paddyo

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.

BadgeIsBack

Even with people who know how much interest they are up for prefer not to think about it too much. If prices did not increase massively over a generation then maybe more people would stay clear.

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.

commonwealth

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.

paddyo

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.

paulry

That's what I was thinking. Good luck with your new home

Beoz

At that price it's pretty low risk. If I were without Mrs Beoz, I wouldn't hesitate for a second to jump into something like that. I reckon I could be paying less in a mortgage than rent at that price. Unfortunately Mrs Beoz has high tastes, therefore its the Eastern Subs for her, which means low rent (cough cough) rather than a high mortgage, most of which would be "Dead Money" and considerably more "Dead Money" than the rent we currently pay.

I thought it was 20% to avoid mortgage insurance?

commonwealth

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.

Beoz

Right ... gotcha.

Beoz

BTW. You don't have to pay stamp duty either - correct?

commonwealth

yea its exempt. gotta use all govt help u cam get! after all the taxes uve paid!

i think i save approx $30k

Beoz

Actually, the government is attempting to help builders and developers and the other associated "hangers on". There is barely anything available under $650,000, brand new and close to the city so it's kind of mute for most buyers.. Why on earth is Australia's most expensive state got the third lowest grant?

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

commonwealth

hmm i'm not sure i can relate to most people as i'm single and unavailable

commonwealth

omg no turning back