Loan Repayment

[Dr.BadVibes]

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Hey guys...I just wanted to know on average how long it takes for a graduating dental student to pay off his dental school loans? I know every person is different and every school is different, but on average! Especially if you goto a school like NYU, how long does it usually take NYU graduates to be debt-free!

Im just wondering, cause at the moment, Im a stupid pre-dent that doesnt know much about the world after dental school. On other threads, you say its a good investment, but do I really want to be in my mid 30's still paying off debts? One of the advantages of being a dentist is living a comfortable, financially successful life, but being in constant debt doesnt equate! Remember, Im just assuming and have no idea what Im talking about...thats why Im trying to ask some of you guys who are obviously more informed!

Cheers!

 

[3rdMolarRoller]

It takes money to make money

I plan to pay mine off in 8 to 10 years...maybe sooner bec my gf will be working while I am in school. In this time frame, I do not plan to live a lavish life style, maybe slightly above student status.

But I plan to use my dental income to invest into other areas so that in 15-20 years my dental income will be my supplemental income.

Sorry guys, top secret plan on what I will be doing, but I recommend to get an MBA (if you were a non-biz undergrad) so you know how to properly manage your cash flows

You could do fine without an MBA/biz knowledge, but you will be doing trial and error with your own money and won't be the most efficient with it. Eventually you will learn but won't get the biggets bang for your buck.

Well thats my opinion/plan and others will respond with some great plans also. Its what ever will work for you!!!

 

[le fort guy]

Originally posted by Brocnizer2007
It takes money to make money

But I plan to use my dental income to invest into other areas so that in 15-20 years my dental income will be my supplemental income.

Sorry guys, top secret plan on what I will be doing, but I recommend to get an MBA (if you were a non-biz undergrad) so you know how to properly manage your cash flows

You could do fine without an MBA/biz knowledge, but you will be doing trial and error with your own money and won't be the most efficient with it. Eventually you will learn but won't get the biggets bang for your buck.

I just thought that I would share the big secret about making $$$ in AZ.

Real-estate. Well at least thats the big secret in AZ. You are correct about it taking money to make money. With being a dentist and making the money they do, you will be able to invest enough money in real-estate to get a good return. With all of the new development in AZ its simple. Buy a house while the subdivision is in the first phase of construction (most subdivisions end up having 5-8 phases). Because prices increase with each new phase you would be assured that you paid the least possible for the home. My girfriend bought a house in the first phase of construction and the value of the home increased by more than $30K before it was even built. Now she's been in it less than a year and the value has increased by about $60K.

If you know a contractor who can build you a house for less than a track home builder will then your in great shape. I know a couple who had their friend that was a licensed contractor that built them a house for $390K. They sold it 2 years later for $797K.

There are some downside though. For example, to get out of paying capital gains taxes one needs to own the house for at lest 2 years before selling. Another is the interest rates. It will only be a sellers market as long as the interest rates are low.

Others buy duplexes. I prefer to not deal with the hassels of renters.

Brocnizer2007 was right in saying that it takes money to make money. THats good for all us budding dentists because we will have enough money to put it to work for us.

 

[ShawnOne]

Originally posted by avingupta
On other threads, you say its a good investment, but do I really want to be in my mid 30's still paying off debts?

Mid 30's?

Considering the average age of DS-1's is 25, most people will not start practicing until they are about 30 years old. If you can be debt-free by mid-30's thats pretty early!!

As a business major, I completely disagree with the idea of paying loans off immediately. Why?! To avoid paying the interest?? You can make a much bigger return if you re-invest the money back into your practice and concentrate on growth and development. Go look at any business's balance sheet. They all carry debt, its no big deal!

Just my $0.02

 

[edkNARF]

I agree with ShawnOne. If anyone is confused as to what he is speaking of, look up "opportunity cost" in any economics textbook.

My $0.02

 

[NewNameForGoogleBot]

Just to clarify: to avoid paying capital gains taxes you need to LIVE in the home for 2 of the past 5 years. This is the only way to get a break for a primary residence. Otherwise you need to look into a 1031 exchange to buy new real estate with the proceeds from your sale.

 

[3rdMolarRoller]

Don't forget, you also have a 60 day grace period after the sale. If you reinvest the money in that time frame, you also avoid capital gains

As for real estate, try to buy land BEFORE developers get in. This is hard to do but pays very big.

Example: In Palm Coast FL i purchased 6 lots for $15k 4years ago and current market value is $120k. When I bought it, nothing but forest and now it has shopping malls and huge developments.

I have people calling at least 5 times a month for them and they aren't even up for sale. I will cash in shortly...maybe 3 years or so

Real estate is very tricky and at times risky. It is not guranteed return and many times all you get is the rate of inflation...add interest rate to the equation and you have a negative investment (yeah I've been screwed too 😡 )

Risk and return

Commercial property is great and I'm looking into some spots for my future office, but remember bec the location looks good the cap rates might be bad.

So much to say, but since this is a dental forum, I will limit the biz talk

 

[NewNameForGoogleBot]

Originally posted by Brocnizer2007
Don't forget, you also have a 60 day grace period after the sale. If you reinvest the money in that time frame, you also avoid capital gains

True, but this has to be structured through a 1031 with an intermediate agent to hold title during that time. There are a couple of kinda wierd rules, but nothing terrible.

 

[Mo007]

Originally posted by ShawnOne
Mid 30's?

Considering the average age of DS-1's is 25, most people will not start practicing until they are about 30 years old. If you can be debt-free by mid-30's thats pretty early!!

As a business major, I completely disagree with the idea of paying loans off immediately. Why?! To avoid paying the interest?? You can make a much bigger return if you re-invest the money back into your practice and concentrate on growth and development. Go look at any business's balance sheet. They all carry debt, its no big deal!

Just my $0.02

Re-investing sounds good, just how much debt will that lead to?... assuming thats the right path, and successfully pay off the debts.

around $500,000? after DDS/DMD alone you are looking at $300,000 or more, if you graduate from NYU and other high tuition schools.

Thanx a lot!