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rent and be 'comfy' or buy and be 'stretched'


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Poll: if you are TTC, preggers or have littlies do you or plan to or have you decided to:

if you are TTC, preggers or have littlies do you or plan to or have you decided to:

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#1 shirl

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Posted 09 May 2006 - 09:29 PM

Hi Lovelies,
if you can be bothered reading, would be really grateful for ideas....We are looking into our finances carefully in planning ttc very soon....financially we will be very tight if we buy a house which we would very much like to do, particularly given the market at the mo.... BUT Hubby's income won't comfortably cover a big (ie. more than about $400K) mortgage and a few other essentials when on one income. We live in Sydney, so prices are high...we are not in the thick of high prices..we can still get something good for under $500K where we are...

SO, We are seriously considering renting till our child bearing is done, say over two pregnancies (god willing) so we do have the ability to enjoy that time without being incredibly stretched...but still seriously saving..

Just wondering what others of you are feeling about this sort of thing as I am sure we are not alone...I am not great at taking financial risks, but also don't want to cut my time short..I will be 35 later this year...I also don't want to leave q good oppourtunity behind and not buy cause we are scardy cats!..we are so close to being able to 'wing it' maybe, but if we don't buy, the likelihood of being able to in the next few years is virtually nil...

We aren't terribly hung up on material things, but owning just seems the right thing to do... we have sort of just assumed that is what we would always do...

Ideas would be greatly appreciated..and while i am here, can anyone recommend a good independant finacial advisor on Sydney's north shore?

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#2 ~BecD~

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Posted 09 May 2006 - 10:22 PM

We have decided to buy a new house shortly, and it is scary when I think that we also want to have kids next year. I dont have a clue how we will be able to afford, the only way i see it happening at the moment, is by using a lump sump amount we receive when we sell the house we are in now to cover my missing income. Even with us both working though, it will be really tough with a child, but renting isnt an option for us, i have never rented and like being able to do whatever i want with our house. Just the way i was raised i guess

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#3 kisma

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Posted 09 May 2006 - 10:56 PM

Im all for buying a house. Rent is called dead money for a reason i think, JMO.

Basically you will most probably only pay just a little more for mortgage repayments compared to rent anyway. And in the end its a great investment, when you sell you get money back, when you move from a rental propery you get a bond back biggrin.gif

Also even if you were to buy on the cheaper end of the market, when you have done with the child bearing you can then 'upgrade' when the finances allow. Plus as its your own house you can do whatever you want to it, unlike in rental and you wont be left short if the owners decide to sell their rental house etc etc

this should be an interesting poll tongue.gif
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#4 Renee`

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Posted 10 May 2006 - 08:55 AM

I believe you should buy a house before you have a baby!!

I watched too many family members do it the other way - and it took them years to acheive their dream of owning a house.

We have brought our own home now, and NOW we are TTC i just think when you own a house, you can do whatever you want whenever you want and you have sercurity, no risk of landlord kicking you out because they wanna move back in etc etc - and when you have lil bubs you want stablity.

Is anyone ever really fully fincially stable for children and what they can throw at us? I think we all manage, coz you have to manage!!
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#5 cricket

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Posted 10 May 2006 - 09:19 AM

We will have a baby first and probally our family first don't get me wrong we would love to own our home one day but it is not a prioty for us. We do not want to commit ourselves to a mortgage I do not want to go straight back to work which is what I would have to do if we had a mortgage.

We pay $250.00 a week as apposed to a mortgage of $400.00 per week, we can do what ever we like when ever we like cause we have good landlords and they have to give quite a bit of notice to get us out whcih gives us plenty of time to get another place.

We also have the flexibility of packing up and moving at a moments notice if a better opportunity arrises somewhere else. Also we don't know where we want to live so don't want to committ ourselves to a certain area.

I don't know how true this is but I heard that if person A buys a house and person B rents and saves the difference in the long run person b will be better off.

JMO I don't think it matters if you own a house or not, home is where the heart is and considering the amount of families struggling at the moment renting is the safest option for us.


#6 Dixie

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Posted 10 May 2006 - 09:35 AM

We chose to buy first and therefore put off our TTC for a few years.

QUOTE
Basically you will most probably only pay just a little more for mortgage repayments compared to rent anyway. And in the end its a great investment, when you sell you get money back, when you move from a rental propery you get a bond back


I think you can end up paying a lot more for a mortgage compared to rent. Our mortgage payments for a brand new four bedroom house are $1000 a fortnight. Our rental appraisal on our house was $285 a week. So we have have added an extra third on to what we were paying on rent for something similar. Other factors you need to consider on a mortgage are Rates, Water Rates (generally you only pay for consumption when renting), and Maintenance repairs.

For sure we were a lot more comfortable when we were renting and had more disposable income but to me I would rather be stretching it than paying somebody else's mortgage. I also want the stability of my children having a 'home' as such whereas when it is somebody else's home that you are living in you are limited to what they deem is acceptable for their property. For example they might not like picture hooks, they may not like animals etc.

One other thing to consider is that real esate trends have peaks and troughs. Analysts are predicting another peak in around five years which 'may' be when you are looking to get into the market. You said that
QUOTE
the likelihood of being able to in the next few years is virtually nil...
so I would bite the bullet and do it now.

Too many friends and family have done the opposite and rented when starting their families and none of them have been able to go on to buy.

Good luck with your decision! biggrin.gif



#7 ...

