House prices article from Economist magazine
Jun 22nd 2005, 3:44 am
#31
Forum Regular
Joined: Jan 2005
Location: Brisbane Bayside
Posts: 96
Re: House prices article from Economist magazine
Interest rates aren't the only thing that drives a crash, how about oil or an Australian Dollar so high that exports and related jobs suffer.
I agree that long term buying is better and more tax efficient than renting, but only when annual rates of appreciation are +3% for homes. From reading reports on the last Australian house crash it seems that is very hard to get data to show a crash is occurring until after and re adjustment of price expectations for sellers can take up to 5 years.
The big assumption that the Rent vs Buy calc makes is that someone paying $300/week in rent can afford to pay $600/week in mortgage payments but chooses to save the extra $300. If not $300/week will buy you a $175,000 home / trailer
Saying all that it would be nice to buy our own place before our 8 month old decides to redecorate our rental with crayons.
Papa Z
I agree that long term buying is better and more tax efficient than renting, but only when annual rates of appreciation are +3% for homes. From reading reports on the last Australian house crash it seems that is very hard to get data to show a crash is occurring until after and re adjustment of price expectations for sellers can take up to 5 years.
The big assumption that the Rent vs Buy calc makes is that someone paying $300/week in rent can afford to pay $600/week in mortgage payments but chooses to save the extra $300. If not $300/week will buy you a $175,000 home / trailer
Saying all that it would be nice to buy our own place before our 8 month old decides to redecorate our rental with crayons.
Papa Z
Jun 22nd 2005, 5:52 am
#32
Drunken Aussie
Joined: Jun 2003
Location: Brisvegas
Posts: 1,080
Re: House prices article from Economist magazine
what do you stick in for the 'cost of buying and borrowing' in that calculator???
Jun 22nd 2005, 6:10 am
#33
Guest
Posts: n/a
Re: House prices article from Economist magazine
Originally Posted by brisnick
what do you stick in for the 'cost of buying and borrowing' in that calculator???
Jun 22nd 2005, 6:12 am
#34
Forum Regular
Joined: Jan 2005
Location: Brisbane Bayside
Posts: 96
Re: House prices article from Economist magazine
Originally Posted by brisnick
what do you stick in for the 'cost of buying and borrowing' in that calculator???
Z
Edit: Damn, that ABC fella beat me again
