thedons

Well, the auction is this Sat, and i don't know if this is last minute nerves or the shit is about to hit the fan big time!!!!!!!!!!!!!

IndieG

What about the interest you pay to banks, mortgage insurance, maintenance charges, council rates that tenants don't pay?

LouiseR

Yes but you own a home at the end of it... If you rent a house for say 400 bucks a week you're paying about 20 grand a year for the pleasure of living in someone elses house, I'd prefer that 20 thousand to come off my mortgage rather than someone elses.

The only way to win at renting is to do what Emelems is doing, invest the money and rent a house but only then if you're making more money that you're paying in rent.

No 15

I think there's going to be more than 20 thousand coming off the prices of houses in Australia very soon!

LouiseR

Fingers crossed! Then I'll buy one, make a fortune then my kids and grandkids won't need to buy a house because I'll just give them one

NedKelly

But that $20,000 won't come off your mortgage about $100 of it will. The rest is interest.

kporte

mmm. I am totally over buying houses. Paying 700 a week for a mortgage on a house could have rented for 380. Now can't sell it, dropped the price by 20k so far and no doubt further and still paying 700 a week until the day i sell it. 2k a year on rates too. I won't buy again unless I can pay cash. Ever.
Will probably make 60k on wat we paid for the house after having it 2.5 years or so. Maybe.... less selling costs, might net 50k which I would have anyway if I had put the difference between buying and renting in the bank....

Broad Shoulders

Yeah but to be fair you bought before the biggest economic crisis to hit the world and you are trying to sell while people are still feeling the ill effects and interest rates are going up again. Had your personal circumstances not got in the way and you had kept the house for 10 years I'm sure your profit and experience would have been a lot more positive

NedKelly

Don't forget to add in purchasing costs like stamp duty, mortgage stamp duty (now abolished), loan setup fees, lawyers. That would be another $10,000 at least.

kporte

I don't..... The thing is that renting is not dead money here if you are savvy. It is different from the uk in that renting is dearer than buying in the uk but cheaper here, A lot cheaper. Both camps have a valid point though and if you look at buying as a home and long term, it works.

elice_in_oz

If the house is right for you and at a price you are comfortable to pay for it, there's no need to be nervous.
As long as you've done your research and you have decided on a price limit for this particular house, you'll be fine at the auction. It is nerve wracking, but if somebody else is willing to pay crazy money for a place that you know is not worth it, then have no regrets. Better them not being able to make the repayments than you!

And who knows, it might be passed in and then you're in with a chance to get it cheaper. Happened for us only 5 months ago...

kporte

Correct of course!

kendalanita

We are just so sick of paying all this rent - over $2100 a month for the last two years, so bit the bullet and bought a gorgeous house, we are very lucky we know, we are cash buyers so most of our wages now will go into our back pocket (well high interest account) so fingers crossed house prices won't tumble but they do seem to fly off the shelf here in Canberra!! My god, never seen so many folk at viewings and they tend to get 2 - 3 offers on each property, no hanging around here!!! If you want it, you more or less have to make your offer there and then!!!

vicki78

No way I would buy a house now.

We have a fair amount of savings which we could use as a deposit, but I would be very scared to do that and ending up in negative equity. The money would be tied up in the property and even though we would want to buy a "home" not a house, there could be any unforseen reasons to having to sell a property. At least our savings earn interest every month.

A few people said here that renting is dead money, but isn't paying interest (a very high one at that) is dead money? Especially if someone having an interest only mortgage.

LouiseR

Maybe so, but I do intend to pay additional amounts to reduce the interest and the amounts I intend to pay will reduce my mortgage by 12 years and save me over $200,000 in interest. Oh and I'll have something tangible at the end of this, a house I own.