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Posted 10 May 2006 - 10:14 AM

We're in a different situation so I can't comment, but our financial advisor/mortgage broker in the area is excellent. He's independent of financial institutions, full of great ideas and really well qualified. (He's also a close friend's BIL, which is how we found him.) He's more ambitious than we are about our investments, so we still double check our budget with extra "spare" money against his calculations, but he's conservative about interest rates etc, which is important.

PM me if you would like his name? He's based in Manly, but comes to you wherever you are, in the evenings or whenever suits you - he was with us until 10pm recently. ohmy.gif smile.gif

#8 Thelma

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Posted 10 May 2006 - 10:30 AM

Check out this thread

House v Baby



#9 displayname

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Posted 10 May 2006 - 10:33 AM

Gosh Shirl.. that's a hard one. Even though I'm not married yet I completely understand where you are coming from. Hopefully this won't come out the wrong way but it's easy for 19 or 23 year olds who have the 'world at their feet' to say buy the house first..

You say you will be 35 this year and I will be 30 at the end of this year... it's kind of a different story for us 'oldies' because the stupid damned biological clock is ticking..

I also live in Sydney and totally understand about the high rent and/or mortgage rates. I personally feel really bummed about the whole situation too. H2B and I are renting and are only JUST surviving on one income .. I really don't know when/if we'll be able to own a home AND have kids too..

I wish you luck in your decision.. I didn't vote because I really have no clue either, and would like to know too! smile.gif

#10 ~...~...~...~...~

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Posted 10 May 2006 - 10:34 AM

QUOTE (cricket @ May 10 2006, 09:19 AM)
I don't know how true this is but I heard that if person A buys a house and person B rents and saves the difference in the long run person b will be better off.

This is true if person B invests in shares as long as they commit to putting the extra money away. I know that we wouldn't do it so we bought (not the only reason).
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#11 g0newiththewind

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Posted 10 May 2006 - 10:53 AM

QUOTE (B's Girl @ May 10 2006, 09:35 AM)
I think you can end up paying a lot more for a mortgage compared to rent. Our mortgage payments for a brand new four bedroom house are $1000 a fortnight. Our rental appraisal on our house was $285 a week. So we have have added an extra third on to what we were paying on rent for something similar. Other factors you need to consider on a mortgage are Rates, Water Rates (generally you only pay for consumption when renting), and Maintenance repairs.

This is what I was going to post. There are many good points to renting and certainly not "dead money". As Rebecca just posted you can invest your money wisely and come out on top. If you're worried that you husband's wage won't cover your mortgage repayments than maybe you should think about renting and investing any extra cash you have.

Some people rent in the same property for years and it is still their "home". If you find the right place and landlord it can be win/win sitation.

Also it may pay to research what property analysts are saying about Sydney property prices - I haven't lived there for 3 years so I don't know what's going on but it may pay to buy now or hold off.
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#12 mrsm00kz

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Posted 10 May 2006 - 10:55 AM

H2B and i are in our mid 20's and have decided to buy a house in Sydney as soon as we can. We are lucky in that aspect that we aren't ready to TTC yet so the decision was easy for us.
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#13 CookiesandCream

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Posted 10 May 2006 - 12:29 PM

QUOTE (mrsobey @ May 9 2006, 10:56 PM)

Basically you will most probably only pay just a little more for mortgage repayments compared to rent anyway. And in the end its a great investment, when you sell you get money back, when you move from a rental propery you get a bond back biggrin.gif


I would be in heaven if that was the case - If we borrow the full amount that we are pre-approved for than we will be paying more than double of what our rent is. Even if the house we find is $20 to $30K less than what we are approved for than it will still be a lot more than what our rent is.


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#14 kisma

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Posted 10 May 2006 - 02:31 PM

QUOTE (B's Girl @ May 10 2006, 09:35 AM)
We chose to buy first and therefore put off our TTC for a few years.



I think you can end up paying a lot more for a mortgage compared to rent. Our mortgage payments for a brand new four bedroom house are $1000 a fortnight. Our rental appraisal on our house was $285 a week. So we have have added an extra third on to what we were paying on rent for something similar. Other factors you need to consider on a mortgage are Rates, Water Rates (generally you only pay for consumption when renting), and Maintenance repairs.

For sure we were a lot more comfortable when we were renting and had more disposable income but to me I would rather be stretching it than paying somebody else's mortgage. I also want the stability of my children having a 'home' as such whereas when it is somebody else's home that you are living in you are limited to what they deem is acceptable for their property. For example they might not like picture hooks, they may not like animals etc.

One other thing to consider is that real esate trends have peaks and troughs. Analysts are predicting another peak in around five years which 'may' be when you are looking to get into the market. You said that so I would bite the bullet and do it now.

Too many friends and family have done the opposite and rented when starting their families and none of them have been able to go on to buy.

Good luck with your decision! biggrin.gif

i think it all depends on area to i guess.

I dont knwo if you would ever come out on top definately with owning your own home to start with, but as long term you would.
At the moment we live in our house and pay $560 a fornight for the mortage (bought before the boom), and we pay $700 for our rental property (bought once the boom started) and get just below $600 back in rent after the fee from the real estate. So where we live its good, and yes there are other costs but if we were to sell say our second house we know that we could sell it for at least $30 000 more than we paid for it. Basically alot of people have investment properties and they wouldnt if you werent ever going to make money on them (after tax time is usually where you do though).

I think this is very personal opinion, and really varies by the location and financial situation. But imo in the long run owning your own house would be better. IE 5,10,15 years what ever down the track
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#15 kisma

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Posted 10 May 2006 - 02:34 PM

Can any tell me if Sydney's 'boom' has dropped??
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