I am at that particular age where the demands of adulthood have set in and have begun to weigh upon my plans for the future yet I am not mature enough to realise I am barely out of childhood and there are still plenty of years left before I could even consider myself old.
It is largely the idea of marriage, settling down in your own home and starting a family that I am referring to and something I see a lot of friends and family doing. I should probably state first of all that I don’t intend to belittle anyone for their choices and life decisions however I feel the need to comment on the idea as a whole and the expectations of it upon people rather then comment of the actions of the individual.
There is an issue in this country that we should all strive for the “Australian dream of a house on a quarter acre block with two cars in the driveway” and just how incredibly unavailable such a thing is to most people. Even to those who do not desire such a thing it is still a thing that people often expect of them, that their ultimate goal should be home ownership as “rent money is dead money”. What amazes me is the continual ignorance of the fact that “mortgage money is also dead money”. The fact is that on a $400,000 loan, which isn’t even near enough for a home within a forty five minute range of the city, will incur an additional $400,000 in loan repayments over the lifetime of the mortgage. This of course doesn’t even include council rates and maintenance costs that quickly add onto the monetary requirements of home ownership.
It would take twenty years of renting a $400 a week property to reach the same level of the mortgage payments alone.
I will admit, you will not have house at the end of that time however the $400,000 that you didn’t give to the previous owners can be invested in any number of other ventures, many of which could be potentially more profitable then the safe and secure idea of property. It is easy to forget that you are not making a monetary investment in your home, the bank is intact making one in you through the loan and you cannot both be winners. I will say that there is a distinction between owning a home and owning a house as a real investment as one receives income through rent, the other does not.
For the record I do not disagree with home ownership in the slightest. I too one day wish to own a home in a location I will enjoy living in. But am I falling over myself in an effort to secure a loan and begin now before it could potentially be too late? No, I am not.
This is not meant as a warning against wanting to own your very own place. Just consider the alternative of living a bit more freely, not stressing about getting it all started so damn early and ultimately not caring what others thing or expect of you.
Remember, live free or don’t.