When it's cheaper to buy than rent

[see_change]

Some one made a comment in a thread that with rates being so low , it could be cheaper to buy than rent .

mmmm

This becomes another factor to drive the market up.

People see prices going up so they rush to get into the market .

If prices go up a bit , it may not be cheaper to buy than rent " but it's not much more " and with the increasing price , that in itself becomes a justification to pay a bit more so you don't end up paying even more . Around this stage , the mainstream media ( outside the property / business pages ) start talking about the property boom and .......

I remember the boom in the late 80 ( I wasn't in it and missed out ) but there was a massive rush to get in so you didn't miss out .

Any other thoughts on what will be happening in the minds of the buyers over the next years to come ?

Cliff

 

[Aries]

I wonder too...

I think the availability of deposit, serviceability and lifestyle choice are still going to be some of the determining factors.

 

[devank]

I wonder too...

I think the availability of deposit, serviceability and lifestyle choice are still going to be some of the determining factors.

Aren't they always?

 

[Aaron_C]

Not everyone can buy....you can only borrow money if you fit the banks' criteria - which many people do not. Plus some people prefer to have flexibility.

 

[Shahin_Afarin]

The biggest issue is the lack of deposit for many and with rising prices this becomes even more difficult. I am finding that serviceability is rarely an issue.

 

[moyjos]

I bought my first house in the late '80s boom. Yes there was a scramble to buy then. Many houses we looked at in the housing section of the paper on Wednesday were sold by the time we could arrange to see them on Saturday.
There was also a scramble to sell when the interest rates hit 18% We somehow managed to ride that out by eating bread and water Not quite but it was a very stressful time.

Then as now though...renters will be renters and buyers will be buyers. Another forum I am on had a discussion when the media were reporting that it was cheaper to buy than rent.
The "renter" mentality people pooh- poohed it all as media hype because to buy you have to have a deposit and how can you possibly save a deposit when the greedy landlord is taking over 50% of your wage as rent?
Those of us on that forum who had gone without to manage to save and get our first house, were flamed down as "it can't happen like that now-a-days."

 

[Aries]

Aren't they always?

I am new in this field, haven't got enough knowledge or experience to use the word "always" yet.

 

[quoll]

... lifestyle choice ....

People always have a choice, for many it's easier to get a new tv, new (2nd hand) car, eat out.

The more you learn, the more you talk and find out what happened in the past the more you see the wheel turn and similar situations arise.

Cheers
Graeme

 

[quoll]

Any other thoughts on what will be happening in the minds of the buyers over the next years to come ?

Social media? wasn't there last time.

Group dynamics, (herd mentality), it happened last time and the time before, ad infinitium, it will happen again. Social media could make a difference, it will be interesting to see how this impacts the speed of the shock wave that emanates from Sydney.

I'm waiting for the mainstream media to get hold of it. In Adelaide it could be next year, it could be in a few years. It will happen, the question is when and how can I take advantage of it.

The plan is to get a few more properties before the next boom kicks in.
Will see how many we get.

Cheers
Graeme

 

[see_change]

I think the Internet , social media has changed the current cycle , hence western sydney taking off possibly earlier than in previous cycles due to easy information on properties in cheaper areas .

Cliff

 

[Sheryn]

See

Been thinking about is it cheaper to buy then rent? Slowly I am coming around to the thought that YES you do need property so your wealth grows but maybe the way to live now (once kids leave home) is to rent.

We have come across people who travel for part of the year and then rent in a apartment block in the city, next time they rent they pick the next new apartment block to rent.

Making us rethink do you want to have a PPOR (of course we have Ip's)


Cheers
Sheryn

 

[see_change]

House swap would be another thing to use in that senario.

I'm sure we can find some people in the Cotswolds or with a ski lodge in aspen who want to spend some time in our waterfront weekender in port Stephens.

Cliff

 

[Sheryn]

Actually we are house sitting on the water for hubby's aunt and uncle, 2 boats and a canoe in backyard jetty and a 4WD merc in the garage.

Plus the toy foxie dog to dog sit...not hard to take.

BTW One boat and the merc have flat batteries because hubby hasn't used them!

Cheers
Sheryn

PS
2 other couples have mentioned house sitting for them in the future in conversations but I am not keen as we would prefer to be travelling and doing our own thing not minding pets and cleaning large houses and maintaining yards.

 

[The Fence]

PS
2 other couples have mentioned house sitting for them in the future in conversations but I am not keen as we would prefer to be travelling and doing our own thing not minding pets and cleaning large houses and maintaining yards.

Can you refer them on to my wife and I...?

We are looking to do this for a few years actually. Its a great way to travel and stay and experience the one spot before moving along. Dont mind the "work" as it would be no different than whats at home.