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Debate House Prices
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OH MY GOODNESS - the house price crash hits home!
Comments
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Spartacus_Mills wrote: »IO my mortgage would be £48.25 pcm as I have paid it down to less than £10K. Should I rent my house it would be £650/£700 PCM.
What is more interesting would be a comparison in terms of what it would cost to buy now with a mortgage versus rental.
if your house is worth 180k say to be paying that in rent... that means you have 170k tied up NOT earning interest... lost opportunity, ie a cost...
When interest rates are at 8% in savings... that will be costing you £1133 per month plus the 48 per month... YOU NEED CAPITAL GROWTH to justify keeping the money invested in the property... in the future your mortgage could double to 100 and this interest rate could be very achievable. so your going to be comparing 1200 with 650 per month rent... NOT SO ATTRACTIVE THEN HEY??
Even at the moment at current rate, its 425 per month plus your mortgage your paying of 50 per month thats 475 per month... BUT to sell your house now to move to another will cost 5k in fee's for a renter it will only cost 200 quid in fee's... see the flexibility advantage?????? imagine moving every year, for job purposes... see the advantage????
OMG... this thread is so frustrating and full of people boasting...
If you like your house and like your life, just live it, stop coming on boards to BOAST!Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
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If you like your house and like your life, just live it, stop coming on boards to BOAST!
I like it, I live in it.
You asked for a the difference and the example I gave you was buying mid crash (August 08 30% deposit). It is not a boast but something that actually happened, rates coming down will have helped people like me lower there term.
I thought some mid crash info would be useful and how costs are now higher (mortgage rates)0 -
if your house is worth 180k say to be paying that in rent... that means you have 170k tied up NOT earning interest... lost opportunity, ie a cost...
When interest rates are at 8% in savings... that will be costing you £1133 per month plus the 48 per month... YOU NEED CAPITAL GROWTH to justify keeping the money invested in the property... in the future your mortgage could double to 100 and this interest rate could be very achievable. so your going to be comparing 1200 with 650 per month rent... NOT SO ATTRACTIVE THEN HEY??
Even at the moment at current rate, its 425 per month plus your mortgage your paying of 50 per month thats 475 per month... BUT to sell your house now to move to another will cost 5k in fee's for a renter it will only cost 200 quid in fee's... see the flexibility advantage?????? imagine moving every year, for job purposes... see the advantage????
OMG... this thread is so frustrating and full of people boasting...
If you like your house and like your life, just live it, stop coming on boards to BOAST!
I do not think anyone here is boasting, apart from the OP that she did not catch a cold.
The rest of this thread is about personal perspectives and how stuff works for them.
From my POV if I sold my house to unleash the profit I have made (it has more than doubled in the last few years in value) and to put it in a bank to make interest, once I have lopped 40% off the interest paid in tax, I would be lucky to be getting 2% on it a year. Just under half what I would be paying out in rent. It really is a case of offsetting the saving in rent against the benefit in interest rates.
For my personal situation that would be lunacy.
I bought my property not as an investment but as somewhere to live and once the mortgage is paid then I will not have to pay hundreds out each month. Come the age of 45 I will not be paying out for housing just the costs associated with its maintainence and upkeep. That was a deliberate choice of mine and was right for me then and is right for me now. Having said that I rented for 6 months in the area prior to purchasing the house so I could see what it was like. That is not gloating or rubbing anyones nose in it. It is sharing my experience with others who are interested in the topic on a debating forum. I do not see what is wrong with that."There's no such thing as Macra. Macra do not exist."
"I could play all day in my Green Cathedral".
"The Centuries that divide me shall be undone."
"A dream? Really, Doctor. You'll be consulting the entrails of a sheep next. "0 -
Spartacus_Mills wrote: »
With respect to renting versus buying you are ignoring the additional costs of home ownership that renters would not have to pay. Maintainence, decoration, replacement of white goods, boilers etc etc. I say that as someone who is a homeowner with a minute mortgage as I believe the benefits of home ownership outweigh the disadvantages but there are disadvantages too.
In the last 3 years I've had to spend just £300 or so on maintenance in total on my most recent house.
In the previous 20 years I averaged about £500 a year, but that was for a large detached.
Yes, there is a cost, but it is minimal over the long term.
If you buy a house that is well maintained, with proof of works done, it should not be expensive. If you buy a house that you know needs work, or that you'll need to refurbish, you should really consider it to be part of the price.
Yes, unlikely events can happen, but they can happen to renters too. The chances of a boiler blowing up right after you move in are probably no greater than the chances of a landlord being reposessed and causing you expense and hassle in moving at short notice.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It's these type of threads that keeps me coming back to MSE
Keep up the good work people!0 -
if your house is worth 180k say to be paying that in rent... that means you have 170k tied up NOT earning interest... lost opportunity, ie a cost...
When interest rates are at 8% in savings... that will be costing you £1133 per month plus the 48 per month... YOU NEED CAPITAL GROWTH to justify keeping the money invested in the property... in the future your mortgage could double to 100 and this interest rate could be very achievable. so your going to be comparing 1200 with 650 per month rent... NOT SO ATTRACTIVE THEN HEY??
Why are you comparing renting and buying purely based on financial factors? Most people look at whether they can afford their mortgage / rent and then get on with life.
With regard to the line I've highlighted in bold, a lot of people will take their kids having a bedroom each, or a nice quiet street, or a garden the love, or a kitchen they spend time in as a reason to "justify keeping their money invested in the property".
Comparing renting vs buying as an argument on an internet forum is like trying to decide where it's best to go on holiday. Too many variables, to many personal preferences and, at the end of the day, there's no definitive answer.0 -
HAMISH_MCTAVISH wrote: »In the last 3 years I've had to spend just £300 or so on maintenance in total on my most recent house.
In the previous 20 years I averaged about £500 a year, but that was for a large detached.
Yes, there is a cost, but it is minimal over the long term.
If you buy a house that is well maintained, with proof of works done, it should not be expensive. If you buy a house that you know needs work, or that you'll need to refurbish, you should really consider it to be part of the price.
Yes, unlikely events can happen, but they can happen to renters too. The chances of a boiler blowing up right after you move in are probably no greater than the chances of a landlord being reposessed and causing you expense and hassle in moving at short notice.
You are wrong on that count. The chances of a boiler blowing up are minimal compared to repossession. For that to happen the gas valve would misfunction and if the gas valve misfunctioned there are sensors to shut the boiler down. The Gas Valve is a very well engineered, well made, product. They are extremely reliable.
You may want to minimise what you spend but that is just you. That does not make the expense minimal on average or for others.
I have spent far more than that personally on my place in the last few years and will be spending more shortly. You are making the mistake of relating your own personal experience to that of everyone.
The point I was making is that there is a cost to be considered and the comparison of the monthly outlay on its own is not sufficient and that will vary dependant on the occupier and what needs doing."There's no such thing as Macra. Macra do not exist."
"I could play all day in my Green Cathedral".
"The Centuries that divide me shall be undone."
"A dream? Really, Doctor. You'll be consulting the entrails of a sheep next. "0 -
there's a big difference - you're consistent and honest with your anecdotal information
But how do you know that? I'm actually not sure I am that consistant TBH. I'm sitting on some noce things ATM (and have shared more bullish thing as last serious property post and might share another: here you are: saw some thing I loved come on at £750k, loved it, loved it nd think it was a bargain (despite having planning permission for a hideous suburban style mock georgian executive style house which we would have ripped up and stamped on) and,behing very fairly proiced it went woosh, before we'd been to see it....the equivalent with about 20-40% on top of that price is STILL sitting on market ....)0 -
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