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Link To 'why Rent Is Not Dead Money'

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Hi,

I'm trying to get hold of the excellent article, 'Why rent is not dead money'. The link on the homepage doesn't seem to work. Any ideas?

Thanks,

Smiley

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Here's something for your thread that I received from Noel Whittaker (Australian financial planner) from his monthly email (to those signed up for it) today. He is pro investment of all types:

RENT OR BUY

Rent and save or buy now? Unless prices are going up quickly you are often better off to rent.

Suppose you want to buy a house for $300,000 and have a deposit of $30,000 plus legal fees after the first home owner's grant is taken into account. If you buy now, you will have to borrow $273,000 when the mortgage insurance premium is added. Repayments over 25 years would be $1,930 a month with total interest payable $306,000. Yes, you would be paying $606,000 for the property.

If you rent for two more years, and save diligently, you would only need a loan of $240,000 and there would be no mortgage insurance. Repayments of $1,930 a month on the $240,000 loan would enable you to pay the loan off in just 18 years with interest payments of $189,000. Taking time to save for a bigger deposit has saved you $117,000.

No, I don't know which way property prices in your area are going to move. However I can tell you that savvy property buyers spend every waking hour researching the property market in their area so they know where the trend is heading, and so they will recognise a bargain when they finally come across one.

The results of investing time in this manner are that you will know more about the market than the majority of buyers and sellers. The reward will be that one day you will strike a situation where a desperate vendor has a property for sale in a great location. You will be the one who will be able to steal the bargain.

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Here's something for your thread that I received from Noel Whittaker (Australian financial planner) from his monthly email (to those signed up for it) today. He is pro investment of all types:

That's a very fair summary. I have a lot of respect for Whittaker.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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