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Would you buy if mortgage payment is 2x rent?
amalis
Posts: 532 Forumite
The eternal question: buying vs renting.
I would like to hear what people think about the situation when mortgage payment would be almost twice as renting (equal conditions, size and district). Would you still consider buying?
Thx!
I would like to hear what people think about the situation when mortgage payment would be almost twice as renting (equal conditions, size and district). Would you still consider buying?
Thx!
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Comments
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What would be the point? With interest rates low too it just wouldn't make sense.0
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Well you have to consider all repairs to the house, building insurance etc. When renting these are paid by the LL, if you buy you will have to pay all this on top of your mortgage.
If you want to buy then maybe consider choosing a cheaper area, it is good to invest your money rather than throw away on renting but only if you can afford it.0 -
We can afford it, but i think if you pay twice more, then our living conditions should increase, not to stay the same.
From the other hand.. your own propert is an investment, right?0 -
Are you talking about the mortgage payment as the interest only portion or repaying the loan as well?
If it's the former, I'd rent and save the difference. If it's the latter, I'd look at the numbers more.
It's better to save and invest your money than throw it away on overpriced housing
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Are you talking about the mortgage payment as the interest only portion or repaying the loan as well?
If it's the former, I'd rent and save the difference. If it's the latter, I'd look at the numbers more.
It's better to save and invest your money than throw it away on overpriced housing
i mean the capital repayment (interests + loan)0 -
i mean the capital repayment (interests + loan)
Then the comparison is meaningless.
Rent should be compared to the interest only portion of the loan. If you're including capital repayments, that is the equivalent to renting and saving a bit more.
A better comparison is rent versus interest only repayments, or rental yields.0 -
Mr.Matey, good point.
Our interests payment would be just a little bit more than the rent.0
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