Re:Will the rich world’s worker deficit last?
by rgbrenner on Wednesday August 18, 2021 @01:09AM
(#28217954)
I plugged your numbers into this mortgage calculator[0], and it looks like the payment on a 30 year loan of 500k with 20k down @ the average interest rate is less than your rent payment.... and you'd then be able to sell the asset when you move.
It doesn't sound like your landlord is doing you any favors.
Re:Will the rich world’s worker deficit last?
by SilverRed on Wednesday August 18, 2021 @01:14AM
(#28217973)
The thing is, I don't want to buy this apartment. I don't trust the local builders enough for that and I believe that it will devalue faster than my rent payments. I also don't plan on living here for more than a few years. That calculator puts me at $537/week in just loan repayments for 30 years and does not include strata fees, council rates, sewerage fees, building insurance, etc.
To buy a property means paying tens of thousands in taxes each time you buy. If I stay here for 2 years and sell I would pay more in just taxes than the entire rent would have been and I am on the hook for any issues with the building or changes in value.
And I am perfectly happy to pay a known weekly amount which is well within my budget and put my savings in to other investments which don't tie me down to living in a particular place, do not require taking out multi decade loans and are easy to sell back for cash later.
Currently I would comfortably put $20,000 in to housing as an asset. I can not see any way possible that banning rentals would allow me to buy a $500k construction cost apartment for $20k.
So this change forces me to invest in a market I do not want to invest in to. Buying one of these apartments is an incredible risk as it will likely devalue over time and be difficult to sell on when I want to move. So every time I move under this system I am risking massive losses Vs just having a weekly price and no commitment or risk.