Re: Rent or Buy...
I am different. <br />I own one cause the wife insisted years back, so we own a home. I made sure it is freehold, and it is cheaper than paying rent, and gives me somewhere to sleep. A good thing to do.<br />BUT I have been in business for a long time. <br />The returns on homes are pathetic. People think they make money on their homes. That to me is not so. They have to live somewhere, so when they sell at more than they bought for, they then have to buy again, and that is probably more than what they just sold for, and because they have a "carefully geared mortgage", then they don't own very much at all, because the Bank does, and they let you live there and feel good about having your own property, and if you can't pay them, then they boot your butt out. <br />JB may have been through 7 homes and made money on them all, but go back to No1 and see what that is worth today. (But as you go thru lfe, things change, so you sell and buy to meet conditions).<br />My advice. You need to live somewhere, so buy a home, and freehold it. Remember, usually the greatest value of a home is the Land it sits on. Land usually grows in value, buildings depreciate, at around 1.25 to 2.5% per year.Own the Land.<br />Now before everyone jumps on me I will explain why I am different.<br />A well meaning close relative has been here for a week, and decides with the wife I should pay for a new veranda etc, etc,etc, totaling about $50K, which of course would increase the value of our home. B/S. I am putting in $10K worth of water tanks and will save $3K in water charges in yr 1, and $5K in yr 5, and I will depreciate the $10K in tanks over 3yrs. And they want me to pump $50K in to the home cause it increases it's value. B/S. I just sit there, with a coldie in hand, and say nothing.<br />I will tell you something else about have valuable a home is. It holds the most value to the person you leave it too when you croak. I'll put money on it...they will take a trip to visit their mates on iboats, buy a new car, get the diamond necklace the old chook always wanted, and within 16 weeks, poof, all gone.<br />Don't get me wrong H..G.., consider buying a home, if possible with land. You will never look back, especially when the repayments hit zero. Don't share the title though.<br />Cheers<br />Phillip
<br /><br />tommays
