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Big question and I haven’t thought about it enough from a 20 year old's persepctive to have definite answer.But I would say watch the Castle to make sure you can distinguish between a house and a home.If you’ve got a family and you’re pretty settled and you want a home then buy. I’m not sure a house can become a home if the occupants are financially stressed – so only buy what you can afford- watch the Castle again.If it’s just a house- then it’s simply an unemotional buy / lease financial decision. Include implied rent in the house purchase model and compare the outcome to all other investing options. Houses can be a pain and costly to buy and sell if you want flexability to move around.You mention PPOR which is the capital gains exemption – be aware if you are going to have tenants to help you pay it off, the exemption will not be available for the income producing portion of the house.If it’s just a financial decision – take the best relative option. I’ve never modelled a non-development house investment opportunity that has come out superior to other opportunities. That’s why I own shares as investments and not houses, but we own our home.
Big question and I haven’t thought about it enough from a 20 year old's persepctive to have definite answer.
But I would say watch the Castle to make sure you can distinguish between a house and a home.
If you’ve got a family and you’re pretty settled and you want a home then buy. I’m not sure a house can become a home if the occupants are financially stressed – so only buy what you can afford- watch the Castle again.
If it’s just a house- then it’s simply an unemotional buy / lease financial decision. Include implied rent in the house purchase model and compare the outcome to all other investing options. Houses can be a pain and costly to buy and sell if you want flexability to move around.
You mention PPOR which is the capital gains exemption – be aware if you are going to have tenants to help you pay it off, the exemption will not be available for the income producing portion of the house.
If it’s just a financial decision – take the best relative option. I’ve never modelled a non-development house investment opportunity that has come out superior to other opportunities. That’s why I own shares as investments and not houses, but we own our home.
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