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Acorn, I'm going to lose money either way if I buy or Rent, but...

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QTess

135 Posts.

18/07/15

17:36

Post #: 15656139
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Originally posted by acorn ↑

It does matter about being a renter as we were originally talking about wealth creation which is the ultimate goal for when we are older . At that point we lose our earning capacity and we are relying on the wealth we have created previously . Living costs ( rent ) is a significant part of that .

I wasn't saying that to talk up housing . People are free to choose their destiny and I am not interested in influencing their choices . Buy a house , don't buy a house , I couldn't care less to be honest . The point I was trying to make is that property isn't a bad thing as some posters are trying to say here . For the average person ( not on hc ) who doesn't have a share portfolio or any other investments , buying a house is a pretty sensible thing .

Interesting that you are buying a house and expecting to lose money considering that you have some self professed financial skills . Also interesting that you are expecting to upgrade down the track because of a falling market . The opportunity creating that situation will be working against you with your own property .

As for dreaming that house prices will go up forever , I don't see anyone posting that on here . What they are saying is that all they have to do is match inflation . As their tenants pay down their loan over time , they will become wealthier . History seems to suggest that this will continue to happen . I'm sure we won't see the growth rates of the past couple of years but the just like nearly everything else , the direction is up .
If we see a reduction in demand over the long term , then I suggest we will see a down trend . By a reduction in demand , I'm talking about big things such as population reduction .

Remember , it's just an opinion .

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Acorn,

I'm going to lose money either way if I buy or Rent, but the reality is you cant make a profit out of the house you live in as when you sell you are buying again at the same point in the market.

This is not true when buying an investement proeprty as the goal is to increase the value and flip it, or hang onto it for rental income, but the idea is to profit out of it.

I dont care that buying a rental property means you own one at the end. you could say that with a car too, buy a car with a car loan, and you will have a car at the end, where the person who leased a car wont.
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