Attention First Home Buyers!!

[Bully]

it's probably because you can borrow nearly 100% with Homestart.

that sounds ok, but your still borrowing the full amount or near enough, so your not really get much from it in a way

[CENTURION]

it's probably because you can borrow nearly 100% with Homestart.

that sounds ok, but your still borrowing the full amount or near enough, so your not really get much from it in a way

keep renting then. work it out.

[Bully]

when interest rates are going up and down and no 'great' future in regards to interest rates, then renting looks alot beetter. Who can afford an extra 50 a month etc when interest rates keep going up, when your struggling now without them going up.

renting has its advantages and disadvantages, your paying dead money, but your rent can only go up once every 6 months if it does at all over a year.

i know at the current state what i would rather be doing at this moment!

[dedja]

What about the appreciating asset called the house? ... That's not worth anything?

[devilsadvocate]

What about the appreciating asset called the house? ... That's not worth anything?

We should start a new thread "You know you're a baby boomer when....."

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

Interest rates at 7% on a 100% loan makes this a pretty bad deal.

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring

[The Sleeping Giant]

Sounds like a good deal centurion. Do you have a swampy lot?

[dedja]

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

This is highly unlikely ... occurred in the early to mid 90's, but not since.

As a very rough guide, a house will approx double in value every 7-10 years ... not saying they will in the next 7-10 years, but most likely far exceed 2-3%.

[Q.]

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc).

THIS.

[CENTURION]

What about the appreciating asset called the house? ... That's not worth anything?

We should start a new thread "You know you're a baby boomer when....."

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

Interest rates at 7% on a 100% loan makes this a pretty bad deal.

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring

tell this to people who built houses 7 years ago....and to the hundreds of spec. builders out there....especially Henley Homes, who sell about 3 houses a week IN THIS MARKET under their Summerhill spec. build program.

[Psyber]

What about the appreciating asset called the house? ... That's not worth anything?

History supports dedja's position.

In SA, there have been periodic slumps, but the trend has been growth especially in inner areas.
A Melbourne St cottage I bought for $31,500 in 1976 got me $185,000 on January 1988

House prices were fairly stable after WWII, but rose 100% between 1956 and 1966.
They then rose slowly until 1972 then almost tripled by 1975.
Prices dropped back about 10% from 1976 till 1984, then more than doubled during 1984, and continued to rise until early 1988 when the economy fell over.
Price rises during 1987 were dramatic but collapsed as interest rates rose towards 17%.

They were down for a few years then surged in the early 1990s only to drop back about 20% around 1996.
We had a slump in 2008/9 and a slow fluctuating recovery since due to uncertain times and fear.
I'm looking for an investment property now.

The important thing is not to be in a position where you can't hang on for the next rise.
The last thing you want is to have to sell when the market is down - which was my point in the beginning of this thread.

[Booney]

Although this scheme may or may not be for everyone, I'll take a mortgage over dead rent money any day.

[Ron Burgundy]

Rent money isn't really dead money.

FWIW I am a home owner (or bank slave).

[FlyingHigh]

What about the appreciating asset called the house? ... That's not worth anything?

We should start a new thread "You know you're a baby boomer when....."

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

Interest rates at 7% on a 100% loan makes this a pretty bad deal.

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring

da, you'd know more about this than me, but isn't a house a depreciating asset, and the land the appreciating asset? And further, investors can claim a depreciation amount on their house value?

[CENTURION]

Rent money isn't really dead money.

FWIW I am a home owner (or bank slave).

yes it is....unless you have an investment property elsewhere. in 2 years, you would probably pay about $35000 rent, with nothing to show for it, whereas if you are smart, your property will have appreciated quite nicely.

[CENTURION]

What about the appreciating asset called the house? ... That's not worth anything?

We should start a new thread "You know you're a baby boomer when....."

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

Interest rates at 7% on a 100% loan makes this a pretty bad deal.

