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So it really depends on the time frame for getting to the end game and how much time you wish to spend playing the end game as to which strategy is better.

House prices in Sydney have not gone up dramatically between 2004 to 2012 - that is an eight year period of stagnancy. So if what you are saying about ten year periods is correct, then we should see a major upswing by 2014. So then in this period, we could have paid a mortgage or have bought a...

At age 22, many may not be in a position to purchase, even with a mortgage. They may still be living at home, studying, partying etc. Then a high paying job comes along and if there is frugal living and hard work for a few years, then it is best to buy the house outright at an early age. Renting...

True. Let me qualify my response. However, if you can buy a 400k house by age 30 with cash and many posters seem to be content with a 400k house, I think that it is better to buy the house with cash rather than taking out a mortgage. If you are a low income earner, then there is no choice but to...

what about mt. druitt kids? What about kids with blond hair? Any generalisations on those?

This is exactly what I have been saying many times over before the thread was hijacked. But with a good income, may as well just buy outright - why pay interest on a mortgage.

Thank you, very well said. Teenage kids are very class and brand conscious. Birds of a feather flock together and the reality is that many north shore kids and their parents would not wish to visit housing commission in Rooty Hill or Dandenong.

So now you are looking down at those living in poverty without a bed. What would you say about people living under a bridge with a few pieces of cardboard.

Very true but I would hope that our end game (as the OP calls it) does not consist of an ex commission 3 bedder in Mt. Druitt. We should aim slightly higher than that.

The original topic is about getting to the end game. My view is that the end game should consist of a good PPOR, that is either paid off or can easily be paid off from other assets/income stream. I think that the thread may be being derailed by reverse snobbery - Mt. Druitt dwellers justifying...

The mornington peninsula is a very nice part of the world. Sorrento, Portsea and Rosebud are good places to spend summer holidays. But costly these days. Even humble beach shacks can cost close to a mil. Bayview, your house is very nice. My point is that you should aim to buy the best PPOR...

Mornington is pretty expensive - many would like to live there if they had the choice and income.

Generally, desirable places with desirable features (less people, convenient traffic, close to beach and amenities) will command higher prices and returns. Simply due to supply and demand. Undesirable places wll be cheaper due to lack of demand - think dubbo, brewarrina.

It is a little bit more complex than that. A house that is a home will mean more to someone than a house that is just a house. A lot of us do not view our PPOR as an investment vehicle. If you accept that shelter is a basic human need then a good shelter - house in Vaucluse - will give far...

Exactly right - time is a valuable, limited and non-renewable asset whereas money is unlimited and renewable

Median price of mosman house 1.9mil. Median price of house in mt. druitt about 370k. Price in a free market reflects supply and demand. So simply put, there is much more demand for a house in mosman and the northern/eastern suburbs than for a place out west. And there are good reasons for this...

Anita Bell is a best selling author on personal finance. I guess that there is no formal, external validation of her methods and advice.

Agreed, that is why i need to invest to upgrade most urgently.

Yes, I have read the first two books that you mentioned above. I liked her approach of paying off one property at a time. However, I found it hard to agree with her methods of frugality. She describes going to the local macdonalds to pick up free sugar packets to take home. And other similar stunts.

There is a certain pleasure living in a 1.4 mil ppor versus a 450k home. Essentially, you get what you pay for. Sure you need to invest but at what cost in terms of sacrificing your quality of life and that of your children.