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Rent v Buy - discussion and views

Rent v Buy - discussion and views

Old May 31st 2005, 10:17 pm
  #16  
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Default Re: Rent v Buy - discussion and views

Originally Posted by Mercedes
The Australian market has been volantile in the past, probably moreso than UK. In the recession of 92 a number of people lost money on houses and don't forget both the building trade/real estate didn't pick up for approx 10 years. Don't forget also the 92 recession came after property was on an upward climb also. Things are often hunky dory until Banks start putting up interest rates and calling in loans. I personally think prices will be coming down to realistic figures.
I can't comment for Perth, but renting here in QLD you don't need to pay rates / water / house insurance and I believe that the housing market is on a downward cycle. When we looked at the rent'v'buy question I worked out that for us to buy house values would need to rise by 4% but in Brisbane they are either flat or dropping.

The key to all this is of course second guessing what house prices will do, and all I can say is that the circumstantial evidence I have suggests a fall:

1) Share prices of construction (particularly residential) has dropped.
2) The volume of property / land searches has nose dived.
3) Hardware vendor friends of mine report that quantities of nail gun nails is falling.
4) $400,000 houses in my area have been on the market since Jan and haven't sold.

I know that these aren't cast iron proof that a fall is on the way, but remember that a lot more jobs here in Australia rely on the residential construction industry so the impact of changes in the housing market would be greater than in the UK. Add to that, that every man and his dog has an investment property thanks to negative gearing tax brakes and a low threshold for the top tax bracket.

At the very least rent for 6 months.

Cheers

Papa Z
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Old May 31st 2005, 11:53 pm
  #17  
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Default Re: Rent v Buy - discussion and views

Originally Posted by Zentack
Add to that, that every man and his dog has an investment property thanks to negative gearing tax brakes and a low threshold for the top tax bracket.

At the very least rent for 6 months.

Cheers

Papa Z
It will be interesting to see what happens to the property investors, with the top tax rate threshold being increased from $70,000 to $125,000. Negative gearing, for some, will not be quite as impressive as before.

I agree that renting first can be the best option. It allows a certain amount of time to see if the area is really what you are looking for.
 
Old Jun 1st 2005, 2:56 am
  #18  
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Default Re: Rent v Buy - discussion and views

And if you rent, take photos of the whole property and give a signed copy to the Real Estate agent, some can be real bastards when you are getting your bond back and will dispute, marks, damages that they weren't there before you moved in.
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