Do You Rent or Own Your Principal Place of Residence?

Following the post What Home Do You Live In?

I am keen to hear everyone's response about Do You Rent or Do you Own?

edit: for clarification - this is your Principle Place of residence

Poll Options Thu, 01/07/2021 - 00:00

  • 46
  • 473
  • 231


  • Own but rent πŸ˜‚πŸ˜‚

  •, 105%2C500%20households)%20from%20other%20landlords

    According to the 2016 Census of Population and Housing (Census), there were nearly 8.3 million households in Australia.

    Where household tenure was known:

    67% (5.4 million households) were home owners:
    32% (2.6 million households) without a mortgage
    35% (2.9 million households) with a mortgage
    32% (2.6 million households) were renters; where landlord type was known:
    26% (2.1 million households) were renting from private landlords
    3.7% (300,000 households) from state or territory housing authorities
    1.3% (105,500 households) from other landlords
    1.0% (79,000 households) were other tenure, including households which are not an owner with or without a mortgage, or a renter (ABS 2017c).

    • Just watch the percentage with a mortgage to continually grow while home ownership as a percentage drops significantly over the coming years - generally a lagging response to house price increases.

    • 32% (2.6 million households) without a mortgage

      This seems ridiculously high - I just can't see nearly 50% of home owners not having a mortgage

      • Why not?

        It's decreased from ~43% (of all households) in 1995.

        I doubt there are too many 60+ year olds with a mortgage. Unfortunately, not too many under 35 either, so it's a small window.
        You also have to think beyond Sydney/Melbourne housing prices.
        I'm 59 and have been mortgage free for ~18 years. 2x good incomes, a frugal lifestyle and the ability to DIY most house maintenance helped us a lot.

        • Yep I've posted similar comments before, GenX like me seem to be a forgotten generation. I assume djkelly69 is younger than 40, and may find it hard to believe housing was once affordable.

          If youre late 40s, early 50s, theres a good chance you bought before house prices went stupid around 1999-2000. Assuming you havent blown your income on the pokies or a divorce then youve had 20-30 years in the workforce to pay off a mortgage which would be tiny by todays standards. I bought in 2000, had to borrow only $150k as Id saved a decent deposit,and paid it off in a few years by living pretty frugally during that time.Ive owned my house outright since 2005.

          Amongst my friends of the same age it's not uncommon, we all own our houses.

          It also ignores my parents generation who built their houses in the 1960s and have owned their house for decades.

          • @jnewau: My surprise is based on acting for thousands of clients in conveyancing matters over more than 15 years, and the fact that maybe 1 in 100 would be buying or selling without a mortgage.

            I understand there would be quite a number of people that pay off their house and just hang on to it until they die, but not that big a number.

            Just feels like there may have been some ambiguity in the question cos the number/% seems really high.

            • @djkelly69: djkelly
              I have no doubt that your personal survey (your clients) is correct for that survey group. I also agree that survey questions can be confusing or written in such a way that they achieve a desired outcome (my ex was a master of it in her "community consultation" surveys) but the census questions are usually pretty clear.

              Keep in mind that your survey group only includes people that are buying houses and in my small survey group they do tend to hang on to their place for quite a while, especially once your kids start school so they don't need conveyancing services.

              My best mate has been in his place 40+ years. My ex's best mate has been at their place 32 years. My ex still owns the family home (23 years). My Sister & BIL, 18 years and no sign of moving despite an empty nest. I can think of others.

              I believe the median length of house ownership in Sydney & Melbourne is 12.5 years.

              I still think the cost of house ownership is too high and it's criminal that younger people are locked out of the mainstream markets due to the cost of home ownership almost doubling in relative terms over the past 25 years. I blame negative gearing and low investment loan interest rates for that.

            • @djkelly69:

              I understand there would be quite a number of people that pay off their house and just hang on to it until they die, but not that big a number.

              No, this is a very big number. When I was growing up this was essentially every family I knew.

