this is the million dollar question

I personally think it makes a lot more sense to rent these days with the way property prices are.
If you take out a massive loan you are under enormous risk and your repayments are as much as rent anyway, but you risk losing your house if you cant make repayments.

thoughts?

:)

I'd never rent.

Paying a lot of money to own nothing,

try buying in Sydney :)

The entire history of economics shows that bubbles cannot continue to grow. Rent the cheapest place possible and wait for the bubble to burst. I'ma sit this one out and sweep up the floor when these poor cunts have to sell to repay ridiculous loans.

Why would I do that? I live in Brisbane

Because you gave general advice to everyone when it isn't actually possible.

I didnt give advice, just my personal opinion. "I'd never rent"

Real estate prices generally plateau or suffer a small fall. They rarely drop significantly.

Exceptions being in boom and bust towns such as Moranbah, Mackay and the like.

One thing people seem to forget is that generally over time your income increases whilst your mortgage repayments, generally, stay the same.

That means over time the proportion of your salary going towards repayments goes down in real terms. Meanwhile, in general, the value of your property goes up.

Having said that, your house is no investment unless you are prepared to sell it and move somewhere cheaper.

Interest rates can only go one way mate :)

Korea uses this weird system where you place a deposit in a bank account and the landlord receives the interest, the larger the deposit the lower the rent. They usually offer three options of rent/deposit combination when renting an apartment out plus a no rent deposit amount. It is a surprisingly good system that makes it easier for young couples to get started.

That's why I said "generally".

depends on what your age is...if your young, then start small, buy something out in the sticks, pay it off, sell and then buy something closer to the cbd...repeat

everyone wants to buy smack bang in the middle of the city and have their backyard as well...those days are over (well in melb and sydney)

personally i think renting is flushing money down the toilet....just make sure you have at least 15% deposit, and dont go crazy with the loan. if you lose your job etc, then sell the home...you will probably make a small profit

Singapore lets you borrow against your super.

Has some of the highest rates of home ownership in the world.

Both better systems than what we have in Australia. As an example of the Korean system we put down a $10k US deposit and pay $1000 U.S. per month rent.

You're better of buying your own house regardless. By the end of it you'll have capital.

All renting does is pay off someone else's mortgage.

Agreed. I bought at the start of this year.

Sick of paying $500 a week with no light at the end of the tunnel.

Congrats homie!

So many people my age gave my wife and I shit when we bought a shitty townhouse with two bedrooms and no yard in Beenleigh. After four years of living here we are now in the process of building our first house.

Everyone who wanted the dream house live with their parents still or rent :lol:

Owning your own home is the best thing you can do :)

Thanks mate.

Good idea. I'm sure people didn't understand your vision. Some people seem to think they'll move into the perfect house. It doesn't work like that, people find that out eventually!

It's clearly better to buy than rent. Here in Brisbane rent and mortgage prices are nearly the same, clearly it's better to borrow from your current self to give to your future self than to give to some one else's future self. I don't get how people can default on their mortgages and lose their homes, clearly if you can't afford to meet the repayments cut your losses and sell the thing before the bank takes it away. Better yet don't commit yourself to repayments you can't afford to make.

Can't do either in Melb or Sydney :lol:

-PB

We thankfully own our home. But for 3 years we rented as no bank would touch us due to us having at the time a young child. It took one broker to have the guts to take us on and get us a mortgage. 275 isnt much but we got a house we call our own and it may be small but it suits us

Pretty much! So fucked haha.

Definitely a lot of old school thinking in this thread.

I have a mortgage but I don't think it's for everyone. When rents are significantly lower than mortgages you may be better off accruing capital by investing the difference elsewhere. That's if you're looking at it as an investment, there are other reasons that you might want to own your own home.

Very true, but Melbourne and especially Sydney are out of control. It is almost literally impossible for young people to buy a house in Sydney, let alone rent a place that isn't either a) with 4 other people which makes it virtually impossible to have a family life or b) live in the ghetto or a shithole like Macquarie Fields.

And thinking about people whose family don't have equity or liquidity, well, they are simply fucked for the foreseeable future.

Edited by Draupnir: 14/11/2015 11:54:13 PM

Leaving home would you rent or buy?

In Sydney? Mate, the average house price is above $1 million :lol:

A one bedroom apartment near the city? $500 a week minimum.

Average house price in Adelaide is below $500k. I'd jump on that shit.

Edited by Draupnir: 15/11/2015 12:22:13 AM

I had a pretty decent pile saved for a deposit, but I really want this new camera, only US$10,000. :D

Edited by MrBrisbane: 17/3/2016 09:59:33 PM