Renting vs buying in 2017
Comments
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an apartment seems like the better option
Be aware of on going service charges especially if there is a lift in the complex0 -
qwert_yuiop wrote: »Well, yes, but..
I was over in London last week, visited a couple of friends living in a 2 bed flat above a pizza shop in Fulham. Their rent is £1800 a month. Seems extreme? The flat, which is only on a 70 year lease, is up for sale at £650,000, which means the annual rent is only 3% of purchase. Where the rent is so small compared to cost, and when the flat has had a lot of viewings in several months, but no offers, it suggests the market is not rising. I'd keep renting.
As we're on the NI board, i'd have thought we're looking at the rental market in NI?
Very different from the rental market on the mainland in the south of England.
Using an example from another landmass in one of the most expensive cities in the world for property as a reason for renting here seems a little... skewed?0 -
As we're on the NI board, i'd have thought we're looking at the rental market in NI?
Very different from the rental market on the mainland in the south of England.
Using an example from another landmass in one of the most expensive cities in the world for property as a reason for renting here seems a little... skewed?
Somewhat, but not used as a reason to rent here. A fine illustration of what happens when a rental market goes awry wrt the purchase prices, however, and an example of why renting is better than buying in a property boom. "Because you can never go wrong with bricks and mortar", apart from the times you can.
I wonder what influence a London slow down will have here? Probably not very much.
The other major objection to buying earlier in my life was that available capital has been much better employed in my business than tied up in a house. I'm sure that applies to many others on here. Buying a house was of secondary importance. Appropriate application of capital and all that.“What means that trump?” Timon of Athens by William Shakespeare0 -
qwert_yuiop wrote: »
"Because you can never go wrong with bricks and mortar", apart from the times you can.
Though i dont think anyone has said that on this thread?
Ultimately, if you're buying it as a home and for the long term, what does the ups and downs of the market really matter though?
Once its paid off its paid off.qwert_yuiop wrote: »
I wonder what influence a London slow down will have here? Probably not very much.
The other major objection to buying earlier in my life was that available capital has been much better employed in my business than tied up in a house. I'm sure that applies to many others on here. Buying a house was of secondary importance. Appropriate application of capital and all that.
Yes, totally agree. The market here is still way short of the 2006 "peak" whereas i think in the south of england its approaching / matched / exceeded those values?
Yes, like buying a car - buy when it is the right time for you to do so and aim to get the best deal you can at that time. And of course that varies person to person.0 -
Renting is dead money, you'll never see that cash again.
As you have have a sizeable amount already, you can clearly afford a decent house and take on a small mortgage if need be.
E.g. you could buy a decent semi detached in South Belfast from between £140,000-170,000.
A mortgage of £20-30,000 would be very small payments.
I would go to a mortgage broker and have a chat.0 -
Renting is dead money, you'll never see that cash again.
What would you call interest on your mortgage? What would you call a capital loss?
I think it's probably not a bad time to buy, and your advice seems good, but I thought these old fashioned cliches died in 2006, never to be resurrected. We're at least a couple of years' income richer than we would be if we hadn't spent a few years renting.“What means that trump?” Timon of Athens by William Shakespeare0 -
qwert_yuiop wrote: »What would you call interest on your mortgage? What would you call a capital loss?
I think it's probably not a bad time to buy, and your advice seems good, but I thought these old fashioned cliches died in 2006, never to be resurrected. We're at least a couple of years' income richer than we would be if we hadn't spent a few years renting.
I agree
Buying at the peak of the market would be a bad idea - particularly at the last peak when prices really got ridiculous.
I think we're a long way short of that now so probably reasonably safe to buy, particularly when viewing it as a long term home.0 -
It's difficult to predict the future especially based on future unique events, ie Brexit.
My opinion - you want to buy a house, you can afford to buy a house.... just get on with it. The political landscape, the economy, the local housing market... these all fluctuate. Trying to be clever and outwit the market is a fool's game.
Or get a crystal ball, that's about as reliable as predicting the future as any other method.0 -
E.g. you could buy a decent semi detached in South Belfast from between £140,000-170,000.
A mortgage of £20-30,000 would be very small
I suppose it depends on where you define South Belfast to be but my idea of SB i.e. city south belfast, Malone, Stranmillis, Ravenhill and Rosetta, it will easily be 50-100% more than that for a decent semi. If you want to include the parts outside of actual Belfast city then it's obviously a lot cheaper.
It's a tough one. I bought in south belfast. Significantly more expensive for me than renting. I'd say I've spent an easy 100K building an extension and getting the house up to decent spec. My rates are also around 3k a year. I'm still happy I bought, because a it keeps the other half off my back and b I've been able to learn a bit of DIY. I doubt I'll be here long enough to recoup the money I've spent but that's just the way it goes.
To the OP. You'll be looking at 150k on top of your 120k to get a decent semi near the uni you won't need to do much too. So you'll need to be earning around 30k+. If the sums work for you, go for it. Get a lodger in if you want.0 -
qwert_yuiop wrote: »What would you call interest on your mortgage? What would you call a capital loss?
I think it's probably not a bad time to buy, and your advice seems good, but I thought these old fashioned cliches died in 2006, never to be resurrected. We're at least a couple of years' income richer than we would be if we hadn't spent a few years renting.
On interest at least you can see where the money is going in the long term, and if you make a habit of overpaying you can significantly reduce the amount you give them in interest.
I rented for 15 years between uni and my first job etc, wouldnt change it as I had a blast, but at the same there comes a point where you need to consider putting the money into something that will at least give you security for the long haul.
If I had £120,000 sitting ready, the last thing I would be doing is renting and eating into those funds.0
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