Buying Blind - What is wrong with renting?

Just watching this program on Channel 9. Sydney and Melbourne markets are at top. FHB are getting desperate to buy a house. What is wrong with renting? I see more often programs where mum and dad cry as don`t own a property. Is it so bad? Do you need to stretch yourself so much to own a property? What happens when interest rates rise? Why not starting with a $300k investment property?

 

Most people arent financially savvy, or want to be investors, but want a nice place to live. A ppor would force them to save, so theyll at least end up with a house on retirement.

 

Good points Luca. You got to start somewhere. Three or four years ago in Frankston one would have picked up a bargain!

The equity could have purchased a second or even a third IP by now. Within 15 years a solid portfolio could be established but don't tell @sash that you can make money out of scum suburbs lol.

 

Ya talkin' to me...me is got.....scumbag suburbs.....like Wessibee.....Melto....ya knoz....I luv scumbags.........I luv dem allz

 

You call them scum suburbs? How dey compare to dis suburb:




Ya sweating yet?

 

1 IP in the Druitt as little as 10-15 years ago could have made you a slum lord today

Property is a long(er) term investment plan.

Renvesting is what those whom can't afford to buy a PPOR where & what they would like should be doing, to build equity to then buy what they want at a later date

 

130k and 155k.....now 520-530k....and 430-460k......dems how dhey rolk.....similar to the Druie...only diff is dey are still growin'....but have had sho ite tenants....going through a insurance claim for over 14k for Melto......

 

Nice equity growth. Haven't had a foul tenant since about 2013. I think they realise that if you're blacklisted in the Druitt it's goodbye Sydney hello Central Coast (or beyond) lol

 

Yeah...have had brillant run for over 7 years..now in one year...have had 4 of these.....sheez.....

Its nuttin' in the looong....run....ridin' ridin' raw hide.....kinda of like your hefers huh?

 

Renting is a great option for many, especially if they are not interested to make the sacrifices to save/make repayments for a ppor, then renting is a great alternative. Unfortunately, many people around are quite entitled. They want what they want, when they want it and at what price they think is 'fair'. Well that aint ever gonna happen. Has never happened in the history of Australian real estate.

 

I didn't realise that the advent of plumbing & draining was so recent in Blacktown City.

 

"keeping up with the joneses" is a big part of it.
As @Leo2413 above mentioned, no one wants to put any hard yakka into anything these days but still they expect the best of everything to land into their laps. No financial discipline whatsoever and yet complain why their bank accounts are constantly in a drought ...

Worse part is that the sin bin is always the place where one ends up when trying to explain the situation to them or trying to put any sense or logic into their mindset(40k loan on a car when you earn 60-70k a year is madness... don't need to save is absolute madness...)

 

oh man... tell me about it... it has become funny for me now when I see people justifying their 4k p/m expenses on a 5k income because they 'have' got to do it...

 

All,

I am a ''property guy", so I am biased to buying over renting.

That said, I remember listening to an interview with a very wealthy US-based stock broker who rents. He described his decision this way: "I need a place to live, so I rent. It is not throwing money away. I also buy food to eat. Is that throwing money away too?"

This always stuck with me.

So no, there is nothing wrong with renting, and you can certainly get better bang for buck renting in the short term.

Over longer periods of time, renting does become both (a) a more expensive option and (b) a riskier option (given risk of eviction, and inflation). Compounding and inflation works against you as a renter, but this process does take time.

Hope this helps.

 

I'd also add to the mix of discipline.
Nothing wrong with renting... as long as you don't spend the difference and actually use it wisely.
I'd say for majority of people, its much easier to spend money than it is to save money, so buying is a way of forced savings.

 

I'm going to continue renting for a while as it makes sense to me for the moment. I haven't decided what area of Brisbane I want to buy in for my PPOR (IP's are a different matter), so this way I get to try before I buy. The thing I hate is that there aren't too many landlords who will allow multiple pets. One cat OR one dog seems to be fine, but not both

 

Last night Buying Blind was more a case of Buying Morons ...Couple on property show Buying Blind slammed for being picky - realestate.com.au

It had the couple with delusions....First home buyers. daddys little single only child (who looked 45) and her somewhat younger toyboy who is like her pet poodle. He better not strat to disagree or he may be neutered. Oh the struggle to find a $1.8m property as first home buyers. Pretentious-nous at its best.

All it did was make the BA look good. BA with a $1.8m budget - A gimmee. FHB who needs a BA to find a basic house cause the poor petals find it sooooo hard. FO.

My wife and I wanted them blindfolded and taken to Hebersham/ Doveton. Would have been a far more entertaining show...A cross over reality version of Housos and The Habibs.

 

It was a strange one. I think the producers have picked poor couples. I think all of them had been looking for a home for under one year. I find that a short amount of time to have given up on the market.

The show attempts to pass itself off as rescuing young couples in a tough market, but then buys houses close to budget and has renovations and stylings done at probably 1/10th of the real cost and with none of the real hassle first home buyers face. I think that ostracises similar young people who watch the show as it all becomes unrealistic for the average FHB.

I do enjoy the banter between the builder and stylist though. That outside bath was funny!

 

After reading your comments, I watched all three episodes yesterday, with the pleasure of fast-forwarding all the fluff.

I was surprised to see Mr and Ms Pretentiousness demanding a $1.8m first home, but on the other side I saw that they had some brains too. They got the show to pay for their downstairs unit, right. This might be the first house they have bought, but they have been out of home for a while and do have a list of wants relative to their age. It is a wake up to me, an older person, that FHBs are not as young as I was.

Often when we talk about FHBs we think of young 20 somethings leaving home for the first time, and usually pre-children. The Mt Evelyn couple were already living in their "home" for seven years. They were at least realistic about not being in a position to buy something as good as what they were used to. They had another mental barrier to deal with, which hubby and I had a good laugh about.

The show could serve a positive social benefit because early in the first episode, the presenters had to give the Woollongong couple a reality check. I wonder if those reality checks will get noticed by their target audience.