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

sss555s

Procrastinator333 wrote: »

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.

The only problem with your brain storm is.

House or rent don't stay stagnant over a 25 year period.


come down to earth a minute and smell the coffee!

PasturesNew

Of course, don't forget that many people will never have the luxury of choice re renting/buying. Many posts on this thread have seemed to me to have a "taken for granted" attitude that there was some choice in the matter for everybody.

Imagine if you were unable to buy ... rent looks more expensive then - and it's for life.

laurel7172

Short answer-no, I couldn't afford the rent.

And I couldn't afford to buy it if I didn't own it already.

I'd like to reiterate, though, that owning a house is expensive or hard work and frequently both. And while I theoretically have a decent chunk of equity, it's only any use to me if I go and live in a tent. I have colleagues in social housing who look at me with something close to pity when I come in on a Monday having spent the weekend rodding my own drains...

Procrastinator333

sss555s wrote: »

The only problem with your brain storm is.

House or rent don't stay stagnant over a 25 year period.


come down to earth a minute and smell the coffee!

Apologies for tone of last. Just get a little frustrated when it seems like people are just disregarding renting because of what seems to be the standard view that buying is always best. Apologies.

I'm not advocating long term renting. The maths and impact of tax on income mean it is always go lose in the long run.

But do most people see much growth in prices in the short term? I think even hamish is predicting stagnation for next 12 months. That is from memory, so please correct (sure u will) and sorry if wrong hamish.

Buy as soon as you can is not always the best advice.

sss555s

PasturesNew wrote: »

Imagine if you were unable to buy ... rent looks more expensive then - and it's for life.

I agree with that.

I live in a reasonably cheap area to buy property but we also have cheaper wages to some extent.

A lot of bright and enthusiastic people from my area would be attracted to London or let's say "the South"

They would go there to make more money in reality even if it was right for their "career".

The point i'm trying to make is if every area has a "brain drain" heading to the "honey pot" in the South East then something's got to give.

It's not a bad idea for the country or the people involved that can't buy in a certain area to move to a cheaper area if it allows them a chance to buy a suitable property.

sss555s

Procrastinator333 wrote: »

Apologies for tone of last. Just get a little frustrated when it seems like people are just disregarding renting because of what seems to be the standard view that buying is always best. Apologies.

That's ok

I did make a point of saying a mortgage would be more expensive to start with.

Looks like we both agree over a long term buying is going to be the winner if it's possible to do.

wageslave

sss555s wrote: »

I agree with that.

I live in a reasonably cheap area to buy property but we also have cheaper wages to some extent.

A lot of bright and enthusiastic people from my area would be attracted to London or let's say "the South"

They would go there to make more money in reality even if it was right for their "career".

The point i'm trying to make is if every area has a "brain drain" heading to the "honey pot" in the South East then something's got to give.

It's not a bad idea for the country or the people involved that can't buy in a certain area to move to a cheaper area if it allows them a chance to buy a suitable property.

We are the cheaper area I suppose.

The reality is only the retired ever come here and that brings its own set of problems. Don't start me on that one.

You ever imagined anywhere more beautiful to live? I haven't.

There is a place just shy of Creetown where you can buy a wonderful fried breakfast after you have literally walked across the Solway

milliebear00001

I guess it depends what sort of mortgage you have. I rent a house I'd have to pay much more for if it was on a mortgage. That's because I'd only ever have a fixed rate, and because of the amount of deposit I could put down. Mine's owned by a property company -dunno what deposit they bought with, or what mortgage deal they're on, but I'm betting they're not making a huge amount from my monthly rent at the moment!

sss555s

wageslave wrote: »

We are the cheaper area I suppose.

The reality is only the retired ever come here and that brings its own set of problems. Don't start me on that one.

You ever imagined anywhere more beautiful to live? I haven't.

There is a place just shy of Creetown where you can buy a wonderful fried breakfast after you have literally walked across the Solway

It is beautiful, especially in the summer.

Do you mean the place in the layby?

tomstickland

Three other flats in the same block as where I live were on the rental market, all for £450 a month and were snapped up. My mortgage is around £430 per month, but management fees are around £80 a month.