"Rent money is dead money"

tesuhoha

Flower08 wrote: »

Oh right so everyone who lives in a council property is scum of the earth right?

Grow up!

And welcome to the real world, where alot of people have no choice but to rent or live in a council house.

I lived in council estates throughout my childhood and never lived on an estate you have described.

I now live in a privately rented property, its not dead money to me - without it i wouldnt have a roof over my head - worth the price to me. Not everyone is in a position to buy so welcome to reality.

Oh and while your there learn a bit of respect.

You say welcome to the real world but I thought that in the real world a council house was out of reach to most people unless you're an economic immigrant or an unmarried mother. Recently on tv a homeless man was interviewed who said that he would not reach the top of the waiting list for a council house for 90 years.

StevieJ

worried_jim wrote: »

My repayment mortgage is £700pm, if I were to rent here it would be £800pm, I see my house as my home not an investment but in less than 20 years I won't have to pay anything as it will be mine regardless of value. If I were renting I would be paying £800 for ever with nothing to show for it. I know renting is big on the continent but I wouldn't feel comfortable doing it. I wonder if anyone has owned and now rents and feels this is better, as most will have rented but now own of course.

You would be lucky to be paying £800 for ever, more likely £800 plus inflation increases.

beingjdc

mr.broderick wrote: »

Hi Lydia welcome to mse...Have you ever purchased a home?

I have. I wasted far more dead money on the mortgage that I wasted on the rent when I was renting.

I was lucky in that I sold again at a time when prices had gone up, but as I said the other day, if I'd bought here instead of renting, I would have lost out by buying to the tune of £100 a day for last two years.

£75k in 26 months. That's what I call dead money!

the_ash_and_the_oak

StevieJ is correct and this should always be kept in mind (having said that I have had a total 5% increase over a total of 8 years and that doesnt start till feb 09)

I think instead of buy vs rent calculations what might work better would be something like a 'buy vs rent 2009' calculation. And revisit each year until your figures add up. Currently I'm saving 1300 a month which i've then put away in gold and yen. It was a good strategy for 2008. I intend to follow it again for 2009 (maybe a cad rather than yen - need to research this) as I think it makes sense.

Will it make sense for the duration of 2010? I don't know yet! I don't have to decide that just now. I have the luxury of changing my mind, its good to be right until you are wrong. And then change your mind. Don't get too attached to any one horse!

before_hollywood

renting is cheaper than buying at the moment, when buying becomes cheaper then i will buy.

i dont see a house as a money making machine- its accomodation, i'm buying it cos i need somewhere to live

SingleSue

tesuhoha wrote: »

You say welcome to the real world but I thought that in the real world a council house was out of reach to most people unless you're an economic immigrant or an unmarried mother. Recently on tv a homeless man was interviewed who said that he would not reach the top of the waiting list for a council house for 90 years.

Not in my experience.......although it could be true for other areas.

the_ash_and_the_oak

perhaps (rent - interest on savings) vs (mortgage interest)?

Ie if you had 250k in savings and rented you would be losing a certain amount each month in rent, but would be balanced by savings on interest. if you bought outright you would have no rent but would lose the interest on your savings

(and yes i am aware of current interest rates)

Sally_Gee

In this thread, people paying DEAD MONEY in rent try and make themselves feel better by fooling each other!

StevieJ

There will always be short term advantage to one or the other but long term I think it comes down to your economic circumstances later in life. If you retire with no decent pension then the state will pay your rent (no advantage here to owning a house). If you retire with a decent pension you have to pay your own rent (big advantage to owning your own house).

arunadasi

mewbie wrote: »

Surely the ultimate pet fashion accessory.

Oh, it's the pets who are burbury clad, I htought it was the owners.
Silly me.:o