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The Pom Queen

Renting V Buying

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You might as well be saying "don't get a mortgage, become a premier league soccer player or form a boy band -- both of these offer a better return than property investments". You idea is great in theory, but not everyone is arm chair share market expert.

 

"balance portfolio has always beaten real estate long term" what about since the GFC? It really depends on when you "long term" starts and ends...

 

I think what the poster refers to is pouring funds into paying a mortgage in an overpriced property is money not being utilised for more productive purposes. It makes little sense buying into a market that gives every impression of being unsustainable.

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Very wise to stay clear and allow others to gamble. You certainly done the right thing getting out before it hit the peak.

 

Yes, there is no gamble in taking your money out of property and waiting for a crash that may never happen.....

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Yes, there is no gamble in taking your money out of property and waiting for a crash that may never happen.....

 

Indeed, that would be completely stupid. Inflation will chip away at the spending power. Investing it though, that's a different kettle of fish.


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Yes, there is no gamble in taking your money out of property and waiting for a crash that may never happen.....

 

It'll be far too late for most to remove their money when the bubble bursts. It is more a question of to what degree than if and when which can be deferred by outside factors in what is after all a very artificial market.

 

The amount of money released would allow a far more productive portfolio instead of all in one basket. There is a time when it pays to take your winnings and look beyond greed to squeeze that bit more.

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Indeed, that would be completely stupid. Inflation will chip away at the spending power. Investing it though, that's a different kettle of fish.

 

A correction in prices though will not chip away so much as delete a whole lot of numbers from the end sum.

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So I presume your house is on the market Flag.

Of course you are selling up and going to rent before the bubble bursts.

 

I know you are not hypocritical so I hope your place sells quickly.


I want it all, and I want it now.

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Wow! No wonder you took the Aus move in your stride... That's a lot of shifting around!

 

When I left the UK for India in 2010 I actually got rid of almost everything physical I owned. Sold masses of stuff on eBay, gave away furniture to friends, and loads of books and CDs went to charity shops. Just a few boxes of irreplaceable bits and bobs in a friend's lock-up and some in the parents' attic.

 

Quite painful to do at the time (especially in a hurry), but you definitely travel lighter. I left the country with 2 suitcases and a laptop bag.

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If you have some philosophical objection against depreciation, it certainly didn't stop you claiming it every year on all your investment properties.

You were not compelled to claim it but of course you did every year.

 

Of course I did, I'm legally entitled to it. That doesn't prevent me being aware that it's not a really fair concession. I'm not getting on my high horse about it, I only mentioned it in the first place to explain to Gbye Grey Sky that in Australia, property doesn't have to be loss-making to be negatively geared - which he wouldn't know, since the depreciation lurk doesn't exist in the UK (as far as I know).


Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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So I presume your house is on the market Flag.

Of course you are selling up and going to rent before the bubble bursts.

 

I know you are not hypocritical so I hope your place sells quickly.

 

Thread title is buying versus renting if you care to look. Already lost a handy some with the declining Perth house prices. Not at all perturbed about it as bought a long time ago. Why would I have a house on the market as such? Once again I'm afraid logic astounds me.

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In my case, I have been sitting on a permanent visa that was granted to me 3 years ago because of this. I have seen the property market in Sydney go from unaffordable to outrageous levels.

This is putting me off to make the move. Either there is no bubble and I am contemplating a life of tenancy, or there is one. If there is one, it will either pop or deflate and we have to think when it will happen. If it pops, the economy will be in big trouble like it happened in Ireland and the U.S. If it deflates, it will take a lot of time before purchasing becomes possible and again the prospect of being a tenant for a long time is not appealing to me as I am 40 and definitely want to buy some housing that would be paid when I retire.

I think Australia will do whatever it takes to prevent the bubble, they can still lower interest rates, and use all kinds of measures to prevent / slow down a crash as this country has a low public debt/gdp so it can afford to transfer private debt to public debt. This is of course a rip-off of tax payers, most of them that did not participate in the casino that is the property market. But it will happen anyway, this is what happened in countries where there was a bubble.

It's a pity this is happening to housing. I have no problem seeing bubbles and bursts in the stock market but housing is a basic need. I'm frustrated as it took me a lot of time and money to get this visa and I will probably not make the move because of this situation.