      • I like your optimism but it's not even a third, much less half

      • This seems ridiculously high - I just can't see nearly 50% of home owners not having a mortgage

        Send them an AIHW an email telling them you think their numbers are wrong because you cannot see nearly 50% of home owners not having a mortgage

        • Age 37 I own a house mortgage free sent 2017 not that hard work hard live cheap I worked in mine been clearer and cook for many year. now at point in life were I work if I want too do few hours work a week support worker own every think I could retried but I find it boring.

      • Boomers, and the generation before them.

    • +3 votes

      Those stats are obviously valid, but OP obviously wants to only look at a sub-set of the population, being only those on OzB today.

  • Own

  • I am keen to hear everyone's response about Do You Rent or Do you Own?

    Why are you so keen?

    Facebook posts down, so a bit bored?
    University assignment and cant be bothered to hit the streets?

    Anyone else have a guess or two, I would be "keen' to know 🀦🏻

  • Rent Sadly. Own before but sold it :(

  • we are returning to serfdom

  • Does 'own' mean you own it outright without a mortgage?

    Some may think 'own' means not renting but with mortgage.

    As example, I bonafide own my property as there is no mortgage, but some other friends of mine think they own their house when the bank really does.

    • It’s cute when people say β€œwe’re homeowners!” after they’ve just β€œbought” a house and take photos standing in front of the SOLD sign.

      More like you own the toilet.

      • More like you own the toilet.

        Judging by your comment, I assume you own outright without any mortgage. When you first bought how did you do this, did you save up the full asking price or also start by buying the toilet?

        • When I first bought I realised the bank owns the house not me, and if anything I would own the toilet at the very least. Pretty simple to be honest. Have I offended you? Is this some sort of shock realization?

          • @Ghost47: Not offended, curious why anyone would poke fun at someone standing in front of a sold sign when buying a house with a mortgage. Considering this is how most people purchase property, I assumed your situation would be different.

            Well done on realising that though.

            • @hiddenbicycling: Funny, I never did this nor any of my friends. ( standing in front of sign giving free advertising for agent)

              • @RockyRaccoon: Sure its a little tacky. But its a big moment and commitment for a lot of people, they are excited.

                Legally they are the owners of the house, only if they cant pay their debt can it be taken by the bank.

                There is a fundamental difference between owning a home with a mortgage and being a renter. So maybe too many people dont think about the fact they still owe the bank 80+% of their property, but so what.

            • @hiddenbicycling: I’m not poking fun, I’m looking it at how it is. Why sugar coat it and act like you own it when you owe more debt than the equity you have in the home?

              People in this country are too soft.

      • Sorry for being excited to own my own home.

        And actually you do own it. You just also own a lot of debt to a bank that can take the house off you if you cannot uphold the repayments.
        The bank does not own the house, your name is on the deed not the banks.

        • Keep telling yourself that, I prefer to live in reality. If you owned it the bank would have no right to legally take it from you… but they can if you can’t make your repayments. I mean you can be excited, but that doesn’t give you the right to live in a fantasy world.

          • +4 votes

            @Ghost47: The bank don't own the house. They own the debt. It's just your house is used as security against the debt.

            My parents own their own home outright, but they went guarantor for my sister to buy her home. My sisters debt. But if she couldn't pay they'd be able to take my parents house which has no debt as they used it as security.

          • @Ghost47: if another country came and invaded australia, men with guns can come and take your house away from you, regardless of whose name is on the deed. That's the actual reality, if you take it that far.

          • @Ghost47: I don't think you understand the difference between the bank owning the house and the house being security against a loan.

            The bank cannot suddenly decide one day to sell your house because they feel like it. As long as you keep up your end of bargain (make repayments) the bank has no more claim to your house than I do.

          • @Ghost47: If you really want to take it that far, technically the govt can legally take it away from you if they wish

    • Renting from a bank where if I give them enough money, somewhere towards when I'm dead they might let me say I own it.

  • +1 vote

    Bank own its, I live it in rent "free".

  • I'll own it in 20 years.

  • Currently rent and own.
    But from next month, own and own.

  • Renting or owning needn't impact one's wealth provided renters invest the savings between rent and buying.

    Right now in Perth, it is the opposite, rents are high and interest rates are low but prices are being pushed up.

    But before this there was a time when the rents were much lower and interest rates higher making it more worth it to rent and invest.

