"Rent money is dead money"

Broken_hearted

punkstoner wrote: »

That does not make sense. Ever heard of charging orders???

Ever heard of old people having to sell up to pay for a care home place???

Owning does NOT make you secure for ever. Owned property or not, ones life can change in a heartbeat. Literally.

You have to have debt to have a charging order applied. As for growing old I'd much rather be able to sell the house to pay for good care than be left in a council home to rot.

As for money made/saved we have saved £41,000 in rent over the years and the property is still worth 4x more than we paid for it factoring in the dropping marked. So fail to see how we are loseing out. Infact people are waiting for pricess to drop so they can do exactly what we have done.

punkstoner

Broken_hearted wrote: »

You have to have debt to have a charging order applied. As for growing old I'd much rather be able to sell the house to pay for good care than be left in a council home to rot.

How do you know you will not end up in debt through no fault of your own at somepoint in the future?

i.e getting ill, partner getting ill, kid getting ill, spouse that ripps you off etc etc, fire

You do not know what is round the corner..............

Plus looking at your sig, you are well capable of getting into debt.

also one more thing to bear in mind..... Someone with property is more likely to be sued than somebody without property.

I would love to know where some folk on ere get there crystal balls from. I need one!

The outlook at the moment is GLOOMY and OVERCAST. I would rather be liquid, and able to up-sticks in a flash, should the !!!!!! hit the fan. Especially in the current climate.

Broken_hearted

punkstoner wrote: »

How do you know you will not end up in debt through no fault of your own at somepoint in the future?

i.e getting ill, partner getting ill, kid getting ill, spouse that ripps you off etc etc, fire

You do not know what is round the corner..............

Plus looking at your sig, you are well capable of getting into debt.

also one more thing to bear in mind..... Someone with property is more likely to be sued than somebody without property.

I would love to know where some folk on ere get there crystal balls from. I need one!

The outlook at the moment is GLOOMY and OVERCAST. I would rather be liquid, and able to up-sticks in a flash, should the !!!!!! hit the fan. Especially in the current climate.

Been there done that, no charging orders though

punkstoner

Broken_hearted wrote: »

Been there done that, no charging orders though

Not yet..... But do you know what is round the corner??

If you do, what the hell are you doing on here?

themanbearpig

punkstoner wrote: »

why is it wasted money? I just dont understand.

I think some people like to think they are better or richer, just because you have more debt.

I cant really figure out what the OP actually owns, apart from debt?

Exactly all these so called "homeowners", only own a share of what really is the bank's house. That share increases over the mortgage period.
As:
Owner equity = Property value - Amount owed to bank

Therfore in a deflating property market, mortgages aren't so great, as the decreasing property value is resulting in the sum of repayments over the term to be greater than market property value; ie negetive equity.
So everyone that bought into the bubble are locked into their current situation until things inflate back to 2006 levels (which could be take decades), or accept a huge loss, and still owing the shortfall.

Renting is better in in the current climate for those that have a large share of equity in their house. Returns on the cash for the use for the purchase of a house is gaining from the falling house price (at the same rate, appriciated by around 15% in 2008). Plus the Interest from the bank, which is between 4%-7%. So in 2008, anyone that sold their property and put their money in the bank gained around 20%. The more equity you had in the house, the better.

So renting isn't quite as good for someone that bought a house in 2006 with a 100% mortgage, and has only payed 1% back.
I am assuming these are ones that are saying "rent is dead money", are doing so to either make themselves feel better about their dire situation, or don't understand elementary maths, and basic economics.

SingleSue

I really do despair with some on here, I really do.

Some people find renting suits them so they do...it's not about class.
Some people find buying suits them....the above still applies.

Some renters will be eeek.
Some owner occupiers will be eek.

Some renters will be lovely and respect their properties.
Some owner occupiers will be lovely and respect their properties.

It's all about choice and what suits that person at that time.

clobber_2

Sue, it's like being King !!!!.

There is a never ending tide of folk who want a fight. On this thread there's one on each side, both equally unpleasant. Best to leave em to it.

FWIW I am fairly sure I would prefer you or ndg as neighbours, renters or no.

clobber_2

!!!! means the ancient King who tried to demonstrate he wasn't a god with total control over land and sea by pointing out he couldn't stop the tide.

Apparently it's a swearword!

SingleSue

The wonders of the swear filter....have it on my site too, so many names we couldn't use initially until I invaded the filter and sorted it out.

ali-t

chewmylegoff wrote: »

at least if you rent next to some chavs you can just move at the drop of a hat. imagine if you had bought a hideously overpriced two up two down only to discover that you lived next to a bunch of reprobates and you couldn't move as you were now trapped there by negative equity.

I have been there but thankfully they had a win at the bingo and moved away to a much nicer area to cause havoc there :rotfl::rotfl::rotfl: