Housing: RENT vs Buy?
#1
Housing: RENT vs Buy?
hi all,
sorry if this was asked before. would just like to get your thoughts on buying vs renting in this crazy market.
what i would also be interested in hear is what are the costs involved for when you sell a house in oz?
e.g. if you buy a house for $390k then sell it after 3 years for the same price at $390k, i heard someone mention that there would be some associated costs involved ( up to $25k++)? is that true? anyone know what these costs would be?
Thanks
sorry if this was asked before. would just like to get your thoughts on buying vs renting in this crazy market.
what i would also be interested in hear is what are the costs involved for when you sell a house in oz?
e.g. if you buy a house for $390k then sell it after 3 years for the same price at $390k, i heard someone mention that there would be some associated costs involved ( up to $25k++)? is that true? anyone know what these costs would be?
Thanks
#2
BE Enthusiast
Joined: Jan 2006
Posts: 413
Re: Housing: RENT vs Buy?
hi all,
sorry if this was asked before. would just like to get your thoughts on buying vs renting in this crazy market.
what i would also be interested in hear is what are the costs involved for when you sell a house in oz?
e.g. if you buy a house for $390k then sell it after 3 years for the same price at $390k, i heard someone mention that there would be some associated costs involved ( up to $25k++)? is that true? anyone know what these costs would be?
Thanks
sorry if this was asked before. would just like to get your thoughts on buying vs renting in this crazy market.
what i would also be interested in hear is what are the costs involved for when you sell a house in oz?
e.g. if you buy a house for $390k then sell it after 3 years for the same price at $390k, i heard someone mention that there would be some associated costs involved ( up to $25k++)? is that true? anyone know what these costs would be?
Thanks
The costs are the entry and exit costs,depends on the area you buy and whether stamp duties etc need to be paid.
Very basic would be say borrow 300K @ 8%,cost for 3 yrs is 72K ,plus rates ,say 80K.You can rent a house for a lot less than 80k for 3 yrs.
To that add stamp duties etc if they need to be paid.Cost of buying a house for 3 yrs could be 110-120K,rent possibly 45K.
Should the house price rise by 100k then you have lived virtually rent free for 3 yrs.Should the house price fall you have lost even more money.Nobody can answer the question,you need to work out the numbers for yourself and do a financial model for various scenarios.Nobody can predict the future.
#3
Forum Regular
Joined: May 2007
Location: Melbourne, Victoria, Australia. Thats down and to the right from UK.
Posts: 214
Re: Housing: RENT vs Buy?
Adding to what G_D said, I've found that while properties in some suburbs are increasing in value, so suburbs are seeing a drop in values (Melbourne, Victoria).
Whilst the statistics available on the net are dubious to say the least, it does point to the fact that cheap areas ($390,000 is cheap unless your talking a 2 bed in an ok area) aren't seeing much growth - it's the expensive areas that are seeing the money go up.
As G_D said - if it's only for 3 years - rent. Maybe if it's 5 years+, buy.
Whilst the statistics available on the net are dubious to say the least, it does point to the fact that cheap areas ($390,000 is cheap unless your talking a 2 bed in an ok area) aren't seeing much growth - it's the expensive areas that are seeing the money go up.
As G_D said - if it's only for 3 years - rent. Maybe if it's 5 years+, buy.
#4
Re: Housing: RENT vs Buy?
its easy rent and have money in your pocket or buy and stay skint......
#5
Re: Housing: RENT vs Buy?
If you are looking at a 3 yr period then rent.Nobody can predict what the house price will be in 3 yrs time.
The costs are the entry and exit costs,depends on the area you buy and whether stamp duties etc need to be paid.
Very basic would be say borrow 300K @ 8%,cost for 3 yrs is 72K ,plus rates ,say 80K.You can rent a house for a lot less than 80k for 3 yrs.
To that add stamp duties etc if they need to be paid.Cost of buying a house for 3 yrs could be 110-120K,rent possibly 45K.
Should the house price rise by 100k then you have lived virtually rent free for 3 yrs.Should the house price fall you have lost even more money.Nobody can answer the question,you need to work out the numbers for yourself and do a financial model for various scenarios.Nobody can predict the future.
The costs are the entry and exit costs,depends on the area you buy and whether stamp duties etc need to be paid.
Very basic would be say borrow 300K @ 8%,cost for 3 yrs is 72K ,plus rates ,say 80K.You can rent a house for a lot less than 80k for 3 yrs.
To that add stamp duties etc if they need to be paid.Cost of buying a house for 3 yrs could be 110-120K,rent possibly 45K.
Should the house price rise by 100k then you have lived virtually rent free for 3 yrs.Should the house price fall you have lost even more money.Nobody can answer the question,you need to work out the numbers for yourself and do a financial model for various scenarios.Nobody can predict the future.
and to GD for pointing out the entry and exit costs, i guess to add to the exit costs would be broker commissions? so would that be another 5% of the selling price?
am currently living in a shared accomodation in bayside brisbane, will start looking for a rental for when my family follows in Feb.
cheers
#6
Forum Regular
Joined: Dec 2006
Posts: 128
Re: Housing: RENT vs Buy?
