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Property investors are suckers!
Topic Started: 1 Oct 2015, 05:00 PM (5,143 Views)
Suckers
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If I whack some numbers into a mortgage calculator to work out how much I could borrow on a 25 yr Mortgage at 5% p.a. for repayments to match my current rent, and excluding ALL other costs, I can borrow approx $300k. What the fuck can I buy with that in this market in Sydney? And what the fuck do I do about all those other costs?

On a cash flow basis alone, it makes 0 fucking sense mate. How about you attractive investors keeps subsidising my living costs, and make sure you fix the blind that just broke coz its old, and the heater, that died too, plz fix (urgently too, coz that’s the law bruddah). Oh, there’s a leak in the eves – yep, you get to fix that too. Lucky you’re so attractive!

Oh, by the way, I’ve decided to leave your rental and go to another at a lower price. Coz, you know, competition. Thanks though, have fun with no rental income for the approx 1 – 2 week changeover. Maybe you can take the time to replace the carpet that I damaged, but, because it’s older than 10 years, I don’t have to pay for my non-wear-and-tear damage coz, lol, it’s ‘worthless’ according to the ATO.

That ongoing mortgage repayment must make you feel all warm and fuzzy inside, especially now you’ve lost your FIFO job and are working 2 jobs, one packing shelves at coles, to make sure you can keep up repayments on your glorious mortgage.

Much <3 to you! Thanks for making sure my superfund made lots of money up until 2014 with those mortgage repayments to uber profitable banks. Too bad the party has to come to an end, but that's ok, we had a good run.

Maybe, in 5 – 10 years time, you can rent my place. I'll even give it to you at a discount. :D
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Sydneyite
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So you pay $1750/month in rent? $400/week?

Regardless, you make the classic bear mistake of basing your decision comparing only the first year mortgage costs compared to your current rent. Keep renting - it probably suits you better! :re: You might want to research the concept of net present value of cash-flows analysis to learn how to do a proper rent vs buy comparison.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Mallard
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Thread killer

Bellend.
Collecting desperation.
Ex-Bp Golly April 2 2015. "I see with a slight overshoot -70% [fall in Sydney house prices] as being well within possibility"
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Shadow
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Evil Mouzealot Specufestor

Suckers
1 Oct 2015, 05:00 PM
If I whack some numbers into a mortgage calculator to work out how much I could borrow on a 25 yr Mortgage at 5% p.a.
First calculate how much it will cost to pay off a home over 25 years.

Then calculate how much it will cost to rent the same house for the rest of your life (maybe 70 years).

You'll soon figure out where you're going wrong...
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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Matthew
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Suckers
1 Oct 2015, 05:00 PM
If I whack some numbers into a mortgage calculator to work out how much I could borrow on a 25 yr Mortgage at 5% p.a. for repayments to match my current rent, and excluding ALL other costs, I can borrow approx $300k. What the fuck can I buy with that in this market in Sydney? And what the fuck do I do about all those other costs?

On a cash flow basis alone, it makes 0 fucking sense mate. How about you attractive investors keeps subsidising my living costs, and make sure you fix the blind that just broke coz its old, and the heater, that died too, plz fix (urgently too, coz that’s the law bruddah). Oh, there’s a leak in the eves – yep, you get to fix that too. Lucky you’re so attractive!

Oh, by the way, I’ve decided to leave your rental and go to another at a lower price. Coz, you know, competition. Thanks though, have fun with no rental income for the approx 1 – 2 week changeover. Maybe you can take the time to replace the carpet that I damaged, but, because it’s older than 10 years, I don’t have to pay for my non-wear-and-tear damage coz, lol, it’s ‘worthless’ according to the ATO.

That ongoing mortgage repayment must make you feel all warm and fuzzy inside, especially now you’ve lost your FIFO job and are working 2 jobs, one packing shelves at coles, to make sure you can keep up repayments on your glorious mortgage.

Much <3 to you! Thanks for making sure my superfund made lots of money up until 2014 with those mortgage repayments to uber profitable banks. Too bad the party has to come to an end, but that's ok, we had a good run.

Maybe, in 5 – 10 years time, you can rent my place. I'll even give it to you at a discount. :D
thanks for proving you are an idiot (I assume that was what you were aiming for)
My only hope for my three boys is that they turn out nothing at all like Chris.
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deluded
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Shadow
1 Oct 2015, 09:29 PM
First calculate how much it will cost to pay off a home over 25 years.

Then calculate how much it will cost to rent the same house for the rest of your life (maybe 70 years).

You'll soon figure out where you're going wrong...
His last sentence implies that he will not be renting for 70 years.
Real Trump News -- Real Climate Science News -- Real Democrat Party News
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lonewolf
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Sydneyite
1 Oct 2015, 08:25 PM
you make the classic bear mistake of basing your decision comparing only the first year mortgage costs compared to your current rent.
Not sure what you mean there! Does the mortgage cost gets lower on 2nd year?
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Sydneyite
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lonewolf
1 Oct 2015, 10:11 PM
Not sure what you mean there! Does the mortgage cost gets lower on 2nd year?
You are asking the wrong question:

- does the RENT get higher after one year? How about after 30 years?
- does the mortgage INTEREST cost get lower after 1 year? How about after 30?
For Aussie property bears, "denial", is not just a long river in North Africa.....
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deluded
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Sydneyite
1 Oct 2015, 10:24 PM
You are asking the wrong question:

- does the RENT get higher after one year? How about after 30 years?
- does the mortgage INTEREST cost get lower after 1 year? How about after 30?
Rents in Perth are dropping.

A variable interest rate mortgage is very likely to have higher interest costs going into the future as rates rise.
Real Trump News -- Real Climate Science News -- Real Democrat Party News
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stinkbug
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Yeah, us poor suckers with cashflow positive portfolios and million plus equity positions. Such a shame.

PS. Ups to renters, keep the faith brothers!
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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