Buying Cheaper Than Renting Everywhere except London

the_ash_and_the_oak

idk West Mids too well. Lichfield is there right?

http://www.rightmove.co.uk/property-for-sale/property-25813550.html?minBedrooms=2&maxBedrooms=2&displayPropertyType=houses&oldDisplayPropertyType=houses&pageNumber=1&fromSummary=true&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E800%26radius%3D0.0%26displayPropertyType%3Dhouses%26minBedrooms%3D2%26maxBedrooms%3D2%26minPrice%3D%26maxPrice%3D%26maxDaysSinceAdded%3D%26retirement%3D%26partBuyPartRent%3D%26_includeSSTC%3Don%26x%3D57%26y%3D16%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse

235K

http://www.rightmove.co.uk/property-for-sale/property-25813550.html?minBedrooms=2&maxBedrooms=2&displayPropertyType=houses&oldDisplayPropertyType=houses&pageNumber=1&fromSummary=true&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E800%26radius%3D0.0%26displayPropertyType%3Dhouses%26minBedrooms%3D2%26maxBedrooms%3D2%26minPrice%3D%26maxPrice%3D%26maxDaysSinceAdded%3D%26retirement%3D%26partBuyPartRent%3D%26_includeSSTC%3Don%26x%3D57%26y%3D16%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse

695PCM

the_ash_and_the_oak

chucky wrote: »

you can't make this comparison with every property - there will be many that this won't apply to.

if it was more cheaper to rent than buy - there wouldn't be as many people into renting their properties and making money out of it...

Yeah but a good chunk of the people making money bought at a time when buying was cheaper imo (in London anyway)

chucky

abaxas wrote: »

Just done an interesting calc.

Assuming a standard 5% mortage rate, 3% inflation and 3% after tax saving rate.

Over 25 years, we would lose £137,252 in the process. Ie worse off.

This figure doesnt take into account maintainence or any other ownship costs.

i don't believe in renting being better than buying or the otherway round.
it's a lifestyle choice and what ever suits.

you're forgetting any HPI on the property
having to move from the property when the landlord wants you to.
paying for any repairs to anything that you damage in the property.
making extra payments on the mortgage reduces the interest repaid - you can't reduce you're rent

chucky

the_ash_and_the_oak wrote: »

Yeah but a good chunk of the people making money bought at a time when buying was cheaper imo (in London anyway)

that's also a good factor to consider - timing of buying or renting...

in the last 2/3 years it's probably been better to rent than buy - it won't be like that over the 25 years of the mortgage.

the times that it is better to rent are very few and far between when compared to buying.

abaxas

No that includes HPI at 3%.

But equally I could say that home owners landlords might mke they move at anytime too. Eg their job. Without income they are much move vunerable than a renter.

I'm not saying that people shouldnt buy, renting is a great investment if you work at it. It's not always about making money, it's about not spending it too.

the_ash_and_the_oak

chucky wrote: »

i don't believe in renting being better than buying or the otherway round.
it's a lifestyle choice and what ever suits.

you're forgetting any HPI on the property
having to move from the property when the landlord wants you to.
paying for any repairs to anything that you damage in the property.
making extra payments on the mortgage reduces the interest repaid - you can't reduce you're rent

agree w good chunk of this

but this particular debate is about what is cheaper right now, renting or buying - ie ignoring HPI - (if HPI were guaranteed for next 6 years I'd prob buy regardless of whether it cost me more a month or not)

I mean, im not really disagree w your post, but you're not saying 'buying is cheaper than renting right now' you're saying "buying might not be cheaper than renting right now but here's a list of good reasons why its preferable" - all of which are good reasons!

the_ash_and_the_oak

chucky wrote: »

that's also a good factor to consider - timing of buying or renting...

in the last 2/3 years it's probably been better to rent than buy - it won't be like that over the 25 years of the mortgage.

the times that it is better to rent are very few and far between when compared to buying.

Definitely.

Really not arguing that because I think its more expedient to rent than buy today that this will be the case tomorrow. Really not sure why this board is so bogged down in essentialist one-or-the-other positions!

chucky

abaxas wrote: »

No that includes HPI at 3%.

But equally I could say that home owners landlords might mke they move at anytime too. Eg their job. Without income they are much move vunerable than a renter.

I'm not saying that people shouldnt buy, renting is a great investment if you work at it. It's not always about making money, it's about not spending it too.

the_ash_and_the_oak wrote: »

agree w good chunk of this

but this particular debate is about what is cheaper right now, renting or buying - ie ignoring HPI - (if HPI were guaranteed for next 6 years I'd prob buy regardless of whether it cost me more a month or not)

I mean, im not really disagree w your post, but you're not saying 'buying is cheaper than renting right now' you're saying "buying might not be cheaper than renting right now but here's a list of good reasons why its preferable" - all of which are good reasons!

i agree with both of you but right now - it depends at what point in life and career that you are at.

for me personally buying now is/was (did it in Feb) a good time to buy a residential property if the price is at least 15% off peak with a good fixed rate.

i bought on a 4.69% 5 year fixed at about 20% off peak.
i was renting and waited for the right opportunity to come along, so for me it suited.

IveSeenTheLight

the_ash_and_the_oak wrote: »

ok sure. rent for 6 years and then buy semi, or 7 then buy semi

If they have the same mortgage payments / amortization period, then it would be similar

Every property I have seriously looked at (and there have been some very recently) the rent far exceeds the mortgage interest.

Not saying it is the same everywhere. People need to do their own calculations;)

silvercar

So a fixed rate of nearly 5% isn't achievable now???

What about the people that made the buy/ rent decision 2-3 years ago and now have lifetime tracker mortgages at near base rate? For the last couple of years (and possibly the next few) they will have saved loads by buying not renting. Couple that with a bit of saving each month and paying the mortgage as if the rate were 5% and they could be knocking chunks off their mortgage while the renters are still dithering.