Cost of Rents: Homeowners: Could you afford to rent your house if it wasn't yours?

Gorgeous_George

Rent is not a simple alternative to paying a mortgage. Rent pays for so much more.

As a homeowner/buyer, I don't have a landlord to call on when my cooker goes wrong, or the roof leaks. I cannot just move out and rent somewhere when a nicer home becomes available or if my job is relocated.

I have spent tens of thousands of pounds on my home. Money that I would not have spent had I been a tenant.

GG

nollag2006

My neighbour has just rented his house out for £3,500 pcm, my mortgage payment on a very similar property is £1,900 and Mrs nollag and I hope to be MF in the next 8 years

chucky

probably not cheaper to rent but it would depend on the LTV to see if it would be cheaper to rent.

i wouldn't rent - i don't fancy paying for a mortgage for someone else.
ive done it and i'd do it very short term due to circumstances or necessity though.

Prudent

I have to agree with gorgeous george that it is not a straightforward comparison. I own my home outright (having previously had a mortgage on it). The rental would be around £600 per month. Last year it cost me £13,000 on home improvements and so far this year I have spent about £500 on it.

I also have lost interest on the money invested in the house.

The upside is that I can choose how and when to do improvements. I will be here until I choose to move and am not dependent on a LLs choices.

nollag2006

PasturesNew wrote: »

Have any of you checked out the cost of renting these days? Especially you posh lot in the big gaffs

Have a quick look on RM and see how much you'd be asked to pay to rent your current place .... and then think "could I afford that? WOULD I afford it?"

.

All the more reason to buy than to rent

Procrastinator333

PasturesNew wrote: »

Have any of you checked out the cost of renting these days?

Trouble is most people compare their mortgage, from when they bought however long ago with todays rent, not the same thing.

Find a property that is both for sale and rent, plenty around. It then depends on your deposit, but for any FTB with <20% deposit, I would be surprised if a mortgage was cheaper in many cases.

When we moved about 18 months ago. The house was up for sale at £290k. Assume a buyer could have knocked off £40k. Interest rates were about 6% for a low LTV (not looked for a while). That would be £15k just on the interest element. Instead we are renting at £1,100.

Now before Hamish comes along with "prices have risen 10% since then :rotfl::rotfl::rotfl:" - we also delcined to buy back in 08 so in purely financial terms we are quids in, so :rotfl:

Each to their own and it may vary for each person, but we are significantly better off for not having purchased a property yet.

michaels

IF I str'd capital released would be about 450k which would get may be 3% or 13.5k pa. Rent would probably be about 15,600 but obviously includes maintenance etc which I pay myself on owning. Obviously only a small rise in interest rates would move the balance quickly in favour of renting.

sss555s

Procrastinator333 wrote: »

Trouble is most people compare their mortgage, from when they bought however long ago with todays rent, not the same thing.

Find a property that is both for sale and rent, plenty around. It then depends on your deposit, but for any FTB with <20% deposit, I would be surprised if a mortgage was cheaper in many cases.

That is the whole point.

Pay more on a mortgage initially, knowing it will be cheaper than renting within a few years and you'll never look back.

sss555s

michaels wrote: »

IF I str'd capital released would be about 450k which would get may be 3% or 13.5k pa. Rent would probably be about 15,600 but obviously includes maintenance etc which I pay myself on owning. Obviously only a small rise in interest rates would move the balance quickly in favour of renting.

Did you actually pay 450k or is that the equity in your home?

Procrastinator333

sss555s wrote: »

That is the whole point.

Pay more on a mortgage initially, knowing it will be cheaper than renting within a few years and you'll never look back.

That is the point to the mathematical illiterate. I have shown it plenty of times in other threads. It is a mathematical fact that if house prices are stagnant you will own the house in full sooner by renting and saving the difference until such time as the interest rate is cheaper than the mortgage. Which for most at present is probably once they have 20% plus deposit.