Comments welcome.

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In my case, I have been sitting on a permanent visa that was granted to me 3 years ago because of this. I have seen the property market in Sydney go from unaffordable to outrageous levels.

This is putting me off to make the move. Either there is no bubble and I am contemplating a life of tenancy, or there is one. If there is one, it will either pop or deflate and we have to think when it will happen. If it pops, the economy will be in big trouble like it happened in Ireland and the U.S. If it deflates, it will take a lot of time before purchasing becomes possible and again the prospect of being a tenant for a long time is not appealing to me as I am 40 and definitely want to buy some housing that would be paid when I retire.

I think Australia will do whatever it takes to prevent the bubble, they can still lower interest rates, and use all kinds of measures to prevent / slow down a crash as this country has a low public debt/gdp so it can afford to transfer private debt to public debt. This is of course a rip-off of tax payers, most of them that did not participate in the casino that is the property market. But it will happen anyway, this is what happened in countries where there was a bubble.

It's a pity this is happening to housing. I have no problem seeing bubbles and bursts in the stock market but housing is a basic need. I'm frustrated as it took me a lot of time and money to get this visa and I will probably not make the move because of this situation.

Comments welcome.

 

There is little doubt there is a bubble, blind freddie can see it but like you say the Government will move heaven and earth to avoid it bursting. The median house price in Sydney is now $1,000,000 so that gives you an idea of the magnitude of the problem. It is no doubt one of the reasons people are going cold on making the move. Personally I wouldn't live in Sydney anyway, there areally far nicer and more affordable places in Australia to live but if that's where the work or a job offer is then the choice is removed.


Loving life in Gods Country. Woohoo, look at me. 

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In my case, I have been sitting on a permanent visa that was granted to me 3 years ago because of this. I have seen the property market in Sydney go from unaffordable to outrageous levels.

This is putting me off to make the move. Either there is no bubble and I am contemplating a life of tenancy, or there is one. If there is one, it will either pop or deflate and we have to think when it will happen. If it pops, the economy will be in big trouble like it happened in Ireland and the U.S. If it deflates, it will take a lot of time before purchasing becomes possible and again the prospect of being a tenant for a long time is not appealing to me as I am 40 and definitely want to buy some housing that would be paid when I retire.

I think Australia will do whatever it takes to prevent the bubble, they can still lower interest rates, and use all kinds of measures to prevent / slow down a crash as this country has a low public debt/gdp so it can afford to transfer private debt to public debt. This is of course a rip-off of tax payers, most of them that did not participate in the casino that is the property market. But it will happen anyway, this is what happened in countries where there was a bubble.

It's a pity this is happening to housing. I have no problem seeing bubbles and bursts in the stock market but housing is a basic need. I'm frustrated as it took me a lot of time and money to get this visa and I will probably not make the move because of this situation.

Comments welcome.

 

Perhaps this will make you feel a little better about it.

 

http://www.gocurrycracker.com/how-i-made-102k-in-real-estate/


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In my case, I have been sitting on a permanent visa that was granted to me 3 years ago because of this. I have seen the property market in Sydney go from unaffordable to outrageous levels.

This is putting me off to make the move. Either there is no bubble and I am contemplating a life of tenancy, or there is one. If there is one, it will either pop or deflate and we have to think when it will happen. If it pops, the economy will be in big trouble like it happened in Ireland and the U.S. If it deflates, it will take a lot of time before purchasing becomes possible and again the prospect of being a tenant for a long time is not appealing to me as I am 40 and definitely want to buy some housing that would be paid when I retire.

I think Australia will do whatever it takes to prevent the bubble, they can still lower interest rates, and use all kinds of measures to prevent / slow down a crash as this country has a low public debt/gdp so it can afford to transfer private debt to public debt. This is of course a rip-off of tax payers, most of them that did not participate in the casino that is the property market. But it will happen anyway, this is what happened in countries where there was a bubble.

It's a pity this is happening to housing. I have no problem seeing bubbles and bursts in the stock market but housing is a basic need. I'm frustrated as it took me a lot of time and money to get this visa and I will probably not make the move because of this situation.

Comments welcome.