If you are looking at a 3 yr period then rent.Nobody can predict what the house price will be in 3 yrs time.
The costs are the entry and exit costs,depends on the area you buy and whether stamp duties etc need to be paid.
Very basic would be say borrow 300K @ 8%,cost for 3 yrs is 72K ,plus rates ,say 80K.You can rent a house for a lot less than 80k for 3 yrs.
To that add stamp duties etc if they need to be paid.Cost of buying a house for 3 yrs could be 110-120K,rent possibly 45K.
Should the house price rise by 100k then you have lived virtually rent free for 3 yrs.Should the house price fall you have lost even more money.Nobody can answer the question,you need to work out the numbers for yourself and do a financial model for various scenarios.Nobody can predict the future.
The costs are the entry and exit costs,depends on the area you buy and whether stamp duties etc need to be paid.
Very basic would be say borrow 300K @ 8%,cost for 3 yrs is 72K ,plus rates ,say 80K.You can rent a house for a lot less than 80k for 3 yrs.
To that add stamp duties etc if they need to be paid.Cost of buying a house for 3 yrs could be 110-120K,rent possibly 45K.
Should the house price rise by 100k then you have lived virtually rent free for 3 yrs.Should the house price fall you have lost even more money.Nobody can answer the question,you need to work out the numbers for yourself and do a financial model for various scenarios.Nobody can predict the future.
#7
BE Enthusiast
Joined: Sep 2005
Posts: 517
Re: Housing: RENT vs Buy?
thanks for the replies guys,
and to GD for pointing out the entry and exit costs, i guess to add to the exit costs would be broker commissions? so would that be another 5% of the selling price?
am currently living in a shared accomodation in bayside brisbane, will start looking for a rental for when my family follows in Feb.
cheers
and to GD for pointing out the entry and exit costs, i guess to add to the exit costs would be broker commissions? so would that be another 5% of the selling price?
am currently living in a shared accomodation in bayside brisbane, will start looking for a rental for when my family follows in Feb.
cheers
Mark
#8
Re: Housing: RENT vs Buy?
i was thinking of that too...
i have been monitoring the housing prices in the US since 2000 and have seen how people were just buying and buying because everyone thought the prices would just keep going up....
at least in the US there were already a lot of warning signs in the newspapers articles.....so when prices started coming down it was not too big of a surprise....
but i just dont understand oz.....you read the Courier Mail and they have articles saying prices will appreciate 40% in the next 3 years or so....
then you have articles saying the more people will be under severe housing stress in the next 2 years.....
if only there were just more supply of rentals:curse:, i would just rent in the meantime and see how things go in the next 18 months....
i have been monitoring the housing prices in the US since 2000 and have seen how people were just buying and buying because everyone thought the prices would just keep going up....
at least in the US there were already a lot of warning signs in the newspapers articles.....so when prices started coming down it was not too big of a surprise....
but i just dont understand oz.....you read the Courier Mail and they have articles saying prices will appreciate 40% in the next 3 years or so....
then you have articles saying the more people will be under severe housing stress in the next 2 years.....
if only there were just more supply of rentals:curse:, i would just rent in the meantime and see how things go in the next 18 months....
#10
BE Enthusiast
Joined: Sep 2005
Posts: 517
Re: Housing: RENT vs Buy?
i was thinking of that too...
i have been monitoring the housing prices in the US since 2000 and have seen how people were just buying and buying because everyone thought the prices would just keep going up....
at least in the US there were already a lot of warning signs in the newspapers articles.....so when prices started coming down it was not too big of a surprise....
but i just dont understand oz.....you read the Courier Mail and they have articles saying prices will appreciate 40% in the next 3 years or so....
then you have articles saying the more people will be under severe housing stress in the next 2 years.....
if only there were just more supply of rentals:curse:, i would just rent in the meantime and see how things go in the next 18 months....
i have been monitoring the housing prices in the US since 2000 and have seen how people were just buying and buying because everyone thought the prices would just keep going up....
at least in the US there were already a lot of warning signs in the newspapers articles.....so when prices started coming down it was not too big of a surprise....
but i just dont understand oz.....you read the Courier Mail and they have articles saying prices will appreciate 40% in the next 3 years or so....
then you have articles saying the more people will be under severe housing stress in the next 2 years.....
if only there were just more supply of rentals:curse:, i would just rent in the meantime and see how things go in the next 18 months....
Mark
#11
Re: Housing: RENT vs Buy?
thanks for the replies guys,
and to GD for pointing out the entry and exit costs, i guess to add to the exit costs would be broker commissions? so would that be another 5% of the selling price?
am currently living in a shared accomodation in bayside brisbane, will start looking for a rental for when my family follows in Feb.
cheers
and to GD for pointing out the entry and exit costs, i guess to add to the exit costs would be broker commissions? so would that be another 5% of the selling price?
am currently living in a shared accomodation in bayside brisbane, will start looking for a rental for when my family follows in Feb.
cheers
#12
Re: Housing: RENT vs Buy?
i know that rentals are really tight so i am considering paying lots of advance rental just to secure a place......looking for a small house or unit....
let me know if it is a good idea to put in an application as early as now. it will be wifey + 3 kids....
cheers