can you show the sums for that?
Rent for 30 years, own nothing.
Get a mortgage, pay it off after 30 years, own a house/unit/property.
It's your choice really.
can you show the sums for that?
My basis for that is that in some suburbs in Australia (particularly in Sydney), it is cheaper to own that rent.
Quick Google
http://www.theage.com.au/business/property/where-its-cheaper-to-buy-than-to-rent-20121220-2bopa.html
My basis for that is that in some suburbs in Australia (particularly in Sydney), it is cheaper to own that rent.
Quick Google
http://www.theage.com.au/business/property/where-its-cheaper-to-buy-than-to-rent-20121220-2bopa.html
That list only factors in mortgage repayments and not other costs associated with owning a home. Plus if it's cheaper to buy than rent that's a real red flag as far as expectations of future capital growth go.
Rent for 30 years, own nothing.
Get a mortgage, pay it off after 30 years, own a house/unit/property.
It's your choice really.
The downside is that even though prices have kind of stopped going up/gone backwards, the people holding the properties *still* believe they're worth what they want, even though they put them to market and they just don't sell. I don't see a lot of these changing hands anytime soon if they're holding on to them. The positive is that due to old age, they will die first so if they won't sell, long term they have to give them over for free via inheritance etc anyway. What good is a pile of bricks when you can't wipe your own ass. Yes they can be rented out, but most people have a captal gain strategy, not a positive cash flow one, which is sad. If you went for passive income you'd be OK, but most people are kind of holding on hoping they make a giant profit when they sell. They won't.
Yes, it is. But who is to say after 30 years you own nothing? What's stopping you from owning significant shares or 100% ownership of a company? What's stopping you owning commodities, cash flow positive assets, trucks, boats, services, a product. Something that gives something back to the people?
If you look at anyone who has been very successful, most of them rent.
I think it's a stupid place to park $400,000 for such a pissy return, you can start a lot of other things up with much lower overheads and generate a much higher return. I guess it's all about risk/reward.
I don't know the answers, but I know that both property and shares go up and down....timing is the key...
Exactly. If you bought 20,15 10 years ago, good on you. Perhaps even 5 yrs ago. Would you buy today as an investment?
Exactly. If you bought 20,15 10 years ago, good on you. Perhaps even 5 yrs ago. Would you buy today as an investment?
Before that I'd moved around 5 times in 3 years which ain't fun.
I don't think you could call it an investment?There is still opportunities out there though. If anyone is investing in hope of capital appreciation over the next decade I think they may be in for a shock.
Yep. Up & Downs...it happens...
I am not master investor. I am trying to make a buck like everyone else.
I appreciate this thread and all input on ASF.
I don't think many of the so called investors are investing in the hopes of anything else....it is not like you are getting decent returns in general.
I work with a guy who has 4 places. He said it's not worth his time buying anything that yields less than 10%, and I would agree. You have to go inter-state or to areas likely well out of your comfort zone to find these places though.
Really? What is the evidence for this claim. No successful person I've known over some decades has not owned their own home. Usually they have some IP as well, plus shares.If you look at anyone who has been very successful, most of them rent.
Agree, And that's without the consideration of potentially ghastly tenants.Anyone buying an investment property for a 4.5% gross yield is crazy in my POV, especially when there's still plenty of good quality companies paying 8-9% dividend yields once franking credits are taken into account.
Pivotal point. Timing is everything. There have been wonderful times to buy property for substantial capital gain. Nothing like those times now.Yes this is true. There were some regional properties and some in mining areas that did and are doing quite well. If you timed it, you did really well. Just need to be careful in some cases as the demand will fall once construction/expansion operations at mines stop.
Really? What is the evidence for this claim. No successful person I've known over some decades has not owned their own home. Usually they have some IP as well, plus shares.
Owning your own home isn't just about the financial aspect. It's also about the simple pleasure of creating an environment with which you can do what you want and which provides a sense of security being at the whim of a landlord fails to give.
Agree, And that's without the consideration of potentially ghastly tenants.
Pivotal point. Timing is everything. There have been wonderful times to buy property for substantial capital gain. Nothing like those times now.
As a new home buyer, and a much least experienced investor - and even with all the talk about how property prices are likely going to drop - it's so tempting to buy a house just for that reason. I mean it's nice to know you own it and create something you can be comfortable in.
Is Australia expecting rentals to increase? Cause currently people in my area (WA) are paying 300-350 rent, and if they had a mortgage for the same property (around 250-300k) you would look at 380-400 weekly payments instead. Obviously you would be forking out 250k for the interest over say 25 years.
If I rented for 25 years, I would be paying:
52 x 25 x $350 = $455000 - at the end of this I own nothing - assuming rent stays constant
If I took the mortgage I pay out:
52 x 25 x $390 = $494000 - at the end of this I have a house I decked out. Sure, I would probably spend like $$$$ on it but that aside, can someone explain to me why they feel renting and putting it in shares is better.
With sincerity - I honestly feel this is my lack of investment knowledge, and probably the property will drop in price in the long term? but I can't predict the price in 25 years.
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