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Renting could trump buying, says RBA

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Australian Broker | 15 Jul 2014, 06:06 AM Agree 0
The RBA has claimed Aussies may be better off renting if house price growth slows
  • Mrs Oth | 15 Jul 2014, 07:32 AM Agree 0
    very interesting....would love to own a home have rented all my working life...we like moving when a home gets too small or doesn't meet our needs
  • Roger | 15 Jul 2014, 10:49 AM Agree 0
    The other factor with home ownership is the "forced savings aspect " By regularly making your mortgage payments you slowly build equity. Sure if you took the difference between a mortgage payment and a rental payment and then invested that difference wisely then financially you would probably be better off, but how many of us have the discipline to do this. Sadly most of just buy a bigger flat screen or spend another week in Bali.
  • SEQ BRoker | 15 Jul 2014, 03:15 PM Agree 0
    HOW NARROW MINDED. Here's a thought that even my 7 year old can grasp. if you enter into a mortgage, you will pay give or take roughly the same repayment for 30 years then it stops. if you rent then what happens to rentals they double every 10 years or so.
    If you look at the benefit of rentals in those respects then owning is some short term pain for long term gain. To evidence I have a mortgage on a property that is P&I now $811 per month. Minimum property rental in the area is $320 per week... and someone is trying to tell me Id be better of renting... What are they smoking?
  • SIDBROKER | 15 Jul 2014, 08:37 PM Agree 0
    Wow, these guys the purse strings as well. God help us.
  • Old Broker | 17 Jul 2014, 10:42 AM Agree 0
    This subject comes up every 3-4 years and also has been done to death by a lot of commentators. The problem I find is this , in all my years of broking and also a little in fin planning I have never seen anyone put the money they saved into some type of growth fund or shares separately once the money become available, they just spent it. And also what happens the day you retire do you just go and buy a house and then live on the pension as there is no money or left or go to bali.
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