, I poked a hornet’s nest by refusing to give the standard financial advice that it is always better to buy a home, rather than “rent-vest” by continuing to rent and investing.
Dr Peter Tulip is chief economist at the Centre for Independent Studies and author of many research papers on housing prices.Tulip reckons large home price gains clearly swung the equation in favour of property ownership in recent years.For data of the long-term returns on shares versus property, I went to AMP Capital’s chief economist Shane Oliver.
“It’s a hard one right now, as house prices have had such a run higher, but generally speaking, I think it’s better to buy rather than rent, given the tax advantages of owning a home and the forced saving [and wealth building] that having a mortgage and having to pay it down provides,” he says. Ultimately, however, Coates says Australia’s retirement system pushes people towards home ownership. “The biggest benefit of buying a house is that you are much more likely to qualify for an age pension as a homeowner than as a renter. People in multimillion-dollar houses can still draw a pension, whereas someone with the same assets in superannuation wouldn’t qualify for any pension.”
“It’s a harder route because it requires more discipline. The truth is, typically people know how to go and buy a house. I know that if I walk into a bank branch, they will tell me how to do it. That’s not true of any other investment form.”
I thought the rental crisis we saw in the last year would put a stop to these articles. Buying your own home is critical if you want to have independence, especially later in life. Who wants to live with a cloud over their head, will I be kicked out, will my rent go up!
1. want land 2. have monie amazing more people dont try these 2 simple tricks for joining the landed gentry
No amount of 'discipline' fixes low wages and housing price inflation
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