I realise this is going to cause some debate but I have had some very differing views lately.
Is it cheaper to rent ?
- Thread starter Wishfull
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There have been plenty of studies over the years.
Rent - fixed cost, no rates, something breaks down you don't fix it (unless you broke it), to leave the home you don't have to wait and sell it. Better in times of high interest rates.
Buy - better in times of low interest rates, like now. It is a type of forced saving. Have to pay rates, have to spend money to keep up with maintenance and repairs, if you want to move you have to wait to sell and if you have to move quickly you become a price taker. Can make a capital gain over short or long term depending on the market.
Pros and cons to both - depends on each persons situation I think.
I would be quite happy renting. My wife likes to buy. Onto our 4th house that we have owned - made about 60K, lost about 70K (that was multi factorial though), made about 110K, currently living in the 4th and the market is up about 50K at present due to Covid. Probably lucky I listened to the wife :lol:
Rent - fixed cost, no rates, something breaks down you don't fix it (unless you broke it), to leave the home you don't have to wait and sell it. Better in times of high interest rates.
Buy - better in times of low interest rates, like now. It is a type of forced saving. Have to pay rates, have to spend money to keep up with maintenance and repairs, if you want to move you have to wait to sell and if you have to move quickly you become a price taker. Can make a capital gain over short or long term depending on the market.
Pros and cons to both - depends on each persons situation I think.
I would be quite happy renting. My wife likes to buy. Onto our 4th house that we have owned - made about 60K, lost about 70K (that was multi factorial though), made about 110K, currently living in the 4th and the market is up about 50K at present due to Covid. Probably lucky I listened to the wife :lol:
My grandad(who was a real estate agent) back in the day
Always said it would it is cheaper to rent as long as you invest your money
Somewhere else that would give you the same return if not better than property investment
Sometimes i think I should have taken his advice. But then again. Nice to have
somewhere to call your own
Cheers Banjo
Always said it would it is cheaper to rent as long as you invest your money
Somewhere else that would give you the same return if not better than property investment
Sometimes i think I should have taken his advice. But then again. Nice to have
somewhere to call your own
Cheers Banjo
Houses i take it ?
Owning is probably dearer but in the long run you will profit when it comes time to sell.
If you ment lady friends
Renting is by far the cheapest as long as you don't catch any hidden surprises.
If your talking prospecting gear
Know the tool in your hand is by far the best option and you would have more chance renting my wife than my detectors.
Owning is probably dearer but in the long run you will profit when it comes time to sell.
If you ment lady friends
Renting is by far the cheapest as long as you don't catch any hidden surprises.
If your talking prospecting gear
Know the tool in your hand is by far the best option and you would have more chance renting my wife than my detectors.
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Depends on what the long term Goal is ?
For me it is always Own .
I've Brought & Sold many House's always made money on Real estate :Y:
I rented when I was younger , And always thought " I'm paying off someone else investment :| "
For me it is always Own .
I've Brought & Sold many House's always made money on Real estate :Y:
I rented when I was younger , And always thought " I'm paying off someone else investment :| "
Old bloke turned up on a building site a bit confused.
We said what`s up.
He said I don`t know you come home early they think you want it.
You come home late they think you`ve had it.
Separating in their 80`s they had been married over 50 yrs.
I don`t get it.
We said what`s up.
He said I don`t know you come home early they think you want it.
You come home late they think you`ve had it.
Separating in their 80`s they had been married over 50 yrs.
I don`t get it.
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:lol: :lol: :lol: I know what you're sayingaussiefarmer said:
Jam doughnuts are cheap Ahh :Y:
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NE hit the nail on the head depends on each individuals/couples circumstances. Me I/we prefer to buy and own for future prosperity. The kids think their in for a windfall :lol: not as good as they hope for if I/we get to retire by 60 we've got plans layful:
layful:
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Wishfull said:
That's a real "how long is a piece of string" question.
Depends on so many factors:
Do you have a good deposit - if so, would probably be better in a house than a bank - if not, means a big mortgage, and then you have to remember that interest rates can go up just as easily as they came down.
