Sandersons

Hi-looking for a wise word or two from you guys. We are considering returning to Oz. We already know we would be going over with very little cash, it's just the two of us and a choccie lab, no kids. Our question is this-is it ridiculous to consider renting for the long term and saving any extra we might pay on a mortgage. We wouldn't be going over with enough for a deposit and start up costs-itd be one or the other. Is it a British mentality to have/want to own a home? Is anyone happily long term renting at the moment? I'm not too clues when it comes to financial matters so hopefully someone else is! Thanks.

Bermudashorts

We will be perfectly happy renting for next few years at least.

Well maybe not "perfectly", but it is what we plan to do as we think it will best suit us for the time being.

Pollyana

Long term renting is very common over here. Lots of people could never afford to buy now (myself included) so you certainly wouldn't be in a minority

LINZI

We have rented for the past 5 years to me it gives us the flexibility to move around Australia until we are certain the place is right for us to buy

Good Luck!

Margaret3

us too, been renting 4 years now, was strange at first, cant say i like it, but got used to it.

Steve2009

It definitely seems to make more financial sense than mortgaging for the moment.

Oz Hammer

Always rented a house, as I have moved around so much. Never had an issue, whether it be getting repairs of any sort done or getting my bond back. Most good real estate agents make sure the owners look after their property. Always enjoyed the variety renting can offer too.

You will be better off being upfront about your puppy.

I have always got mine from the web. Depending on where you are going and what you are looking for, it can get hectic finding a place.

Here's some websites:

http://www.domain.com.au/

http://www.realestate.com.au/rent

Sandersons

Thanks for the replies folks, it's certainly food for thought. I suppose it's about looking for the positives in renting rather than the negatives-like most things in life, eh?

Oz Hammer-thanks for the links, will def check them out. And we'd be 100% upfront about the dog. I'd hate to live thinking we might get found out at any time!!

Hmmm, that's a pro for Oz on my list then! Hopefully we'll reach a decision soon-lol!!

Sandersons

commonwealth

This is an interesting article

Brits buy homes, the Germans rent – which of us has got it right?
http://www.guardian.co.uk/money/2011...y-germans-rent

Margaret3

Once positive about renting is you have a choice where to stay, we currently rent in a lovely suburb, good schools, good transport links. There is no way wse could afford to buy in this suburb, so its one of the big advantages for us renting.

canadaeh

I agree renting is normal here, we live in a new apartment in the city centre and the rent is great, there is no way we could afford a mortgage on the same place. We signed a 3 year lease.

The only downside renting in oz, when I compare it to when I rent in Europe is that the agents/landlords here are so pedantic, no pictures on Walls, no pets etc. In Europe I could paint Walls, hang pictures and have my cat.

...I still have that now just every time there is an inspection I have to take down the removable picture hooks and hide the cat, even though this complex allows pets my agent doesn't!

RedT

We'll be renting, just as we do in London. There are downsides of course and eventually we do want to own somewhere so we can actually decorate and make it our own 'properly' but renting has the major benefit of being able to try out a few areas to find where you like and calling the landlord when something goes wrong!

swans

There is no answer.Probably in the short term,say 5-10 yrs then renting is cheaper.

However as rents increase over time then there is a crossover point where it becomes more expensive to rent than buy.thus today you may pay $400 in rent,in 10 yrs time you may be paying say $800 and the mortgage you could've had may only be $600 per week

As wages rise then in say 10 yrs time the $600 per week that looks expensive now will look very cheap in 2021,starting off is always difficult but becomes easier as the years roll by.

The leverage of a mortgage produces large returns (illusions).thus you buy a house for $400k and it doubles in 10 yrs the illusion is you have made 4400k because you sold it for $800K.

The holding costs (interest,rates, repairs etc) should be deducted from this gain for the real gain.however you still have $ 400k in your hand.

suppose the real gain is $50k after holding costs,suppose the rental costs over 10 yrs are $250K then there is a $300K difference between the owner and the renter.

I'm retired now but when I came here i could rent a house for $50 per week on a wage of around $200 per week.If i had rented for the long term,say 35 yrs i would never have saved enough to retire.A mortgage is forcing you to save,whereas renting does not force you to save.

Without thinking too hard it always seemed to me that all outlays on a house I bought would be recouped on selling.Thus i would break even or be ahead slightly but have $400k in my hand.

my parents lived in a council house all of their lives,but the leases then, once you had one ,were basically for life.Australia does not have that option (that I know of).

To sum up a mortgage forces you to save,renting doesn;t.You WILL need to learn about the financial side of life,and make your own choices. The popular opinion will nearly always be wrong

good luck

Geordie downunder

Steve2009

The above post includes a lot of assumptions which seem to be expressed as facts without sufficient basis.

The comparisons seem to be flawed also.

swans

Assumptions are not facts.

A financial model can never be facts as nobody can predict the future

What would your asumptions/financial model be for a comparison?