Australia heads for economic crunch

Discussion in 'Markets & Economies' started by millededge, Jan 3, 2011.

  1. zargor

    zargor Member

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    As with everything, there are pros and cons (and always will be) with the whole rent vs buy debate.

    Some of those points in Web's link tho should be considered carefully and adjusted for the Australian context, not the US.

    Zargor :)
     
  2. intelligencer

    intelligencer Active Member

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    Yes there is probably an advantage to renting in some respects but that article is completely jaundiced towards renting.

    What about the risk of being evicted, the feeling of no control to hammer a nail where you like or install whatever you want?

    But worse than all those things is it doesn't say that with buying there is an end to the slavery. Once your loan is paid off in an average of 10-15 years you don't have to pay anywhere near the cost of renting ever again.

    You get to do what you want.

    The suckers who are "saving" while they rent are having their money inflated away so are suckers twice over. They'll never save enough to buy a house outright anyway.

    My advice is to buy but not overstretch.
     
  3. JulieW

    JulieW Well-Known Member Silver Stacker

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    http://www.bobdylan.com/#/songs/subterranean-homesick-blues

    Johnny's in the basement
    Mixing up the medicine
    I'm on the pavement
    Thinking about the government
    The man in the trench coat
    Badge out, laid off
    Says he's got a bad cough
    Wants to get it paid off
    Look out kid
    It's somethin' you did
    God knows when
    But you're doin' it again
    You better duck down the alley way
    Lookin' for a new friend
    The man in the coon-skin cap
    By the big pen
    Wants eleven dollar bills
    You only got ten

    Maggie comes fleet foot
    Face full of black soot
    Talkin' that the heat put
    Plants in the bed but
    The phone's tapped anyway
    Maggie says that many say
    They must bust in early May
    Orders from the D.A.
    Look out kid
    Don't matter what you did
    Walk on your tiptoes
    Don't try "No-Doz"
    Better stay away from those
    That carry around a fire hose
    Keep a clean nose
    Watch the plain clothes
    You don't need a weatherman
    To know which way the wind blows

    Get sick, get well
    Hang around a ink well
    Ring bell, hard to tell
    If anything is goin' to sell
    Try hard, get barred
    Get back, write braille
    Get jailed, jump bail
    Join the army, if you fail
    Look out kid
    You're gonna get hit
    But users, cheaters
    Six-time losers
    Hang around the theaters
    Girl by the whirlpool
    Lookin' for a new fool
    Don't follow leaders
    Watch the parkin' meters

    Ah get born, keep warm
    Short pants, romance, learn to dance
    Get dressed, get blessed
    Try to be a success
    Please her, please him, buy gifts
    Don't steal, don't lift
    Twenty years of schoolin'
    And they put you on the day shift
    Look out kid
    They keep it all hid
    Better jump down a manhole
    Light yourself a candle
    Don't wear sandals
    Try to avoid the scandals
    Don't wanna be a bum
    You better chew gum
    The pump don't work
    'Cause the vandals took the handles

    Bob Dylan in 1965.
     
  4. Agauholic

    Agauholic New Member

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    The article acknowledges the 'financial' scope of it's arguments.

    as above, this 'emotive' scenario noted specifically.

    The article touches on this by suggesting investment of the savings etc.

    The article scope is financials of "buying" vs financials of "renting".

    Introducing subsequent investment strategies of those savings is irrelevant, probably why a baseline cash rate was included in the attached calculator.

    I'd rather own, but having been through these calculations continuously of late, it's beyond sense to commit at present. later i hope, as the emotive arguments are the very real motivators.
     
  5. bennybbc

    bennybbc Member Silver Stacker

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    I hammer nails in wherever I want. I built a work bench in the garage and put in an extra power point without asking, also did the gardens to my likeing. I do keep it in good nick as I have to live there and the land lords couldn't be happier. I couldn't be happier either as I could now buy back my place for less that what I sold it for and my high interest account pays me more than the rent. I would say that a double win for me not a double loss.
     
  6. Peekay

    Peekay New Member

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  7. Randomz

    Randomz New Member

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    Peekay, thank your partner!
     
  8. Guest

    Guest Guest

    You have to do your own due dilligence here and not listen to the thickheads who will give you free 'advice' on what you should and shouldn't do without knowing the first thing about you or how your financial situation is set up.

    There are some VERY pro buying types here who will dole out the usual advice of buy and hold, no matter what. Ignore them.

