Thread: ABS Releases more useless Stats

I just want to get my own back after all those years of renting.

"what do ya mean that hole in the roofs an inconvenience"
"If you want me to replace that stove I'll have to increase the rent"
"OK the toilets broken, you'lle just have to use a bucket for a while"
" yeh I'll fix that next week "

Man what a power trip that could be!

What do you mean your not paying rent till that fence pailing is replaced

So I get to keep the bond after 12 months fighting it won't cover the cost of repainting/ carpet ( from where they had pot plants without trays under them ) etc

What do you mean you wont pay rent and you won't leave

Not all however others were fantastic

Hey, didn't I rent a house of you once?

Originally Posted by Ashore

if you clear 4% PA on your investment you are lucky

Owning an investment house (which is different to owning your own) is absolutely a long term investment.

Don't even worry about getting a return on the total value on the way through, if you do well that's a bonus! In any case, don't forget "your investment" is actually the money you've outlayed (your deposit!), not the total capital value.

And it takes a certain amount of courage to be a generous landlord too.

Roof leak = three week's rent.
Fence Repairs = another week.
Stove gone? Hmmm there goes next month!

All that in the hope that your tenant will treat you with the same courtesy you show them!

This argument however, isn't about being a landlord, or maybe it is now if q9 and his mates are looking for somewhere to live for the long haul!

cheers,

P

Originally Posted by bitingmidge

I've seen all the sums, and the only people who actually believe that they are better off renting, have convinced themselves that buying houses is only for intellectual inferiors, or they have a vested interest in flogging investment products.

Let's just for a minute pretend that over 25 years, houses increase in value at the same rate of inflation. Let's also pretend, to be fair, that rent does so as well.

Interest rates on the other hand fluctuate, but let's just say they average twice the inflation rate. In very crude terms given the above set of numbers, one could work out a discounted comparison between renting and buying. Without doing the sums, I'm willing to bet that at about the ten year mark, repayments and rent will be the same, and for the last fifteen years, repayments will be less, and after 25, well you guessed it, Mr Renter is still there, while Mr Home Owner is in the south of France having a holiday, or driving round Australia for a year or two, with tenants in his house paying for it all.

...

Or am I wrong?

You're partly wrong. You haven't taken into account rates, insurance, interest rate fluctuations and maintenance. And the decreased flexibility that comes with ownership. Fine if you know you'll never ever move, but if you do...

Anyhow, I did buy a house, but overall I don't view it as an "investment". Pretty much entirely a lifestyle choice and I really, really, REALLY hate real estate agents

Now I don't flog investment products, but I do invest in other things. Overall I've done quite well out of that with money I had (no borrowings), plus I have been able to keep liquidity.

Up to each individual what they want to do with their money - no argument here. All I know is that we are substantially better off having waited to purchase. The repayments, though high by some standards, is actually a fairly small and manageable proportion of our incomes. Unlike friends of ours that bought a house several years ago, for much less than we paid, repayments are still quite low compared to ours, but their overall income to debt ratio is scary. Mostly that is because they've had to borrow for everything...cars, furniture, etc. We took our time and own all that stuff already.

Anyhow, I'm not at all bothered if anyone agrees with me or not. We've done what suits us, and it has worked out well for us. That's all I care about

Originally Posted by Ashore

Dazzler its not homes that double in value every 7 years its invested cash if you can get a touch over 10%

You is right.

Except whenever I invest in land it goes backwards

Originally Posted by q9

Mostly that is because they've had to borrow for everything...cars, furniture, etc.

Well see that's where we really differ. They didn't have to borrow a zac, they chose to!

Anyhow, I'm not at all bothered if anyone agrees with me or not. We've done what suits us, and it has worked out well for us. That's all I care about

Sorry if I gave the impression that I was out to bother you. Doing what suits is all one needs to do.

Yes I did take into account rates and all those things, and don't particularly want to get into a fight over that either.

You are correct, the house you live in is NOT an investment, it's a lifestyle assett. It's just that when you actually get to own it, then you don't pay rent at all!

That means living in the house I do for instance, I theoretically get another $400 bucks or more a week (or whatever I'd be paying in rent) to invest without borrowing (or to buy tools!) or if I was clever, to service further investment debt.

That sort of dough just isn't available to normal households paying rent!

Cheers,

P

Originally Posted by bitingmidge

...That means living in the house I do for instance, I theoretically get another $400 bucks or more a week (or whatever I'd be paying in rent) to invest without borrowing (or to buy tools!) or if I was clever, to service further investment debt.

That sort of dough just isn't available to normal households paying rent!
......

Renting is like smoking.

Originally Posted by Cliff Rogers

Renting is like smoking.

Smoking is like renting?

Originally Posted by craigb

Smoking is like renting?

That depends on what you are renting.

Those charcoal Winnie Blues at the moment.

Don't worry Bitingmidge, I am pretty hard to offend when it comes to talking financials! Mostly I am just happy when people have actually worked out what suits them best rather than just doing something because they believe it to be the thing to do without doing any kind of analysis for themselves.

Plenty of people used to flick the saying "rent money is dead money" at us, to which I promptly replied "so what does that make interest?" Interesing how few people had put any kind of thought to that question prior to my asking...

Anyhow, 3 months into the whole mortgage thing, and we're 4 weeks ahead Dunno if we can keep that up, but it would be nice

Sometime after the Mrs has finished her degree, I plan to go and do post grad in Applied Finance/Economics. I've turned all Alex P Keaton

Well there we are. Thinking it was the RBA/World Banks/Governments who decided the rate rises (or falls) when all along it has been our own fault.

AUSTRALIANS must cut spending to help drive down inflation - or risk another rate rise later this year. That's the grim Reserve Bank warning backed by industry experts who argue homebuyers should merge debts and concentrate on paying off their homes. The RBA yesterday said inflation was stubbornly staying high because we are spending too much.

So what will you be cutting back on - if you have to?

Originally Posted by Metal Head

Well there we are. Thinking it was the RBA/World Banks/Governments who decided the rate rises (or falls) when all along it has been our own fault.

AUSTRALIANS must cut spending to help drive down inflation - or risk another rate rise later this year. That's the grim Reserve Bank warning backed by industry experts who argue homebuyers should merge debts and concentrate on paying off their homes. The RBA yesterday said inflation was stubbornly staying high because we are spending too much.

So what will you be cutting back on - if you have to?

Reading Govt reports