Comparison site: renting vs buying

silvercar

A bit gimmicky, but aims to compare the price of renting and the price of buying. Searches by postcode/ area.

http://www.propertyfinderrevolution.com/

stevetodd

It would be much cheaper for me to rent where I live but there is no way I would do it

ad9898_3

I don't think there is much comparison at the moment, buying is definately becoming cheaper, but we all know that low interest rates are going to be short term, especially since QE was announced, then their is the small matter of capital losses on what you buy, which as everyone knows and most admit have some way to go.

silvercar

stevetodd wrote: »

It would be much cheaper for me to rent where I live but there is no way I would do it

I agree.

Then I used this site, with my mortgage interest rate (since yesterday) dropping to 1.25% it shows I can buy much more than I can rent. Though whether anyone would give me a £2m mortgage is unlikely.

stevetodd

silvercar wrote: »

I agree.

Then I used this site, with my mortgage interest rate (since yesterday) dropping to 1.25% it shows I can buy much more than I can rent. Though whether anyone would give me a £2m mortgage is unlikely.

Ahh but the thing is that 1.25% (that's a great rate even lower than mine) is not a realistic rate to use as rates are unusually and certainly temporarily low at the moment.

PasturesNew

My neighbour's place is up for sale. I could buy it for cash and just lose about £90/month lost interest (which would have been taxed), or I can continue renting at £350/month

So on paper:
Renting = £350- £90
Buying = £90-£350

So renting appears to be £260/month cheaper.

If I rent for a year, I'll have forked out an additional £2500 in rent over buying. But to buy I'd have to pay out service charges and a few pots of paint (actually it needs gutting). So say renting will cost me £2k more over the next year .... but I think the property will be worth £5-10k less in that same year.

Put me down for "rent please".

PasturesNew

silvercar wrote: »

http://www.propertyfinderrevolution.com/

I didn't understand how to use it... so I keyed in some random things, which didn't make sense ... and it said there were 0 properties. I hate !!!!!! websites. I had no idea what it was expecting in the boxes, nor did the boxes fit my situation.

silvercar

PasturesNew wrote: »

I didn't understand how to use it... so I keyed in some random things, which didn't make sense ... and it said there were 0 properties. I hate !!!!!! websites. I had no idea what it was expecting in the boxes, nor did the boxes fit my situation.

I put in the amount I could afford to pay on rent/ mortgage, my current mortgage rate and location. It showed me the houses I could afford to buy and the homes I could afford to rent.

The purchases were very big and expensive, the rentals were smaller properties. Implying that for me I could get more for my money by buying.

I agree it takes no account of saving income, but then after current fixed savings rates end, people are going to be getting 0.00001% in interest! It also makes no allowance for interest rates rising in the future. It also assumes everyone has a 15% deposit under the mattress.