Firstly, Thanks shake-the-disease,oshen, foundation, gafama so much. especially shake-the-disease.
From shake-the-disease’s view, generally, i should buy a property now.
I do some search & find the following words:
Dazzling
Valued Forum Contributor [489 posts]
Posted 03/08/2005, 01:06:53
Hmmmm, ‘rent is dead money’….
1. Suggested Solution
Purchase Price $ 350K
Purchase Costs $ 18K
Outlay needed $ 368K
Deposit $ 100K
Loan $ 268K (76% LVR…OK)
Interest rate @ 7%
NTDD Interest per year = $ 18,760
Annual Outgoings = $ 2,500
Total needed per year to fund purchase = $ 21,260
Ownership ‘dead money’ = $ 409 p.w.
Rent ‘dead money’ = $ 340 p.w.
Conclusion ….Keep renting
2. Alternative (Buy and live in a hovel in Drossville)
Purchase Price $ 200K
Purchase Costs $ 10K
Outlay needed $ 210K
Deposit $ 100K
Loan $ 110K (55% LVR…OK)
Interest rate @ 7%
NTDD Interest per year = $ 7,700
Annual Outgoings = $ 1,500
Total needed per year to fund purchase = $ 9,200
Ownership ‘dead money’ = $ 177 p.w.
Rent ‘dead money’ = $ 340 p.w.
Conclusion ….Buy the hovel
From where I sit, it looks like it all boils down to your individual lifestyle standards. Just starting out, I set the bar really low, and worked up from there.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
https://www.propertyinvesting.com/forum/topic/18790.html?SearchTerms=plus,1,rent
From Dazzling’s view,seems i should buy a hovel at first.
[blush2]
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