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Is Rent "Dead Money"?

Is Rent "Dead Money"?

Old Apr 13th 2013, 12:50 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by BadgeIsBack View Post
Actually with the FX rate you probably could, but I can tell you now it would not be a nice area, and even then it would be modest, and nowhere near as close as this Sydney place to the centre.
True, but a savvy buyer can get more for their money over there. And with more room for investment growth too. It doesn't solve Commonwealth's aim of owning his home in Sydney though
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Old Apr 13th 2013, 12:57 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by paulry View Post
True, but a savvy buyer can get more for their money over there. And with more room for investment growth too. It doesn't solve Commonwealth's aim of owning his home in Sydney though
Once a year or so I look at property in the London borough I grew up in. 350GBP buys you a 2 bed semi, or rather terraced house- possibly interwar. Not a smudge of gentrification or character in sight. Still, it is a nice borough.

(It's interesting that once you factor in even a few desirable factors the price starts going up in '50's..so by the time you are looking at any character, or detached, or more than 3 bedrooms you are well in to the 500's!)
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Old Apr 13th 2013, 1:10 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by BadgeIsBack View Post
Once a year or so I look at property in the London borough I grew up in. 350GBP buys you a 2 bed semi, or rather terraced house- possibly interwar. Not a smudge of gentrification or character in sight. Still, it is a nice borough.

(It's interesting that once you factor in even a few desirable factors the price starts going up in '50's..so by the time you are looking at any character, or detached, or more than 3 bedrooms you are well in to the 500's!)
I agree. Just checked the area that my house is in and it looks like the value of houses in my street have gone up by around UKP30k in the two and a half years since we left. Could even add another 10k or more extra to ours compliments of our insurance and the last tenant - who set the kitchen ablaze.
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Old Apr 13th 2013, 1:45 am
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Default Re: Is Rent "Dead Money"?

That is not SE Asia.
Originally Posted by RedDragon2008 View Post
?

I was refering to north korea and "fall out"
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Old Apr 13th 2013, 5:46 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by commonwealth View Post
what can i buy in London with that money?
Well I've not been looking in that price bracket but I know that since moving back I've moved from my 2 bed maisonet in finchley to a 4 bed house in Kingston upon Thames for money that would only buy me a 2 bed unit in a decent area of Sydney a similar commute from my office and with low fixed mortgage my repayments are only 15% of my salary. And I now have to get up and go kayaking on the Thames. Shame about the weather though.
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Old Apr 13th 2013, 6:06 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by isgraham View Post
Well I've not been looking in that price bracket but I know that since moving back I've moved from my 2 bed maisonet in finchley to a 4 bed house in Kingston upon Thames for money that would only buy me a 2 bed unit in a decent area of Sydney a similar commute from my office and with low fixed mortgage my repayments are only 15% of my salary. And I now have to get up and go kayaking on the Thames. Shame about the weather though.
When I was growing up Kingston was a bit iffy - a much poorer brother to say Richmond or Twickenham, and a bit later on, Teddington (Teddington nor Twickenham didn't have a purpose-built shopping centre as such but it really blossomed in the late 90s with some desirable housing). Since the late 90s Kingston seems to have had a bit of a revival - I don't think the housing stock is as good as in the London Borough of Richmond, save for Kingston Hill. To me, London is all relative - so Kingston is one of those great places to live in London, streets ahead of say anything around Merton, or New Malden etc.
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Old Apr 13th 2013, 6:59 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by commonwealth View Post
i'm about to make a property purchase. it's nerve wrecking as i'm doing it on my own. but i thought rent is dead money so i'd rather buy now than regret later. but i may be wrong?
Other than the "is it or isn't it dead money" question, the only thing I wouldn't like about renting is that the landlord can decide to sell at any time. I've seen this happen to a couple of my friends, just when they have settled in and felt at home. I would just hate the uncertainty.
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Old Apr 13th 2013, 10:04 am
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Default Re: Is Rent "Dead Money"?

thats the thing. it's hard to find places to rent. since i arrived here i've never changed address!
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Old Apr 13th 2013, 10:09 am
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Default Re: Is Rent "Dead Money"?

Could you buy something a bit further out, get more space, rent that out and rent yourself where you want to live? Friends of ours own a couple of places in the outer suburbs of Melbourne but rent in Port Melbourne. Seems to work well for them although they've owned the places for a while.
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Old Apr 13th 2013, 11:58 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by IvanM View Post
That is not SE Asia.
You dont get it so dont worry
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Old Apr 13th 2013, 1:44 pm
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Default Re: Is Rent "Dead Money"?

Originally Posted by campervanfan View Post
Oh I see your problem -envy's a dreadful emotion to carry- I've got a whole family who've paid tax out there all their lives, I'll make sure I make the most of it now just to spite your nasty little *ss
Envy .... hmmm ... I'm not an envious type. I actively promote and praise those who have made themselves successful and it's the reason why I have a great dislike of those who leach off the taxpayer.

You were so nice there for a while. I'm glad I exposed you for the leach you are.
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Old Apr 13th 2013, 1:56 pm
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Default Re: Is Rent "Dead Money"?

Originally Posted by isgraham View Post
Well I've not been looking in that price bracket but I know that since moving back I've moved from my 2 bed maisonet in finchley to a 4 bed house in Kingston upon Thames for money that would only buy me a 2 bed unit in a decent area of Sydney a similar commute from my office and with low fixed mortgage my repayments are only 15% of my salary. And I now have to get up and go kayaking on the Thames. Shame about the weather though.
Isn't this because you have a far greater earning potential in London compared to what you could earn in Oz? As for me it's the other way round right now.

I just compared my old street in London SW4, 2 bed terraces £500,000 approx and my current street in Eastern Suburbs of Sydney, 2 bed terraces £800,000 approx. Sure on current FX rates its a bit more expensive in Sydney but my salary ratio is 2.3, far different to the current 1.45 FX rate so for me, and possibly many others, it kind of cancels itself out to about parity or there abouts.
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Old Apr 13th 2013, 10:02 pm
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Default Re: Is Rent "Dead Money"?

Originally Posted by commonwealth View Post
thats the thing. it's hard to find places to rent. since i arrived here i've never changed address!
It looks like your circumstances make you well-suited to buying your own home. People who are likely to move ( downsizing, upsizing, relocating, etc) shouldn't buy because the slim pickings from any short to medium term increases in value are wiped out and more by the eye-watering costs associated with selling and re-buying.
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Old Apr 14th 2013, 1:52 am
  #104  
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Default Re: Is Rent "Dead Money"?

Originally Posted by paulry View Post
It looks like your circumstances make you well-suited to buying your own home. People who are likely to move ( downsizing, upsizing, relocating, etc) shouldn't buy because the slim pickings from any short to medium term increases in value are wiped out and more by the eye-watering costs associated with selling and re-buying.
i've been living (renting) in same address in the past 4 years . . . . the landlord loves me i got a rent increase only once! but have to move out as the landlord wants to sell sometime this year.
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Old Apr 14th 2013, 7:22 am
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Default Re: Is Rent "Dead Money"?

Originally Posted by paulry View Post
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.
Yes, its made me feel better, but the thought of moving every 1 to 2 years can be quite costly financially and emotionally.
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