Rent is the real Financial Millstone.....

Orpheo

The mortgage vs rent debate is dry and riddled, on both sides, with fallacy. Mortgagees assume that renters will rent for a lifetime, some will, some won't. As a former mortgagee I payed less in mortgage than I now do in rent. On the other hand, the interest on my capital more than offsets the difference between my current rent and prior mortgage and no, I do not have to pay any maintenance costs over and above my rent, but I am not blind to the fact that my rent includes a premium for maintenance. I fully intend to purchase another property, but in the meantime house prices are falling in the City Of Lincoln at a rapid rate, one property on my radar has fallen 10% since August when it appeared on the market, others have fallen considerably more. In rough terms, every 1k that drops off the price of a house saves me about 2k over the term of a mortgage. It is absurd for me to buy now when I am making such observable savings by sitting on my hands, unless I see a suitable house priced too well to refuse. National statistics are one thing, personal circumstances and local market conditions are another.

RenovationMan

Orpheo wrote: »

The mortgage vs rent debate is dry and riddled, on both sides, with fallacy.

Its a pointless exercise because no one really sits down and uses a mathematical equation to determine whether they will buy or rent.

geneer

DaddyBear wrote: »

Why does some chump always roll out this argument? IF you are on a REPAYMENT mortgage, the interest is NOT dead money. It is a means to owning your property outright and having no housing costs at the end of it.

Uh-huh. And so what if interest payments would have been one and a half what your rent is whilst house prices were also tanking.:rotfl::rotfl::rotfl::rotfl:

A better question is why would some chump roll out tired old hackneyed discussion points rather than talk about what house prices are doing.

I think we all know the answer.

Orpheo

RenovationMan wrote: »

Its a pointless exercise because no one really sits down and uses a mathematical equation to determine whether they will buy or rent.

Exactly. The only reason my family and I are currently renting is because we have needed mobility for about 2 years. Now that we forsee our current location to be permanent we can consider buying again. Renting has been far from dead money, it meant that we could live in houses in the meantime. The money paid for shelter; I begrudge far more the quantity of our money that goes to the supermarkets each month. Is food dead money?

geneer

RenovationMan wrote: »

Its a pointless exercise because no one really sits down and uses a mathematical equation to determine whether they will buy or rent.

Or when they do, they use the "60 year" comparison because that is clearly worth discussing. :rotfl::rotfl::rotfl:

geneer

HAMISH_MCTAVISH wrote: »

BLAH BLAH BLAH

Just wanted to say, thanks for popping in yesterday to say Hello Spamish.
There must be some kind of error with the forum though, as none of your posts have shown up.:A

abaxas

The problem with all rental/buying calculation is you cant factor in the easy movement of labour and maintenance costs.

If anything, owning a house when you lose your job is the largest millstone of them all.

THE_GHOULISH_CODPIECE

Orpheo wrote: »

Exactly. The only reason my family and I are currently renting is because we have needed mobility for about 2 years. Now that we forsee our current location to be permanent we can consider buying again. Renting has been far from dead money, it meant that we could live in houses in the meantime. The money paid for shelter; I begrudge far more the quantity of our money that goes to the supermarkets each month. Is food dead money?

Yes food, like rent, is dead money because if you bought your own dream home with a garden you'd be able to grow your own veg, fruit, nuts, and berries and farm your own meat. Try doing that on your landlords premises and you'd sooner be out on your ear.

Procrastinator333

RenovationMan wrote: »

Its a pointless exercise because no one really sits down and uses a mathematical equation to determine whether they will buy or rent.

I do :eek:

Orpheo

THE_GHOULISH_CODPIECE wrote: »

Yes food, like rent, is dead money because if you bought your own dream home with a garden you'd be able to grow your own veg, fruit, nuts, and berries and farm your own meat.

You're a dumbass. As it happens my wife is a horticulturalist, she grows a heck of a lot of our own food. She knows what to grow where and how to maximise the yield of crop in any particular space. She kept us in potatoes for 6 months by growing them in a very large canvas bag, didn't need to touch the landlord's garden. Our xmas dinner this year hasn't cost us a penny, a lovely big hare and two pheasants, courtesy of a local farmer that my wife is acquainted with. We have a confit of hare leg sitting in a jar in our kitchen right now.

THE_GHOULISH_CODPIECE wrote: »

Try doing that on your landlords premises and you'd sooner be out on your ear.

Only if your landlord is an unreasonable tw@. Otherwise you can either ask permission and/or return the garden to its original state. Renting in general doesn't hamper your life, renting from tw@s might though. One of the problems with buying is that most houses built within the last 20 years have no garden to speak of.