Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
I notice aud-"ass" has disappeared "tout-suite" from this thread quickly after this monumentally embarrassing stuff up! And he claims to be so much smarter than everyone else here! Just a reminder - his link returned ZERO results!
Really? Cash in bank would have me at a few hundred K, paying rent weekly and working for a living. Instead because I bought wisely and developed I am at several mill and we are both retired.
These wise investments paid off my PPOR These wise investments have provided us with unencumbered IP's These wise investments now pay for us to live, so neither have to work.
Explain to us all here again how a couple of hundred K in the bank earning 5% - tax would do better?
Cant do it? Thought so. Ted, you are an A Grade wanker, admit it.
What a croc of shit Mr Castle, you told two days ago you only have 20% down and that rent would only cover your interest if that. There has been NO growth only falls in you area . And here you are trying to justify things, answers all my questions YOU HAVE BEEN PAWNED
The fact is Mr Castle would have made more if he had of just put his 20% deposit in the bank . He would have at least gone forwards rather than backwards
you seem to have an obsession with Mr Castle. why?
So the answer for ME, at least, is that if I had been willing to spend 3-4 hours on a train per day 5 days per week[1], and have no discretionary income for 11 years,and had purchased property in 2001, I would be ahead (relatively) by $23,458 for 11 years of cruel and unusual punishment.
You did your sums and found the solution which is best for you. And thats all that matters at the end of the day - so good on you.
When I purchased my house ( almost 6 years ago) I ran through similar calculations. The differences were: I didn't pay any stamp duty (FHB) I received another $7,000 (FHOG) I didn't subtracting the real estate selling costs because I'm still living in that house I tax adjusted the interest received from cash every year instead of letting it compound and then take 37% off at the end I didn't put in any risk/liquidity premium - didn't see it as a major problem and our interest rate was lower because everyone I know gets 0.7% off the SVR.
So my calculations found the solution which was right for us so we bought back then.
And as peter pointed out, its different for everyone's personal situation.
p.s. I live in Sydney's Inner west and it takes me roughly 15 min per direction on the motorbike and 30 min via bicycle to get to work.
Mr Castle, you told two days ago you only have 20% down and that rent would only cover your interest if that.
Then you will have no problem linking to that will you.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Just informing people of the truth rather than the bs Mr Castle pumps out. Wait til I update his thread where he has pawned himself
Crazy dave, your sock has slipped
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
It might sound archaic to many here that some people like a form of forced savings, especially if they have already paid their own home off. The reality is that many people will rent for years waiting for the right time to buy, and find that when that moment arrives they really didn't accumulate the savings that they expected to - other opportunities presented themselves - a holiday, a new car - it's easy to spend when it's there.
The payoff is the capital gains. If they are large then you win, if they are quite small or flatline then it's debatable and it will depend on rental growth and how well you bought.
If the value falls - then in all probability you will lose regardless of rental growth. But the gains or losses are over the term that you hold property, be that 2 years or 20 years.
It's difficult to come up with a formulae that suits everyones financial situation, needs and wants, patience, and individual investment profile.
I think this is an incredibly key point. You can do your spreadsheets based on other ways of saving/investing, but for many people the discipline of making a mortgage payment every month means they save more at the expense of a few lattes or a better car at some point. And their actual outcome is better than if they tried to follow the optimum strategy. One thing that I see is that people always use the returns from some index like the S&P 200 total returns to estimate the return from shares. It is actually *very hard* to even match the index, let alone outperform it. It's also hard to outperform the housing indexes, but unsophisticated investors will go closer because volatility and liquidity are low, which stops them from making the most common mistakes. And of course shares are more prone to disaster. A mate of mine had all his savings in Centro stock and lost most of it and it ain't coming back. The equivalent disaster in real estate would be to have an apartment/house on the river in Brisbane in 2011. In fact I have one. It is off by (I estimate because nobody has sold since then) about 30% from immediately pre-flood and 37% from peak and I still have it and it is still cash positive. Property may not be the best investment on paper (in fact I think it most certainly isn't) but it sure is harder to fuck up.
The spreadsheets will certainly tell you the optimum property strategy for now would be to save like stink for now and wait for a confirmed bottom on housing. But if you take the *average* property downturn as a guide, that will be mid-2014 and might be later, and if you get to there and haven't saved anything you'll be behind where you are now because you are two years older and no better off. It all depends on your own level of self-discipline (and in many cases the self-discipline of your partner.)
Or you could sit around waiting for the 40% sell-off in the hope that the world will hand you a living for free. When you are 70 and cracking open another tin of Pal you will at least have the consolation that you consumed a lot of good lattes in your day.
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