Is Rent "Dead Money"?
#62
Account Closed
Joined: Sep 2006
Posts: 4,374
Re: Is Rent "Dead Money"?
We had the opposite experience in the uk. We had taken this out for my husband as he was more likely to be out of work than me, and sure enough he was unemployed for six months and if it hadn't been for the mortgage protection we would definaty have had our house repossesed
#63
BE Enthusiast
Joined: Jul 2011
Posts: 337
Re: Is Rent "Dead Money"?
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
#64
Banned
Joined: Aug 2008
Posts: 22,348
Re: Is Rent "Dead Money"?
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.
Last edited by paulry; Apr 11th 2013 at 2:42 pm.
#66
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Is Rent "Dead Money"?
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?
#67
Re: Is Rent "Dead Money"?
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.
#68
Banned
Joined: Aug 2008
Posts: 22,348
Re: Is Rent "Dead Money"?
What a great little calculator! 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.
#69
Banned
Joined: Jul 2012
Posts: 3,300
Re: Is Rent "Dead Money"?
Yes it told me buying was never better than renting over the next 30 years.
#70
Re: Is Rent "Dead Money"?
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
#71
Re: Is Rent "Dead Money"?
thats what i thought as well. one must have a disciplined approach to managing the difference between rent and mortgage repayments.
#72
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
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.
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.