View Full Version : House - Rent or Buy?
Just a general thread here ....
Do you Rent? Have u Bought a HOuse? Do u still live at home? Other.. please state.
I currently living at home after doing the whole rent thing a couple of years ago by myself (ended up goin pretty broke). But this time round ive got a great gf, am trying to plan for the future, tryin to save some $ but wont have enuf for a decent house deposit at the end of the year when i wanna move out. I've been against renting again, but at the same time refuse to live like a beggar and count every single cent i spend to survive if i were to get a house loan.
Discuss :)
xxploSive
20-02-07, 11:20 AM
Well you'll find that kids are more likely to live with their parents these days due to the highly unaffordable property prices (esp in Sydney). Nothing wrong with living at home.
Mike.V?!
20-02-07, 11:28 AM
The Melbourne property market is nothing like Sydney's, especially if you're looking at getting a place close to where you are now, Sp33dY.
It's never been easier to get a home loan than it is now. There are a lot of low % deposit loans on the market. For most of them you'll be stung with a higher interest rate for the first couple of years of your mortgage as well as missing on some of the bells and whistles of another products, but it can be well worth it if you're struggling to came up with that massive 20%
(FYI, stay away from 100%+ loans, they're usually bad news)
Yes, id be looking for somewhere up here near Bendigo ... not in Melbourne --- so bang for buck is a lot better here --- but it's also Victorias highest price rising area --- some houses values have gone up 30% in the last year alone! Thats the thing , no way id be able come up with the magical 20% ! Ive just seen a mate sink after going with one of those 100% loans --- he and his gf are now living at her mum and dads place. They got caught out with all those extra bills they forgot about, like council rates, water, maintenance issues, etc..... they regret not buying a brand new house and land package cos they wanted to be in a developed older area.
Mike.V?!
20-02-07, 11:49 AM
It always costs more than you think it will, but there's no reason why you can't make it work if you plan and budget properly.
House and land packages are great, just make sure you research your builder thoroughly. I've had a few friends build with Dennis Family and are extremely happy with what they got. There are some brand new sub 200k packages going up in Manor Lakes right now. Sure, they wont be big, but it'll be brand new and all yours.
josh2.5
20-02-07, 11:51 AM
Im still living at home.
Have no real need to move out at this stage due to the fact ive got it pretty good at home at the moment. Wake up to bacon and eggs every morning so id be crazy to leave :p
its allways better to buy a house sure youll do it tuff for a bit but you will have an appreciating asset when the renters will still be renting helps later if you want to say draw money from the housing loan to buy shares or whatever or use the colateral in your home to buy an investment property etc
Mike.V?!
20-02-07, 12:00 PM
Equity is a fantastic thing, but you should NEVER look at the home as you live in as an asset. As long as you reside in the house it's a liability.
Justin Fox
20-02-07, 12:02 PM
If you're going to buy a house it's for your kids more than yourself! Think about that one. Seriously.
Babalouie
20-02-07, 12:16 PM
Buy a hse if you can...we bought a house while we were in our 20's and rented it out while living with parents. We did move into the hse tho in the end, which was awesome for the 5yrs or so that we lived there.
In hindsight, that was a great thing to do, since the rental income and the fact that both me and my missus were working really broke the back of the mortgage. Spiralling Sydney prices didn't hurt either.
Today, I have 2 kids (3 in a few weeks time!) and my wife isn't working anymore. While I earn more today than I did a few yrs ago, when my wife was working we had a somewhat higher household income. So the moral of my story is: buy a house and kill the mortgage as much as you can, while you are kid-free and have relatively high combined earning power...that doesn't last forever you know :)
Equity is a fantastic thing, but you should NEVER look at the home as you live in as an asset. As long as you reside in the house it's a liability.
its more of an asset than renting
lovesil
20-02-07, 01:06 PM
Lucky for people with parents to live off with. Me and my gf have to rent no matter what as our parents ain't living here. But we are planning to buy one at end of the year. Still can't decide where in syd to buy.......
