to buy a house or not... suggestions, experience, help!

by Aussie Oz 23 Replies latest social family

• 

  Aussie Oz

  Many years ago i bought a house because the government basically threw money at us and the mortgage was pretty much the same as the weekly rent in $ per week.

  Obviusly that has changed, here in aust real estate has gone through the roof with a house considered a bargain at $300,000 for a first home buyer.

  So here i am at 47, thinking about buying a house so that when i retire, the wife and i will not have to pay rent or mortgage at all. We have to raise $25k more (we have 10) for deposit and fees in the next 18 months to do this. (offer is to buy MIL house at reduced market price)

  We can do this but it will be real hard and i can already see the stress on my wife. Assuming we can pull this off, we then have a mortgage twice our current rent plus extra to pay it off by the time i am 65ish.

  We have had a cosy little existance of not having to work 40 hours a week and going on small holidays when we want and i fear we will lose this for about 15 years if we buy a house.

  I really would like some input from those of you who have walked this road. I dont know if we are better off having a more relaxed life and worry about housing/rent prices/pension etc when the time comes or do the house thing.

  what have you done?

  Are you retired and still renting?

  was sacrificing a lot worth it for a house?

  oz
• 

  cult classic

  Hey Aussie Oz

  We're 40 and in the states. We own a couple of homes. I have to say that I honestly see no benefit to having a mortgage other than the argument that you will be mortgage free when you're older. Unless you get a really good deal on the mortgage, the costs are just not worth it imo. The best years of your life are sacrificed worrying about the mortgage. As a renter you have flexibility. That is worth a lot.

  When the mortgage is paid off you still owe taxes and have maintenance expenses. If you really love the house and property go for it. But don't buy it b/c it's supposed to be some type of investment or safety net later in life. My older relatives who are renters seem much more relaxed than the ones who have had mortgages all of their lives. There are also many options for seniors .
• 

  wannabefree

  why buy? the end is just around the corner, you can take whatever you want
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  cult classic

  LOL wannabefree........ good point. where's my faith?
• 

  thetrueone

  Its most likely the best route to go in buying real-estate but there allot of variables to this.

  If your real-estate pricing is stable in your area and you like living there, the home becomes a personal investment

  that builds up your equitable assets. One has to also consider the extra costs in taxes, water and heat utilities, maintenance.

  Those can also play a important factor in how much its costing you every month, up against your monthly income.
• 

  upnorth

  A house is a little square you throw money into.

  We have one of those squares and we love it.

  We bought the place when my daughter started kindergarten, she graduated high school in 2004.
• 

  Aussie Oz

  wannabefree...

  Thats it!

  All igotta do is re-join the Witnesses and i will be able to take my pick for free!!!!!!!!!
• 

  Aussie Oz

  keep it comming...

  cult classic thankyou for that input.

  Upnorth, thankyou for the annalogy!

  10 years ago a good house was 75k and weekly income was about 600. Now a good house is 300k and weekly incomes are still not much more than 600.

  my wife is struggling with this as she has never had the dream of home ownership. she would rather spend the deposit money on a holiday. as for me, until recently a home ownership was out of the question. As a single guy paying lots of child support the banks would not touch me. i had pretty well decided it was not for me as well. its only as a couple that we are better off.

  we started saving so that in 3 or 4 years we might have a deposit. Then the mother in law offered her house at a very good deal and all the planning and stress started.

  The worry is of course that here in OZ real estate is rising. We did not get hit hard like the U.S home loan market colapse. The concern is of course, by the time we have slowly save 30 or 40 grand, house prices will have risen more and we may still need more deposit.

  what do you do later in life? go live in a caravan park? (trailer park to you in the USA!)

  oz
• 

  Judge Dread

  Read your initial post CAREFULLY.

  You have your answer there.

  Judge Dread
• 

  transhuman68

  There are way too many variables for anyone to give you advice, Aussie; but you don't want to be still renting when you retire. Factor in inheritances, kids growing up, possible retrenchment, etc. Still, in a hundred years time, it won't matter much.