The great rent vs. Own debate has been around forever and will be around forever. It is not something where you can be told exactly what to do. In every situation what is best is different. In some areas it is cheaper to rent then own and in other areas the mortgage repayments are less than the rent, so it would make more sense to buy.
I have desperately been wanting to buy my own home here, but lately I have been thinking that might not be the best option. I do love it where I live, but it is hideously expensive and I am not 100% sure I want to live here. Mortgages are A LOT more than rent, but the rent is hideously high too.
I have come to think that buying investment properties instead of my own home might be a better option. I have a house, so am already in the property market. It is not located in an area I would ever live in again, (because there are too many people in the area I am related to) but it is a foot in the door. It is on the market at them moment, but I am not sure I really want to sell it.
I think buying my own home here would be more an emotional choice rather than a smart investment choice. I can understand why people want their own home and I totally do, but I think I can set myself up better financially by holding off on that decision and buying an investment property somewhere I would like to live.
I also think the Aussie real estate market is so overpriced it’s no longer a joke! All the houses I have looked at here are at least $100,000 MORE than other areas for the same damn thing. That’s outrageous. Especially since there is nothing really here. There’s no beach, no rainforest, awesome bushwalks or anything. You can drive to some close by, we are only like 1 – 2 hrs to the snow fields, 1 – 2 hours to the beach, 3 hours to Sydney, so you can drive to lots of things, but here there is only public servants who are overpaid and are paying too much for real estate making it hard for everyone else.
So I think right now, the best option for me is to continue renting, whilst looking for property elsewhere.
What are you doing? Renting or paying off the mortgage? DO you wish you had done it differently?
I now wish I had not bought where we did and bought where I wanted to, because we would have had a smaller mortgage, been able to pay off more of it quicker AND be able to charge higher rent than we can for the place we have. Ahhh, hindsight is a wonderful thing!
I also wonder how long this real estate bubble can continue. I mean, we have some of the highest rents and mortgages in the world, which have sky rocketed to the point you pretty much need 2 people working to afford the repayments. Surely this is not sustainable and will have to crash at some point. It has before. Real estate has NOT always gone up. It does come down. Just look overseas at the moment and you can see what I mean.
For an interesting read check this out. It talks about why you should rent vs. buy. On the other hand Money Magazine said this month that properties in capital cities in 2020 will all be over 1mil, which would make it impossible to buy and smarter to buy now. What do you think?
As for me, I change my mind every week it seems as to buying here or not, so we'll see what I end up doing! lol. Though right now, it's continuing to rent.