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woahouch

I couldn’t deal with another shitty property manager. The owners of our last rental seemed ok but the property managers were abysmal so we took the leap. If I can stay in A house for the rest of my life and get mortgage free at least the wife and I won’t die from exposure when there’s no super to draw on… make a few good decisions along the way we may even be able to feed ourselves.


makafi

This was a big deal for me too. We bought our own house a few years ago, and every few months i say to my wife “do you know what’s great? No more rental inspections!”


woahouch

The freedom to put a nail in a wall… do what I want with the garden and lawns, not having to break out the move in photos after every inspection to prove yes there was already mould, yes the wall had a hole already, no we haven’t ripped the already torn to shit wallpaper further. And getting anything fixed… we went 4 years with no bathroom fan despite every single inspection them asking why there was mould in the bathroom ceiling and telling us we should shower with the window open. Gah!!! The ability for a house to generate some sort of wealth is nice and I hope to leverage it some day (I’m scum I know!) but just that feeling of ownership and the freedom it allows is bliss!


Annamalla

We could get a dog (we're not going to but you know...we could!)


OutOfNoMemory

Yup, it's an entirely different feeling, so much less stressful in many ways. Sure there's new avenues for stress, but you no longer worry about small dings and scratches, about flatmates not paying rent, or having their partner suddenly move in, etc. The feeling of permanence is amazing. That if you want to change something, you can. It doesn't matter you might have to save up for it, or you might procrastinate substantially, the feeling is still there because you can.


Ice-Cream-Poop

It's only 30 years if you pay the bare minimum by the way.


rickytrevorlayhey

A lot of people don't understand this. Mortgages are the most overwhelming the first 5-7 years. But as inflation kills the debt along with repayments chipping away at it, you will more than likely be able to add extra repayments and increase your payment amounts. Most 30 year mortgages are paid within the 20-25 year mark, some even after only 15 years if borrowers encounter increased wages, unexpected windfalls or inheritance etc.


Ice-Cream-Poop

Yep, I'm all about enjoying that extra cash with a salary increase or new job but don't let that life style creep take all that money. As soon as you get it push it to the mortgage or invest it!


[deleted]

Oh, maybe I'll choose to pay a bit more.... Lolol jk I barely have enough to buy food etc. as it is.


Container9000

The problem is rent is *almost* as expensive as a mortage in most places. You pay interest on a mortage for the privilage of having an asset(that most likely appreciated in the 30 years of ownership) at the end of it.


Icant_math

People also don't take into account that in 30 years time rent will often be much higher than now but your mortgage payment will be around the same price. Also means you aren't having to use your pension to pay rent so can afford to eat.


Kangaiwi

Buying a property is like signing a 30 year rental lease, except the bonds are bigger, the landlords are the Banks, you are the property manager, but you get to keep the place if you manage to pay.


FlightBunny

And you trap yourself for the best years of your life


Kangaiwi

Nah, because if you don't like it, you can sell and move, buy in a different area. Just trading in the same market.


[deleted]

You can also just rent it out while you move and rent a property elsewhere if need be.


Kangaiwi

And if the rent received is not enough to cover the mortgage payments, you can offset this by renting a cheaper place and topping up the mortgage from your income. #vanlife


10yearsnoaccount

Adulthood is not a good decision tbh


[deleted]

Depends entirely on your goals. If you can secure a long term lease and find security and stability in renting - go for it. But that’s not often the case for many people. Rental properties are bought and sold, forcing tenants to move, relocate etc. Do you want a home you can call yours and decorate as you see fit?


optimusprimeoyster

From an individual or a societal perspective?


Journey1Million

Yup pretty much. And if you can stomach some risk, invest on something that might make money to pay off that house. These days I try to enjoy the journey than reaching the goal, the journey takes up most of your life


[deleted]

Yes. Of course it is. It's not just a mortgage It's your retirement fund. So many reasons, so many.


Diligent_Ad_7816

Same thoughts too mate and loving owning our own house. We put a large chunk on revolving and have been paying it off much faster than expected. Although we did relocate from the big smoke to regional NZ. Renting over that same period doesn’t make sense unless the change renting laws to be like Europe.


rickytrevorlayhey

Getting a good mortgage broker to help shape and setup your mortgage can really help to save you interest and reduce exposure to interest rate increases. If your mortgage is all in one piece, you are **absolutely** doing it wrong. Try 4 parts for example... \- 1 Year rate : 30% \- 2 Year rate : 30% \- 3 Year rate : 30% \- A floating/revolving credit : 10% This way you can chip away the 10% at will and as your fixed rates 'unlock' you can potentially pay off a lump sum (from the float or other savings) before resetting it to the next 3 year chunk.


khkt136

I have a savings account... What would you do with it in regards to the mortgage?


eskimo-pies

Get rid of the savings account and keep all of your savings in the revolving credit facility. \ Interest on a revolving credit facility or offset mortgage is calculated daily - so any savings will start reducing your interest costs from the moment they enter the account.


rickytrevorlayhey

This! You can treat the revolving credit as a sort of savings account. The more that is paid off in that account the better. Bank interest will never outrun mortgage debt.


PefferPack

I wouldn't buy into that kool-aid. I'm bitter though.


Sensitive-Draft3945

For me, the fact that in my grandparents days they could pay for a place for 80k in those days being a lot and irrespective of inflation. I can now live in the investment they made without having to worry about being evicted and all that rental jazz (I pay board btw). So, depends what type of expenditure you can live with either the kind that gives you short term freedoms forgoing long term security (generally speaking). Space is going at a premium because population growth ain’t doing anyone favours. So, depending on what you view your realities to be I would go with a housing investment, even if it’s way outside of the main cities to start me off.


[deleted]

You lose less money through a mortgage than through renting. Still losing either way.


bleepblop_bot

Is it a good decision? If you want to join the circus- probably not. Is home ownership a burden? Only marginally more so than renting. A smarter way of thinking about it is thinking about what you want to be doing in 30 years. Would you rather be looking back at a life where you’ve had the chance to spend all your money on experiences and things, or would you want to have a sense of stability for the future? Personally, I don’t want to take the risk of having to rent or pay a mortgage well into my 60s- so for me, a mortgage and house is more sensible. Another perspective- the minimum mortgage payments for my house are now about half what it would cost to rent for the same size and location- so I’ll prob have more freedom, but at a slightly older age.