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring

da, you'd know more about this than me, but isn't a house a depreciating asset, and the land the appreciating asset? And further, investors can claim a depreciation amount on their house value?

yep, they ain't making any more of it!!

[FlyingHigh]

What about the appreciating asset called the house? ... That's not worth anything?

We should start a new thread "You know you're a baby boomer when....."

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

Interest rates at 7% on a 100% loan makes this a pretty bad deal.

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring

tell this to people who built houses 7 years ago....and to the hundreds of spec. builders out there....especially Henley Homes, who sell about 3 houses a week IN THIS MARKET under their Summerhill spec. build program.

Or I could tell it to the owners of a place in the hills who bought for around $1m 3-4 years ago, put in on the market about a year ago for roughly the same, have had to reduce it to $800k (recently sold), or another in the same area that was initially priced at the same, in line with other sales, nearly 3 years ago and now has been reduced to approx $775k.

[Psyber]

da, you'd know more about this than me, but isn't a house a depreciating asset, and the land the appreciating asset? And further, investors can claim a depreciation amount on their house value?

Basically yes, which is why as real estate agents say, "Position, position, position".

However, today's outer suburb is tomorrows desirable inner one.
There were horses in paddocks across the road when I built a house in inner Klemzig, adjacent Vale Park, in 1972.
And my Aunt's house in Highgate St, Highgate, was in a paddock when she moved there in the late 1920s.

A house's depreciation depends on whether you do the maintenance and its desirability.
There are some old houses in Stirling that bring a lot more than adjacent modern ones.

[FlyingHigh]

What about the appreciating asset called the house? ... That's not worth anything?

We should start a new thread "You know you're a baby boomer when....."

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

Interest rates at 7% on a 100% loan makes this a pretty bad deal.

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring

da, you'd know more about this than me, but isn't a house a depreciating asset, and the land the appreciating asset? And further, investors can claim a depreciation amount on their house value?

yep, they ain't making any more of it!!

Which reinforces the arrogance of our modern society that we think it is there for us to make a quick buck from by building all over it, and screw the agriculture or native flora and fauna.

[CENTURION]

What about the appreciating asset called the house? ... That's not worth anything?

We should start a new thread "You know you're a baby boomer when....."

A house is going to appreciate at likely 2-3% at best over the next 5-10 years, if not stand still.

Interest rates at 7% on a 100% loan makes this a pretty bad deal.

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring

tell this to people who built houses 7 years ago....and to the hundreds of spec. builders out there....especially Henley Homes, who sell about 3 houses a week IN THIS MARKET under their Summerhill spec. build program.

Or I could tell it to the owners of a place in the hills who bought for around $1m 3-4 years ago, put in on the market about a year ago for roughly the same, have had to reduce it to $800k (recently sold), or another in the same area that was initially priced at the same, in line with other sales, nearly 3 years ago and now has been reduced to approx $775k.

but this deal isn't for areas with such high outlay & a higher risk, this is for the outer southern or northern suburbs & I am at the coalface constantly. Right now the market is starting to turn for the better & now is the time to build, I am selling on average 4 blocks per week atm, whereas this time last year, it was about 1 a month!!

[CENTURION]

A house isn't really an asset unless it makes you money. It's more accurately defined as a liability unless it's an investment property earning you rental income.

It's been proven time and again that the best strategy (financially) is to rent and invest the difference between your rent and what a loan repayment could have been into an income generating asset (shares, term deposit, rental property etc). But that discounts the value that people place on the great Australian dream.

**** I'm boring[/quote]

da, you'd know more about this than me, but isn't a house a depreciating asset, and the land the appreciating asset? And further, investors can claim a depreciation amount on their house value?[/quote]
yep, they ain't making any more of it!![/quote]

Which reinforces the arrogance of our modern society that we think it is there for us to make a quick buck from by building all over it, and screw the agriculture or native flora and fauna.[/quote]


so, it's ok for YOU to live somewhere but no-one else can? can't go west, we are trying to stop the southern & northern sprawls, what is your cure?