8/9 ADF Entitlements – Should I buy or should I rent?
Let’s revisit the question of should I buy or should I rent? You’ve probably heard people say that rent money is dead money.
These people would rather buy a property than rent and stay in Defence-provided accommodation.
According to this logic, interest on a home loan, insurance and maintenance costs could also be considered dead money. Let’s compare:
If you have a $500,000 mortgage at 3.5%, it will cost you $17,500 in interest, about $2,000 for rates, $1,200 in insurance and $5,000 for maintenance. That’s a total of $25,700 per year in dead money.
Live-In Accommodation (LIA) will cost you between $2,418 and $6,968 per year in dead money. The only thing cheaper than this would be to live in a caravan or sleep in your car in the car park.
Married Quarter (MQ) or Rental allowance (RA) will cost you between $11,700 and $15,704 per year in dead money.
Would you rather pay $2,500 per year in dead money on a rental or $25,700 in dead money on a purchased home?
For more information on whether you should rent or buy, download our FREE Unofficial ADF Property Guide below. https://www.integritypropertyinvestment.com.au/the-unofficial-adf-property-guide/
If you were hurt in any way during your service with the Defence Force, you are entitled to a DVA compensation lump sum. Join me tomorrow for the final part of this series where we discuss DVA in detail.
Contact someone you can trust to help you with your ADF Housing Entitlements, call us on 1300 372 677 or send us an email at firstname.lastname@example.org
See you soon!