Yes Pweet, but you seem to miss the point.
You can pay rent for 20 years and it might even be a bit cheaper than paying a mortgage, but,... at the end of 20 years paying rent you have NOTHING! ZERO ! ZILCH! S.F.A. !!
Or you can pay a mortgage for twenty years and at the end of 20 years you will probably have,.. a house owned either entirely or at least mostly by you.

Which means,.. you don't have quartely inspections by rental agents that come around and poke through all you rooms and stuff saying tut tut tut.
You don't have to find another place to live because the house you are renting has been sold from under you.
You don't have to cringe in fear every year when the rent review comes up and they might put the rent up to the exorbitant figures they are reporting in the paper.
You don't have to {lots of other stuff that comes in the same bag as renting someone elses house and helping them pay off their mortgage}.

Here's some advice from an old person, even though old people are useless an don't know anything.
The best thing you can do to establish your independence in life is to own your own home. Didja hear that? OWN YOUR OWN HOME!!

Even if it drops in value for a few years, all that means is it will go up doubly fast after that, because the long term trend for houses is up. THAT"S UP!

I know it's a grind for the first five to ten years but that's just what it costs to get ahead in life. Because noone is going to buy a house for you.

Be like the US and Japan,

BUY IN THE HOUSING BUBBLE!!!!

Go on.......












Do it....................






Own your bit of Australia










Your a fool if you think owning your own home is 'the dream'

mineral1 said...

pweedas said...

Yes Pweet, but you seem to miss the point.
Here's some advice from an old person, even though old people are useless an don't know anything.
The best thing you can do to establish your independence in life is to own your own home. Didja hear that? OWN YOUR OWN HOME!!Even if it drops in value for a few years, all that means is it will go up doubly fast after that, because the long term trend for houses is up. THAT"S UP!

I know it's a grind for the first five to ten years but that's just what it costs to get ahead in life. Because noone is going to buy a house for you.

And while your "owning your own home" the real estate price can go up down sideways, but as your not selling, BECAUSE YOUR OWNING YOUR HOME, you loose bugger all.
"OWN YOUR OWN HOME!!!!!!!!!!!!!!!!!!!!

Pweeds, Mineral your both on the money , owning your own home IS THE ONLY WAY TO GO!!! Buying a house IS the only reason that I can now , not have to work full time , Exmouth here we come!!!!!!!

kecksoff said...

pweedas said...

echunda said...



Your a fool if you think owning your own home is 'the dream'

Why?

There's a whole lotta world to see out there pweedas!
Studys have shown those who rent & put the difference into investments of sorts are just as well off as those who buy homes.
With the time you & your wife spend struggling to pay the house off, then so suddenly it seems the kids are ready to leave, then you realise you need to downsize & head to the old diggers home... you could have been renting all over the world rather than being stuck in your local neighbourhood - horses for courses... I'm a buyer but can see the merit in renting!

The studies also show that those who rent, invariably put their spare money NOT into investments but into holidays, new cars, 4WDs, windsurfers, (or for the not so intelligent, into kite gear ) or just plain piss it up against the wall. So when they get to 40 or 45 they still have nothing but a wife and 3 kids to support and put through school / uni and at the same time, try and pay the rent, or buy a house at the new inflated prices, such as now.

You don't need to buy a house first out of school but you do need to buy one by the time you are 25 or 30 at the latest.
Then if you want to start a business, buy an investment property, buy a yacht or anything else, the bank will like you much more if you have a million dollar house to put up as security.

If you're making a truckload of money up north or somewhere similar, then buy the house now and pay some of it off.
If you want to travel o/s then rent it out and let the renters pay your mortgage while you scratch your itches. That's what you're doing for them when you rent their house.
I know there's always more exciting things to do with your money than pay a mortgage but if you want to NOT have to work till you're 65 and then hope you can get a half decent house to rent at a half decent price then the sooner you buy your house, the better. All excuses are just forestalling the inevitable and making the job more difficult and unlikely to happen.
When you've finnished paying it off, you can live on a whole lot less than you can when you have to coff up $500 or more a week for rent.

{edit} geez i just read this through and I sound just like my father did 50 years ago.

First priority for me was to pay the mortgage off, once I'd done that I could afford to work half time, and did so as soon as my boss could organise it.
Got plenty of windsurfing in then!!!!!
Now I'm an old age pensioner, and sitting sweet.
Believe me, on a pension you don't want to be paying rent!

pweedas said...

echunda said...



Your a fool if you think owning your own home is 'the dream'

Why?

I think everyone just missed my point.

DON'T BUY IN THE CURRENT BUBBLE

echunda said...
I think everyone just missed my point.

DON'T BUY IN THE CURRENT BUBBLE

What current bubble??? Do you mean the one that burst a few years ago??

Screw being a slave to a mortgage so I can say I own four walls and a roof. I;m going to live the ****ing dream! - The real dream that is

petermac33 said...

what does this mean to me?

the banks own more and more real estate,people are in debt big-time.

if rent is cheaper than paying your mortgage,then i would just walk away as house price is not going to go up.



www.huffpost.com/entry/big-oil-profits_n_913452

i dont understand how that post about oil compaies relates to this topic. anyway, the problem with the usa property market, is that ultimately it affects people here, even rentals here.
have you heard the expression " america sneezes and australia catches a cold"? well get ready for a flu.
the gfc was a gift wrapped pressie largely from the usa. property. people walked away from houses they could never afford, causing banks to have a shortfall, in a kinda ponzi scheme chaos way.
long story short, their economy influences ours. interest rates - property. rates rise - rents rise and so on.
id say buy, but at the right time.

I'm not saying don't buy.


I'm saying don't buy now.

Do you understand why I'm saying this?

crawford.anu.edu.au

Sorry Guys, (I'm no academic) The introduction's a bit heavy, but it gets easier further into it...

I think so Poida. The two scenarios for fiscal adjustment in this paper are penned over 10-15 years. Ten years more dramatic effect, fifteen a little better.
Australia is aligned with China & relatively debt free.
China biggest lender of currency to US.
China may become less patient on getting the money back & look for higher rate of return, esp if US loses its AAA credit rating, like it looks to soon.
China's demand for commodities will decrease as US contracts it's household diposable income. Economists are already seeing this & hoping the rate of contraction doesn't spark a recession in the US, which then impacts China (which then impacts Australia)
Our Govt needs to stop squandering the cash from this mining hyper-boom before it disappears!!!
What effect on investment (for your rent money that's left over)? Dunno, but I put all my super into an Aussie cash fund on Thursday just to be safe.

Seems to me it's only people who don't own a house who run around yelling "don't buy one."

Everyone who has a house and a reasonable income to mortgage ratio, meanwhile, just quietly pays it off and enjoys the benefits in the meantime.

As for pm33, mate our real estate system is TOTALLY different to the US. Nobody in Oz ever just walks away from a house/mortgage unless they are completely insane. There's no benefit to it. Stop believing everything you read and start trying to understand there's a difference between us and Seppoland.

elcoco said...

What is a reasonable income to mortgage ratio ??

The average house price in australia is 430 grand +/- !

well the norm used to be a third of after tax income was dedicated to the mortgage. any higher and youd be in stress. now its a bit higher.

I rent my house out for fifty dollars less than my weekly mortgage payment.

for the extra fifty bucks a week, I think I'd rather own (pay off) a house