G&P

Hi Folks,

we were originally going to rent for up to a year but are now thinking it would be a waste of money and we could buy when we go instead. Has anyone done this and can they offer any advice. If things don't work out we could always sell the house.

any advise welcomed!

walaj

just be aware of the moving costs if you rush and buy the 'wrong' house - stamp duty, estate agents costs (what I have seen on here they are higher than what the UK good for nuffin' charge)

Jimbo9

Who wants to buy a place at the top of the market? In NSW property prices are heading south now. Renting is so cheap here I'd be tempted to wait. You can rent a nice big 4 bdr detached house with spa, pool etc in the Sydney suburbs for $400-$500 pw - its a gift !

G&P

Wow, that price is amazing for Sydney, do you have any ideas about the Melbourne rental market. It is hard to know what to do, just seems such as waste paying rent!

JackTheLad

It does look like house markets are in a down turn at the moment in both the UK and Oz, so if you can liquidize your assets in the UK, and then rent in Oz, it might be an idea.

But bear in mind, there are areas in Oz that aren't in decline, or at least not declining as much as the headline figures would suggest.

So as usual, it comes down to where you are going, and what suburbs you expect. e.g. if you are going to Melbourne, don't expect Brighton to drop in price.

Cheers,
JTL

G&P

I know what you mean, will have a think, we have already sold our house in Ireland and wanted to invest the profit rather than leave it sitting and just thought it might be an idea to purchase over in Oz and even if it didn't work out (which I hope doesn't happen!), we could sell it, thanks for your advice!

pompeywill

Not sure I agree with this downturn in the market, people have been saying this for months but I have yet to notice it. Prices are still creeping up where I live. (Portsmouth)

Also WA is still undervalued compared to the rest of Aus so its still worth buying now. It depends where you intend to invest.

Of course no-one can be sure or we'ed all be millionaires

Megalania

For yields on cash look at:
CANNEX Rates and Infomediaries

For price and yields on bonds:
Interest rate security prices

For a comparison of owner or renter costs, have a look this simple spreadsheet: (err, the file has been corrupted by British Expats - get them to fix the prob and I'll post again - but in essence the only reason you would invest in housing is if rents go up or prices grow > ~5% / yr)

G&P

Thanks for posting, will do some more investigation, maybe with renting it will give us an idea of what suburbs are like so we can make a better decision on where we want to live rather than paying the mortgage and hating an area after 1 month.

Thanks again for your advice!