Renting & Owning

[R31Nismoid]

land prices arent too bad now; just bought land in 'college view' a few weeks ago and at the auction we were only competing against another young couple; got to 332k and we were highest but the owner passed in.

reserve was 355k land is over 700sqm

sold my house a month ago on plenty road in bundoora for 380k; not bad for a single storey 30+ year old place but rental was good at 350p/w

my parents house will be for sale in 6 months time but expect to fetch 800-900k; this again in bundoora

well university hill im told blocks are going for 400k

thats just land

fken ridiculous for bundoora IMO. Its bum fk creek!

[Roy]

I'm currently renting, but I take possession of a brand spanker next Friday.

A house is, in general, an appreciating asset. And there aren't many of those investments available.

Here's my maths (assumes everything constant - simpler that way):

Renting, $10k per year. Thats $250k in 25 years. I have nothing, other than $250k less in my pocket.

Buying, $250k mortgage, cost me $500k in 25 years. Ok, I've spent twice as much, BUT I have an asset worth $750k

Given the tightening of the rental market, and the easing of interest rates, I reckon that I'm going to be even better off at the end of the mortgage.

Agree, but if you are doing things with the difference between mortgage and rent then you can be well ahead of the game. For years when i was renting i did smart things with the money i was saving by renting. Then i hit about age 27 and thought fark it, i shoudl probably be dead, have this money and dsaving for stuff i may never get to do/enjoy...and starting living and went backwards

That is the risk with renting and saving/investing. You can get some nice coin saved but you dont have th eforced savings aspect of the mortgage.

I am in no rush to buy, being single also means you probably have a different view.

Apologies to those with mortgages and homes, but i hope the whole market crashes and burns , BIG TIME. I personally hope unemployment climbs and there is blood in the street. Then i may be able to move into the market without all the pain:)

LOL, the whole credit drama at the moment. I love how the people who are vocal about the market are crying crocodile tears. They are the ones with the reserves to increase their wealth in times like this...you could go as far as they help manufacture these market adjustments ever decade or so as i helps them secure more wealth LOL , i want to be them

[paulr33]

yeah the only way out is for the market to crash and it to hit rock bottom

it will happen sooner or later, it has to

and when its does, the value of money will be jack all -- woohoooo!!

interest rates should hit 1% - that would be ace!!!

mine dropped %1 before i even made my first payment haha

[CrispyFries]

My rent is going up $40 a week at the end of this month, so I'm currently looking at my options.

All you buying to rent out... if you have one with a double garage not too far from Mt Waverley let me know

[evade]

I wouldnt buy now. I'd wait till early/mid next year before even considering looking..

I hope the whole market crashes and burns too. I think some people are blinded by the whole belief that property will only go UP.

[Roy]

Stuff renting, and stuff buying in Australia. For the cost of real estate and cost of living in Aus we are taxed an amazing amount of money. It has been my experience that other countries where interest rates are as hihg as ours and property is so expensive, they usually have income tax rates half or even a 3rd of ours.

Australia is a bit screwy on that front....i dearly hope that some more checks and balances emerge in the next decade or so, otherwise i cant see how Australia hopes to move forward and maintain its std of living

[dezz]

I decided against headin to the US with my mate for a few months with the thought of buying a house soon...reading all of this is goin down nicely...if the market crashes mid next year, I should be in quite a nice position to get into it

[Primordial]

I wouldnt buy now. I'd wait till early/mid next year before even considering looking..

I hope the whole market crashes and burns too. I think some people are blinded by the whole belief that property will only go UP.

Have a look at the trend over the last 50 years.. it will.

Property is a long term investment. Of course the price will go up and down, but so does the stock market, cash, bonds and every other type of investment... with the eventual trend being UP. If you own a property for 10 or more years, you're almost guaranteed NOT to lose money, and depending where and what you buy you'll be well in front. On average property doubles in price every 10 years, and has done for decades regardless of booms and troughs.

[Roy]

I decided against headin to the US with my mate for a few months with the thought of buying a house soon...reading all of this is goin down nicely...if the market crashes mid next year, I should be in quite a nice position to get into it

Well, i am going to be spreading the word in every country that i travel to saying Australia's economy is shot, investors should get out etc etc. LOL, not that i know anybody or anything i say really matters

I am shocked by the amount of promotion there is in Singapore, Malaysia and India with regards to Australian Real Estate. Especially for Perth and Melbourne. They sell it quite well and makes me wonder how much of Australian reals estate is actually foreign owned?

Dezz, i would go to the States, get a job, have a good time and come back with money and experience (professional and personal) to boot

Fark wasting youth getting a mortgage, not before you have experienced the below pics.... or whatever it is that floats your boat. Mind you if i could get decent wireless and have a place iwth a view like this...yeh i would buy it

[dezz]

buying a house wasnt the only reason i didnt go...just 1 of em.

I travelled Europe and the west coast of America last year for a few months, so its not like I haven't been anywhere...

My mate has gone to New York and surrounding areas and is there for like 4-5 months...personally the fact that it'd be winter over there was a massive detterrent for me, as it was leading into winter when I was in europe...sure I still had a ball, but I don't want another winter right now.

Then there's the fact that its Ohio he'll be spending most of his time....probably end up marrying this bird...lol, dont ask. Really doesn't appeal to me at all. If it was L.A/Vegas etc again then I might have been slightly more tempted....I think at some point I'll go do Europe again, but in summer...

[CeJay]

I'm just putting most of my pay into my deposit atm, but not buying in the next few months I think, even though it's quite big.

[some_cs_student]

interest rates should hit 1% - that would be ace!!!

mine dropped %1 before i even made my first payment haha

In other countries when the interest rates were close to 0% the bank continued to charge 6% interest

Although imagine a fixed 3 year loan @ 3%, I could afford a house now lol

[R31Nismoid]

well you said you sold a house not long ago in bundoora...

so 1 + 1

[evade]

Have a look at the trend over the last 50 years.. it will.

I never said anything about long term..

did anybody see Alan Kohler on the 7.30 Report being interviewed by Kerry O'Brien tonight ?

it was about real estate values, AK said that the bottom end of the market was doing ok however the top end of the market is where the great pain is..he expects drops of 25 to 50% in higher priced/topend real estate..

what affects the topend will eventually flowdown to affect the bottom end i reckon.

real estate agents are already seeing a slowdown in movement of property over $500k..

if you can buy the same old 500,000 dollar house right now or for an extra 50K buy something of a distressed financial worker who has had to sell a house that would have fetched a mil or more a few months back, you buy the nicer place, then the house you have passed on has one fewer interested party, so its price comes under pressure, and so on down the line, meanwhile, as unemployment rises fewer people can afford to buy, but more people who lose their jobs also have to sell, so the market sags again.

Its the rich who lose first, but the poor who lose most, as fewer lattes are drunk and fewer flatscreens are bought, pretty soon waitresses and floormen will lose thier jobs, then we will see the bottom end start to suffer.

[BRUNSKIGTST]

yea you should be thinking of buying next year dood i think the gov doing some thing better next year for first home buyers and my opinion i rather live with my parents till i can buy my own place these days its cheap and you be able to save allot of cash for a deposit ! my opinion