 

The short termism is rather acute in Australia I'm afraid. More a matter of deferring as long as possible any correction to ensure it happens on someone else's watch. The present government doesn't appear to see anything wrong in regards to the affordability of housing in this country.

Some cynics may well think hardly surprising with a minister in charge of economic policy himself owning several houses. I totally agree a crying shame what has been allowed to happen. House prices alone would ensure I would never anticipate a move to a place like Sydney but for many due to employment options only that city or perhaps Melbourne would prove suitable.

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The short termism is rather acute in Australia I'm afraid. More a matter of deferring as long as possible any correction to ensure it happens on someone else's watch. The present government doesn't appear to see anything wrong in regards to the affordability of housing in this country.

Some cynics may well think hardly surprising with a minister in charge of economic policy himself owning several houses. I totally agree a crying shame what has been allowed to happen. House prices alone would ensure I would never anticipate a move to a place like Sydney but for many due to employment options only that city or perhaps Melbourne would prove suitable.

 

When we moved to Brisbane in 2000 we could literally buy any number of houses for $60-70-80,000. 2 years later they started at around $100,000 and seemed to increase exponentially after that. Luckily we bought in 2000 but if we had missed that particular boat if would have been very difficult for us. Now those houses start at $300,000 in a not very desirable area.


Loving life in Gods Country. Woohoo, look at me. 

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When we moved to Brisbane in 2000 we could literally buy any number of houses for $60-70-80,000. 2 years later they started at around $100,000 and seemed to increase exponentially after that. Luckily we bought in 2000 but if we had missed that particular boat if would have been very difficult for us. Now those houses start at $300,000 in a not very desirable area.

To be fair though you could not get much for £140,000 in Bristol today.


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To be fair though you could not get much for £140,000 in Bristol today.

 

I wouldn't live in Bristol to be honest.


Loving life in Gods Country. Woohoo, look at me. 

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When we moved to Brisbane in 2000 we could literally buy any number of houses for $60-70-80,000. 2 years later they started at around $100,000 and seemed to increase exponentially after that. Luckily we bought in 2000 but if we had missed that particular boat if would have been very difficult for us. Now those houses start at $300,000 in a not very desirable area.

 

We bought in 2000 as well. Except now those start at nearer the $600,000 mark onwards. The price was well under $200,000 then.

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We bought in 2000 as well. Except now those start at nearer the $600,000 mark onwards. The price was well under $200,000 then.

 

It's crazy. People say wow our house has gone up so much, it's wonderful but they have to buy another that has also gone up the same. The only way to 'profit' from it is to sell and move to the UK when the exchange rate is around $1.40 to the pound :)


Loving life in Gods Country. Woohoo, look at me. 

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No what you do Flag is if you have $400K equity in your house, you buy a 2nd house as an investment property using your equity as the deposit.


I want it all, and I want it now.

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As you get older you start to think that buying means you can leave something for your kids when you're gone. Especially these days when it is so hard for them. Guess in reality it is more the grandkids who will benefit.

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No what you do Flag is if you have $400K equity in your house, you buy a 2nd house as an investment property using your equity as the deposit.

 

Far prefer to be debt free with other interests. The housing market is not the path to riches anymore, rather the contrary.

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It's crazy. People say wow our house has gone up so much, it's wonderful but they have to buy another that has also gone up the same. The only way to 'profit' from it is to sell and move to the UK when the exchange rate is around $1.40 to the pound :)

 

Crazy being the correct word. Even the chief of Reserve Bank of Australia articulated that exact word in relation to the Sydney housing market.

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Crazy being the correct word. Even the chief of Reserve Bank of Australia articulated that exact word in relation to the Sydney housing market.

 

Well there really is no more appropriate word. All the while the Government think everything is fine, just get a better job so you can get a bigger mortgage.


Loving life in Gods Country. Woohoo, look at me. 

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Well there really is no more appropriate word. All the while the Government think everything is fine, just get a better job so you can get a bigger mortgage.

 

This government is clueless with regards what to do. Heads under cover. Keep attempting to talk up the economy with the hope of another undeserved time at the rudder post next election.

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This is something that I've been thinking about for when I come back to the UK and "grow up". I don't particularly want to rent forever but it would be hard for me to buy something plus there's all the other costs that go with it. So I'll probably just rent till I find someone and then hopefully buy somewhere together

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