Money

First home purchases cost 60% more than renting in most cities

Published

2 months ago

September 24, 2023

ticker NEWS

It has been revealed that buying a starter home in the majority of major cities is a whopping 60% more expensive than renting.

This staggering revelation is causing many potential homeowners to rethink their plans and consider the financial implications of such a significant disparity in costs.

The report, conducted by a leading real estate analytics firm, analyzed housing markets in various urban centers across the country.

The findings indicated that the dream of owning a starter home might be considerably out of reach for many aspiring homeowners.

Steep price

While renting provides a level of flexibility and convenience, the prospect of home ownership is an appealing one, but it comes at a steep price.

The rising costs of homes, combined with increasing interest rates and the need for substantial down payments, are contributing to the substantial gap between buying and renting.

Additionally, maintenance and property taxes add to the financial burden of owning a home, making renting an attractive alternative for those looking to save money.

Despite the financial challenges, experts advise potential buyers to carefully weigh their options and consider long-term financial goals. While renting may seem more affordable in the short term, the potential for home appreciation and building equity could provide substantial benefits over time.

However, for those who are struggling to save for a down payment and are concerned about the overall cost of homeownership, renting remains a practical choice in many major cities.

Money

RBA maintains 4.35% rates as mortgage applications surge

Published

15 hours ago

December 5, 2023

ticker NEWS

The Reserve Bank of Australia (RBA) has decided to keep its official cash rate at 4.35%, citing concerns over the rapidly increasing number of mortgage applications.

This decision comes after several consecutive meetings where the RBA has refrained from adjusting interest rates.

The central bank’s decision to hold rates steady reflects their cautious approach to managing the current housing market boom. Mortgage applications have seen a significant surge in recent months, driven by record-low interest rates and increased demand for housing. While this has been a boon for the real estate industry, it has raised concerns about the potential for a housing bubble and financial stability.

Experts are divided on whether the RBA’s decision is the right course of action.

Some argue that maintaining low-interest rates is necessary to support economic recovery, especially in the wake of the COVID-19 pandemic. Others worry that the continued surge in mortgage applications without rate adjustments could lead to unsustainable levels of household debt.

In light of this decision, homeowners, prospective buyers, and investors will be closely watching the housing market’s trajectory and wondering how long the RBA can maintain its current stance.

Money

There’s a 50/50 chance of a 2024 recession

Published

20 hours ago

December 5, 2023

ticker NEWS

The economy has been remarkably resilient despite massive pressures – but is that about to change in 2024?

The US economy is in for a sharp slowdown in 2024 as a closely watched survey of top economists foresees stubbornly high inflation, a rise in unemployment and a 50% chance of recession.

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Money

Tesla insurance sued for ‘inflated’ premiums, judge rules

Published

24 hours ago

December 5, 2023

ticker NEWS

A judge has ruled that Tesla’s insurance unit must face a lawsuit alleging “inflated” premiums.

The decision comes after policyholders claimed the electric car company’s insurance division overcharged them for coverage.

The lawsuit, which was filed by a group of Tesla policyholders, alleges that the premiums charged by Tesla’s insurance unit were significantly higher than market rates for similar coverage.

The plaintiffs argue that Tesla’s insurance division engaged in unfair pricing practices, leading to overpayment by policyholders.

Tesla has not yet commented on the judge’s decision, but the lawsuit raises questions about the transparency and fairness of the company’s insurance pricing.

It also highlights the growing scrutiny on how tech companies enter and compete in traditional industries like insurance.