Is Renting Really Dead Money?

Sapphire

Unfortunately, there appears to be a social stigma attached to buying/renting property. People are made to feel they are somehow worth less if they do not own a property. This never used to be the case, and still isn't on the Continent. A lot of people in the UK have been taken in by the propaganda (e.g. property !!!!!! TV shows, estate agents' and other interested parties' hype) regarding owning property, house prices, et al. It's fostered considerable greed in our society.

kenshaz

Sapphire wrote:

Unfortunately, there appears to be a social stigma attached to buying/renting property. People are made to feel they are somehow worth less if they do not own a property. This never used to be the case, and still isn't on the Continent. A lot of people in the UK have been taken in by the propaganda (e.g. property !!!!!! TV shows, estate agents' and other interested parties' hype) regarding owning property, house prices, et al. It's fostered considerable greed in our society.

correct on every point ,our culture has a lot to be desired,but I am sure it will end up ok.not quite sure about the property !!!!!! or am I being Freudian

kenshaz

Sapphire

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did you mean property !!!!!! or was it a mistake

Gorgeous_George

westernpromise wrote:

That's one way of thinking about it. Another is that it was the single biggest redistribution of wealth toward the poor there has ever been, and that it set council tenants free from dependence on the state. Free to move elsewhere if they chose to; free to build up something to pass on to their children; free to build up something for their own retirement.

Of course, current thinking is more along the lines of "Keep them on benefits so they'll keep on voting for the party that pays the biggest, easiest benefits".

I've never thought of the Tories as modern day Robin Hoods. Massive tax cuts for rich people while increasing the total tax collected meant that poorer people were well and truly shafted.

They weren't even the Tories' houses to give away.



GG

ollyshaw

kenshaz wrote:

The problem is when retirement arrives and your income is less ,and your friends have paid off their 25yrs mortgage and you are still forking out for rent.Also nothing to leave to your kid's,unless you wish to adopt the philosophy of spending your children's inheritance

Not really, if I put £500 a month away (the minimum ammount I reccon I save by renting) then after 25 years (assuming a 5% interest rate) I will have £282 grand!

Olly

kenshaz

ollyshaw wrote:

Not really, if I put £500 a month away (the minimum ammount I reccon I save by renting) then after 25 years (assuming a 5% interest rate) I will have £282 grand!

Olly

but are you putting £500 a month away,you will probably say yes ,OK i believe you and would £282 grand buy you a house in 2030 or is that to leave to the kids

westernpromise

Gorgeous_George wrote:

I've never thought of the Tories as modern day Robin Hoods. Massive tax cuts for rich people while increasing the total tax collected meant that poorer people were well and truly shafted.

They weren't even the Tories' houses to give away.



GG

Reductions in tax rates always increase the tax take.

littlesaint

TJ27 wrote:

Of course the only reason I can say this is because I bought about nine years ago, when house prices were cheaper. But bloody hell, I'm glad I did!!

Aaah... I only we could turn back time. Problem is, if I bought ten years ago, it would have been very difficult - was still doing my Alevels.

Those fortunate enough to be in a postion to buy in 1996 but didn't will be kicking themselves. But it's no good for the rest of us, who have only recently got to that stage of life. It's bloody depressing when people say if you're not on 'the ladder', you never will be.

jyonda

Don't worry littlesaint you're still young enough to buy once things level out a bit because bust will follow boom as sure as night follows day.
It all depends at what point you buy into the market at. Those FTB's buying now with a 30 year 100% interest only mortgage will get a nasty shock when their 50% share of a one bed flat in nowheresville starts dropping in value and they can't sell. But no-one is going to tell them not to because everyone is relying on some sucker at the bottom end of the chain desperate to get themselves 'on the ladder' at any cost.

I believe that owning property is undeniably best in the long run but you must be patient.
TJ27 bought a big house in a great location at the right time. It was a big stretch at the time but that property will always be desirable in any market conditions. Can the same be said for a 50% share of a studio flat?
I for one won't be manipulated into thinking that the current economic climate will continue and I won't be signing up to any lottery sized debts in the mean time.

ollyshaw

jyonda wrote:

I believe that owning property is undeniably best in the long run but you must be patient.

Yep, till the market is right for me, I will be renting and putting the savings in the bank (or some stocks).

Olly