Buying Cheaper Than Renting Everywhere except London

Cleaver

I love the debates on this forum about the miniscule detail of whether renting or buying is the cheapest. It doesn't really matter that much, both are similar costs when it all boils down to it.

Most people rent, or choose to rent, because of life factors: no deposit, prefer renting, suits their lifestyle, suits their employment, suits their family status at the time, not interested in owning a house, can't find a house they like to buy, don't want to buy an expensive house, enjoy not having to pay for maintanence, going travelling in two years, planning to emmigrate, enjoys living with flatmates, doesn't want to buy a house until they get a job they really like... the list is endless.

People rent or buy depending on hundreds of factors, the finances being just one of those factors. £6 per month here, £52 per month there. Who cares?

carolt

Who on earth said renting v buying for 25 years? I'm not talking about renting for 25 years, you nana, I'm talking about buying at the right time. Which isn't now.

If you want to believe in cloud-cuckoo land where interest rates don't go up for the next 10 years, fine - but I think any FTB would be well-advised to take your claims with a pinch of salt. :rolleyes:

carolt

Cleaver wrote: »

I love the debates on this forum about the miniscule detail of whether renting or buying is the cheapest. It doesn't really matter that much, both are similar costs when it all boils down to it.

Most people rent, or choose to rent, because of life factors: no deposit, prefer renting, suits their lifestyle, suits their employment, suits their family status at the time, not interested in owning a house, can't find a house they like to buy, don't want to buy an expensive house, enjoy not having to pay for maintanence, going travelling in two years, planning to emmigrate, enjoys living with flatmates, doesn't want to buy a house until they get a job they really like... the list is endless.

People rent or buy depending on hundreds of factors, the finances being just one of those factors. £6 per month here, £52 per month there. Who cares?

Nope, I rent cos it's cheaper.

If buying was cheaper, I'd have bought.

phil_b_2

What about the superiority of the property you can have buying Vs renting too?

We bought nearly a month ago and are about £250 per month better off and living in a house about 50% bigger on a much better road.
We are also actually HAPPY now Vs just plodding along in a rental we didnt given a sod about and couldnt even decorate.

Lets also consider that many FTB's buy a house with a chunk (if not all) of their deposit coming from the bank of mum and dad and wouldn't actually be getting any interest on that if it was left in the bank.

phil_b_2

carolt wrote: »

Nope, I rent cos it's cheaper.

If buying was cheaper, I'd have bought.

Surely you have to bite the bullet at some point, regardless of price difference? What about when prices rise again and the divide gets greater? You'll just never end up buying.

There is loads of value in buying Vs renting, aside from monthly cost differences. Looking at monthly payment and nothing else when making the decision seems a bit short-sighted.

Cleaver

carolt wrote: »

Nope, I rent cos it's cheaper.

If buying was cheaper, I'd have bought.

Oh god, I'm being sucked in to the debate now.

I would argue there is no way of analysing what's cheaper, as you can't fast forward in to the future and see on your deathbed which was the cheaper option.

And is that really the only reason you rent? I presume not. There's lots of things in life that I could get cheaper, but there are other factors that come in to play so I might end up spending more for those reasons.

As I say, who cares that much? A chunk of money gets taken from you each month for the place you live in. That might be 22% for rent, or 28% for the mortgage. Or vice versa. You make the decision, hopefully, based on a load of factors, not just money. We rented for a few years and I hated our landlords in the main, didn't like not being able to decorate and have my own kitchen and bathroom and despised my letting agency. For me, the increase cost of a mortgage would be worth it. Others might not care about the above.

Just as an example Carol, let's say that buying becomes 25% cheaper tomorrow than renting. But then you get a dream job starting in 12 months in France and you and your family decides you're going to go for it and move. Would you start looking to buy a place here tomorrow?

carolt

No, what really, really matters to me is having a big-enough home for my family, with a big garden, in the right location.

There have been points over the last few years when it was only slightly more expensive to buy than to rent, or maybe even approx the same - at that point we were looking to buy, and we nearly did...got let down over various properties for various reasons.

Currently, not looking at all as not sure which area we want to be in long term, due to schools. Once we know that (visit last school next week, then hopefully decide...), we will be in a position to move.

But at current prices, no urgency to buy. Might just rent elsewhere, or stay put, depending on area chosen.

As I've said before, I think it's different with kids - as a grown-up, you can put up with the tiny kitchen, or postage stamp garden or less than perfect area or whatever. But try to explain to a small child why you have to sell their massive climbing fame/sandpit etc etc because there's no room n the garden..or having to worry about whether they're going to be safe walking back from school, or whatever. You just can't. I can quite happily compromise on home ownership, but much less on the location/size of home. Kids don't care who owns the home. It brings into perspective what really matters - a house as a suitable home, not as a cash cow or security for old age, or pension, or investment vehicle, or any of that tosh.

System

Why should buying ever be cheaper than renting, last time I checked when you buy something you eventually get to own it. I can't see why anyone would expect to pay less than rent.

Cleaver

carolt wrote: »

No, what really, really matters to me is having a big-enough home for my family, with a big garden, in the right location.

There have been points over the last few years when it was only slightly more expensive to buy than to rent, or maybe even approx the same - at that point we were looking to buy, and we nearly did...got let down over various properties for various reasons.

Currently, not looking at all as not sure which area we want to be in long term, due to schools. Once we know that (visit last school next week, then hopefully decide...), we will be in a position to move.

But at current prices, no urgency to buy. Might just rent elsewhere, or stay put, depending on area chosen.

As I've said before, I think it's different with kids - as a grown-up, you can put up with the tiny kitchen, or postage stamp garden or less than perfect area or whatever. But try to explain to a small child why you have to sell their massive climbing fame/sandpit etc etc because there's no room n the garden..or having to worry about whether they're going to be safe walking back from school, or whatever. You just can't. I can quite happily compromise on home ownership, but much less on the location/size of home. Kids don't care who owns the home. It brings into perspective what really matters - a house as a suitable home, not as a cash cow or security for old age, or pension, or investment vehicle, or any of that tosh.

So from saying "I rent because it's cheaper", you've actually said that there is loads of other stuff that's important to you: location, quality of life for you and your family, not sure on area in the long term, the school situation, a garden for your enjoyment.

I think we're on the same page here: that it doesn't really matter if buying is slightly more expensive than renting or vice versa. You've got a load of boxes to tick and you need a house that ticks them, whether you rent or buy. And sure, if buying becomes a lot cheaper, you'll buy. But trying to work out to the exact pound per month, based on certain % mortgage rates etc. etc. etc. is just miniscule detail that is irrelevant over the longer term (and it goes on a lot on this forum).

Now having a garden for your kids to play in, that sounds a lot more important to me.

carolt

No, but I could get those things (garden, location, etc), in either rented or buying - so the choice of which one to do comes down to cost. I don't have an infinite monthly budget, and I'd rather work less and have more hours to spend with my family now, than spend a few hundred pounds more each month, so that I could own an equivalent house when they're grown-up. I'll have plenty of time to earn more/buy when they're older. Right now, I just want to enjoy my time with them while they're little - and money does play a part in that, as time=money. So I do rent as it's cheaper.

If buying meant cheaper, then I'd choose that, as = more free time.