Great video and channel. Stay consistent Raymond, the views and subs will come with this level of effort being put into your videos!
@raymondla
Жыл бұрын
Thanks for that awesome feedback mate!
@javinbalance
5 ай бұрын
Awesome video and explanation! this solves so many questions I had and knowing that the breakeven point is around the 5-6 year mark will be so helpful to make my financial decisions!
@raymondla
5 ай бұрын
Glad it was helpful!
@zamasu_777
Жыл бұрын
I think buying is probably better for most Aussies as it’s forced savings. Most would say that put aside money while renting but wouldn’t in reality
@raymondla
Жыл бұрын
Very good point on that one, I'd say the average aussie won't consistently save and invest
@diyinvesting4U
18 күн бұрын
House maintenance is not a small amount to leave out of the model, also body corporate. House appreciation last 30 yrs is more like 6.5%, but that implies you keep it in great shape and renovate constantly. Bit lower for apartments though. Also shares return has been 11% for the last few decades, the 7% assumption is short selling the shares case. Rent increase is linked to house value, it doesn't increase independently. You may want to rerun with those changes.Alternatively can look at this video on the same topic: kzitem.info/news/bejne/qJqryalqhIReq34.
@lamkaz810
Жыл бұрын
Another benefit of buying and building equity in your own home/investment property is the added borrowing capacity at lower interest rates. The property is more desirable by lending institutions over an ETF portfolio.
@raymondla
Жыл бұрын
Definitely a valid point, ability to draw down and use the equity built in property is definitely a huge benefit.
@maxedfishing92
Жыл бұрын
@@raymondla It is but your also going backwards..
@frankboadi1031
Жыл бұрын
Not entirely true
@AAA-oy4tm
Жыл бұрын
5% per annum is unrealistic The house prices are already through the roof, based on 5% per annum a 3 bedroom townhouse in western suburbs is going to cost 1.85 mill by 2050! Which is not correct! The house has wear and tear, right now in the same area same size land, brand new house costs 20 to 30 percent more than 30 years old house You have to calculate that too, calculating the interest for 30 years based on current interest rates you already have paid 1.6 mill for a 750k house in 30 years, with renting if you loose job (like Covid time) you have the option to opt in for unit but if you buy and can’t afford to maintain the loan you got to sell under price and loose deposit. If the market was stable yes but Australian housing market has crazy fluctuations and is unpredictable If you rent small place 30 km from the city and pay around 1300 rent you can save 3300 per month, even not investing and just keeping in bank and getting interest you will have nearly 900k savings in 20 years The system here is build somehow that it’s tight and the only way buying makes sense is when you are able to pay 60 to 70 percent deposit in an area that are low in air pollution and away from factories which is Eastern melbourne which costs around 1.4 mill and 60 percent of that is around 800k It’s more complex than just expecting the best case scenario.
@Christopher-hv3xj
5 ай бұрын
Very nice, in weekly savings do we include our current rent amount?
@azza2k
Жыл бұрын
Hey Raymond, what about buying an investment property, renting it out (positively geared where possible) and then renting where you want to live? (Rentvesting)
@raymondla
Жыл бұрын
Hey Aaron, potentially a good option to consider especially if you are currently priced out of where you'd ideally want to live for your PPOR.
@Paulio727
8 ай бұрын
The main thing missing here is the cgt tax exemption from the principal place of residence
@javinbalance
5 ай бұрын
correct! or deducting cgt to the etf/stock investment portfolio unless you wait for retirement
@venkateshchagi2944
6 ай бұрын
Excellent Video, Thank you for your efforts!!
@TheComicVault
3 ай бұрын
So once you include maintenance and the fact that you’re no longer eligible for 1st home buyer grants in later life (presumptively), then you break even after 30 or so years…
@NakEdits
Жыл бұрын
Thanks for you videos I’m sure you’re channel will blow up shortly!
@raymondla
Жыл бұрын
Glad you're enjoying the videos Riley! I hope so too haha!
@henrynguyen4315
8 ай бұрын
Probably wouldnt really apply with buying a unit i reckon with the extra council fees etc haha
@m.ehtizan
Жыл бұрын
Hey Raymond, I just watched your video and I must say that it was really informative and well-made. I loved your videos. I was wondering if I could help you edit your videos and also make highly engaging shorts for you to grow your business.
@raymondla
Жыл бұрын
I appreciate that feedback! Unfortunately at this point in time as I'm still a small creator I'm not looking to bring on an editor, perhaps in the future though :)
@TheSchmidtish
Жыл бұрын
5% compounded growth of an astronomically over priced housing market is a massive assumption. Make the logical 30% correction on your $750k house price and you're $225k into negative equity in the next 5yrs...
@phillipgraham4226
Жыл бұрын
That's also an assumption 🙂
@VBHob
5 ай бұрын
Sorry but that music is very distracting
@sdeane09
5 ай бұрын
Best option is rent vest for up to the first 6 years.
@TheComicVault
3 ай бұрын
Actually longer. Once you include your buying power increase and maintenance costs, it’s closer to 15 years.
@sdeane09
3 ай бұрын
@@TheComicVault anything over 6 years and you are liable for CGT though.
@TheComicVault
3 ай бұрын
@@sdeane09 you’re always liable for CGT, in some instances CGT may be discounted - like after 12 months of residing within the property (look into it though).
@sdeane09
3 ай бұрын
@@TheComicVault not if you do not have another primary residence and is under six years. Did it with my house
@David-t3u6w
7 ай бұрын
Im renting a 2million house in sydney 500 per week. owner has been good ( 10km from CBD) Do i buy a 1 million dollar property and pay 1200-1500 per week? location would 50 kms from CBD
@frankboadi1031
Жыл бұрын
I will rent than buy. The numbers just don’t make sense
@rockandblues3635
10 ай бұрын
when you rent you pay someone else property, I bought a house a year ago and now the price of my house is double, I rent for more than 25 years move from one place to another but finally I able buy a house with 4 bedroomr, 2 locked garage, 1400m2 land , I rent out 3 of bedroom, guess what? my tenant pay my mortgage
@rockandblues3635
10 ай бұрын
trust me buying is the best
@DefinitelyNotRin
8 ай бұрын
You should try to buy EVENTUALLY. But do it when the time is right and when you can afford it. More than anything people are desperate to buy based off bad advice when you're fine renting for the time being.
@rockandblues3635
8 ай бұрын
@@DefinitelyNotRin @ I don't understand with people with good income but keep renting till they retired no house at all
@dsinghr
7 ай бұрын
You cannot buy anything in 750k in Melbourne east. May be an apartment but that’s it
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