Latest Residex Report - Housing markets move solidly into positive territory

[HiEquity]

Couldn't you have rented a place to live in and bought two IP's at 5% deposit each with same value each as your PPOR...?

Well you could do both! I guess the comparison on more IPs vs PPOR depends on whether you ever want to liquidate the asset / trade up to a nicer PPOR. The CGT is what makes the difference there... depending also on your marginal tax rate.

More to the point, if you don't mind living in a cheap "land value" renovator's dream with excellent CG prospects and a cost of living comparable to renting then you may well be better off doing so.

BTW my point is not which option is "usually" better - just the wording that it has been "proven" that renting and investing is better - there are too many variables and circumstances at play in this market to make such a statement.

And now back to the thread...

 

[yieldmatters]

I'm amazed you've gotten away with that one so long BayView! Proven! In every case? Wish I knew that before I bought a PPOR on a 10% deposit and watched it almost triple in value in five years... sold tax free as well!

I would love to know what I could have invested that 10% deposit in to give me that much upside...

What upside? Unless you are renting again or have bought into a cheaper market (USA?) then you haven't made anything as the same house is sitting there. You had a house - you still have a house.

As for bayview's observation it is true providing you invest the difference. ALSO it's only true providing you measure these things in $$ ....... at the right time having a house has other emotional benefits not measured in $$.

 

[yieldmatters]

BTW my point is not which option is "usually" better - just the wording that it has been "proven" that renting and investing is better - there are too many variables and circumstances at play in this market to make such a statement.

Fair point HE.

 

[Shadow]

Latest from Residex... Sep 09 results

Latest from Residex... September 09 results. Prices still moving up...

http://www.residex.com.au/newsletter/source2009_10bMC.html