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Five Things Rich People Dont Do; They don't buy when they can rent
Topic Started: 9 Oct 2013, 09:01 PM (741 Views)
Massive
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thought this was interesting...

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4. They don't buy when they can rent

While owning a home is still the great Australian dream, wealthy people don't always purchase their home. Renting is more popular than ever, even among the rich, says real estate expert and host of Extra's Mansions and Millionaires, Michael Corbett.

And the five-year-rule (if you're not going to live in a home for five years, don't buy it) is back, according to Corbett. People's attitudes towards renting are also changing. 61 per cent of Americans now believe that "for the most part, renters can be just as successful as owners at achieving the American dream", says a recent MacArthur Foundation survey.


http://www.news.com.au/business/worklife/five-things-rich-people-don8217t-do/story-e6frfm9r-1226735582050
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mel
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Looking at some of the lower yield, high end suburbs like malvern in melbourne (2%) i suspect some of the people there might be better off cashing out and using the proceeds to buy a pile of high yielding IP's somewhere else while renting back their old home..
Edited by mel, 9 Oct 2013, 10:45 PM.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
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Blondie girl
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whatever
Some wanna travel &. Bunny hop & not be stuck in 1 place.

I would suspect a lot of these people don't have kids...or young dependants, or gone beyond that phase .

Each to their own, if it works well for them what's wrong?

This is filthy rich level.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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miw
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mel
9 Oct 2013, 09:21 PM
Looking at some of the lower yield, high end suburbs like malvern in melbourne (2%) i suspect some of the people there might be better off cashing out and using the proceeds to buy a pile of high yielding IP's somewhere else, while renting out their old home..
If you want to live in a $3M home and you can find one to rent, you are almost certainly better off renting it and buying 10 $300k properties to rent out than buying it outright, giving the differential in yields. CGT might or might not bite you in the ass later on I guess.

If you have opportunities better than real estate to invest in, then the case is even stronger.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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peter fraser
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miw
9 Oct 2013, 10:04 PM
If you want to live in a $3M home and you can find one to rent, you are almost certainly better off renting it and buying 10 $300k properties to rent out than buying it outright, giving the differential in yields. CGT might or might not bite you in the ass later on I guess.

If you have opportunities better than real estate to invest in, then the case is even stronger.
100% correct.

But egos beat us all occasionally.
Any expressed market opinion is my own and is not to be taken as financial advice
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herbie
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peter fraser
9 Oct 2013, 10:17 PM
100% correct.

But egos beat us all occasionally.
Who was the smart dude who first said "It makes sense ta buy ya houses 'n rent ya women?" ... But yep, I guess 'egos' ('n/or our other 'little things') do beat us all occasionally? ... :re:
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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mel
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herbie
9 Oct 2013, 10:22 PM
Who was the smart dude who first said "It makes sense ta buy ya houses 'n rent ya women?"
i think that was miw Herbie?? :lol

thanks for the clip in the lounge - im going to watch it tomorrow when im on a different pc. This one won't display proper resolutions so everything looks distorted and we don't want that... = )
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
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