Well any houses in a dodgy/bogan area is gonna be cheap

Edited by MrBrisbane: 17/3/2016 09:59:41 PM

Rent and price is going up in Germany at a quick rate in some cities. Renting here is still a much smaller percentage of your pay compared to Sydney but the pay is very stagnant. Buying seems like it'll take forever and all the extra costs for maintainance and repair can add up quickly. In a nation of renters it's still the preferred way to go.

As for OZ both look like a financial challenge but like anything I'd be able to adapt with lifestyle changes.

Based on my current circumstances living in and looking at inner suburb apartments, rent seems the much smarter option.

The difference in mortgage repayments compared to rent is somewhere around $700 per month, have to pay around $3,000 in body corporate, and there's been no capital growth (that I've seen) over the last few years. Add in all the other taxes and fees when buying and selling, and from an investment perspective anyone that has bought an apartment around here would have to be looking at a very long-term strategy to hope for any return on investment.

Buying in the outer suburbs might be different. I don't really care what is happening there though.

I rent now at $150/week with plenty saved. I plan on buying in Tassie when I work a job opportunity out, very cheap and sparsely populated down there

Partner and I are starting to look at buying. At 21 we have roughly 70k between us, admittedly we are still living with our parents but after five years together and Our undergrads finished a 230k house in Ballarat in achievable for us.

Years ago they said take the difference between rent and a mortgage you'd be better off in the long run IF you invested the difference.

That's a big IF that takes a lot of discipline.



Edited by munrubenmuz: 15/11/2015 09:56:27 PM

From one incest capital to another.

Like Draups says, Sydney is fucking crazy. I certainly won't be buying a house anytime soon; but if I had the money I would. Definitely preferable to renting.

Just in the throws of selecting our house for a block we've found on the Bellarine peninsula because renting is way too fucking expensive here. $360 for a mortgage compared to around $450 to rent. The worst part of this area is the 8 month leases so they can rent houses over summer for 2-3k a week.

Yes I agree it takes a lot of discipline and I know that personally I don't have that (and definitely my wife doesn't). Property definitely isn't making the gains that it used to.

As I alluded to, there are other reasons outside capital gains to purchase your own home. For us, not having to worry about leases and getting kicked out at the landlords whim and the ability to pretty much set up the house exactly the way we want to were of greater importance to us.

and god bless these people =d>

Buy

Why pay someone elses mortgage.

I have built my first home this will be the first home I ever own. People always say it is impossible too do it. Maybe if you want to buy land or house in the city area.

I purchased land 90KM out from the city (Melbourne) it has a direct train line with regular train services, Has everything a small town should have but only a 10min drive to the main town.

Land was 120,000 for a 1000SQ meter block - deposit needed was 10,000 we negotiated the deposit

Then a year later we saved and put a 10 grand deposit to the builder and are now 2 weeks away from moving in to our brand new home.

Thank you all for keeping the demand in the property market =d> :lol:

And this is the crux of it.

People want their favourite cafes and artiste bars but don't want to have to pay the money to live near them.

-PB

Exactly, I would encourage anybody who wants to build to expand their reach and look to the "country" . If I drive from my new house I can go from the front door to my aami park seat in around 1 hour and 30mins. Sound's like a lot but it is not that far. Too have a mortgage under 310,000 is a great achievement. Considering the town before our one you get land for 200,000+.

It really is a question of priorities.

Rent money is not necessarily dead money though. Everything has an opportunity cost. What about the interest you pay on a mortgage, how about the maintenance costs that renters don't pay, but owners do?

There is no straightforward answer, it really comes down to preference. You have far more "liquidity" as a renter than an owner, but you also have less control.

The main benefit of a mortgage is that it is forced saving. The main benefit of renting is flexibility.

It becomes a lifestyle question - do I want the ability to live where I want, and move when I want (but be limited in what changes I can make to my place)?

Or do I want to live somewhere for 15-20 years, have the ability to make changes to the property (but be locked in to the location for the long term, and have more restrictions on where that location is compared to a renter)?

There is no right or wrong answer - the key thing is to make an informed decision, not sleepwalk into buying or renting without a conscious decision.

A colleague always told me to buy where you can afford and rent where you want to live.

They are many times at very different locations.

Great quote!