Better to buy than rent!!

Batchy

abaxas wrote: »

Maintenance.

Where it that in your calc?

I didnt want to complicate the calculation, with spurious figures.

I have just brought a house that wasnt maintained properly for 25 years...funnily enough and, and a cool 10k later and your sorted. Lets not worry too much about that! The current resident could have lived happily there for another 15 years in its current state. Just cause I didnt want to, its personal choice.

Dont make a mountain out of a mole hill.

You need to maintain a rented property, gardens, grass, painting and decoration. We are not talking about washing machines and dishashers tumble dryers, cookers etc... all of which you buy your own normally anyway regardless of where you live, brought or rented.

Roofs last for years, brick work lasts for years, electrics last for years? what maintenance? I assume you mean gloss on wood, and cleaning?

Maintenance of your bed and wardrobes will cost more...

The same can be said on contract negotiations and £200 fee's for leases, lost deposits when you move every 12- 24 months, cause landlords make changes or want to move back into their family home... moving costs, disruption, schooling consequences, social problems.

chucknorris

Joeskeppi wrote: »

There's a common misconception that maintenance is purely an annoying expense.

I decorate/refurbish a room every now and then as a treat for myself.

There is also another misconception, that the landlord pays for the maintenance, but the reality is that maintenance costs are included in the rent, so tenants are paying for it.

Batchy

RenovationMan wrote: »

As I said on a different thread, replacing a boiler pays for itself with reduced gas costs. Someone renting is stuck with the boiler they have, no matter how inefficient it is. As long as the boiler works, they cant complain. The boiler we just replaced was working fine, albeit VERY inefficiently and was installed in 1995.

The rest isnt maintenance, its decorating and making the house look nice for yourself. For example, carpets. The ones in my house were again installed in 1995, they are OK but I am sure that I will replace them to match the decor we are going for. The kitchen and range cooker are also from 1995 and I could just leave them be if I chose. With renting, you get what your given, the reason many tenants dont have maintenance charges is because there is no maintenance taking place, apart from the bare minimum that is legally required.

I have no axe to grind either way in the renting vs buying debate, but lets get the fact right....

Cheers RM... spot on!
House buying vs renting... control is a big factor, being able to choose, what you do, how you decorate, what suite you have etc.

i think the maintenance thing is old argument.

if you put in a new energy efficient boiler as owner, you generally add to the value of the property, its not a repair, its an improvement. house value goes up accordingly. I never included capital improvements. However, if you rented and they put a new boiler in the property, the landlord would generally, be trying to recover investment and increasing the rent accordingly. Catch 22 really.

abaxas

chucknorris wrote: »

There is also another misconception, that the landlord pays for the maintenance, but the reality is that maintenance costs are included in the rent, so tenants are paying for it.

Incorrect.

The rent is priced due to local market, a LL has no option but either to take what the market will sustain or have no income.

Ie they cant include their costs in the rent as the price is set via the market.

chucknorris

abaxas wrote: »

Incorrect.

The rent is priced due to local market, a LL has no option but either to take what the market will sustain or have no income.

Ie they cant include their costs in the rent as the price is set via the market.

Where on earth are all those thousands of pounds mounting up in my bank account coming from then? (and that's after paying for maintenance, or I should say after collecting the rent (incl maint costs from my tenants)).

Of course landlords add the maintenance costs into their rent, do you imagine they are running a charity rather than a business?

HappyMJ

Batchy wrote: »

For all those folk who believe by not buying they are making money, its a false dawn... you need to do simple maths.

Yes I've done the simple maths. How many homeowners actually stay in 1 property for 25 years? Some do, some don't. The average is about 7 years. Buildings insurance? Costs of buying. That annoying thing called stamp duty and solicitor fees? Boiler maintenance? The britsh gas service contract for £15 per month. The mortgage protection insurance? Renters have the ability to fall back on Housing Benefit for free. You need to add all these things. What about the possible interest earnt on this £60k that you started with? Over 25 years that's about £100,000 compounded every year.

I do however admit that it's cheaper buying than renting but the difference is minimal and the real benefit comes in the later years when there is no more mortgage to pay due to the higher payments in the earlier years.

abaxas

chucknorris wrote: »

Where on earth are all those thousands of pounds mounting up in my bank account coming from then? (and that's after paying for maintenance, or I should say after collecting the rent (incl maint costs from my tenants)).

Of course landlords add the maintenance costs into their rent, do you imagine they are running a charity rather than a business?

Incorrect again.

Anyone who runs a business is a slave to the market price for their product. They cant charge what they like, they cant incorporate fees to make profit etc.

The belief that somehow you can charge what you like, is foolish. You charge what people will pay. Profit is only made if this is > costs.

I find it astounding that someone who runs a business does not understand this principle.

chucky

abaxas wrote: »

Incorrect again.

Anyone who runs a business is a slave to the market price for their product. They cant charge what they like, they cant incorporate fees to make profit etc.

The belief that somehow you can charge what you like, is foolish. You charge what people will pay. Profit is only made if this is > costs.

I find it astounding that someone who runs a business does not understand this principle.

in Abaxas dream world rental property has higher maintenance costs than rental income...

i feel it outstanding that people like this are allowed out on their own...

chucknorris

abaxas wrote: »

Incorrect again.

Anyone who runs a business is a slave to the market price for their product. They cant charge what they like, they cant incorporate fees to make profit etc.

The belief that somehow you can charge what you like, is foolish. You charge what people will pay. Profit is only made if this is > costs.

I find it astounding that someone who runs a business does not understand this principle.

I find it astounding that you imagine I would buy into a business without first establishing what my costs are and making sure that these are covered. Maybe you are judging me by your poor business sense?

JonnyBravo

abaxas wrote: »

Incorrect again.

Anyone who runs a business is a slave to the market price for their product. They cant charge what they like, they cant incorporate fees to make profit etc.

The belief that somehow you can charge what you like, is foolish. You charge what people will pay. Profit is only made if this is > costs.

I find it astounding that someone who runs a business does not understand this principle.

Of course you're right in that the market sets the rate but do you not think that the majority of landlords price this in? ie that the market includes some allowance for this?
Do you think all landlords make a loss when you account for maintenance?