really?! wow our financial advisor told us that.
gosh michelle you've got me all excited now!!!!!!specially with another bubba on the way, having to decide who's going to share with who is a toughie, maybe we wont have to after all!!
Yep, I am pretty sure that is right as well, capital gains tax is only payable on an investment property, not one of primary residence, and there are also time limits I think...
Our original mortgage on our home is just under $900 f/n. This house would rent for about $430+ a week here. It is a little poky 3 bedder. So it would be not quite covering itself.
We are also buiilding an investment property, the mortgage will be about $1100 f/n under current interest rates, the rental income will be around $490 a week - so it will not cover its own mortgage repayments. Again this is a small 3 bedder.
The thing about canberra is that property prices are very high as are the rents. You might save a little by renting, but not much. The problem is that a lot of people don't have much choice because they cann't afford the large mortgages but they still have to pay nearly as much on rent anyway.
Exactly Misty, and then how are people excecpted to save for a mortgage/deposit, and they are paying such enormous rent prices...such a viscious cycle really.
My previous house the mortgage is $45pw, it is rented for $110pw. I have it for sale, whoever buys it would be paying about $90pw if they had no deposit, or much less if they did (banks won't give you a loan in the country with 0% deposit anyway).
Current house the mortgage is about $115pw, it would rent for $200+pw, but it is WAY too small for us and we really can't live here much longer, even though it is a gorgeous little house it is just Too Small and with one bathroom (with the toilet IN it) and lots of long haired people in the house who take long showers as well as little people who take long baths the bathroom contention alone is a make-or-break. DD#1 hopping around outside the bathroom because she is "buuuuuuuuuusting" is a regular sight.
We're building a new house at the moment, it will cost us about $140pw and to rent a similar house would cost $330pw. Two bathrooms! Two toilets! *drool* lol
I really really really want to sell the first two houses so we have no mortgage at all and wads of cash in the bank but it just isn't working out that way for us, so I'm resigned to being an "accidental landlord".
We have never rented, DH bought his first house and i moved in just before we got married. The mortgage on that place was around $500 p/f (changed with interest rates). Its was a two bedroom unit and when we got preg with number 2 we needed to make a decision about what we would do with the house as we desperately needed more room. DH is in the RAAF so we had a few options including buying another place, subsidised rent in a private rental or a defence housing property. In the end we decided to buy a bigger house which costs us more money however after we sold our unit we actually made all the money back that we would have paid in mortgage, fees etc so effectively we had lived rent free for 4 years. Its kinda made me realise that dh was right to not want to rent (he was adamant that we wouldn't and i wanted to rent instead) as in the end we were better off financially for having a mortgage than renting.
We pay about $450 a week on the mortgage. To rent a similar house would cost about $350 a week so we're paying more to own- especially when you add on rates, repairs, house insurance etc.
ETA: We made the decision to buy though as we can afford the mortgage with me being a SAHM and it gives us the freedom to garden and paint etc and also to put down roots somewhere. I had no hesitation renting before that though.
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