes
on the Perth recovery in the lead-up to the election. Or, sorry, my correction, the Spring 2019 Price
Predictor Index published by Hotspotting shows the decline has likely bottomed out
with, well, firstly, almost 30% of Perth suburbs
having recorded growth in their median prices
in the past 12 months. Also, a steady number of suburbs with increasing sales volumes. There is also an improving number of markets with steady sales volumes and now, very few markets at all with declining sales volumes across Perth or Perth metropolitan area. This also comes as vacancy rates continue to tighten and rents rise. Now, mid-October data from
SQM Research showed that the Perth vacancy rate
was continuing to fall. In 2017, the rate was close to
6%, but now 2.9% and falling. Now, SQM Research also
reported solid growth in Perth rentals, with the rents index up in annual terms for both
houses and apartments. This source also recorded
short-term improvement in the city’s prices index and that’s been confirmed by
the latest Domain price report published in mid-October. As they’ve recorded in several
of their previous surveys, the recovery in the Perth
market, after several down years, has been dominated primarily by four local governmental areas, so Joondalup, Stirling,
Wanneroo, and Melville. Now, their spring survey confirms that this is still the case. So heading our top five areas in Perth for growth is the suburb of Heathridge. Now, an uplift in sales
activity in the past 12 months means the Joondalup local government area is the leading precinct in Perth for the number of suburbs
in the property market and leader of the Perth recovery, Joondalup will have its prospects boosted by two significant projects. Approval of the marina and waterfront tourist/retail
project has been accompanied by plans for the Boas Place project, which is a mixed-use
development of office, hotel, retail, and residential elements. Now, Joondalup is also an
area with strong amenities, services, and good road
and rail links to the CBD. Recognised by the state government as the main strategic metropolitan
centre in northern Perth, its healthy economy is boosted
by strong population growth. Joondalup offers a pleasant
waterside environment with Lake Joondalup, while being within easy reach of the ocean and the beaches. Now, for property investors, it has the important
quality of major education and medical facilities, which provides a steady pool of rental demand. At a time when the Perth market is moving into recovery phase after several years in decline,
the Joondalup precinct has several growth suburbs which offer the opportunity to buy well
ahead of future price rises. Heathridge is a well-located suburb where buyer demand is now rising strongly. So next up is the suburb of Karrinyup. So big things are happening
in the City of Stirling, where Karrinyup stands
out as one of the most sought-after residential enclaves and steadiest property markets in Perth. The Stirling City Centre
project is touted as being one of Australia’s biggest
urban regeneration projects and \$1.6 billion is
being spent on upgrading two shopping centres, including the Karrinyup Shopping Centre. This is having a positive effect on the Stirling property market, where sales activity is strong, and that’s a trait that is
particularly noticeable. Now, in Karrinyup, which features in the Hotspotting’s Price Predictor Index as one of the National Top
50 Most Consistent Markets, Karrinyup offers a leisurely lifestyle, benefiting from its proximity to beaches, and extensive green space. It is close to the
internationally renowned Scarborough Beach, where trendy bars and cafes impart a youthful
vibrancy on the area. Further adding to the region’s
appeal are the shopping and education facilities, coupled with good transport links to the Perth CBD. Vacancies are low throughout the precinct, providing further
evidence of strong demand for real estate in suburbs like Karrinyup. Now, at number three
is the fastest growing Perth suburb in the last
12 months, Mount Pleasant. So the Perth market is
showing signs of recovery with improvements in vacancies,
rents, and sales activity, and one of the standout performers is the Melville local government area. Several of its suburbs
have growing buyer activity and some have recorded price
growth in the past 12 months. Mount Pleasant has recorded a 17% increase in its median house price and Bull Creek has grown 8%
over the last year alone. These rises are against the general trend in the Perth market at present. Suburbs in the City of Melville straddle the inner-city and
middle-ring areas of Perth. They benefit from being close to the major east-west transport corridors linking the Perth Airport
to the Port of Fremantle. They also have good
Melville local government area are marked as major economic
growth centres, while Murdoch, a precinct within the City of Melville, is already renowned as a major
health and education hub. Further development is