StanTheMan
20-02-07, 01:41 PM
renting is dead money
morgage is a forced saving. Thats the way i see it.
Tragically in the The sydney market is becomming more & more out of reach for the average wage earner. I consider myself extreemly lucky to have what we have on our combined income, which is very average.
our morgage is the only a few $ more than the next door neighbour pays for his weekly rent. & if government properganda turns out correct......he'll be paying more for rent than i pay for my morgage in 2011.
as for a morgage being for my kids..... I don't really agree with that. I'll be getting at least another 50 years benefit out of it one way or another. But then again who cares. I want the best for my kids if the housing market continues the way they predict......they will have absolutle no chance of owning thier own home without our help. If that gives them half a chance i'm all for it.
renting is dead money
morgage is a forced saving. Thats the way i see it.
Its a good way of saving plus, you have 4 walls and a roof to show for it.........and hopefully a decent sized garage/workshop as well :D
Myself and the better half are saving up so we can buy a house, we did our time renting and came to the conclusion its dead money so now we are back with the oldies.
Im more inclinded to buy so when i say to people "hey come round to my/our house" i know its my/our house instead of the place we are renting if you get what i mean.
As for buying in sydney......i dont know i really dont want to be confinded to western sydney because i dont want to be in over my head with a mortage, i have considered the option of moving elsewhere in order to get a better house for a better price.
Frogger
20-02-07, 08:30 PM
If you can afford to buy, go do that!
I'm currently in the strange situation of renting an apartment that my parents own. But yeah, when you consider bills on top of rent, it becomes hard to save up for a deposit later down the track...
bettyjmaar
08-06-12, 10:36 PM
Just a general thread here ....
Do you Rent? Have u Bought a HOuse? Do u still live at home? Other.. please state.
I currently living at home after doing the whole rent thing a couple of years ago by myself (ended up goin pretty broke). But this time round ive got a great gf, am trying to plan for the future, tryin to save some $ but wont have enuf for a decent house deposit at the end of the year when i wanna move out. I've been against renting again, but at the same time refuse to live like a beggar and count every single cent i spend to survive if i were to get a house loan.
Discuss :)
Decent houses are everybody's dream so you can go with rental houses (http://www.forleasebyowner.com) that to in cheaper rates as I bought my new house that to in cheaper rates.
i voted other because im more of a combination between choices 2 and 3.
my gf of 4 years and i took out a home loan and bought a unit last year. we dont live in it though, we both still live at home. we have tenants in the unit renting. theyre paying off our mortgage, not us. costs me sweet fuck all in repayments each week due to that. i dont even feel it financially.
thats the smartest option for us, and in general in my opinion. if u can live at home or currently still are, use this time to buy property and rent it out to someone. get them to pay off ur mortgage for as long as you can. then when its time to move out, either sell the property (probably at a higher price than u paid as well) and buy another place to live, or if ure happy with the place u have, move into it.
we're happy with our place and its location (same suburb that we live in) so when the time comes we're going to move into it, no need to sell and find another place. and by that point a massive chunk of our loan is already paid off.
i understand people are afraid to go into debt and take out a loan for a couple of hundred k. but you're not locked into a loan. if worse comes to worse u just sell the place and pay the loan off with that. that only really works though in a situation like mine where i dont actually live in the place. but by the looks of the poll results, theres a lot of people here who still live at home so ure set!
theres a saying in real estate that goes "the best time to buy property is now!"
pbk1776
09-06-12, 09:42 AM
Me and my partner paying off 2 properties - one we live in and one which is our investment.
having a financial adviser and learning how to expense your income helps a lot in the long run.
Trust a spammer to revive a 5 year old thread.
wanna.spoon
09-06-12, 07:47 PM
I wouldn't mind an apartment...
I know I know... only buy an apartment to rent it out to some cashed up international student...
wouldn't mind one because... in or close to the city, place to crash after a big night (not risking driving in the burbs after having a few too many), its close to everything, get to gloat you live in the city (Who the fuck can say that) :lol: etc...
definitely buying a property rather than paying off somebody else's but... personally I live with the folks but... :lol:
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