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Rent or Buy

I think the vast majority of Australians have a comfortable feeling about owning their own home (with or without a mortgage) and I wish I had $100 for every time someone had told me that “rent is dead money”.

I always thought that interest was fairly dead but that didn’t include all interest, just as I’m sure that all rent is not yet ready for a funeral.

Over a number of years I have taken an interest world wide in the returns available from real estate – both residential and commercial – and reached a conclusion on one occasion that only two of the cities I had researched were prime candidates for investing in real estate if percentage rental return was the only consideration. Those cities were Port Moresby and Riyadh, both of which produced political and social considerations much more important than mere money.

The comfort you have in not being able to be told to leave your own home becomes remarkably chilled if you have an unmanageable mortgage.

“Managed” is fine. Treat the interest as rent!