Just wondering what the house - buying ethic is in your country? Do most people eventually own a house or do lots of people never buy and just rent? In the UK most people strive to buy a house, whereas I know in some European countries this is not the case.
I'm just weighing up the pros and cons at the moment of buying a house (whether in NZ or in the UK if I decide to return). If I spend the capital I have on a deposit for a house this means less travelling, but if I carry on renting I could then afford to go on lots more trips, but will have no assets (and at 32 I feel like I should start being sensible!). Travelling is obviously what I would rather do, but I also think it would be sensible to buy while prices are low. I just don't know if I am feeling like I 'should' buy because I'm from the UK where this is what everyone does or has done, including most of my friends. Is buying a house all it's cut out to be or should we just live for the moment and think about the future later?
Most people here will buy. Most of the population lives in government-built HDB flats and they can use their retirement savings account to pay for it. This account is compulsory for every citizen here and 20% of your pay each month goes into it, in addition your employer contributes another 13% or so. (However the problem is that some people end up asset-rich but cash poor. Those who can't afford to buy can rent from the government but there is stringent criteria)
Some people buy property as a form of investment too, especially private housing like condominiums and landed property. The younger ones have also been renting or buying their own pad to have their own space away from their parents.
I would like to have a pad of my own too, but the problem is that I do not qualify to buy a cheap government-flat as a single until I'm older than 35years old and have to find someone else to share it with me. And I can't afford the expensive private condos...Anyway I spend so little time at home it's practically a hotel so I guess it doesn't matter.
There's a couple in NY that handles a business to help people rent out their apartments to tourists while the owners go on holiday themselves. Perhaps this could be a thought for you?
There's a great show here called Til Debt Do Us Part, and the host is a financial advisor who helps people get their act together and get out of debt (while saving their relationship, to boot). Anyway, I was sure she'd advocate buying a house so as not to lose your money on rent, but she actually says there's nothing wrong with renting. It all has to do with your lifestyle and where you'd prefer to put your money.
In Montreal, it's very half and half. There's no shame in renting--in fact, many people prefer it, since a lot of the most popular neighbourhoods offer mostly rentals. I bit the bullet and got a condo a few years back, but I stuck to the advice of live below your means and got a smaller place. That way, I can still afford everything else I love to do.
buying a house is not wrong as long you buy not to expensiv/overpriced
not wrong if the monthly mortgage is not higher(or not much) then what you have to pay rent to a landlord.If you do it this way you will have the same situation like now paying rent but for your own account/house,still able to travel.
Maybe you could rent it out for a higher price then you pay for your place now and make a little profit.
there is always the chance to sell it again,depending the location with profit.
In Germany quite a few people try to buy (depends upon the region or better the federal state though), but this is mostly people with very secure jobs and small kids. If you buy a house in Germany you buy it for life, you usually keep it until your dying day. It is unusual to sell a house and depending upon the location it can take years to find somebody willing to buy it.
If I was you I would buy a house somewhere cheap, there are regions in Eastern and Northern Europe and Asia where you can get something decent for around 10,000 GBP.
If you want the same living comfort, buying a house is always cheaper than renting. Well, almost allways. I know some friends who rent and pay a lot of money for an appartment, out of the city of Utrecht, while we pay just a little more for a house with 3 floors in one of the nicest neighbourhoods in utrecht...well, at least in my opinion.
also, there is not much difference regarding monthly costs on top of the mortgage etc.
Like Marlis said, don't pay more than you want, for example one quarter of your montly income (after taxes that is). If you know what you can afford, you won't have trouble (also regarding travelling, enjoy the everyday life etc. etc.), and it always works out better in the end anyway as something finally will be yours instead of paying money and throw it away actually.
And mind you: rental costs generally will get higher every year as the inflation is calculated.
We have a set mortgage for 20 years, so in 10 years or so that amount we pay know is reduced significantly in relative perspective (well, at least the chances are very very high).
Most people here buy, because there is government loan fund with really good payment options. And there is an increasing number of people buying condos and renting them out for a higher amount (monthly payment for loan + extra).
So renting houses isn't really a practical option, since the average rent is approximately equal to the monthly payment if you buy a house through the government loan fund.