    • Right now in Perth, it is the opposite, rents are high and interest rates are low but prices are being pushed up.

      This is case everywhere in Australia now.

  • i said own but officially the bank owns my house

    • Not officially, the bank borrowed that money too..

      • Why is this whole 'bank owns the house' thing so common when it's not true?

        Your name is on the deed for the house/land not the bank. You own a debt to the bank but the bank doesn't own your house or else they could sell it from under you if they felt like it.

        It's your house, be proud of that.

        • The bank does this to not be on the hook for rates. If you borrow from a Sharia bank they own it and you pay instalments with fees until you own it (to avoid the interest problem).

          Bank also does it because it wants to avoid the risk of you walking out. Even if they foreclose they can pursue you.

          Banks aren't stupid.

        • +1 vote

          You don't get the deeds until the mortgage is paid off

  • Rent but building

  • $550 week rent in Logan!

  • Own house and rent it out. Win win.

  • Rent where I want to live, invest where there is the most gains and tax deductions

  • This is a useless survey, Ozb been a sample size, probably most with investment properties than been rented, beware your landlord already on Ozb haha :)

  • Technically, bank owns it….

    If the majority of people here own theirs, wow!

  • Own but I'm in Adelaide so it's not that much of an accomplishment.

  • Got a couple of years till I can own it fully.

  • +1 vote

    Bought my first house at 21 or 22 (memory is hazy), have always owned and lived in.

    That said, if I did things over again I'd likely move into a sharehouse and then buy investment properties instead. Makes more sense financially with all the tax benefits etc.

  • Rent-Vesting is the way to go

    Rent where you want to live - optimal location

    Invest where the greatest growth and rental income is.

  • I own a portion and pay rent once a month to the bank. One day I hopefully will own the rest.

  • I own property for development purposes but rent to keep my money free

  • rent because I'm too poor. My investment is in shares

  • Just to be clear owning a home means you have no mortgage (e.g 100% equity).
    The question and options may need to be adjusted to avoid misleading information.

    • No. You own a home and you owe a debt. Very different.

      In accounting you don't net the assets and liabilities. You don't do that here too just to be pretentious

      • I'm surprised so many people have such incorrect understandings of pretty basic things…

      • Tell that to the bank when you can't meet the mortgage repayments as interest rates rise. You do not OWN the home.

        • Yes, you own the home.

          The bank owns the mortgage over your home. If you can't meet the repayments, they are contractually allowed to repossess and sell your home to recover the payments, since a mortgage is secured by your property.

          Completely different issue to whether you own the home or not.

          As I was saying before - you should make sure that you actually know at least a little about subjects before you start arguing about them

          • @Kingfield: LOL. That's just legal semantics to give gullible fools the ability to say "we own it".

            The reality is less and less people own their homes and many will hand mortgages (not assets) onto their kids.. hardly "ownership".

            Unless it's paid off, you own a debt. But go on convincing yourself you "own your home"… just don't come crying when the bank takes their house back.

            • @field1985: Yes, you own the asset, and owe the associated debt. Completely different things. If you think that's merely "Legal semantics", you must be even stupider than you sound.

              FYI, when the bank forecloses on your home, they sell the home and recover the debt in MONEY. Any remaining money (your equity) is still yours. Though I question whether you'll be able to understand that concept, given you can't seem to understand the difference between borrowing money, and borrowing a house.

  • Own and live in one of them.

  • i pay rent to the bank

  • Bank owns the house and I have a significant liability.

    • This is a completely wrong response

      Principal: first in order of importance; main.
      Place: a particular position, point, or area in space; a location.
      Of: Preposition
      Residence: a person's home.

      There is nothing about the term "Principal place of residence" that implies ownership. It is the main place that you live.

  • I have friends who own a rental but also stay in another rental. Go figure.

  • The poll options are meaningless. Only 29% of people actually OWN their home (Source). Not the 65% that people are claiming in the poll.

    Vast majority don't "Own", they are mortgaged beyond their means, not paying off the capital and essentially renting from the bank and betting on capital gains from further price rises on the back of the biggest property bubble in world history. Well interest rates are just starting to rise and the mortgage holidays are over, a lot of people are about to learn a very painful lesson.