Not owning a home is a stigma born in the USA and exported to Australia. Europeans do not suffer from this, but granted they have considerbly greater protections as renters.
A home is a 30 year financial investment. Depending on the climate of things and your own financial status, a lot of times it is not the best investment.
The house I rent in Melbourne costs me a bit under $1800 per month. To purchase this house would cost me double, $3600 per month in mortgage alone. Let's not forget that as a renter, I'm not concerned with rates, building insurance, renovations, maintenance or countless other expenses, of which as an owner, a mortgage is only the first.
If I can successfully put away that remaining $1800 in more lucrative investments, at say 10% per annum, and in most cases, I'm actually going to do better than a homeowner, and if I actively participate in my investments, have much greater control and ability to move with the market. Another nice thing is, that if for whatever reason I can't put away that extra $1800 this month or this year, I don't lose the roof over my head.
And there's the great freedoms that renters have that homeowners do not. Like Kup says, he can work and live any place he wants. Renters can finish up a lease, go travel the world for 6 months to 6 years, come back and not have lost anything in the process. I'm moving to QLD in 6 months. I only plan on living there about 5 years and the moving somewhere else, possibly even internationally. These would not be options with a mortgage.
Unlike Kup, I have a family, and still, I do not see the economic sense in home ownership for my situation either. That's not to say that no one should own a home. It's just pointing out that it's a lot more complex than this:
Originally Posted by shazam
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