Do you have a steady and reliable job, and likely to remain where you are for some time - if employment security uncertain, house could end up being a brick around your neck.
Do you have, or want to start a family - probably a no-brainer, provided the two conditions above are favourable.
Real estate has been a sure bet for a long time in Australia now....but past performance is no guarantee of future performance.
Rising consensus among the economic commentariat is that inflation could be on the way sometime soon....mainly bought about by the huge sums of money injected into economies by governments.
That "free money" is already pushing up asset prices everywhere - something on ABC today about some artwork that sold for $120m - 2nd highest price ever paid for an old master - money sloshing around everywhere.
So, real estate won't escape that wave of loose cash....and Oz real estate seems to have defied the odds during Covid.
I would exercise extreme caution though if thinking of an apartment.....market is pretty well saturated....prices are falling across the board....it's a market very dependent on overseas money (which has dried up lately)....and has been hit a bit by the Covid "work from home" fallout, meaning some people no longer need to live in the CBD. And that's not to mention issues of quality - think Opal Towers and Mascot Towers in Sydney.
The thing is, we need to stop looking at houses as financial assets - they are a place to live and love - but then you can't ignore the fact that at todays prices, it's a mighty big commitment - best to be sure that you can handle it.
Best of luck with it - to be honest I wouldn't swap places with you on this one for quids
Goldtarget
(AKA OldGT)
Each region is different of course, but in my experience (sample size of 1), 15 years ago, renting was a pretty good deal. Rents were roughly half to 2/3rds of the mortgage payment for the equivalent house.
I moved multiple times for better income opportunities, always nice places, either brand new or less than a couple years old, operating bills were cheap, and the terms were good short or long term.
The last 5 or so years the scales have tipped locally to make a property purchase much more attractive. We pay at least as much (probably a deal more under current rates) rent on the house than repayments we are in at the moment, and any other options weve looked at are the same equation.
I moved multiple times for better income opportunities, always nice places, either brand new or less than a couple years old, operating bills were cheap, and the terms were good short or long term.
The last 5 or so years the scales have tipped locally to make a property purchase much more attractive. We pay at least as much (probably a deal more under current rates) rent on the house than repayments we are in at the moment, and any other options weve looked at are the same equation.
UnderEmployedGeo
Gold Gold Gold
In a sense you are either renting from another owner, or renting from the bank. Unless you own your house outright, of course, then buying becomes the obvious choice.
The advantage of renting from the bank is that they just want their interest money and that is all. They don't really care what you do to the place or anything. You pay them back, they let you keep the place. With an actual landlord, well, you have to keep it nice, you have to ask for permission to do anything, and they can boot you out with a couple months notice for basically no reason. So "owning" is vastly superior.
The simplest way to decide is to look at what you can afford to buy (via a mortgage broker for example) and then look at how that compares to rentals. If the buy option is around twice as expensive or less, buying is probably the way to go. (assuming you're pretty set on living in a particular area of course).
Mortgage-buying a house should be more expensive on a weekly basis than renting, but not like twice as expensive. If that happens, then rents are too low and maybe you should just rent for a year and see what happens... If mortgage is the same as rent, BUY BUY BUY - why on earth would you finance someone else's retirement in those circumstances?
The advantage of renting from the bank is that they just want their interest money and that is all. They don't really care what you do to the place or anything. You pay them back, they let you keep the place. With an actual landlord, well, you have to keep it nice, you have to ask for permission to do anything, and they can boot you out with a couple months notice for basically no reason. So "owning" is vastly superior.
The simplest way to decide is to look at what you can afford to buy (via a mortgage broker for example) and then look at how that compares to rentals. If the buy option is around twice as expensive or less, buying is probably the way to go. (assuming you're pretty set on living in a particular area of course).
Mortgage-buying a house should be more expensive on a weekly basis than renting, but not like twice as expensive. If that happens, then rents are too low and maybe you should just rent for a year and see what happens... If mortgage is the same as rent, BUY BUY BUY - why on earth would you finance someone else's retirement in those circumstances?