expected in the region and the strong level of
infrastructure spending targeted on the Melville precinct
suggests this market is well placed to grow as Perth
enters the recovery phase. Now for number four, Tapping. Recent uplift in the
median price in Tapping is part of a trend taking hold in the Wanneroo local government area and across Perth generally. The Western Australian
economy is improving, unemployment is falling, and population growth is at
its best level for four years. The Perth property market is responding, with vacancies trending lower, rents rising, and prices
recovering in many areas. Against this background,
the City of Wanneroo property market is showing positive signs, with several suburbs producing an increase in median house prices
in the last three months. They include the suburb of Tapping, which has plenty of appeal
for both home buyers and investors, as it has large new homes and proximity to existing
and emerging job nodes. Over the past decade, 177,000
new residents have moved to this municipality, making
it the fastest growing local government area
in Western Australia. There’s little sign of a slowdown in the growth of this region and in support of this growth,
both the Mitchell Freeway and the Joondalup/Butler
train line are being extended while the state government
is busy building new schools. Growing industrial areas are also providing employment opportunities and with houses in most
suburbs priced in the \$300,000 and \$400,000 marks, properties
in the City of Wanneroo are worthy of attention by investors. Now, rounding out the top five
is the suburb of Riverton. So the City of Canning is one of Perth’s most compelling growth precincts and it’s projected to
become the home to an extra 35,000 people over the next 20 years and is attracting new residents because of its affordability. And this is leading to an uplift
in local property markets. Sales activity is rising
in some of the suburbs in the City of Canning,
including East Cannington and Riverton, providing
testimony to the area’s stronger performance
over the last 12 months. The REIWA ranked East
Cannington as one of Perth’s top growth suburbs in late 2018 and named Canning Vale as one of Perth’s top-selling
suburbs in April this year. Riverton also features among
the National Top 50 Suburbs in the spring edition of
precinct, including Riverton, as the Perth market shows
increasing signs of recovery. The City of Canning has particular appeal because of its proximity to
health and education precincts, and industrial employment in the Perth CBD and Perth airport. Now underway are the City
Centre Regeneration Programme and it’s expected to deliver 10,000 new homes for 25,000 new residents. And the area around the
Cannington Train Station is marked for further
residential development, while 1,500 new homes are eventually being built in Bentley. With Perth overall offering
strong levels of affordability, the City of Canning
offers considerable appeal to investors and home buyers. So guys, that’s pretty
much it from me today. Remember to like, comment,
and share this video, and don’t forget to follow or subscribe wherever you’re seeing this. Also, if you want to submit
a question or there’s a topic you’d like me to discuss in more detail for our #JustAskTim video series, there’ll be link in the
post for you to do that. Also, stay tuned later in the week for The Week in Real Estate, The Wire, where you can get all the top
stories happening this week in finance, real estate, and investment. Guys, have a great week and remember, there’s
only one thing in life that makes a difference and that’s action. See ya, guys.

## How Student Loans Work…EXPLAINED!

Mike: Hey? Have you guys ever heard of Tyler
Oakley? Well, Tyler Oakley has heard os student loans, cuz he had ’em. Big time. And so he
and his friends at Big Frame have asked us to make this for you to explain how student
loans work so you know, you guys can hae a slightly better life vis a vis (?) student
loans than Tyler did. Cuz from what I understand, he and his friends found it very confusing
being that they’re humans and everything. So how do student loans work, and how can
you make them work better for you? Part One: The FAFSA AKA Free Application for Federal Student Aid.
Now before you actually start looking for loans, you’re gonna want to fill one of these
babies out, either online or on a paper form, which apparently is still a thing. Did you?
I didn’t. In any case, huh? Quick note: filling out the FAFSA is FREE!
Free! Never pay any scammers who are trying to get your money to fill it out. Go to FAFSA’s
government website, not FAFSA.com because those guys… somethin’s fishy. In addition to being used for federal financial
aid the FAFSA is also used by state and school funded programs, such as scholarships. Now
if you’re in high school, reeer-eer rock and roll, high school here, it’s the hippest
place in town. Look at me, I’m not a 31 year old man, I’m so hip. I think you can tell.