    You need to decide what works best for yourself and your family and certainly not let the 'advice' of randoms who don't know you from a bar of soap to dictate what you should and shouldn't be doing with your personal finances and state of living.

    This thread will show you clearly there are VERY clear divisions of opinion with the pro buy - pro rent - pro just live within your means camps.

    I am not afraid or embarrassed to admit I simply cannot afford a home AND maintain a decent standard of living to raise a family. So I simply chose the lesser of two evils and remained a renter, but having a better quality of living for myself and my family.

    I honestly find your ignorance disturbing mate.

    Things ARE changing here in terms of cost of living if you can sit down and just look at the figures...

    [​IMG]
    [​IMG]

    (data & images care of Hobo Jo)

    I take a particularly dim view of those who wish to harp back to the assumption it was 'always' difficult as a means to dismiss claims the current environment is not 'as' affordable. It's a common myth that's been continuously debunked, disproven and put to rest many times but the old school crowd (because they've done it successfully) still refuse to see beyond their own front yard. The old adage of 'if I can do it, then ANYONE can and if you can't, you're just a whinger'.

    It's this level of ignorance which has drawn so much angst out of me in the part here on the issue.

    Not just the snide and derogatory attitude of the haves, but the sheer ignorance on display when looking at the facts.
     
  9. 2ds

    2ds New Member

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    Wow, that is a really interesting comparrison.

    Lets discard gambling and pets because they're totally optional

    Lets also discard phone as well because phone in 1960 didn't mean the same thing as phone in 2011

    Housing, health and education...

    Ever get the feeling you're being screwed...
     
  10. JulieW

    JulieW Well-Known Member Silver Stacker

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    I am constantly dismayed at the last place that education gets in any debate. It is the single most important thing next to home and hearth. If the world were better educated it would be a better place of that I'm sure.
     
  11. Guest

    Guest Guest

    You have to remember that those who run the system don't actually want their citizens educated.
     
  12. boston

    boston Active Member Silver Stacker

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    The older I get the more I realise that the best education that anyone can have, is generally achieved outside of the education system!
     
  13. boston

    boston Active Member Silver Stacker

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    +1
     
  14. Randomz

    Randomz New Member

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    Peekay, do you see selling to rent as being the same as choosing to rent instead of to buy?


    2ds, in the 60's you bought an empty unfurnished 2 bedroom 1 bathroom house without a garage or carport. House expectations are a lot higher now.

    Similar for health, in the 60's go to doctor and say you don't feel well, you got a packet of aspirin (which is probably cheaper now) and then died in 6 months from colon cancer.

    These days you get a colonoscopy, followed by a CT scan, followed by surgery, followed by chemotherapy and live for another 30 years.

    As for education, have teacher wages increased anywhere near in line with the figures on the chart?
     
  15. JulieW

    JulieW Well-Known Member Silver Stacker

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    Provided you have a basis to start with. Good teachers give good education.

    Closing a school means opening a prison - Mark Twain (or words to that effect).
     
  16. s1lv3r

    s1lv3r New Member

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    But see, that's where it'd require an effort from parents to give their children the education actually needed to succeed in life and which they are actually interested in.
    99% will prefer to remove the responsibility from their shoulders and relocate it to the gov-ent agency, called "school"...
     
  17. s1lv3r

    s1lv3r New Member

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    Think someone here on the forum has a signature, also by Mark Twain:
    "I never let the school interfere with my education" or something to that effect.
     
  18. Bargain Hunter

    Bargain Hunter Member

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    I agree with you 100% on that Boston. Silver, I think Mark Twain said "I never let my schooling interfere with my education".
     
  19. boston

    boston Active Member Silver Stacker

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    We had our son at a prestigious private school and were totally apalled at his progress. So we removed him, and I took on the task of home schooling him.

    It was unorthodox to say the least. From the age of 14 he travelled with me on business to Singapore, China, Hong Kong, Taiwan, Germany, Switzerland, Italy etc. Accepted into computing at the local Tafe and was the youngest student in Vic at Tafe. Had his own business at 15, lived overseas for a few years from the age of 21 and hobnobbed it with top sporting personalities etc and now has another business.

    Somehow, I know that if he had been left to the machinations of the education system at the time, he would just be another one of the sheep.
     
  20. Bargain Hunter

    Bargain Hunter Member

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    Good on you Boston. I wish my parents were more open minded like you.

    Sounds like your son had one of the finest educational experiences possible, far superior to what 99%+ of people receive. You should be proud of yourself. I'm sure your son will thank you one day if he hasn't already.
     

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