Moneybox
Philip & Sandra Box
Buying a property is a form of forced saving. If you could put the same amount of money you pay into your mortgage into savings then you'd most likely come out on top. Most of our mortgage payments go in interest so the best value is in the capital gain.
Seeing that few of us are disciplined enough to put away savings regularly then buying your own property is the best option for financial reward. However, if you always live in that property then you never realize the financial gain. Take a look at all these grey nomads caravanning about the country. A lot of these have either sold their home or rented it to finance their retirement. If you never buy you don't have that option.
Seeing that few of us are disciplined enough to put away savings regularly then buying your own property is the best option for financial reward. However, if you always live in that property then you never realize the financial gain. Take a look at all these grey nomads caravanning about the country. A lot of these have either sold their home or rented it to finance their retirement. If you never buy you don't have that option.
Buying at the top of the market is not a good idea unless you plan to live in and keep the property for about 10 years, though who knows what the top of the market is. My new area has gone pretty crazy lately and most real estate guru's are saying the property market will continue to rise for the next couple of years at least with low interest rates.
I got lucky and bought my new house right at the bottom of the market, the real estate agent told me so as well, he said "you really got a bargain on this place and we expect prices to rise 10% over the next year", I thought he was just trying to make me feel like I got a good deal but he was right, has gone up more than 10%, units in this area have actually have gone up 22% in a year.
Buy I reckon, renting is just dead money really to me, though it all depends on your own needs. I don't plan on selling for quite a long time and am happy where I am.
I got lucky and bought my new house right at the bottom of the market, the real estate agent told me so as well, he said "you really got a bargain on this place and we expect prices to rise 10% over the next year", I thought he was just trying to make me feel like I got a good deal but he was right, has gone up more than 10%, units in this area have actually have gone up 22% in a year.
Buy I reckon, renting is just dead money really to me, though it all depends on your own needs. I don't plan on selling for quite a long time and am happy where I am.
Had my first built when I 24yo. $2k for land, $15,500.00 for home. Sold 4 years later for $41k.
Bought next for $31k sold 5 years later for $40k.
Next bought $45k sold 5 years later for $90K.
Present home bought $150k now valued at $450k.
Definitely better long term, buying opposed to renting.
Bought next for $31k sold 5 years later for $40k.
Next bought $45k sold 5 years later for $90K.
Present home bought $150k now valued at $450k.
Definitely better long term, buying opposed to renting.
If you only intend to stay in an area for a short period of time than renting would be the better option over buying.
Otherwise..
If you can afford to buy or you are putting down roots in an area , then owning the property is the better choice.
It just depends if your financial circumstances allow you to have the choice between the two options
Otherwise..
If you can afford to buy or you are putting down roots in an area , then owning the property is the better choice.
It just depends if your financial circumstances allow you to have the choice between the two options
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Work hard, as many jobs as you have time for, and save for a deposit.
Then buy a house, pay off as much as you can as quickly as you can.
Use the equity to borrow another deposit. [ 18 months ?]
Buy another house, do your homework when purchasing so it can be rented out positivly geared.
Repeat every 18/24 months.
Heaps of houses sub 300k in country Vic that are pulling 250 - 300 a week in rent.
You don't have to earn a huge figure to achieve this, anyone can do it, all you need is the guts to try.
Then buy a house, pay off as much as you can as quickly as you can.
Use the equity to borrow another deposit. [ 18 months ?]
Buy another house, do your homework when purchasing so it can be rented out positivly geared.
Repeat every 18/24 months.
Heaps of houses sub 300k in country Vic that are pulling 250 - 300 a week in rent.
You don't have to earn a huge figure to achieve this, anyone can do it, all you need is the guts to try.
Many different answers to this, location, price range, duration of occupancy, all have a bearing on the rent or buy question.
We are living in our 5th home currently, the first four we made good money on by living for only a few years, buying right in the right location, renovating to suit the market, not necessarily ourselves then selling. Our current home is going to be totally different and there is no chance of making any sort of a profit, if we'd rented we would be way ahead. Why?
