Hi, I have just finished uni and will be starting a $45,000 per year job next year. I will be working in the Melbourne CBD. I currently live with my parents at Scoresby, which is far away from the CBD, so I have to drive to a station and catch public transport. I pay rent/board of $150 a month.
I told my friend Frank that I was paying $150 a month and he told me that "rent is dead money" and "you should buy a house and get equity, mate."
Spending only $150 per month on rent, I save up quite a bit while I work part-time at the moment, so with the spare money I make I buy shares once I have about $5000 cash or more. I'm a Warren Buffet-style investor, choosing to buy and hold, although I buy a lot of shares in big companies like BHP Billiton.
Which is cheaper? Should I pay off my parents $150 per month and live with them while continually saving up and buying shares or should I buy a house and live by myself? What do you think I should do?