How long would it take you to pay off 60,000 debt?

[Anonymous]

I owe €60,000 on a house which is rented out
Gives me €2,000 per month in rent
I plan to pay it off €2k per month
Which will take 2.5 years
How long would it take you?

When it's finally paid off I'll be able to spend extra each month

I would love to pay it off sooner

[RandomGirl42]

It would take me about 60, 000 years. I don't make enough money a year to even make the "poverty level" according to statistics. 🤣

[Asker]

Haha Random

You are wealthy in other ways

In health
And wholesome living
Eating well
At one with nature

[Nikki1989]

If I were to complete it in the shortest possible time, three months.

[Nikki1989]

Talking in Aussie dollars, obviously.

[Purpleronnie]

It would depend mostly on the cost of the debt. Although I’m not really in the habit of taking on debt.

[Asker]

About 3.5% or less

[jamesgoldman]

My entire income would take a decade, thankfully I'm free from debt and taxes

[Asker]

500 a month

If I didn't have the rental income I'd be the same

[jamesgoldman]

Keeps me under the tax threshold and I don't need much to exist

[Asker]

Hey is that real gold in your necklace? 🙂
If it is you're not doing badly 🙂

[jamesgoldman]

Silver... cost me £500 and worth about £800

Low karat gold would be £21,200 today

[AI Opinion]

Paying off a €60,000 debt using €2,000 per month in rent would take you 30 months, which is indeed 2.5 years. If you're keen on paying it off sooner, consider increasing your monthly payments if possible. You might explore ways to reduce expenses or find additional income streams to accelerate the payoff. Taking these steps can help you achieve financial freedom earlier, allowing you to enjoy those extra funds each month once the debt is cleared.

[MrChinaski]

Well, €60,000 is like $120,000 AUD. So on my passive income, 4 years. With a stipend or wage it will be faster. Still trying to work out what I want to be when I grow up.

[MrChinaski]

If I were willing to touch readily available financial assets, I could probably do it in 2.5 years.

Why do you ask? Slightly curious question.

[Asker]

Well I already explained

It's going to take me 2.5 years

Just wondering if anyone else would do it faster

[Asker]

I could use savings to pay it faster
If it was small eg 5k
I could throw my savings at it and then I would have the benefit of the rental income into my pocket

[Asker]

The reason I ask is it's taken a long time to get here , 20 years paying down €250k
And 60k to go
And then I'll have 2k passive income (pre tax)

[MrChinaski]

I don't know how the UK housing markets work, but in Australia house prices are so ridiculously high that investors generally exhaust all of their rental income, and about half are actually paying for the privilege of letting there house after land tax (much higher than for owner occupiers, agent fees if you aren't managing it yourself, maintenance and interest. The play is that you can write off interest expense losses against wage income in assessing labour tax today, and the capital gain you make when you sell is only half your labour tax rate and obviously is deferred as long as you choose. If you sell the asset in retirement, you might easily pay practically no tax on the capital gain. So the landlord couldn't care less about providing housing services, they are just shifting earnings to a later, lower tax environment. Anyway, it makes me wonder about you budgeting to clear 2000 a month being all of the gross rental income. But you would know your situation a lot better than I do.

[Asker]

I can subsidize the repayment from my salary

I'm aiming at 2.5 years. That's realistic.

But it pains me to have to wait that long

[MrChinaski]

I like your saving ethic.

[permanent]

You have no interest on the loan? No maintenance expenses for the property? No insurance? No taxes? You might want to run the numbers again...

[Asker]

Yes
All that
Like I said
I'm subsidizing it from my salary

[Hdjfmkdkd]

Hi, are you calculating taxes and unexpected bills? I would say 3 years max for me.

[Asker]

Like I said already I'm subsidizing things like tax
Expenses
Management fees from my salary

But what I'm aiming for is the time when I no longer have the 2k repayment
And then I have some extra income for the first time

[In_Trance]

60 / 2 is 30

Good luck with that

[Asker]

You are doubtful?