Jimmyz said...

I think I'm going to buy myself a boat to live on... screw the mortgage.

thats what we did and it was the best thing we ever did. in fact we are doing it again soon.

no one HAS to buy a house. in fact if you rent and invest the difference youd pay on a mortgage, at a 8% ( even 6) return average youd be ahead. most of a mortgage repayment is interest for a long time anyway. if i hadnt got in early (1996) there is no way id buy from scratch now. we bought this place in bad way and have been doing it up for the last year. paid 330k all funded by mortgage and thats hard enough. gotta get that boat.

Sorry to be neggative, but... its the magic of compounding, isn't it?

Most people have a home from around the age of 25 - 30 years (after they've foregone some gear !! and saved a deposit). They then have it for 50 years or so.

Inflation runs at 2.5% - that means that in 28 years the property has doubled in value, or effectively, half the mortgage has been paid for gratis. In 50 years its two thirds of the property has been 'paid' gratis. Looking at it another way, in 28 years time, your income has doubled, but the mortgage payments have remained the same. By that time, you will have paid off a 25 year mortgage.

I could go on, but, the bottom line is, its hard to pay the mortgage in the first few years, but then it just gets easier and easier.

And yes you could pay a rent (4% rental yield), but after 28 years you end up with nothing (unless you really do invest that money in the stock market and get at least 6.5%). Or you can buy (at an average 6.5% interest yield), and own your own home. Its a choice.

reiwa.com.au/?prop_no=7&searchRef=Yangebup&ID=2653759

10 mins from freo $379k

reiwa.com.au/lst/lst-ressale-details.cfm?prop_no=1&searchRef=Armadale&ID=2655746

armadale foot hills $295k

Im not a real estate person or have any interest in the above, I just see options for starters. Our 1st house was a fibro ex homes west house, never liked it much, but had a good time there for 3 years or so.....