Renting Or Buying

[TUFXRT6]

The problem with renting is that the cost of renting will continue to climb where you can control how much you pay on your mortgage.

e.g. the average rental cost is say in Melbourne $250pw

Your mortgage cost is $500pw

In ten years time the average rental cost will be $600pw

Your mortgage cost will still be $500pw

Regards

TUFXRT6

[Dillz]

230km, 95% freeway, on about 10L of juice. Not bad... not good either.. just not bad

Yaris! Hows the dash treating mate? What a stupid idea.

[TUFXRT6]

230km, 95% freeway, on about 10L of juice. Not bad... not good either.. just not bad

Did they throw in a free skirt with the car??

Regards

TUFXRT6

[Craig.]

e.g. the average rental cost is say in Melbourne $250pw

Your mortgage cost is $500pw

In ten years time the average rental cost will be $600pw

Your mortgage cost will still be $500pw

Regards

TUFXRT6

You are only looking at it from a local point of view though. In Melbourne you can go out to Hoppers Crossing and buy a house for $250Kand you are only 30klm from the CBD.

Where I live the average cost of a house that isn't in bad need of repair is approachng $500K.

Places like Sydney and Perth are the same if not worse. With a 20% deposit that means a $400K mortgage which means repayments of somewhere approaching $900 a week. Now in 10 years that mortgage will still be $900 (give or take depending on interest rates) but how does the average bloke on the street afford $900 a week repayments in 2008?

Edited 11/04/08 12:24 AM by craiginmackay

[TUFXRT6]

The theory is still the same where ever you live its just the starting numbers that will change.

There are two key factors to remember:

1) Wage increases (I doubt that anyone is earning the same money they were 10 years ago, so you can get a fixed home loan but have wage increases over time)

2) Different wages for different locations (If you lived in Melbourne you wouldnt be earning the same as if you lived in Sydney)

Regards

TUFXRT6

[SCRIBR]

Did they throw in a free skirt with the car??

Regards

TUFXRT6

No, but contrary to my requests... they don't make it for men

[R-SPEC]

P.S I just realised I've seen your car on stud rd! lol

Yeah I'm up and down Stud Road on my way to and from work from Thursday through to Monday every week. Gimme a wave if ya see me.

Also, I totally agree with the comment that people my age want to move from mum and dad's into a mansion. Plus, they all want to drive mad cars at the same time. Most of our parents started in 10sq shacks and it has taken them 30 years to get into a $500k + property.

I deal with plenty of people my age where I work who want to get into something brand new straight away. They both have good jobs and a good income, however they'll shrug off a 3 to 4 year old property, even though it's the more sensible buy, almost every time. "Oh we payed a lot more than what we wanted to." Yeah, no sh!t, now if you knock up your girlfriend and lose one of those incomes for 6 months, you're fuked!

Rent is 100% interest. If you purchase a house and even pay interest only for the first few years of buying, at least you still have equity to play with. When your salary or budgeting sorts itself out, you can start paying principle.

Edited 11/04/08 12:55 AM by R-SPEC

[TUFXRT6]

I have no idea how you can go from over 250rwkw's to less that 60rwkw's.

Everytime your wife has anything to say about you not doing enough around the house you remind her of that fact.

Regards

TUFXRT6

[Craig.]

The theory is still the same where ever you live its just the starting numbers that will change.

TUFXRT6

Yes in theory it is still the same. Theory is a wonderful thing!

So in 2008, in theory can you still live comfortably on whats left of your pay packet after paying $900 a week on mortgage repayments?

Maybe you could! I don't know your sutuation. What about the average guy in the street earning an average wage?

Edited 11/04/08 01:05 AM by craiginmackay

[Dillz]

In theory communism works....