(beep) If you’re in high school then you’ll definitely want to fill this out as soon as
possible after January 1st during your senior year. If you’re not in high school, you
still do want to fill it out as soon as possible after the New Year. I do want to take a second to emphasize how
important this is. Most financial aid is given out on a first come, first served basis even
though it is determined by different factors. So the sooner you can get that FAFSA in, the
bettter you chances of getting the maximum amount of aid available to you. And alas,
this is not a one time thing, either. Even when you’re in school, you have to keep filling
it out every year. This is because, you know, your circumstances might change. One of our
lovely Tumblr readers said that you can get help from the financial aid office which makes
a lot of sense and we would highly recommend that. To actually fill it out your FAFSA, you’re
gonna need some documents. There are lots of different ones, so right now that information
is just floatin’ around my face right now because powers. Also, don’t leave any blank
space on the form, if something doesn’t apply to you, just write zero or not applicable
and then you’re done, you know. Just wrap that baby in a blanket and smack it on the
bottom, cuz we’re going on to– Part Two: Types of Loans After submitting your FAFSA, there are going
to be a number of different loan options. These include: 1. Stafford Loans – These are offered directly
to you, the student, from the US Department of Education. They can be used to pay for
many different kinds of higher education. Stafford loans will either be subsidized or
unsubsidized, based on your financial need. Subsidized loans mean you don’t have to
pay any interest on the loan while you’re still in school at least half-time. If your
loan is unsubsidized, you begin accruing interest on the first day you receive your funding. 2. PLUS Loans – AKA “Parent Loans for
Undergraduate Students.” These loans are offered to the parents of students by the
US Department of Education to help fund their child’s education. PLUS loans are limited
to the actual education expenses minus any other financial aid received by the student. 3. Perkins Loans – Perkins loans are available
guaranteed by the federal government. Perkins loans are based on your financial need and
be sure to look at your interest rate. Even decimal points of difference can add up to
huge amounts over the 10, 20 or whatever years during which you’re going to be paying your
loans. So read that fine print baby! Depending on your situation, you may also
need to apply for private loans. These are kind of tricky. Private loans typically charge
higher fees and more interest, but we do know that they might be the only option in your
case. More info in the dooblydo. Part Three: Repayment Hey, check out that fancy piece o’ paper
in your hands! Whoah mama! Aooga! Time to pay for it. You’re gonna have a few different
choices of how to pay your loans back. 1. Original terms – You can repay based on
your loan’s original terms. This is typically a 10 to 20 year repayment plan and it is the
most common method. 2. Income-based repayment. This is the second
most common type. The terms of your original loan are restructured to fit into your budget
based on your current level of income. You will need to reapply ever year for this type
of repayment, because your income may be changing year to year, hopefully going up. Up, up,
up, to the moon! 3. Deferment – If you can’t afford your student
loan payment, in some cases you can defer it. Deferment doesn’t get rid of your student
loan debt, it simply puts off when your repayment plan begins. It’s usually only granted to
current students, citizens in the military, or if you’re unemployed or are earning less
than the minimum wage. Unsubsidized loans will continue to accrue interest during deferment,
so it’s a good idea to make any payments that you’re able to. 4. Consolidation Loans – If you’re now
out of school and find your current repayment plan difficult to manage, you can always consolidate
your loans. Consolidating will take multiple loans and simplify them into a single new
loan. This can make repayment simpler and can extend your repayment terms up to 30 years,
which will lower your monthly payments, but will greatly increase the amount of interest
you pay over the years. It is super dupes important to stay on top
of your student loan payments or to work with a loan servicing company if you know that
you can’t make your payments, do that as soon as possible. Also, student loan debt does
not automatically go away. Even if you file for bakruptcy! What the crap? Only under very
special circumstances are you going to have these loans forgiven. One of those circumstances
is death. So you die, but you don’t have to pay. Every cloud… You may actually be able to get your loans
reduced or completely forgiven if you choose to work in the public sector. You may still
have to may 120 on-time monthly payments before your remaining balance is forgiven, but this
is a great option for local, state, and federal government employees. Part Four: A Note for Parents Hi parents! It’s nice to see you around here.
You’re looking nice. Would you like this gift card for Chili’s? (laughs) Or these tickets
to your Billy Joel concert? Or would you like… what’s another thing grown-ups like? I’m a
grown up (record scratch) Existential crisis! According to Forbes, more than half of all
student loans are either delinquent or in deferral. These loans can be for staggering
amounts, so if you do choose to help pay for your child’s college education, saving early
is A+++. The IRS actually wants you to help pay for your child’s education, so they have
something called a 529 Savings Plan, which is kind of like a Roth IRA for saving for
your bebes’ future. Not everyone has parents who are going to be able to help, but I do
want everyone to know this option exists to help. Part five: Tyler Oakley I’m so excited about this that I spit. I spit
in the rainbow arc, with the bad french accent that goes to italian sometimes. Tyler, you
make me speak in tongues, you make my sould dance, you make my liver quiver. I don’t know
what to say to you except (kiss) Thank you so much to Tyler Oakley and friends
for suggesting the topic of this week’s video. In return, I’m so happy to tell everyone that
HowToAdult will be donating ad revenue from this video to the Trevor Project. The Trevor
Project is a 24-hour hotline and resource for crisis intervention and suicide prevention
services to LGBTQ young people from ages 13-24. Tyler has supported the Trevor Project for
years. It’s very near and dear to his heart and to ours, so this is just our way of paying
it forward. Thank you so much Tyler, we heart you. If you guys are looking for a model of
awesome adulthood, Tyler Oakley is pretty hard to beat. We’ll see you guys next week.
I love you bye. (kiss) (endscreen)