To Buy a Flat or to Buy a House or None

• 

  Master Bates on 27/07/2019 - 21:13

  +7

  I wouldn’t buy a flat, have you read the news lately?

  • 

    Kumar1982 on 27/07/2019 - 21:24

    I only read that, the flats are cheaper now than before..

    • 

      jjjaar on 27/07/2019 - 21:43

      +7

      Because they’re not well built and are falling apart.

    • 

      Master Bates on 27/07/2019 - 22:31

      +4

      This is just one of the recent news stories and is in the area where you are thinking about buying.

      • 

        Kumar1982 on 28/07/2019 - 10:29

        Thanks,
        Actually I was referring to the news,
        Where in real estate prices were down more than 10% compared to 2yrs ago rates

  • 

    spackbace on 27/07/2019 - 21:27

    +8

    Have they gone a bit…

    …flat?

• 

  spackbace on 27/07/2019 - 21:26

  +15

  Surely just rent. Any value increase on the house would be washed away by the exit fees of the mortgage and the interest, then the added cost of selling it

  • 

    Kumar1982 on 27/07/2019 - 21:36

    Thank you. I didn't know that there is a exit fee for the mortgage, I thought it would be paid off when I repay after selling the flat..

    • 

      spackbace on 27/07/2019 - 21:40

      +2

      Well it's like an loan, there's typically early payout fees. You sign up for 20yrs but pay off in 5 and they'll put their hand out

      • 

        Kumar1982 on 27/07/2019 - 21:57

        In some countries, the Central banks (like RBA) have set guidelines for mortgage lenders not to charge fees for early or pre closure of loans.

        • 

          Typical16-bitEnjoyer on 27/07/2019 - 22:43

          +10

          @Kumar1982: In some countries, namely Australia, the banks have set fees for early exit and mortgage discharge of loans.

        • 

          Icecold5000 on 27/07/2019 - 22:45

          +5

          @Kumar1982: Well it appears Australia isn't one of those countries. You may have to pay a break fee because this is part of the mortgage contract.

          Seriously it looks like you are coming from a position of extreme ignorance. Given you are buying an apartment in an area not noted for its quality developments, at a time when there is a question mark over the quality of these apartments while the market is declining and Australia is going into recession. I think it is questionable whether you can even get a mortgage for an apartment. I also question your logic that you think the potentially widespread issue of structural defects will aid you in getting a cheaper apartment. Unless you are a building surveyor or structural engineer with an intimate knowledge of the building you will mess yourself up badly.

          Sometimes the best investments are the ones you never make.

          • 

            dcep on 28/07/2019 - 01:12

            +1

            @Icecold5000: I know there are early exit fee for breaking a fixed rate loan, but variable ?

    • 

      Zonty on 28/07/2019 - 09:33

      +2

      Exit fees is nothing couple of $ like $400.00

      • 

        Kumar1982 on 28/07/2019 - 17:54

        That's not much compared to price of the property

• 

  Godric on 27/07/2019 - 22:11

  Palace

• 

  Ashbargin on 28/07/2019 - 08:43

  +2

  But if the OP buys brand new they will have moved out of the home by the time the warranty finishes.

  • 

    Presence on 28/07/2019 - 09:08

    The warranties are almost meaningless.

  • 

    Icecold5000 on 28/07/2019 - 10:23

    They could also be buying into a development where the structural issues only become evident down the track and a forced to pay thousands to the BC or strata to remediate. If they try to sell and can’t then they’ll need to go into bankruptcy and lose everything.

• 

  Zonty on 28/07/2019 - 09:31

  +1

  Well depend on you if you know what is future and 100% sure leaving country then better compare your rental cost vs repayment and others utility payment. If rent is higher then that better buy flat which will be cheaper then house and aslo high return in case you move to your country.
  Normaly apartment rental investment higher but no capital gain in long run where house has chance of capital gain but not high rental return also could be long run high maintenance. It's totally depend on you. Do you want live in Australia in big house till you leave or do you want high yield investment apartment property for future and pay less loan repayment.reason better you buy because all saving here has not much return.
  I would buy in Australia because I know you came from indian and you take a lot money at homes always make trouble in family by being compared and money brings problems . Also always it's chance you will not like indian corruption and pollution and end up again come back australia you will have home to come back. Even you do not come back Australia then you can rent and forget because realestate will look after your property very well in Australia.

  • 

    Kumar1982 on 28/07/2019 - 10:57

    Thanks , very interesting thoughts

• 

  SickMyDuck on 28/07/2019 - 14:26

  +1

  My 2 cents on the topic.

  I recently got granted PR too. Having been renting for the past 4 years in Melbourne. Both my partner and I work in CBD and we prefer convenience over space. Not planning to have kids. And paying mortgage for 1br unit is same as paying rent. So, we go for the apartment.

  It's really depended on many variables; workplace, location, kids, vehicle, vice versa.

  Narrow them down and compare whether which (rent or buy) you have to fork out more.

  • 

    Kumar1982 on 28/07/2019 - 17:54

    Thank you

• 

  keithality on 29/07/2019 - 20:24

  +1

  Good calculator from the NY times to work out the numbers. On top of that you obviously need to consider the other lifestyle variables that others have mentioned above.
  https://www.nytimes.com/interactive/2014/upshot/buy-rent-cal…

  • 

    Kumar1982 on 30/07/2019 - 07:19

    Thank you