Buying Cheaper Than Renting in 75% of UK

chucky

Graham_Devon wrote: »

Why do you keep saying this over and over in response to various posters?

We all know you are working on a mere technicality.

a technicality that you're not bright enough to come back with a better response...

Wookster

Chaos_A.D. wrote: »

This thread should have ended here, short, concise and bang on the money. I know what chucky said in his post after, but that's irrelevant. If IR's were their historical average, mortgage rates would be around 6.5-8% at least and more if your credit is bad. That would be enough to tip the property market into the abyss.

The average variable rate I believe is around 4.75% at this time.

Cheers.

I only ever read one (maybe two) of chucky's posts every three months or so

The likes of hamish will argue that base rates bear no relation to mortgage rates, however this is not true - mortgage rates are more dependant on swap rates & libor but base rates set the minimum level, and that is set pretty much as low as it can be.

chucky

Wookster wrote: »

The likes of hamish will argue that base rates bear no relation to mortgage rates, however this is not true - mortgage rates are more dependant on swap rates & libor but base rates set the minimum level, and that is set pretty much as low as it can be.

how come you never quote the average SVR rate that's 4.5% (ish)?
the majority of people are on the SVR - how does 4.5% mortgage rate support house prices?

Idiophreak

IveSeenTheLight wrote: »

Is this correct.
You find it cheaper to buy than rent.
How does that make it easier to save a deposit?

Yes, it's correct.

My mortgage payments are £250-300/month less than rent on the same place.

I find it easier to save a deposit because I have £250-300/month more to save...

IveSeenTheLight

Procrastinator333 wrote: »

This is not an absolute and is open for debate. My personal experience was comparing a house that was up for sale for £290k and a rent of £1,100. Renting is cheaper for me.

Then presumably you would be in the 25% category

IveSeenTheLight

Idiophreak wrote: »

Yes, it's correct.

My mortgage payments are £250-300/month less than rent on the same place.

I find it easier to save a deposit because I have £250-300/month more to save...

Ah I understand, you already own and find it easier to save up for a larger place because buying is cheaper than renting.

This was the same for me when I bought a FTB property as well

dktreesea

Idiophreak wrote: »

Yes, it's correct.

My mortgage payments are £250-300/month less than rent on the same place.

I find it easier to save a deposit because I have £250-300/month more to save...

This would surely vary from place to place. An identical flat to the one we currently rent just sold next door to us for £260K. We rent our flat for £675 per month. Even at a 4% fixed rate (are there any such rates around at the moment for 10 to 15 years?) that only values the flat at just over £200K. Plus I don't have to invest any of my hard earned dosh in the principal. Or fix up the flat if something goes wrong. In fact, in our flat something did go wrong - they had to replace part of the roof. That knocked each flat owner back £9,200. The one on the ground floor couldn't afford to pay - he was a pensioner - and has ended up having to put his flat on the market.

Idiophreak

dktreesea wrote: »

This would surely vary from place to place.

Yes, but it seems that in 75% of places buying is cheaper...

dktreesea

Idiophreak wrote: »

Yes, but it seems that in 75% of places buying is cheaper...

I suppose, the way the population is going up, this problem will continue, i.e. rents and housing prices will both keep going up. It is certainly possible to buy a flat where we live, in Edinburgh, for less than we pay in rent, but not in as nice an area. In the nicer areas up here, buying is a lot more expensive than renting.

Procrastinator333

IveSeenTheLight wrote: »

Then presumably you would be in the 25% category

No, South London, which is actually quite high up on their list of places where it is supposedly better to buy then rent.

http://www.zoopla.co.uk/rentbuy/

I think their list is put together in quite a biased way, so don't have a lot of faith in it.

But it is quite irrelevant anyway. If any body is debating between buying and selling, they shouldn't be looking at this list or any other, they should have a look at the area they are interested in and make their own comparison.