Low interest rates, accessible loans, dual income families and no capital gains tax have made owning your own home a ‘must have’ investment in the last 20 years.
Buying a house has been part of a rite of passage, along with leaving home and having children. In the current market of economic uncetainty, and Gen Y’s focus on lifestyle and travel, only 1 in 40 Gen Y’s surveyed expected to own their own home outright when they retired.
For me, it is a goal to which we should all aspire.
Ipac Investment Services recently released figures comparing buying or renting over a 15 year period. They used the following figures. The buyer had a house priced at $530,000 (Australian median house price) with a capital growth rate of 6.5%pa.
For rental, the outlay was $19,240pa with the return on invested savings being 8%pa.
The home owner ended up between $170,000 - $285,000 richer, despite paying almost $280,000 in interest and $150,000 allowance for buying costs and maintenance.
A home is more than a tax free capital gain. A home is where you put your roots, where you belong, and where the growth of your children is marked on the kitchen door. It is a place of family celebrations and where shared time with friends evolves. Where the sapling you planted developes into a tree.
Yes, definately the best investment you will ever make.
- Jock Gilbert, Managing Director
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