Nev Posted June 18, 2015 Report Share Posted June 18, 2015 Interesting but missing quite a few bits like property agent commission, rates and taxes...etcHere is my take on it if you haven't seen it yet:https://dl.dropboxusercontent.com/u/45882280/Home%20Cost.xlsx Quote Link to comment Share on other sites More sharing options...
ottg Posted June 18, 2015 Report Share Posted June 18, 2015 @Nev and @Don - Perhaps we talk cross purposes. The OP post says house prices which is broad but if the argument is about buying vs renting then all your points are probably applicable and missing a few expenses here and there is not all that important. In short to own a house (as your primary property of residence PPOR) is expensive if you pay on a single average salary and perhaps non affordable in Melbourne or Sydney close to the CBD for the average salary earner.BUT this is where you need to think about alternatives. Now the argument turns to buying vs property investing. To safe me typing here is a young lady with a few good tips. http://www.news.com.au/finance/real-estate/sydney-property-investment-guru-stephanie-brennan-has-23-million-portfolio-aged-24/story-fndban6l-1227403856040Lets dissect that further and differentiate the various options:a. Buying vs saving - this is where @Nev spreadsheet comes in. Just a few parameters in there which skews the results. Your rental yield is way to low (5.3% is a more reliable estimate as the 3.5% used) to make it a fair comparison and should closely correlated to the house price. Your spreadsheet also views it from a PPOR vs savings. Consider to redo that for property investing vs savings. b. Then buying vs shares investing - you need to view this differently and all my points made before applies.c. Then property investing vs shares investing - needs lots of detail. What is your views?d. Then property investing vs shares investing (using margin loans) - you need to view this differently and all my points made before applies.e. Then property investing vs shares investing (using offset account) - you need to view this differentlyTo avoid clutter this thread I will start another thread and post a copy & paste from other information on offset account versus margin loans. Quote Link to comment Share on other sites More sharing options...
monsta Posted June 19, 2015 Author Report Share Posted June 19, 2015 @Nev Commsec is having an end of financial year sale on margin loans!!! Quote Link to comment Share on other sites More sharing options...
OubaasDik Posted June 19, 2015 Report Share Posted June 19, 2015 Hey,For all of you still living in RSA, house price affordability is a huge issue here. The presidents approval rating has been suffering because if ithttp://www.smh.com.au/federal-politics/political-news/voters-drift-away-from-tony-abbott-amid-worsening-housing-affordability-crisis-and-samesex-marriage-debate-20150614-ghnofr.htmlIt's become a good reason not to migrate to Sydney. It seems foreigners and older couples are buying up property at exorbitant prices.What president? Are you talking about the PM? 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.