Normal
It scares me the number of people who want to get into the property market yet don't do their sums. At least once a month I'm doing a basic CBA with someone at work or extended social group and they're shocked once you put things into financial terms. They realise they can live in a more desirable suburb or larger property by renting, and as long as they use some of the difference between a mortgage and renting to increase their level of savings they should be OK.I just can't believe people go into purchasing an IP and when you ask them what's the gross yield, what are the holding costs, what is your net return, how much do you have to add into the mortgage on a weekly basis and they struggle to tell you any of those. It's worse when you ask them what they think their 3 year job security is like. I honestly think sometimes Australians just have bricks and mortar in their heads (as opposed to rocks)
It scares me the number of people who want to get into the property market yet don't do their sums. At least once a month I'm doing a basic CBA with someone at work or extended social group and they're shocked once you put things into financial terms. They realise they can live in a more desirable suburb or larger property by renting, and as long as they use some of the difference between a mortgage and renting to increase their level of savings they should be OK.
I just can't believe people go into purchasing an IP and when you ask them what's the gross yield, what are the holding costs, what is your net return, how much do you have to add into the mortgage on a weekly basis and they struggle to tell you any of those. It's worse when you ask them what they think their 3 year job security is like. I honestly think sometimes Australians just have bricks and mortar in their heads (as opposed to rocks)
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