Lol filling the piggy bank while living further out!!!! Bears rent 20kms from the cbd paying more in rent than someone with a $400,000+ loan 30kms out hahahahahaha. Renting just slows you down
I rent by myself 1.5km out and pay less than half what someone with a $400k mortgage would.
I rent by myself 1.5km out and pay less than half what someone with a $400k mortgage would.
Today you do But at some stage the owner will be paying zero and you will be paying several times a week more than what the mortgage repayments would have been
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Today you do But at some stage the owner will be paying zero and you will be paying several times a week more than what the mortgage repayments would have been
As far as I know the owner has been paying zero since before I was a tenant which was the best part of 15 years ago. Rent has risen less than 30% in that time.
Bill and Paddy Pettigrove are lifelong renters. For 34 years they lived in a three-bedroom house in Elwood, a leafy, bayside suburb of Melbourne. They raised their two children there, and only left when their landlord decided to knock the house down and build a block of flats on the land. Now they live on a heritage grove in Brighton, and are very happy there.
The Pettigroves hadn't planned on renting forever, but like many Australians, they found the cost of buying a home was just too high. With extended family in the UK and South Africa, they preferred overseas trips to a mortgage. Plus, they didn't want to leave the neighbourhood they'd grown to love.
"We possibly could have afforded to move out into the far out suburbs but that wasn't on the cards for us, and it still isn't," explains Ms Pettigrove. "We fell in love with Elwood and we didn't want to live anywhere else, but we could never have saved up enough to buy there."
Australians are notoriously fond of home ownership, but a growing number of residents are now renters, not owner-occupiers. In a 2011-12 report on Housing Occupancy and Costs, the ABS noted a decline in home ownership over the past two decades – 67 per cent of households were found to own their home, with or without a mortgage, down from 71 per cent in 1994-95. Meanwhile, a quarter of all households were renting privately.
Anecdotal and research reports primarily credit this growth in the rental market to soaring house prices, which are making the great Australian dream of home ownership increasingly difficult to achieve.
Ned Cutcher, senior policy officer at the Tenants' Union of NSW, points to a survey of New South Wales renters the union conducted last year, which found that the majority of respondents – 57 per cent – stated they rent because they couldn't afford to buy.
However, roughly a quarter of respondents preferred what renting offered. The most popular reason cited for choosing to rent was that it allowed people to live in an area they might not otherwise be able to afford
Professor Hal Pawson, an expert on city housing at the University of NSW, says that not only are there more people renting these days, but they're renting for longer periods, with about a third of all private renters residing in properties for at least 10 years.
One individual who wholeheartedly believes in the merits of long-term renting is Phil Ruthven, the founder and executive chairman of IBISWorld, a global firm that analyses economies and industries, who has been leasing homes for 23 years.
Ruthven asserts that it's interest payments on a mortgage, not rent, that equal dead money. As those cost more than rent, he believes it's wiser to invest money that would be used to purchase a property elsewhere, such as in shares. Ruthven has also done the math on the hidden costs of home ownership, which include maintenance, council rates and insurance, and says that these can come to an extra $211,500 over a seven year period – the average period of time Australians will own a house for.
Lol filling the piggy bank while living further out!!!! Bears rent 20kms from the cbd paying more in rent than someone with a $400,000+ loan 30kms out hahahahahaha. Renting just slows you down
Lets be accurate shall we. A $400,000 house on an IO loan. Which is basically just renting but with a huge millstone around your neck that you can't remove unless you sell and take a loss, or house prices go up like they did in the early 2000's. Looking at nearly every capital over the past 7 years and the bleak future Australia is facing that is highly unlikely.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
Bill and Paddy Pettigrove are lifelong renters. For 34 years they lived in a three-bedroom house in Elwood, a leafy, bayside suburb of Melbourne. They raised their two children there, and only left when their landlord decided to knock the house down and build a block of flats on the land. Now they live on a heritage grove in Brighton, and are very happy there.
Well good for them, they made a lifestyle choice and the way rents are collapsing I believe they will see their years out in relative comfort. Free from the worries of expensive maintenance and the prospect of ever increasing rates as local councils across Australia struggle to provide basic services. As they are now.
Some landlords might assume they could raise rents to cover these but if that was the case rents would be rising in pace with inflation all across the nation now. But they are not! They are falling well behind, like Perth's woeful 13% declines over the past 3 years. Rents are fixed by incomes, not the desires of landlords I am afraid.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
I notice recently that the amount of bulls on here is growing. Sign of the times as the tide turns and you all get wiped out by the forthcoming whirlwind that is the compulsory recession!
You were warned to live within your means, oh well - be nice to sit back and watch you lose the boat, 2nd car, holidays to bogan Bali and the sorts over the next few years.
If you're lucky one of us renters who have been frugal and not over-stretched will come and buy your property at a knock down price just so you can get the bank manager to back off before he pulls any more of your gold teeth out to pay your ailing mortgage debts...
Australians average debt per head - ~ > 150% - says it all really
The home purchasers do live within their means - they scrimp and save a deposit - they live in less salubrious suburbs to get maximum capital gains as they gentrify and in Australia they pay down their mortgages quickly. Home owners build wealth much better than renters despite their incomes.
Only ~30% of low income people rent, yet over 70% of the lowest wealth deciles in Australia are renters. If you continue to rent no matter what your wages most will end up in the lowest wealth deciles. This is a fact, from ABS data- I gave the sources in previous post and will seek them out on request.
Rent money is dead money, don't be a fool and fall for MSM fluff pieces like the above.
The vast majority of Australians aspire to home ownership yet there will always be some eejit that tries to call everyone else stupid to excuse their own wastrel lifes.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Lol filling the piggy bank while living further out!!!! Bears rent 20kms from the cbd paying more in rent than someone with a $400,000+ loan 30kms out hahahahahaha. Renting just slows you down
I rent by myself 1.5km out and pay less than half what someone with a $400k mortgage would.
It certainly makes sense in many cases since home values have gone nowhere in 7 years. Why pay hundreds of thousands in interest for an asset going nowhere.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
Why pay hundreds of thousands in interest for an asset going nowhere.
Tenants pay the interest. And nominal house prices have increased.
A better question is, why pay hundreds of thousands in capital for an 'asset' that has gone nowhere even in nominal terms since 2009, and that doesn't have any yield?
I rent by myself 1.5km out and pay less than half what someone with a $400k mortgage would.
Compared to year 1 costs. Classic bear fail.
The Whole Truth
26 Jul 2015, 11:43 AM
Well good for them, they made a lifestyle choice and the way rents are collapsing I believe they will see their years out in relative comfort. Free from the worries of expensive maintenance and the prospect of ever increasing rates as local councils across Australia struggle to provide basic services. As they are now.
Some landlords might assume they could raise rents to cover these but if that was the case rents would be rising in pace with inflation all across the nation now. But they are not! They are falling well behind, like Perth's woeful 13% declines over the past 3 years. Rents are fixed by incomes, not the desires of landlords I am afraid.
The reality is their rental will get less maintenance and their quality of life will be less than in their own home. How much maintenance does your brothers wood shed get anyway ted?
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