Travel vs Buying A House - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
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post #1 of 23 (permalink) Old 03-24-2005, 10:57 PM Thread Starter
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Travel vs Buying A House

Hey Everyone,

I want your opinions... I've always spent a large amount of my money on travelling, and thankfully growing up my Mum took me overseas pretty much every year (sometimes more often), so I've been to Europe, America, Asia and the Pacific multiple times.

Anyhow I'm 21 at the moment, and within the last 6 months I've been overseas twice, but thankfully still have enough in my bank account for a deposit on a house ($33,000).

I work full time, and after tax and other deductions (hecs student loan, union fees, etc etc) I clear about $700/week. I am thinking of buying my own apartment. Just something small- probably in about the $125000-$175000 range, to live in. I've worked out my budget with regards to the current interest rates and costs of living, and think I'd only be able to save maybe $150/week towards travel.

I still want to travel more but I want to move out of home again and don't want to pay rent (because I see it as just paying off somebody elses mortgage!).

So what would you do- continue to put all your savings into taking frequent overseas shopping/culture/partying trips?

Or invest in the property market and have your own place, but little money to spare?

Uggh decisions decisions!

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post #2 of 23 (permalink) Old 03-24-2005, 10:58 PM
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Travel vs Buying A House

go for the home...I would...You can travel ANY time after you buy the home and get settled in...you know take small trips here and threre

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post #3 of 23 (permalink) Old 03-24-2005, 10:59 PM
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Travel vs Buying A House

Buy property. Later in life, when it's all paid off, you'll be glad you have it. Travel is exciting, and can be enjoyed in your 40s as well as 20s, while your house gets you into the market, so even if you want to sell it down the road, it will be worth more and hopefully give you some solid profit.
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post #4 of 23 (permalink) Old 03-24-2005, 11:01 PM
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Travel vs Buying A House

You can almost never go wrong with buying real estate... and you can always host parties in the new place... covers 2 bases at a time

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post #5 of 23 (permalink) Old 03-24-2005, 11:07 PM
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Travel vs Buying A House

I agree with kmd ..... it's pretty tough to go wrong with real estate... the common pitfalls that you should avoid are:

1) Make sure you buy your real estate in a part of town that isn't heading downhill. I know some people with homes that they can't sell - and they end up resorting to renting the property ... and it just creates lots of headaches since they're doing constant maitenance on a home they don't live in.

2) Since you're young, I'd do at least 20% down... I know some real estate people are going to say that 10% is sufficient, and the amount you stand to earn on an appreciating property gets magnified when you put down less and borrow more. However, with your student loans and other obligations, I think you'll have a hard time getting good interest rates, and you shouldn't take on that extra risk if you can avoid it.

3) If you feel that you really want the option of travelling and living a bit more whimsically, you may get frustrated with losing so much money into an apartment. Propterties are a good investment, but they do tend to make it difficult for you to make snappy decisions... and that's just not cool if you're a young person


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post #6 of 23 (permalink) Old 03-24-2005, 11:16 PM
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Travel vs Buying A House

I vote buy too.

Travel is nice... but what do you have when you're done... nothing but memories and some trinkets... and MAYBE a new friend or two.

33k AU is a pretty good chunk of money. How ARE the rates down there? Up here we were running ~5-6% when I was shopping.

I almost picked up a condo for ~56k US. I was going to keep my roomates... and they would have pretty much paid my mortgage and still had rent at 1/2 what they were currently paying.

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post #7 of 23 (permalink) Old 03-24-2005, 11:50 PM
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Travel vs Buying A House

To play devil's advocate, what if you (not necessarily Glam, could apply to anyone) falls over dead in 2 months? That trip to St. Martin sure would have been nice instead of the time spent painting the interior walls of your apartment!

Of course the safe bet is real estate. Travel will ALWAYS be there, an opportunity to own your own place may not.

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post #8 of 23 (permalink) Old 03-25-2005, 12:05 AM Thread Starter
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Travel vs Buying A House

I really, really do value your opinions everyone they mean a lot to me.

Now I just have to convince my family... which is actually pretty difficult. And I'll need a family member to act as guarantur.

My bank has pretty much told me that they would definately give me finance towards a home mortgage, but I still need a backup guarantur.

Trying to convince my family that real estate is worth investing in though is like beating your head against a wall. While my grandparents and Mum both own their own houses, (probably paid them off decades ago) they can't see why anybody would want to buy.

In fact they just want me to leave the country asap =/ "GO BACK TO ENGLAND!!!" is what I hear 24/7 and what I've been hearing ever since I finished school. Hahaha.

One day I might but, in all honesty I'm not 100% fussed on the British weather, and I've got my job here, my nice new pretty car here, my friends here... I'm not ready to up and move out of the country... but I do want to move out of home again!!! GRRR family's are FRUSTRATING!!!

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post #9 of 23 (permalink) Old 03-25-2005, 12:06 AM
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Travel vs Buying A House

^^ Why would they want you to leave Oz so badly?

Heh, just avoid coming into the US - people all over the world will then hate you for no reason


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post #10 of 23 (permalink) Old 03-25-2005, 12:07 AM
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Travel vs Buying A House

Quote:
Originally Posted by "MZ32quick"
To play devil's advocate, what if you (not necessarily Glam, could apply to anyone) falls over dead in 2 months? That trip to St. Martin sure would have been nice instead of the time spent painting the interior walls of your apartment!

Of course the safe bet is real estate. Travel will ALWAYS be there, an opportunity to own your own place may not.
She already has a Mazda3 - she can die happy


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