Buying Cheaper Than Renting in 75% of UK

HAMISH_MCTAVISH

.RENT

People are better off buying a home rather than renting one in three-quarters of towns and cities across Britain, research indicated today.


Monthly mortgage interest payments on a two-bedroom property are typically 8% lower than the cost of renting a comparable home, according to property website Zoopla.co.uk.

http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=509705&in_page_id=8#ixzz0uL18oIhu

arby

finally, you admit that renting is better for 1 in 4 people!

i know i'm definitely one of those people. the real challenge is to try and get other people to even consider they might fall into that category. So many people just blindly follow the mantra that renting is dead-money. Muppets. (not people that buy, but people that do it without even considering their options before blowing £200k+)

HAMISH_MCTAVISH

arby wrote: »

finally, you admit that renting is better for 1 in 4 people!

i know i'm definitely one of those people. the real challenge is to try and get other people to even consider they might fall into that category. So many people just blindly follow the mantra that renting is dead-money. Muppets. (not people that buy, but people that do it without even considering their options before blowing £200k+)

Finally, you admit that buying is better for 3 in 4 people.

And buying is better and cheaper for 100% of people over the long term.....;)

arby

better and cheaper than what? better than buying a ferrari? i agree. better than biding your time and renting until the situation is right, no. How can you be so simple-minded that you can state things like that with 100% certainty? Everyone knows there are no 100% guarantees, else we wouldn't have had the mess 2-3 years ago when banks started to realise property wasn't a 1-way bet. It may be a good bet, but it certainly isn't 100% like you keep stating.

As for replying 'in the other thread'. I have no idea what you're talking about. If you're that keen then please dig it up for me and post a link. There's no way I'm wasting more time finding something that's probably irrelevant.

edit: yes, i reckon buying may be better for 3 in 4 people. So now we agree, so why don't you stop making these 100% predictions you always state. Come on, from now on, every time you make a case that buying property is better than not, include the caveat 'in 75% of cases'. I believe that if you put your mind to it you may be able to provide a balanced and accurate viewpoint such as that. So, do we have a deal? or will you ignore the findings of the article you thought so good you posted a thread on it?

Graham_Devon

Thanks to Zoopla for stating the bloody obvious! Thanks to Hamish for posting it knowing it's !!!!!!

May I state another?

Buying a brand new car will save you money on MOT's for three years, therefore, the new car is obviously a cheaper way to go.

To the keen reader, they will notice something isn't quite right with my car example. To the even keener reader, they will notice the zoopla research is so basic, it deserves to be recycled into value toilet roll instead of the posher stuff.

arby

and the 'research' also states that if mortgage rates rise by just 1% then renting would be better than buying for 4 out of 5 people.

Procrastinator333

No mention of the mortgage rates used. An average is stupid. And if not an average then they need to show the difference between costs of someone with only 10% deposit vs someone with 40% equity - Very different.

It may be that rent % is less than mortgage % for an existing homeowner with 40% equity, but not for the ftb with a 10% deposit.

Nothing really new here, comes back to the basic principle that if prices are flat the better financial options is simply whichever is lower, interest % or rent %. After that point you ahve to factor in your opinion on house price direction, but nothing new.

It also notes the impact of a 1% rise in interest rates - 12 months time that is a possibility and so the stat becomes reversed.

Procrastinator333

INTEREST ON YOUR MORTGAGE

PasturesNew

At the moment, for me, if I bought a lovely 3-4 bed newish (or new) house, possibly detached, in a nice area I'd lose about £300/month or so in lost interest.

On the other hand, I can rent a 1-bed nasty converted flat for £500/month.

FTBFun

HAMISH_MCTAVISH wrote: »

.RENT







http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=509705&in_page_id=8#ixzz0uL18oIhu

Little harsh - most have to rent before they can buy. I certainly have no qualms about renting, as I have to live somewhere (although just over a week left now!).

HAMISH_MCTAVISH

FTBFun wrote: »

Little harsh - most have to rent before they can buy.

Indeed.

But every year spent renting is another year of expense before becoming rent/mortgage free.