The Glade 4.0

Just buy a cheap house, and if it's not your dream house, keep saving.

Tough call.

I will point out that taking care of a house by yourself is an undertaking. This house I'm in now seems to get dirty faster than I can clean it up and it's just me until mid-july; I don't even have furniture. I need my wife! You may find you need one too, if you get a house.

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

The only way owning a house can be an investment is if you own it and rent it out to make money over the cost of the mortgage, property taxes, HOA fees and upkeep.

A house declines in value in real terms notwithstanding factors such as antiquity, property value increase due to amenities nearby being built and putting your own labor into it to increase its value. You only have control over one of those things and if you could make money faster by building additions or renovating your home than at your current job, you wouldn't be working your current job.

Think about it. Why would a house, which is deteriorating with age, appreciate? It doesn't. The real "investment" of a house comes when you finally pay it off, but then you have to look at the offsetting cost of paying all the mortgage rent, property taxes and upkeep.

Now, if you are fully comfortable with that, then by all means find a house in an area, style and condition you like and negotiate a good price.

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"It's real, grew up in trife life, the times of white lines
The hype vice, murderous nighttimes and knife fights invite crimes" - Nasir Jones

That seems like it might cost more than the house. *snark*

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"It's real, grew up in trife life, the times of white lines
The hype vice, murderous nighttimes and knife fights invite crimes" - Nasir Jones

My house is paid off. My monthly cost between taxes and insurance is a little over $100. Admittedly, I've been plowing my savings back into the house for the upkeep I kept putting off because I couldn't afford it because of the mortgage.

When we bought the house we were paying on the mortgage a little more than it would have cost to rent a similar house. By the time I paid it off I was paying a little under half what it would have cost to rent the house.

Now, it would still cost more to rent a similar house around here, just not that much more.

Buying a house to live in is a long term investment, unless you are buying beat up homes in nice neighborhoods and turning them into the premiere homes on the block. I know a couple that have been doing that for over twenty years, and luckily sold their last house just before the bubble burst. Now they are temporarily retired and living in the RV they've had for years until they decide what their next project is, and yes, they know quite well that the timing could have gone against them and they would have lost most of what they've earned over the years.

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

If you want my honest assessment, click below. I only offer it because I care.

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Ezekiel 23:19-20 

There is a third option you haven't seemed to have considered.

This is how I would do this, if I were in your situation. Also keep in mind laws in Australia may be different to the US and you may have to look at what will save you the most money.

Step 1. Find a fairly run down but liveable and well built house in a good area (preferably old double brick, with sturdy foundation and tile roof on a good sized piece of land).
Step 2. Figure out if it is possible to run even between rent on the place and your repayment to the bank. If not even close, keep looking.
Step 3. Buy as either investment or Personal use depending on Tax breaks.
Step 4. If bought as Personal use, satisfy the time needed living in the house for those tax breaks but don’t fix anything, then turn it into an investment property.
Step 5. Rent it out to unsuspecting people.
Step 6. Move in with your parents if bought for investment, or after time frame satisfied if bought as personal use.
Step 7. Start fixing up the internals bits at a time and claim back on tax as a loss of investment. Any extra money should be put into the repayment of the house. Be sure to raise the rent as the place is slowly fixed up, this should be done every 6 month to ensure you’re getting the gain for your investment.
Step 8. Once you’re satisfied the house is as fixed to the point you want, and the repayments are down to a level you’re comfortable with. Kick out the tenet and move in.
Step 9. Stuff…
Step 10. Profit! Or something…

She's a sneaky one she is, and wise to boot.

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

Being a Landlord is not as easy as someone handing you a check every month and you paying the mortgage with that check. If it was that easy more people would be doing it. There are months when you don't have a renter and you still have the mortgage payment. There is maintenance on the rental property, there are renters that trash a property and now you have to decide what to do...take them to court to recoup the damages? There are renters that quit paying the rent and now you have to evict them...in the meantime you can't rent the property out because they won't move out, yet they won't pay either. Finding a good, faithful renter is not an easy task. Home repairs on your own home are hard enough to keep current on, now you have a rental that you are responsible for also. Hopefully you are handy and can do the repairs yourself, if not you have to hire and pay someone. When anything goes wrong in the rental, who do they call? You..the Landlord. If that all sounds like a challenge you would be up to? I applaud you, and you will reap the benefits in the later years when the house is paid for.

It's just not the hassle that I, personally would want. To each their own . Those are choices we all make. No one can predict the future and what will make you happy for the rest of your life, things change...and hindsight is 20/20. It's easy to say when you are in your 50's that if only you had done things different...but if that person was the go getter type, they wouldn't be in the spot they are now...they would still be the person that blames everything (economy, bad luck ect) and basically wants things to be easy, which is why they didn't do things different way back. People that have money are hard workers and pay their dues to reap benefits later (unless you are lucky and inherit ).

Key is to work hard, don't make hasty decisions, get lots of advice and do what's right for you and the life you want to live....and never look back with regrets.

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Dream as if you'll live forever...
...Live as if you'll die tomorrow

Vivere Senza Rimpianti

Many people make the mistake of directly comparing the cost of renting to the cost of a mortgage. However, a mortgage payment is not the cost of owning a house, but merely a part of it. Here's an older article about the various other things that go into the cost of owning. And the cost of owning is not just coming out of your wallet...it's your time too.

Renters don't pay for wear and tear or emergencies, their landlords do. Owners pay for all that, or file homeowner's insurance claims for the big stuff. Apartment renters don't spend all weekend on their yard or house projects, but owners often do...or they pay someone to do it for them. Some people continue to rent and spend the money they aren't putting into the cost of owning a home into other things.

Remember, in the real estate sandwich, renters are the bread. Low income renters who cant afford to own are the soggy bottom slice, middle class owners are the bulk of the meat, and high income renters are the top slice, because at their income levels it often is more advantageous to have the freedom renting affords them.

There's different kinds of freedom, you have to choose what kind ya want. Each has different pros and cons that you can take advantage of, or let take advatage of you if you make poor decisions. In the end, ya gotta pay moeny to keep a roof over your head no matter what, so may as well make the most of your situation as you see it, and not as others see it.

Also, keep one thing in mind...if you go get the house, you may wind up having to actually get a job that entails more responsibility and a paycheck that shows it...

Personally, I say move back in with the parents and save your money if going back is so advantageous and easy at the same time. Can't go wrong with as big a bankroll as you can get before you take the plunge a few more miles down the road.

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Women are from Hoboken, men are from Trenton. ~ Jimmy Kimmel