Renting Or Buying

[ktford]

You are only looking at it from a local point of view though. In Melbourne you can go out to Hoppers Crossing and buy a house for $250Kand you are only 30klm from the CBD.

Where I live the average cost of a house that isn't in bad need of repair is approachng $500K.

Places like Sydney and Perth are the same if not worse. With a 20% deposit that means a $400K mortgage which means repayments of somewhere approaching $900 a week. Now in 10 years that mortgage will still be $900 (give or take depending on interest rates) but how does the average bloke on the street afford $900 a week repayments in 2008?

400k is a long way from $900 per week

[ktford]

Be careful with numbers like that as economists are predicting slower growth in property prices on the next 3-5 years.

Regards

TUFXRT6

It's still true, economists and their self serving predictions aside, have times never been tuf b4?

[ktford]

I reckon Mackay is one of those pockets that you speak of. Artificially high pricing due to the mining industry.

Once its gone this place is in danger of becoming a ghost town.

We plan to buy elsewhere too ( on the sunny coast) but have decided to double our deposit before we commit .

particularly on one wage.

As you state Craig, if your income can't withstand the housing climate the good thing is that you aren't rooted into the soil like a tree, you can move or buy investment wise elsewere.

The mining towns of past generations should be a wake up call to those buying willy nilly in them today, be careful

[Craig.]

As you state Craig, if your income can't withstand the housing climate the good thing is that you aren't rooted into the soil like a tree, you can move or buy investment wise elsewere.

Its not that I cant afford it. I am a high income earner. Without dislosine what I earn, let just say I take home a lot more than the average wage per week. The bank will loan me enough to buy 2 houses if I wanted.

Its the uncertainty in the local market and the fact that I would have to live like I am on a pension to do it. I just dont want to commit to that in an area I have no long term future in. The local market has all its eggs in one basket ( mining).

For me, renting is the way to go....................................... for the moment.

[Felix]

How about squatting? I've found this nice place down the road, cheaper rent than I'm paying... free... just need to find room to put the T.

I'm 26, still doing my apprenticeship, no savings, large amount owed, I cant see how I will be able to buy a place. I will be surprised if I end up in my own home before I am 30. I've been renting for 10 years!

Felix

[hanra]

Gotta rent in Cairns.... if you can even find somewhere... Rental shortages, land shortages astronomically high house prices. We have no mining up here, but that dosnt stop the average red brick 3 bedroom home selling for $500k. Theres one across the rd from me with $427k on it.... Its a shiet box.

No massive wages being payed up here either, unless your a builder slogging it out in the 40 deg heat. Im in the Aviation industry so im kinda lucky, decent wage with an air con'd workshop.

I dont see the point in struggling to survive paying off a house for 30yrs when I can rent and live a half decent lifestyle.

[ms700]

This is a great thread, one that has its serious side with some excellent idea's, and some of the guys throwing in some good humour to the mix as well.

Keep up the good work!

[SCRIBR]

I'm 26, still doing my apprenticeship, no savings, large amount owed, I cant see how I will be able to buy a place. I will be surprised if I end up in my own home before I am 30. I've been renting for 10 years!

Felix

Mate, with prices the way they are, you just have to make sacrifices.

People need to realise that you can't have expensive toys & get your first home. We'll unless you're earning really good coin!

[XRPete]

sounds like a good plan

builder by trade jeez you would''ve only just done your time at 25

Been a few days since I been on.

Started my time at 15 finshed at 19-20 so been quaflied for say 5 years

[XRPete]

Where do you live mate?

Sounds like it is somewhere where land is relatively cheap if you can pay off a house and a block of land. No cyclone rating so houses are also relatively cheap to build. I reckon you are in Adelaide!

Either that, or you are on $200k a year.

Mate I live 45mins west of brissy. Not the best area I know but its a start. Prices are cheap out here but its just a start for me. Like others have said I can move up in a few years time.

As with the cyclone rating. It would only add say 10 -20k to a house max. So on the scheme of things whats that on a average house to build of 200k. nothing.