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    Luvo's Avatar
    Luvo Posts: 18, Reputation: 1
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    #1

    Jul 1, 2008, 06:16 PM
    Rent first or Buy first?
    Hi, Just wondering if someone could give me advise, I am a mature 18 year old and I have been with my partner for 2 years and after christmas we were looking to move out but we can't decide whether rent first or buy.

    We spend every day with eeach other so it is time for the next step.

    The good thing about renting is you can get a better house and pay less a week for it therefore have more money for ourselves. Another good thing is if we were to break up our tenancy agreement is a lot easier to get out of than an owned house.

    The good thing about buying is, its our own house, we are not wasting any money, we have the 7k first home owners grants and fees are paid for by FHOG. We can paint and decorate, and we can have a place cheap than we can in 2 years (market is low).

    I cannot decide which way to go. What do you think
    ?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jul 1, 2008, 06:24 PM
    Well one of the issues is the word "partner" not married, and co-owning property together if you latter split is a lot harder to deal with since both would own. Now if that is not possible for various reasons, it is one concern to discuss and have worked out.

    But personally, until you get more into life and work and where you may want to live, I do'n't see renting as a waste, since you are paying to live somewhere. But you want to be saving money
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #3

    Jul 1, 2008, 06:30 PM
    Just curious: in your budget, how much rent are you prepared to pay? And, how much of a mortgage installment, tax, and insurance are your prepared to pay?
    Luvo's Avatar
    Luvo Posts: 18, Reputation: 1
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    #4

    Jul 1, 2008, 06:35 PM
    Quote Originally Posted by George_1950
    Just curious: in your budget, how much rent are you prepared to pay? And, how much of a mortgage installment, tax, and insurance are your prepared to pay?
    Umm well with rent we were willing to pay 250-300 a week and if we buy we will get help from the family plus we get 7000 to help us with the FHOG. Insurance we were going to pay monthly. For a mortgage its about 500p/w repayments.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #5

    Jul 1, 2008, 06:43 PM
    Just curious: If rent is 300 a week, and a mortgage is 500, would you be able to save 200 a week by renting? Or am I missing something?
    Luvo's Avatar
    Luvo Posts: 18, Reputation: 1
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    #6

    Jul 1, 2008, 06:46 PM
    Quote Originally Posted by George_1950
    Just curious: If rent is 300 a week, and a mortgage is 500, would you be able to save 200 a week by renting? Or am I missing something?

    No your right, we will be saving 200 a week but at the end of the day we are just paying someone else's mortgage for them.

    Maybe I should rent for 12-24 months than buy? Would you agree?
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #7

    Jul 1, 2008, 06:48 PM
    Quote Originally Posted by Luvo
    no your right, we will be saving 200 a week but at the end of the day we are just paying someone elses mortgage for them.

    Maybe i should rent for 12-24 months than buy? Would you agree?
    It is always wise to be able to save something each week/month. Some financial planners recommend a 6 - 9 month emergency/contingency fund in a liquid bank account.
    Luvo's Avatar
    Luvo Posts: 18, Reputation: 1
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    #8

    Jul 1, 2008, 06:51 PM
    That's a good view to look at it. And at the end of the day if one of us lost our jobs we would be able to cope.

    Cheers for that George
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #9

    Jul 1, 2008, 07:02 PM
    I am having an issue seeing where a rental will be 1000 dollars a month and a equal home would be able to be bought for 500 a month.
    Plus you keep saying rental a week, most rentals are not weekly they are monthly
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