Buying Cheaper Than Renting Everywhere except London

the_ash_and_the_oak

tbf here the thread was about whether buying or renting is cheaper at this particular time and ISTL's figures there show it is currently cheaper to buy than rent in Aberdeen

IveSeenTheLight

the_ash_and_the_oak wrote: »

tbf here the thread was about whether buying or renting is cheaper at this particular time and ISTL's figures there show it is currently cheaper to buy than rent in Aberdeen

To be fair, I do not say every property is cheaper.
This is just one current example of a 2 bed flat that suitably shows the point for buying for owner occupier or BTL purposes.

Other types of properties may not be so great.

My point is always, there are oppertunities out there if you look for them and are ready to move.

the_ash_and_the_oak

Sometimes difficult to read tone on these things - but I am agreeing with your post about Aberdeen ISTL.

chucky

Out,_Vile_Jelly wrote: »

I rent in London, so this is good news right?

depends how you look at it.

prices have increased most in London - so if you're not looking to buy it's a good think.

Wookster

IveSeenTheLight wrote: »

If you were buying as a renter, you only need £11,000 for a 10% deposit , not a huge significant sum

Back to the heady days of 90% mortgages... don't think banks are too happy to hand these out cheaply nowadays.

System

Wookster wrote: »

Back to the heady days of 90% mortgages... don't think banks are too happy to hand these out cheaply nowadays.

5.99% with Natwest with no fee, in January 2007 I got 5.34 with a £999 fee so it doesn't seem too bad really.

http://www.natwest.com/personal/mortgages/g3/view-product.ashx?id=fix5304

Unless you're one of those people who measure "cheapness" by the difference between mortgage rate and BoE rate, rather than the actual cost.

IveSeenTheLight

Wookster wrote: »

Back to the heady days of 90% mortgages... don't think banks are too happy to hand these out cheaply nowadays.

It only takes a couple of minutes to do a search.
Here's a link for the HSBC offering 90% mortgages

http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/fixed-rate;jsessionid=0000Gr1Nde33OIE8up9reoBVV_H:12c58t1e1

wolfplayer

chucknorris wrote: »

Not that I buy into your bleak future prediction, why will I be wiped out, why can't I simply pay off my mortgages (which I can afford to do). Its strange that you actually underlined the bit where I said:

and not to place himself in a position where the rents do not cover his payments

Yet you obviously did not understand it lol

You might be able to pay off the mortgages. It won't stop the eventual value of what reverting to something like 1997 prices or even lower. So a great deal of capital value loss from these heights.

For the section of your response underlined it was just a thought I was having. The expectation so many landlords in the btl hysteria years that rents should and will always cover mortgage repayments into the future. I do not believe all landlords should base their calculations on this expectation. You may be luckier as you entered btl activities in earlier years. It seems reasonable that some landlords contribute towards the mortgage instead of assuming tenants will be able to cover it all so as to give them almost a free home after the end of 25 years. I expect markets are going to fall in a way which will require it.

chucky

wolfplayer wrote: »

You might be able to pay off the mortgages. It won't stop the eventual value of what reverting to something like 1997 prices or even lower. So a great deal of capital value loss from these heights.

that would be 65% off house prices now - good luck with that _party_

chucknorris

wolfplayer wrote: »

You might be able to pay off the mortgages. It won't stop the eventual value of what reverting to something like 1997 prices or even lower. So a great deal of capital value loss from these heights.

For the section of your response underlined it was just a thought I was having. The expectation so many landlords in the btl hysteria years that rents should and will always cover mortgage repayments into the future. I do not believe all landlords should base their calculations on this expectation. You may be luckier as you entered btl activities in earlier years. It seems reasonable that some landlords contribute towards the mortgage instead of assuming tenants will be able to cover it all so as to give them almost a free home after the end of 25 years. I expect markets are going to fall in a way which will require it.

LOL 1997!? Are you brits even dafter brother?