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If you don't own a home by your 40s, you never will. And you'll end up poorer than those who do.; Silly bears who think they can rent their way to wealth are only fooling themselves...
Topic Started: 10 Oct 2016, 07:29 AM (8,621 Views)
doubleview
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The option of a lump sum purchase (@ retirement)from ones super will be closed @ some point as well!

Prob when geny y start reaching preservation age.
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Khaderbhai
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Wealthy Suburbanite

foxbat
10 Oct 2016, 10:26 AM
for the rich it is a poor investment
Evidence?

Most rich people own their home.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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Foxy
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Zero is coming...

This is also a little misleading.

As if owning your home will make you rich.

It would be like saying a snail with a shell is, well a snail.


Peter
and a snail without a shell is not a good snail.

Yes but they are both still snails.

So hairy little monkey with house is still a monkey.

he just had to pay for a house, with all the monkey tricks he has to do to get it then more tricks to keep it.

Peter
Edited by Foxy, 10 Oct 2016, 11:08 AM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Khaderbhai
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foxbat
10 Oct 2016, 11:06 AM
This is also a little misleading.

As if owning your home will make you rich.

It would be like saying a snail with a shell is, well a snail.
Nobody is saying home ownership automatically makes you "rich" - however it is cheaper than paying rent for your entire life, and results in greater wealth generation than renting.
Edited by Khaderbhai, 10 Oct 2016, 11:10 AM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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Foxy
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Zero is coming...

Khaderbhai
10 Oct 2016, 11:09 AM
Nobody is saying home ownership automatically makes you "rich" - however it is cheaper than paying rent for your entire life, and results in greater wealth generation than renting.
Really???

BROWN: Well, Michael, help us figure out why growth has been so weak over these past eight to six years or so.

HUDSON: If you take the average family budget – and I’ve said this on your show many times –we can go through the numbers. If you have to pay about forty to forty-three percent of your income for housing, you also have to pay fifteen percent of your paycheck for the FICA for Social Security wage withholding. You have to pay medical care, you have to pay the banks for your credit card debt, student loans. Then you only have about twenty-five or thirty-five percent, maybe one-third of your salary to buy goods and services. That’s all.



I own my own home.

The only compensation for the costs of it are capital gains.

But if i sell it and buy another i have "gained" nothing.

Think a little deeper.

The new age requires slaves to pay for the cost of housing themselves.

You and i are just two slaves in the wheel, like it or lump it.

https://www.youtube.com/watch?v=Z7BuQFUhsRM

You will never know...

You just got the house bug in you.

https://www.youtube.com/watch?v=4D7cPH7DHgA

Good luck with that one.
Edited by Foxy, 10 Oct 2016, 11:22 AM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Khaderbhai
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foxbat
10 Oct 2016, 11:19 AM
Really???
Yes, really.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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Foxy
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Zero is coming...

Khaderbhai
10 Oct 2016, 11:23 AM
Yes, really.
Could you expand on that a little please.

Some math rather than words would be good.

Not just some halfwits rhetoric.

You see, 1% of the worlds population control the wealth, always have, always will.

infact 0.01% but they are mostly invisible.

If you want to be "rich" ask them if spending almost all their spare capital on a house will make them richer.

Your assertion is ludicrous at best.



http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Khaderbhai
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foxbat
10 Oct 2016, 11:28 AM
Could you expand on that a little please.
Sure, although it has already been covered here many times...

Calculate the cost to buy a home, and then calculate the cost to rent an equivalent home for 70 years.

For example, take a $500K home. The cost to rent an equivalent home will be around $20K per annum.

Rent paid after 70 years = $1.4 million (20,000 x 70) assuming zero inflation.

But if inflation is around 2% and rents rise by 2% per annum, the total cost to rent over 70 years is $3 million.

So you can buy a home for $500K, or you can pay $3 million to rent it for your lifetime.

If you have to buy using a mortgage, then you'll pay about $250K in interest, so the total cost to buy will be around $750K.

Still much cheaper than renting forever.

And the homeowner holds a valuable asset at the end of those 70 years, while the renter still doesn't own a home.
Edited by Khaderbhai, 10 Oct 2016, 11:48 AM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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John Frum
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You're a curious character.

You're obsessed with proving to us that you've 'won' against 'the bears', and yet the irony is if you had 'won', you wouldn't be here. You'd be off enjoying your riches, rather than spending a good deal of your time authoring thousands of posts (mainly under your previous sock 'Shadow') on message boards with only modest traffic (and therefore influence).

Meanwhile I rent a great house in a great part of the city, have a super fund increasing faster than most (as i can divert the extra $ i'd othetwise be paying into a mortgage), and have parents 'winning' like you - with a multi-million dollar portfolio of properties around Sydney and large N.S.W cities. All of which I'll inherit one day.

All bubbles like this eventually pop. You shouldn't spend all your time stressing about when it will happen, and posting on anonymous forums in a desperate effort to convince yourself that it won't happen.

Just get out, enjoy your life, and accept the inevitable when it transpires.
Edited by John Frum, 10 Oct 2016, 12:42 PM.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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Khaderbhai
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John Frum
10 Oct 2016, 12:41 PM
if you had 'won', you wouldn't be here. You'd be off enjoying your riches
Off where, and why? Are you saying 'winners' never use the Internet because they always have too many enjoyable activities that they want to spend their money on?

Quote:
 
i can divert the extra $ i'd othetwise be paying into a mortgage
What extra dollars? If you'd bought a house ten years ago it would be nearly paid off by now and you'd have far more free money to divert into your super fund.

And in another ten years from now you'll still be fooling yourself into believing it's costing you less to rent.

Whereas in reality the person who bought 20 years previously is enjoying virtually free accommodation and thus a dramatically higher cashflow to invest elsewhere.

Quote:
 
I'll inherit one day
So what? I'll inherit too, but (hopefully) not until I'm in my 60s or 70s.

Quote:
 
All bubbles like this eventually pop
Prove there's a bubble.
Edited by Khaderbhai, 10 Oct 2016, 01:03 PM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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