We moved to the Gold Coast in 2005 for family and schooling reasons, bought in a good, quiet area that was liked by the Banks, they knew they wouldn't lose if things went pear shaped. Paid $497k for a 4 bedder on 1000m block and we had a healthy deposit, we plan to sell this year targeting $850k less selling costs and Mortgage payout. We may have around $600k in our hand, so why are we going backwards when compared to renting?
We've renovated putting about $150k in, if we hadn't our selling price would be only around $650-700k. In addition there there is the Mortgage, around $400k over 15 yrs, rates, and other statutory costs $40k, then there are all the little Bunnings buys, 15yrs of bits and pieces, and don't forget CPI. If we rented over 15 yrs it would have cost us about the same as the Mortgage, but we wouldn't have shelled out the deposit, the statutory costs, the renovations, the Bunnings bits and the final mortgage payout (our mortgage is 30yrs) so could be $3-400k in front.
So what went wrong?.... We bought a home not a renovator as the primary target, we stayed too long and though the market has moved it stalled in 2008, our area is a stable family area so growth is solid but not excessive due to outside factors like public infrastructure.
We've had a lot of property both here and overseas so knew our current home would not make money, what we needed was stability for our daughter to complete school and uni, and you can't put a price on that.
Every area is different and this reflects in rental prices, purchase costs, profit growth, certainly you can make money on the house you live in, but I believe you need to plan to do that by what you buy at the beginning and be aware of all influencing factors. Then you might just get lucky like the Nar Nar Goon farmers https://7news.com.au/business/prope...ter-almost-selling-for-265k-in-2004-c-2050470
But is renting better that buying, there is no right or wrong answer in my mind, it's all about situation. Would we buy again?.... right now I have no idea, all I know is our Camper is bloody comfortable and being a nomad very attractive
We are living in our 5th home currently, the first four we made good money on by living for only a few years, buying right in the right location, renovating to suit the market, not necessarily ourselves then selling. Our current home is going to be totally different and there is no chance of making any sort of a profit, if we'd rented we would be way ahead. Why?
We moved to the Gold Coast in 2005 for family and schooling reasons, bought in a good, quiet area that was liked by the Banks, they knew they wouldn't lose if things went pear shaped. Paid $497k for a 4 bedder on 1000m block and we had a healthy deposit, we plan to sell this year targeting $850k less selling costs and Mortgage payout. We may have around $600k in our hand, so why are we going backwards when compared to renting?
We've renovated putting about $150k in, if we hadn't our selling price would be only around $650-700k. In addition there there is the Mortgage, around $400k over 15 yrs, rates, and other statutory costs $40k, then there are all the little Bunnings buys, 15yrs of bits and pieces, and don't forget CPI. If we rented over 15 yrs it would have cost us about the same as the Mortgage, but we wouldn't have shelled out the deposit, the statutory costs, the renovations, the Bunnings bits and the final mortgage payout (our mortgage is 30yrs) so could be $3-400k in front.
So what went wrong?.... We bought a home not a renovator as the primary target, we stayed too long and though the market has moved it stalled in 2008, our area is a stable family area so growth is solid but not excessive due to outside factors like public infrastructure.
We've had a lot of property both here and overseas so knew our current home would not make money, what we needed was stability for our daughter to complete school and uni, and you can't put a price on that.
Every area is different and this reflects in rental prices, purchase costs, profit growth, certainly you can make money on the house you live in, but I believe you need to plan to do that by what you buy at the beginning and be aware of all influencing factors. Then you might just get lucky like the Nar Nar Goon farmers https://7news.com.au/business/prope...ter-almost-selling-for-265k-in-2004-c-2050470
But is renting better that buying, there is no right or wrong answer in my mind, it's all about situation. Would we buy again?.... right now I have no idea, all I know is our Camper is bloody comfortable and being a nomad very attractive
Agree Redfin
Plenty of properties out there under 100k that have the potential to return $250 or more a week.
Plenty of properties out there under 100k that have the potential to return $250 or more a week.
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