Renting Or Buying

[SCRIBR]

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

60front-wkw

[tmac450]

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?

Then don't borrow so much. I get sick and tired of people saying houses are too expensive, you can't get anything for under $500k, etc. What a load of crap. You're aiming too high before you have the equity or capital to meet your desires.

I live in an area full of multi-million dollar properties, yet if I go one or two suburbs over, I can pick up a reasonable three or four bedder in the $300s, in an area with 7-10% annual property growth. Go for something like that first. Pay some off over the next few years, sell it and you've got yourself a bigger deposit for something better. That way you can have your $500k house with a mortgage you can handle, or for the same or less than rent.

As said above, our parents have to start small and move up, we can't expect to skip 30+ years of equity building and go straight to the top.

[Craig.]

Then don't borrow so much. I get sick and tired of people saying houses are too expensive, you can't get anything for under $500k, etc. What a load of crap. You're aiming too high before you have the equity or capital to meet your desires.

I live in an area full of multi-million dollar properties, yet if I go one or two suburbs over, I can pick up a reasonable three or four bedder in the $300s, in an area with 7-10% annual property growth. Go for something like that first. Pay some off over the next few years, sell it and you've got yourself a bigger deposit for something better. That way you can have your $500k house with a mortgage you can handle, or for the same or less than rent.

As said above, our parents have to start small and move up, we can't expect to skip 30+ years of equity building and go straight to the top.

Dont borrow so much?

What , buy a cardboard box instead!

Mate houses are overly expensive here and the prices are really inflated for a couple of reasons. In fact it was recognized as one of the top 40 places of unaffordability in the world for real estate just last month. House values have grown 35% PA over the last 3 years.

We have people living in converted shipping containers up here because they cant afford a real house. the average price is dearer than the state capital Brisbane!

Unlike you I cant go a couple of suburbs away. The next main town south is 330klm. The next town north 150klm. If I move there, what I save on the mortgage, I use up on fuel and car running costs!

1) Everything has to be cyclone rated, so houses are more expensive to build.

2) There is no land being released for building

3) Building materials are 25% more expensive than Brisbane due to transport costs

4) The local mining industry has an influx of people coming into town with no accomadation available. Wherever there is mining, prices shhot through the roof.

You can buy an old house here for $350K. Then by the time you spend more money on it to make it inhabitable, and at the same time uprate it to meet the cyclone rating ( which you have to do as you renovate) you are at the same price point anyway!

Edited 11/04/08 01:48 AM by craiginmackay

[Dillz]

I get sick and tired of people saying houses are too expensive, you can't get anything for under $500k, etc. What a load of crap. You're aiming too high before you have the equity or capital to meet your desires.

Me to mate,

I had a lady the other day that wants so sell her three bed home in a good area for $450k and buy a bigger 4 bed house in the same area for $350k to cut down her mortgage

People just don't think, there always looking for the easy way out.

[veczar]

What is the best way to find out the growth rate and house price increases of a particular area?

[Dillz]

The media release a guide every now and again (the age did one last Sunday) whether it is accurate or not is anyones guess.

REIV (or your states equivalent) keep records, but most of the best independent places you need paid for access.

[Grudgee]

Dont borrow so much?

What , buy a cardboard box instead!

House values have grown 35% PA over the last 3 years.

Their values will continue to improve on the whole too. There's no such thing as overpriced here. If people are paying those prices, they ARE the prices. They may be high, but the demand is obviously there in abundance too.

Wherever there is mining, prices shhot through the roof.

And wages shoot through the roof in those regions even moreso.

The reality of it all is that some things will always be out of reach. If it's not viable now, change something to work towards your goal. If it's just not achievable, reduce your expectations.

[gilfxr6t]

The city that you live in changes all the rules. In canberra, we live in a financial bubble thanks to the public service and an unemployment rate of around 3%. Im 23 and just bought a sensible house for $400k.

The main thing is to make sure you have room to move financially so that when times are good you can hammer your lone and when times are tough you can still manage.

An interesting point, on a standard 30 year mortgage, if you pay an extra $100 a month you take 7 years off you lone.

I idea of being 45 and mortgage free appeals to me.

[ktford]

sell that 6.0 turd tin and put the money into your house, it'll reward you in the end, and we won't have to look at the pic of it.

Statistics prove that property doubles every 7-10 years which it will continue unless you bought dumb

[TUFXRT6]

Be careful with numbers like that as economists are predicting slower growth in property prices on the next 3-5 years.

Regards

TUFXRT6