Is Rent "Dead Money"?
#121
Re: Is Rent "Dead Money"?
THAT is the bit that gets me....you already pay a Mortgage plus also paying $1000 pq, which in my opinion is very high for a 1 bed apartment buuilding.
#122
Lost in BE Cyberspace
Joined: Oct 2005
Location: Hill overlooking the SE Melbourne suburbs
Posts: 16,622
Re: Is Rent "Dead Money"?
crap
all depends on what your rent is vs mortgage costs and the rate at which house prices rise vs interest made on savings
on a 95% mortgage over 25 years you'll typically pay the mortgage again in interest, that's equally as dead as renting.
Why don't you all just save up for 12 years and buy outright?
all depends on what your rent is vs mortgage costs and the rate at which house prices rise vs interest made on savings
on a 95% mortgage over 25 years you'll typically pay the mortgage again in interest, that's equally as dead as renting.
Why don't you all just save up for 12 years and buy outright?
The old chestnuts of a place of your own are always a good one, especially when you have a family. I bought a flat in London and I disliked it immensely.
#123
Re: Is Rent "Dead Money"?
as anything in money matters, rewards are propprtional with risks. it's important to take calculated risks and be prepared for them.
#124
Re: Is Rent "Dead Money"?
Oh I get all that, in your position I would do the same thing.
I rent here but have a house in UK (halfway through 25 yr mortgage), what I am struggling with is to find a decent house in a decent suburb here to buy which won't leave me in debt for my final working years (I am 51 next month) with another mortgage. I refuse to buy a property which has strata as its just increasing the outlay for me and I just could not at my age live in a flat for years.
I rent here but have a house in UK (halfway through 25 yr mortgage), what I am struggling with is to find a decent house in a decent suburb here to buy which won't leave me in debt for my final working years (I am 51 next month) with another mortgage. I refuse to buy a property which has strata as its just increasing the outlay for me and I just could not at my age live in a flat for years.
#125
Banned
Joined: Aug 2008
Posts: 22,348
Re: Is Rent "Dead Money"?
based on my forecasts and budgets, net present value calcs and sensitivity analysis spreadsheets, im better off buying than renting. as an accountant i would be silly no to do the maths. i of course included allowances such as high interest rates etc. so there.
as anything in money matters, rewards are propprtional with risks. it's important to take calculated risks and be prepared for them.
as anything in money matters, rewards are propprtional with risks. it's important to take calculated risks and be prepared for them.
#126
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Is Rent "Dead Money"?
I thought it was 20% to avoid mortgage insurance?
#127
Re: Is Rent "Dead Money"?
yeah i have to pay 10% upfront deposit and in late 2014 when its all complete (hopefully) need to pay the rest 10% which i already have. then i get 15k from the govt as grant and now my goal is to save a comfortable buffer between now and late 2014.
#128
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Is Rent "Dead Money"?
Right ... gotcha.
#129
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Is Rent "Dead Money"?
BTW. You don't have to pay stamp duty either - correct?
#130
Re: Is Rent "Dead Money"?
yea its exempt. gotta use all govt help u cam get! after all the taxes uve paid!
i think i save approx $30k
i think i save approx $30k
#131
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Is Rent "Dead Money"?
Australian Capital Territory: $750,000
Queensland: $750,000
New South Wales: $650,000
Northern Territory: $600,000
South Australia: $575,000
Tasmania: No limit
Victoria: $750,000
Western Australia: $750,000 or $1,000,000 for property north of the 26th parallel
#132
Re: Is Rent "Dead Money"?
hmm i'm not sure i can relate to most people as i'm single and unavailable