I am wondering why many still renting a house in australia? why not purchase a investment property for their own future right? which they knew purchasing investment will stop them from paying too much tax?
Email: maylene_biz@yahoo.com.au
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2007-01-06 23:06:24 · 6 answers · asked by Ging 1 in Business & Finance ➔ Renting & Real Estate
There can be many reasons.
1. Location: Some people are required to move from time to time with their work. Why buy a home when you will only be in that town for 12 months or so? What if you don't like the town?
2. Cost: If you're earning $35,000 and the average house price is $400,000, you can't afford to buy a home. For many years, it was much cheaper for me to rent than to pay mortgage payments.
3. Rent, own home, then invest: Most renters would not buy an investment property as their first purchase. They would buy their own home, which has very little tax advantages, except CGT exemption upon sale. If they go for the tax advantages, they would still be renters.
4. Tax advantages: Other investments can provide the same tax advantages. You can rent and still negative gear into shares, businesses and otherv investments.
5. Market bubbles: Some towns go through regular cycles with house prices. Especially if they are rural towns where mining and / or agriculture is predominant. Commodity prices high, everyone has money, house prices go up. Commodities fall, house prices go down. Some are waiting for the bubble to burst.
6. Changing Family Size: A single person on their own may not want to buy a 4 bedroom home until they are married and have a family. But they may not want to buy a 1 bedroom home if they see marriage being likely in a few years time.
7. Retirees: Centrelink's assets test is more generous for non-home owners than it is for owners. When set-up correctly, it's common that their income is totally tax free. (More so after 01/07/07), so tax deductions are useless. Not owning your own home allows higher income and the possibility of rental assistance. Many Grey Nomads do not own their own home.
There can be many reasons that depend on the individual and their circumstances. The decision to buy or rent changes with the individual circumstances. While it may be true that the majority prefer to own, sometimes it makes sense to rent.
2007-01-10 14:38:02 · answer #1 · answered by Quaven 2 · 0⤊ 0⤋
Fear stops most people from purchasing. Everyone's so afraid of not being able to keep up the payments on their property, but the truth of the matter is most people just don't want to be burdened with the idea of having to work just a little harder to do what's best for them. They're comfortable. I'm not gonna lie and say I didn't feel a little aprehensive the first time I purchased a home, but I just couldn't justify paying someone elses mortgage just to save a couple bucks at the moment.
2007-01-07 04:01:19 · answer #2 · answered by abrahamrbgem 1 · 0⤊ 0⤋
If is ur homestead, u can do what ever u elect, to that end lease it. maximum ppl do so as 2 pay the internal maximum loan. only make helpful u do an severe background verify on ur destiny renters. circulate 2 a particular to actual materials n purchase a "lease style"...($2 or $4) n commence ur element. good success.
2016-10-30 05:49:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
usually bad credit stops people from buying. Also not having a down payment. Can't get a loan. No long term employment.
2007-01-07 00:49:59 · answer #4 · answered by zocko 5 · 0⤊ 0⤋
Agreed. Purchasing is the way to go.
2007-01-06 23:14:02 · answer #5 · answered by Frank Rizzo 2 · 0⤊ 0⤋
Hey tho you can gte that at a website
http://www.craigslist.org
2007-01-06 23:09:30 · answer #6 · answered by impressivelist 2 · 0⤊ 0⤋