Why on earth would I want to live in a culture less hit hole like Rockhampton?
It's great apparently, if you're into yabby fishing, drinking lots of cask wine and don't mind roasting all summer in a weather board hotbox.
"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
Not sure what you mean there! Does the mortgage cost gets lower on 2nd year?
No the mortgage gradually reduces but rents rise. This is the other classic bear mistake. Renters get priced out of their suburb of choice as time goes by.
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.
Why don't you walk us through how you worked that out little troll. You seem to think you know facts that no-one else does..
Please try to remember that the person may not buy after 1 hour, 1 week, 1 year or 1 decade, but stringbean claimed
" if, as you seem to believe, interest rates will rise in the future then delay will increase his future costs of buying."
In tuth, if house prices in the area the person is looking to buy drop over, say, 1 year, and his renting is currently cheaper than mortgage interest, he is probably ahead... if rates rise, then they will not shoot up, and by the time they might (many years down the track), the 1 year delay would have minimal impact.
Stringbean's claim attempts to make a universal truth that delaying for any length of time will result in a higher future cost, but ignores the overall costs of owning or even the possibility that the initial purchase price might be cheaper once the heat has gone out of the market. Even if the delay was lucky enough to give them a 5% dip in purchase price, it would make someone who delayed and was sensible with their money in a far better position than someone who jumped in...
Thats what i thought... just smart enough to stumble into the thread and make a fool of yourself, not smart enough to explain away your mistake.
I have explained my maths, now try to explain yours numpty.
You are plain crazy if you cannot understand why renting is bad for your financial health. The only situation when you may benefit is if you are lucky and catch the market on one of its very very rare falls. The vast majority of the time property prices increase and if your housing costs are not being used to pay down a house you will be a very big loser over the long term.
Pay rent for 25 years you get nothing, pay a mortgage and you end up with a property asset of some considerable value. Buy a house in a growing city and your housing costs will reduce with time. Rent a house in a growing city and your housing costs will increase markedly with time.
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.
No the mortgage gradually reduces but rents rise. This is the other classic bear mistake.
Do you actually believe this shit you post? Rents have been falling across Australia for some time and with 89% of investors buying on Interest only loans, the mortgages have stayed the same. Stop living in your father's era.
"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
You are plain crazy if you cannot understand why renting is bad for your financial health. The only situation when you may benefit is if you are lucky and catch the market on one of its very very rare falls. The vast majority of the time property prices increase and if your housing costs are not being used to pay down a house you will be a very big loser over the long term.
Pay rent for 25 years you get nothing, pay a mortgage and you end up with a property asset of some considerable value. Buy a house in a growing city and your housing costs will reduce with time. Rent a house in a growing city and your housing costs will increase markedly with time.
Not mad at all...
I know people whk bought on the gold coast against my advice when prices were surging and paid their mortgagenas required only to find that 5 years later their valuation was down, and they could have rented for far less only to buy at a cheaper rare for a lower price.
It happens, it is mad to make claims it does not.
I am not saying delay 25 years... you just use thwt example because a shorter time frams (say 1 or 2 years) can work against your claim.
How do i knkw this ? My first house was bought under advice ro buy now or nefer be able to afford... prices went up a bit longer and remained flat to dkwn for the next 7 years... renting and saving the gap would have been far wiser than buying and paying all the holding costs with a plan to buy again in a few years when it became a buyers market again.
In a sellers market, overpriced dumps are sold to desperate buyers... in a sellers market, excellent properties are snaped up well below market value by people who did their homework.
Do you actually believe this shit you post? Rents have been falling across Australia for some time and with 89% of investors buying on Interest only loans, the mortgages have stayed the same. Stop living in your father's era.
Really??? You are full of crap as usual....
Houses (to September): Sydney - rents UP 10% y/y NSW regional - rents UP 6.7% y/y Melbourne - rents UP 2.3% y/y Brisbane - rents UP 4.6% y/y Adelaide - rents UP 2.7% y/y
And so on..... even Hobart has seen rising rents.... similar story across the board for units as well.
The only places recording moderate fallen rents are Darwin and Perth - ie the mining boom impacted towns - and I use the word town deliberately - as less than 10% of the Australian population lives in WA and NT. And we know these places saw massive growth in rental costs, far outstripping the eastern states, during the mining boom. So hardly surprising that they come off a bit after that period of growth.
So your assertion could not have been more wrong! Investors, whether they were smart and bought during IO loans, or not, seem to be doing very nicely - especially on the Eastern seaboard, or anywhere in NSW....
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy