House - Rent or Buy

[justsomeguy]

Hi there,

At some stage in our life most of us contemplate purchasing a home to live in. On this topic I have a few general questions.

1. For a first home buyer what do you all feel are some criteria in deciding whether to rent or buy??
2. Is it worth it to buy an apartment or wait and save up for a three bedroom house and get 2 flatmates to help you pay it off??
3. Any other issues you'll have come across that made you hesitate making a decision??

JSG

[Big Dave]

For a first home buyer what do you all feel are some criteria in deciding whether to rent or buy??

if you have the deposit - Buy. if you rent you are only paying someone else's house off - better your own.

Is it worth it to buy an apartment or wait and save up for a three bedroom house and get 2 flatmates to help you pay it off??

your first home decision should have one main criterea - potential for capital gain.

Provided you do it properly with a lease and agreements - better off with interviewing people you don't know. You might still end up with the flatmate from hell - but at least it won't cost a friendship.

Any other issues you'll have come across that made you hesitate making a decision??

Are you comfortable with the repayments.

[merv]

Hi there,

At some stage in our life most of us contemplate purchasing a home to live in. On this topic I have a few general questions.

1. For a first home buyer what do you all feel are some criteria in deciding whether to rent or buy??
2. Is it worth it to buy an apartment or wait and save up for a three bedroom house and get 2 flatmates to help you pay it off??
3. Any other issues you'll have come across that made you hesitate making a decision??

JSG

Whether to rent or buy is entirely about if you pay rent, you are paying someone else's mortgage so they get the capital gain - you get sweet f'all. If you are in a stable job and can afford paying a mortgage do it.

Whether you buy an apartment or a house doesn't matter as long as the property is a good one and the capital gain is there. Buying no place is the wrong choice as you lose out on the capital gain.

Getting flatmates in is a good idea if you are single and have the room because then you can treat it like a rental property and the rental portion (i.e. not your share of the house used for your own purposes) is tax deductible - way to go. So say 3 bedrooms you could claim 2/3 of all costs including interest as tax deductible against the rent from your flatmates.

Believe me, we tendered for another house on Friday and did not win the bid and the capital gains at present are still way up there no matter what anyone tries to tell you about the property market going flat it isn't.

If you start with nothing and buy nothing, you'll end with nothing. If that's what you want then OK. Otherwise go for it but don't over commit.

Hope that all makes sense.

[WINJA]

YOU DONT HAVE TO LIVE IN WHAT YOU OWN , FOR THE PRICE OF AN AVERAGE HOUSE IN AUCK YOU CAN BUY 2 IN THE WAIKATO WHICH WILL HAVE TWICE THE CAPITAL GAIN , AUCK HOUSE PRICES DOUBLE EVERY 8 TO 10 YEARS, WAIKATO HOUSE PRICES DOUBLE EVERY 4 TO 5 YEARS , BUYING IN THE NORTH WAIKATO IS PARTICULARLY GOOD, I GOT OFFERED OVER $100,000 MORE THAN WHAT I PAID FOR MY WAIKATO HOUSE JUST 9 WEEKS AFTER BUYING IT , MY AUCKLAND HOUSE HAS INCREASED IN VALUE BY $70,000 SINCE 1999 , THIS IS NOT ALWAYS THE CASE AND THESE BARGAINS WILL DRY UP SOON AND YOU HAVE TO FIND THE NEXT HOT SPOT.
KIWIS HAVE TO STOP THINKING THAT THEY HAVE TO LIVE IN WHAT THEY BUY ,
I ULTIMATELY WANT TO OWN 5 HOUSES BUT LIVE NOWHERE, I WANT A HOUSE BUS OR A OLD KAURI PLANK TUG BOAT TO LIVE ON .
RIDE TO HUNTLY,NGARUAWAHIA AND TEAWAMUTU AND LOOK AT THE REALESTATE SHOPS ON THE WEEKEND , PM ME IF YOU WANT TO STOP ROUND

[Big Dave]

YOU DONT HAVE TO LIVE IN WHAT YOU OWN ,

Yeah - you are right - but the kicker for me in living in rented digs (and owning investments elsewhere) is having a landlord. I hate that shit.
At least if i want to kick a door all i have to answer to is me.

[Dafe]

I just brought my first investment house today. Just heard I'd won the tender. I'm farkin stoked. Cost me heaps but it's bloody nice.
The reason I brought today is the same reason I reakon you should too....

Average house prices in NZ are going to annually gain at %15.
If you ain't got a home you're missing out on free money!
There are alot of people with money looking to invest in houses and there are not quite as many houses on the market at present.
You should buy a house with a good sized property as soon as you can.
The shit fight for house buying is intensifying all the time, thus house demand and prices are rising.

Your idea of buying and getting in some flatmates is Spot On!
Doing this will open many doors for your future.

[WINJA]

Yeah - you are right - but the kicker for me in living in rented digs (and owning investments elsewhere) is having a landlord. I hate that shit.
At least if i want to kick a door all i have to answer to is me.

SO GROW UP AND HAVE RESPECT FOR YOUR HOME

[Big Dave]

SO GROW UP AND HAVE RESPECT FOR YOUR HOME

Speaking metaphorically - I'm very house pwoud. Even weed the garden.
AND I have a lovely terra cotta roof that NEVER NEEDS PAINTING.

[WINJA]

Speaking metaphorically - I'm very house pwoud. Even weed the garden.
AND I have a lovely terra cotta roof that NEVER NEEDS PAINTING.

MY GOD DAMN ROOF , FUCK DAVE HOW HEAVY ARE YOU? CAN YOU PAINT MY ROOF? ILL LET YOU RIDE MY STREET MAGIC. OR YOU CAN JUST RIDE THE MAGIC
AND ILL GIVE YOU $10 TO JUMP MY CREEK

[Big Dave]

MY GOD DAMN ROOF , FUCK DAVE HOW HEAVY ARE YOU? CAN YOU PAINT MY ROOF? ILL LET YOU RIDE MY STREET MAGIC. OR YOU CAN JUST RIDE THE MAGIC
AND ILL GIVE YOU $10 TO JUMP MY CREEK

Too heavy for roof work and i'd need a street magic for each buttock.

[Devil]

Buy, Buy, Buy. No question. Get some flatmates.

Considerations: When you're budgeting for a mortgage, dont forget things like local council rates, regional council rates, water rates and whatever rates they decide to charge you with.

[WINJA]

Buy, Buy, Buy. No question. Get some flatmates.

Considerations: When you're budgeting for a mortgage, dont forget things like local council rates, regional council rates, water rates and whatever rates they decide to charge you with.

OR BUY TO RENT AND CLAIM THE TAX BACK ON THE ABOVE , THEN RENT A HOUSE YOU CANT AFFORD TO BUY

[Devil]

OR BUY TO RENT AND CLAIM THE TAX BACK ON THE ABOVE , THEN RENT A HOUSE YOU CANT AFFORD TO BUY

Or that, but for a first house situation, I'd prefer to buy the house and get flatmates (which is kind of what im doing. Bought one with the partner and have a mate living with us to help out). Personal preference though.

As soon as we have the minimum amount of equity in this house, we'll use it to buy a second house to solely rent out.

[Motu]

What kept me renting for many years was cheap rent - I've spent 12 years living in houses of my wife's family,getting very cheap rent while we did them up for resale,but getting nothing out of it ourselves.Shifting 6 times in one year got us off our arse and into our first home.This last jump in house prices saw me sidelined looking after my terminaly ill mother - I came out of it looking at another 25 yr mortgage,at age 50! I did as WINJA has suggested,and am now freehold in the North Waikato,I feel for once I made a move at the right time,before everyone else and my capital gain is 50% in 6 mths - come on down and increase the price of my house more so I can buy another property....

[WINJA]

What kept me renting for many years was cheap rent - I've spent 12 years living in houses of my wife's family,getting very cheap rent while we did them up for resale,but getting nothing out of it ourselves.Shifting 6 times in one year got us off our arse and into our first home.This last jump in house prices saw me sidelined looking after my terminaly ill mother - I came out of it looking at another 25 yr mortgage,at age 50! I did as WINJA has suggested,and am now freehold in the North Waikato,I feel for once I made a move at the right time,before everyone else and my capital gain is 50% in 6 mths - come on down and increase the price of my house more so I can buy another property....

OMG WE ARE NEIGHBOURS , PAINT MY ROOF