Re: Is Rent "Dead Money"?
Originally Posted by commonwealth
(Post 10652761)
is that 3.5 x annual gross income?
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Re: Is Rent "Dead Money"?
Originally Posted by Jon77
(Post 10652641)
Income insurance is one of the biggest mortgage add on cons out there, read the small print before taking one of these plans out.
We got suckered in to a mortgage 'protection plan' with our mortgage provider in the UK and regretted it. |
Re: Is Rent "Dead Money"?
Originally Posted by Margaret3
(Post 10652626)
Eeeeek, I didn't realize things would be that tight. The reasons you've given are some ( amongst others , like two , expensive girls to support, and the fact we prefer the more expensive suburb lol) are the reasons we are in a rental. However, it's not a thing to look forward to in old age.....moving from rental to rental! And who's gonna rent to an OAP
Similarly to you for instance, Margaret, the thought of having to change rentals frequently, & in my case with a child in tow is worrying. Beoz-I own my home, but not outright- I work, but am of an age where it's not going to be easy to secure employment, & certainly not straight away. And the australian Gov't charge for my visa is going to be over 50k....I'm not complaining & I'm doing my best here but I've got responsibilities & only a certain amount of funds. You want to see us out on the streets as soon as we get there? I have a child who is an Aussie Citizen & entitled to be there.....he'll need somewhere to live & it's keeping me awake at night already ! What happened to your empathy? Point taken though on the "Council" question Commonwealth- that's exactly the warning info I need ! Cheers everyone :thumbsup: |
Re: Is Rent "Dead Money"?
1 Attachment(s)
In the attached example, the average over 20 years interest repayment element alone works out at $373 per week then on top of that there's rates, repairs and improvements and that's before you even start chipping away at the capital repayment. Also there's stamp duty, legal fees, etc to buy. And extortionate estate agent and other fees when it comes to moving/selling. So for us who are renting a house that is in the value range of the attached example but paying $440 dollars a week to rent, it's a bit of a no brainer really. Also, paying $3700 per month repayments would be very hard to do.
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Re: Is Rent "Dead Money"?
oh thats interesting.
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Re: Is Rent "Dead Money"?
Originally Posted by campervanfan
(Post 10653550)
Beoz-I own my home, but not outright- I work, but am of an age where it's not going to be easy to secure employment, & certainly not straight away. And the australian Gov't charge for my visa is going to be over 50k....I'm not complaining & I'm doing my best here but I've got responsibilities & only a certain amount of funds. You want to see us out on the streets as soon as we get there? I have a child who is an Aussie Citizen & entitled to be there.....he'll need somewhere to live & it's keeping me awake at night already ! What happened to your empathy?
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Re: Is Rent "Dead Money"?
Originally Posted by paulry
(Post 10653631)
In the attached example, the average over 20 years interest repayment element alone works out at $373 per week then on top of that there's rates, repairs and improvements and that's before you even start chipping away at the capital repayment. Also there's stamp duty, legal fees, etc to buy. And extortionate estate agent and other fees when it comes to moving/selling. So for us who are renting a house that is in the value range of the attached example but paying $440 dollars a week to rent, it's a bit of a no brainer really. Also, paying $3700 per month repayments would be very hard to do.
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Re: Is Rent "Dead Money"?
Originally Posted by GarryP
(Post 10654570)
Take a look at the link I posted on the front page. You can put in your particular circumstances and it will give you a personalised graph of when the break even point is for rent vs buy. Advanced options allows you to enter factors for the above extra fees.
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Re: Is Rent "Dead Money"?
Originally Posted by paulry
(Post 10654616)
What a great little calculator! :thumbup: It seems that for the entire 30 years I'll be much better off financially renting rather than buying. Of course once the mortgage is paid off the winner becomes the loser and vice versa.
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Re: Is Rent "Dead Money"?
Originally Posted by paulry
(Post 10654616)
What a great little calculator! :thumbup: It seems that for the entire 30 years I'll be much better off financially renting rather than buying. Of course once the mortgage is paid off the winner becomes the loser and vice versa.
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Re: Is Rent "Dead Money"?
Originally Posted by GarryP
(Post 10654647)
You do have to make sure the advanced bits match your costs - and it only really works if you invest the difference between what you would have paid and the rent - if you blow it you are no better off :thumbsup:
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Re: Is Rent "Dead Money"?
Post 10 said it. No rent protection laws to speak of in Australia. The three monthly,I believe inspection I would find rather intrusive.
Saying that there is the freedom to move for whatever reason and not dead money. Can government maintain the over inflated Australian property market? Highly debatable. If you intend to stay long term as have found something/where you love being then not so important perhaps when property does correct. It is far from simple these days.A crunching of figures will show you financially where you stand best,but as we know rates are variable. I decided against buying further property in Australia but sadly flipping over priced houses to one another may be a major economic activity once the resource downturn takes off and interest rates drop further. |
Re: Is Rent "Dead Money"?
do you think i interest rates will stay low for quite some time?
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Re: Is Rent "Dead Money"?
Depends on Chinese demand and Euro zone procrastination.
Originally Posted by commonwealth
(Post 10654928)
do you think i interest rates will stay low for quite some time?
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Re: Is Rent "Dead Money"?
Originally Posted by IvanM
(Post 10654968)
Depends on Chinese demand and Euro zone procrastination.
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