ahmedwaseem2000

I have been paying rent it Sydney for a year now and feel like I am being ripped off. I feel like instead of making agents\landlords bank accounts hefty I could as well start paying mortgage instalments. However, I dont have enough savings to make the down payment. I have heard about getting personal loans but that would lead to sub prime issue and the interest rate on personal loan would be very high.

Is any one in similar situation? does any one have any opinions\ideas\thoughts about it?

Bermudashorts

Yes, similar situation. Although I don't see any point in winding myself up over paying rent, it is part of my living cost that is all.

However we would like to buy one day and don't currently have a deposit, the solution we came up with is ingenious ... we will save up.

ozzieeagle

I'm seriously considering targetting some students websites and telling them about vacant properties with overseas owners and advising them to squat.

Got a place near us thats been empty for at least 3 years. I doubt if anyone would notice for quite a few months if the inhabitants were low key. Apparently the Cops wont kick them out until advised to do so in writing from the overseas owner. Not an ideal way to start in a country... but could give at least some people breathing space to save a deposit etc.

BTW 12 years of unopposed squatting and the place is yours.

Beoz

yeah .... I don't overly enjoy paying someone elses mortgage but I don't enjoy paying the bank interest either. So unless I'm going to see any captial gain by purchasing a property renting is a far better for me.

Zen10

Your solution is ingenious, but only works if one can save faster than house prices are going up. Thankfully now that is possible, but those who couldn't save large amounts were outpaced by HPI for a while.

Zen10

And the days of capital gains are long gone as we approach a long slump in the housing market. Those who bought in the last few years are thinking about capital losses, I should think.

Loch Lomond

You've got to be kidding. You'd blatantely encourage squatters?

bingobob777

I get paid 6% interest on the money I save renting, if I was to buy I would pay the bank 6% interest.

For my mortgage payment to equal my rent on the house I rent I would need to put down a deposit of 300k.

Buy saving the 300k and adding the money saved every month I could buy the house outright in 12/13 years, instead of a 25 year mortgage.

so why buy?

ozzieeagle

On places that have been vacant for years.... yes 100 pct.

ahmedwaseem2000

glad to know that I am not the only one. hope we all can have our own homes soon

ahmedwaseem2000

there is no much difference between the renting amount and monthly payments.
500-600 to rent would be similar to 2500 monthly payment. by renting you are losing everything and with mortgage you are losing only the interest besides the principal amount is reducing . And also, you dont have to worry about the home prices rocketing.

Bermudashorts

Would you think that if it were yours?

Do you think people are entitled to take possession of your belongings generally if they decide that you are not using them frequently enough?

ozzieeagle

If I took an interest and found out I would have them evicted. I'm talking about extreme and unusual circumstances around dwellings here.

We've got one place here that is infamous for being forgotten and the Council cannot contact the overseas owner. Thats the kind of situation I'm talking about. Seems like there are more and more like this.. It even made it to the front page of the local newspaper.

I can point people at places that have been vacant for 3 years and in that situation I'm more than glad to see it being utilised for what it was meant to be, a house to live in.. If the owners take an interest and find out then they can get them evicted... however I doubt if it would come to that with the places I've got in mind. The Squatters may even find they'll end up owning it in 12 years time... which seems almost a fair thing to me.

JOE2010

I am renting cheaply, I have been fortunate though since I am a long term tenant and have a very close relationship with the owner (6 years, last rent increase was in 2008, no lease, just fortnightly direct debit) and the rent is really cheap. Saving for deposit now, makes sense when house prices are stable or falling down.

Beoz

My friend. Please show me where I can buy where repayments are roughly the same where you would be paying 500-600 in rent. I'd also like to know about the awesome mortgage too. Perhaps I've been researching in the wrong spot all along

Edit: renting in Bondi and buying in Penrith doesn't count