Call our Debt Helpline Toll Free on
Book next available Debt Expert

Get Out of Debt, Fast!

Top 10 Reasons NOT to buy a house.

Top 10 Reasons NOT to buy a house.

  1. It ties you down – If you sell one $600,000 house and buy another it will cost you about $30,000 (agent’s fees, legal fees and stamp duty) just to sell and buy again. This makes it expensive to move for job opportunities, love, or just for fun.
  2. The future is uncertain – People will buy a house that suits them NOW. You might by a unit in a trendy area but 2 moves later you’ve got 2 dogs, 3 kids and a house in a suburb with good schools. All of that is great but it cost you $120,000 in change due to expenses.
  3. No Home Maintenance – If you rent you don’t have to spend your weekends painting, doing yard work, cleaning gutters etc.
  4. No DIY – If you’re renting you don’t have to worry about redoing the kitchen or the bathroom which will cost you tens of thousands to only look out of date 6 months later.
  5. No expensive repairs –When renting, you don’t need to worry about air conditioners dying, hot water systems exploding, or ovens not working any more. Sure, these are inconvenient,but you don’t have to suddenly find $2,500 to replace the air conditioner.
  6. It’s more expensive – The average rent in Brisbane is $400, the average sale price including legal fees and stamp duty is $532,000. The average mortgage repayment plus the costs of owning a house (rates, water,etc) equals about  $700/week.  That’s a $300 difference!  At historic rates of rental rise it will take 14 years to catch up.
  7. Your own home might not be the best investment – If you invested that $300 per week in shares 30 years later you’d have $4.14 mil in shares  vs having a paid off house worth  $1.8 mil (30 year average return shares 10.8% vs 7.01% property)
  8. You don’t have a mortgage – Without all that debt you don’t have to watch TV the first Tuesday of every month to see if the RBA kept interest rates on hold. If things get tight you can move somewhere cheaper temporarily. Not having a mortgage keeps you flexible and nimble.
  9. Opportunity – If you don’t have a big oppressive mortgage you can use the left over money to start saving, investing or to start a business. Most people can never quit their jobs because they’ve “got a mortgage to pay”.
  10. Not bad debt but not great debt – Interest on your home loan isn’t a tax deduction, interest on a rental property is. If you really wanted to own property, the smarter way might be to rent then perhaps buy an investment property.

 

Struggling with more than $8,000 of unsecured debt? You could be eligible for debt relief! Discover how to stop debt collector calls, freeze interest and fees, reduce payments and only pay back what you can afford. Start now with a free savings estimate.

Get My Free Savings Estimate

Free Debt Analysis

Request your Free Savings Estimate today, and receive a tailored solution to regain control of your finances and get out debt fast.

Safe, Confidential and No Obligation Safe, Confidential and No Obligation

Norton Security