$150k in an offset after 4 yrs, I'll go out on a limb and say YOU ARE FULL Of SHIT!!!!
Go troll somewhere else
Maybe but we don't know for sure. Some people make some fortunate decisions that suit them and some make unfortunate decisions that don't work out. That's regardless of whether they buy or rent,
Who knows. I've read thousands of accounts by renters who claim to have saved a fortune by renting instead of buying. Maybe they have, maybe they haven't.
Any expressed market opinion is my own and is not to be taken as financial advice
$150k in an offset after 4 yrs, I'll go out on a limb and say YOU ARE FULL Of SHIT!!!!
Go troll somewhere else
saving $700 a week when you bring in a combined income of $2800 (after tax) isnt hard even when $600 goes to the mortgage, it still gives you $1500 for other expenses. Just becasue you cant acheive it, it doesnt mean its a lie...
peter fraser
17 Aug 2014, 01:04 AM
Maybe but we don't know for sure. Some people make some fortunate decisions that suit them and some make unfortunate decisions that don't work out. That's regardless of whether they buy or rent,
Who knows. I've read thousands of accounts by renters who claim to have saved a fortune by renting instead of buying. Maybe they have, maybe they haven't.
very true. You could keep $150,000 is a term deposit at %5 and earn $7500 a year.....then pay tax on that. Or have it in an offset account save over $12000 a year and not pay a cent tax
And its been a proven fact over the years that buyers have come out on top of renters, hands down.
But that was when we had a thriving and growing economy and wages over the last number of decades, when people paid higher deposits and had job security and economic security for life. People lived a more modest lifestyle and did not borrow money for everything.
But things have now changed, our economy is now contracting fast, there is now little if any job security compared to previuos decades and wages are at threat from cheap foreign labour, so I see little chance of wage growth in future but a lot of threats directed at wages falling.
So now through doing everything possible to pump a housing ponzi all in the name of government gravy train rolling, while doing just the opposite for the real economy, we are headed into the economic abyss.
So with all these investors now the only buyers and all these units being built in every capital city like no tommorow, and with youth unemployment at 25% and evrybody else losing their job to cheap foreign labour and technology, who will be able to rent all these places, let alone buy them when you dont have a job.
Rents in all capitals have peaked , forever, and will now start falling. So as an investor your return will become less and less. As a renter, your rent will become cheaper and cheaper.
So the time in history for which the buyer is better off than the renter has finally changed.
Me and my wife purchased a house around 4 years ago in melbourne (25mins for CBD), borrowed $370,000. We have had an offset account connected to the loan the whole time. 4 years on we have brought the loan down to 300,000 and have just under $150,000 saved up in offset account. The interest (dead money) what the loan charges us every month is less than $800 thanks to our offset account.
I am just wondering how are people trying to tell me renting is better than buying when the only dead money I lose is less than $800 when the average rent (dead money) for a 4br 2 bt home is roughly $1500.
I pay $600 a week repayments on the loan but any money what goes to the bank after the interest is charged is coming off the princable of the loan so its not dead money because its paying off something I will own which to be honest, will most likely not drop in price....but lets not start talking about %40 crashes.......we will assume prices will not move.
Also I have a life, spend up, and holidaywith my family.......
Firstly you laybuyed a home. In 4 years you have only msnaged to pay down $17500 pa, while getting less than $7000 'benefit' from your $150k cash (lets face it, the banks getting the benefit and you are losing out to inflation to boot)
The bulls ooohing and aaaahing doesn't make what you have done all that impressive.
While its good to have cash for a rainy day, Pay it down faster and become s real home owner!
Me and my wife purchased a house around 4 years ago in melbourne (25mins for CBD), borrowed $370,000. We have had an offset account connected to the loan the whole time. 4 years on we have brought the loan down to 300,000 and have just under $150,000 saved up in offset account. The interest (dead money) what the loan charges us every month is less than $800 thanks to our offset account.
I am just wondering how are people trying to tell me renting is better than buying when the only dead money I lose is less than $800 when the average rent (dead money) for a 4br 2 bt home is roughly $1500.
I pay $600 a week repayments on the loan but any money what goes to the bank after the interest is charged is coming off the princable of the loan so its not dead money because its paying off something I will own which to be honest, will most likely not drop in price....but lets not start talking about %40 crashes.......we will assume prices will not move.
Also I have a life, spend up, and holidaywith my family.......
There are owners and renters, you and you wife are owners. Good luck and keep learning. Peter
$2800 a week is $145600pa. You've just been busted telling fairy tales.
Post tax that's about $1960, you say you save $700 leaving $1260, you need to pay interest + principle that's another $500. That leaves $760, or $320 each. I made more than that 20 years ago per week.
$320 a week and you expect us to believe you are going on OS holidays every year? Fiji is expensive as well FYI, more proof you are full of it.
Firstly you laybuyed a home. In 4 years you have only msnaged to pay down $17500 pa, while getting less than $7000 'benefit' from your $150k cash (lets face it, the banks getting the benefit and you are losing out to inflation to boot)
The bulls ooohing and aaaahing doesn't make what you have done all that impressive.
While its good to have cash for a rainy day, Pay it down faster and become s real home owner!
if i owe $300,000 and have $150,000 in an offset, the bank charges the same interest per month as they would if i owed $150,000 and had $0 in an offset. Once I have more in my offset than I owe i will pay a lump sum to finish the loan and i will be living for free...but paying a lump sum now would be pointless
You could keep $150,000 is a term deposit at %5 and earn $7500 a year.....then pay tax on that. Or have it in an offset account save over $12000 a year and not pay a cent tax
8% mortgage rate? Ouch
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
if i owe $300,000 and have $150,000 in an offset, the bank charges the same interest per month as they would if i owed $150,000 and had $0 in an offset. Once I have more in my offset than I owe i will pay a lump sum to finish the loan and i will be living for free...but paying a lump sum now would be pointless
Bit will you and your partner both have jobs next year, or the year after that, or the year after that .
Jobs are dissapearing fast, did you say Melbourne, highest unemployment since 1999.
How safe is your job, how safe is your partners. How safe is everybody else's job ?
Melbourne is headed for severe economic decline, this is a given ,there backbone of manufacturing and production is now broken , and all other sectors are pointimg to decline. Jobs loses are headed to the moon.
The only thing rising there is debt levels and apartment building as a result. The end result will be falling rents and prices, no matter how low interest rates go.
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