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  1. #1
    Buttoneska's Avatar
    Buttoneska is offline Winner 2010- Most Community Minded Thread Award
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    Default **spin off** for those that rent by choice..

    Just a quick question for those that rent by choice

    I was just wondering, I have a mortgage and it does cause me grief and I go through phases of wishing I rented so I didn't have the responsibility etc. I know these days there are arguments for both owning and renting (especially when some ppl are paying $40k pa in interest only!)

    But the thing that always scares me back into sticking it out is what happens when I am old? When I am unable to work or what to retire/work less? If I own my house I assume I can get buy on far less income/savings. Everyone tells me there will be no pension (no idea if thats actually true) - but if it is then what?

    I know I will pay heaps of interest and my $300k loan will end up costing me more like $600k - but I figure that I have the next 30yrs (hopefully) to pay it off. I would like to pay it off before that and then save a bit of money also so I am actaully able to retire/work less.

    So I was just wondering what other ppl think? Particulary those who rent by choice? Why do you do it? And what about when you are unable to work? Will it be that you saved enough money to retire on by not buying that it won't be a problem?

    I knwo for some ppl that they would love to buy but simply cannot afford it right now, does this stress you out or its a day at a time kinda thing?

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    We have the best of both worlds...

    We have a few investment properties which we rent out, but we rent the unit we are living in. We work from home, so we get a lot back on our rent from the tax man.

    I would defintely suggest you do keep in the property market though...once you're out it is very difficult to get back into.

    Like you said, owning your own home does give you security.

    We plan on living in one of our investment properties eventually. I would hate to be renting indefinitely. Landlords can be a right pain in the butt.

  3. #3
    Tam-I-Am's Avatar
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    I'm with you, Button. We have a mortgage and sometimes it's nearly sent us broke to continue paying it...and we're going to be paying a LOT more for this house than it's really worth. However...we've gotten it down to a level now where we'd be paying this much in rent per week anyway at least - so if we've got to be paying it out, we might as well be paying-to-own it and ensuring our own best interests in the long term, than paying off somebody else's mortgage.

    Having said that, it'd be SO NICE if we could move away from here. Both DH and I are sick of the house itself, and the area that we live in and it'd be nice to be able to give notice and move without any of the hassle of selling or finding renters etc...

    Still and all I think (for us) it will pay off in the long run. I hope so anyway.

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    AS you know, we've just sold our house with the intention of renting for the next few years whilst we build up a deposit for a family home again.

    It was a tough choice- stay here where we already don't fit, or sell and rent. Of course renting means we don't have to pay extra on rates etc, so that was a slight advantage too.

    BUT- we are very nervous about losing our property. We own cars... but a family of 4 can't live in cars... It's nerve-wracking not having that back up.. and yes- when I am old I don't want to live in my childrens' houses just because I couldn't afford my own house when I was younger. (Well, I can afford the house we just sold... but that's because it's so damn small!)

    Hopefully the market will fall exactly when we need it to, and by then we will have built up a tidy deposit again to pounce on the right house and buy...

    It's not a decision taken lightly, but we were faced with no other option. (And TBH after owning a house I am happy to go back to renting for a little while! )

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    Buttoneska's Avatar
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    So you still reckon long term is the best financial decision? Or is the best decision for conservative ppl?

    I actually had a nightmare the other night about being old and homeless because I got to 55 and somehow I had signed all the papers wrong when I brought my house and had only ever been paying rent.

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    interesting thread choice, i will definitely be keen to see what others have to say!

    i have a friend that i commute to work with and we've often discussed the possibility of just staying a renter. my DH is against this idea, as he wants to be able to leave something to our (future) children. Our plans for retirement are a little different though. DH owns a large area of land in Fiji so we plan to build a house over there and retire there Where the land is there arent power lines so we'll have to buy a generator so whilst it is costly in the short term, it's cheaper in the long run. it's also quite easy to live off the land over there so i'd be tempted to stay a renter and just save as much money as we can to put towards our retirement. We've also discussed the possibility of living in fiji for a few years once we have kids, so they can get to know their culture and where they come from. for that reason it would be much better to still be a renter as there is more flexibility.

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    In the long term I think owning is the better financial decision... I know what a PITA the rates and other associated costs are... but at least there is never the possibility of being an excellent home owner, always paying all the bills on time and still having someone turn up and say "oh sorry- this is no longer going to be a rental any more- you have 30 days to find yourself a new home"... THAT is always a worry!

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    We looked into buying but it would have cost us more than my entire weekly wage just for the repayments - DP was approved for X amount etc but we decided when we eventually buy we want it to be away from the city.

    We're currently paying through the nose for his commercial property/ventures and I stupidly bought a new car but we do have a fair bit in savings, I do not want a mortgage until we can EASILY afford it without me working full-time.

    My future is mapped out anyway apparantly, we have to live in one of my parents houses while they live in their unit so I can look after them when they're old and decrepit

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    We're a bit of both. We have enough saved up for a house deposit (for a small house in the outer suburbs). I always thought that once I'm back from maternity leave that we would buy. But, I think that we'll keep renting for a while yet, which is what DH wants.

    Our reasons why:

    1. We don't want to live where we are forever. We're happy saving our money at the moment and buying our house in the place/city we'd like to live long term.

    2. We can invest the difference between what we pay in rent and mortgage repayments (plus upkeep of the property, rates, home insurance, water, possibly body corporate fees). We did the calculations the other week and even in an account with 5% interest we'd save a massive amount, more than enough for a house to live where we want where we'd want to live when we're older.

    3. This is stupid, but I like having my savings in case something happens.

    4. Once we have a mortgage we probably won't be able to do things like travel. So, I'd like to keep a bit of extra money so we can do a little bit of travelling.

    That's just why we're choosing to rent at the moment. I imagine eventually we'll enter the property market, but not for a while.

    The downsides to renting though:
    1. Not being able to do with the house what you want
    2. Having to move sometimes
    3. Having to deal with real estate/landlords when wanting to have something fixed - took us 2 months to get our dishwasher replaced! And still haven't heard from them whether they want us to sign a new lease or they're happy for us to go month to month (I contacted them 2 months ago).

  10. #10
    ToughLove's Avatar
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    We're renting because we're planning to move to America, and this is an extremely likely plan.

    DH has already got an offer to shift as soon as he's finished his Chartered Accountants course, but we want to work in the Australian branch for a year before moving, to save up some money.

    We don't want to be tied to Australia with a mortgage


 

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