Better to buy than rent!!

Batchy

PasturesNew wrote: »

Loads of people, with kids, get LHA/Housing Benefit top ups for their rent though, so it's subsidised for them, a house/mortgage wouldn't be.

Tax credits are available

sarkin1

Batchy wrote: »

I used a 60k deposit, but you could just as easily use a 30k deposit and get a rate like that! With no problems at all, granted repayments would be higher, but to be honest, 30k and interest at 4% over the period isnt going to be a game changer to the total cost.

If you havent saved a deposit, then it doesnt matter what prices reduce too, there will be 95% buying in front of you who have saved SOMETHING towards a deposit. You need to have cash on side to make a difference, either that or equity based on a realistic current valuation.

Mate if yo drop the deposit to 30k it will still take you 5 years to save and the best rate at 85% will be a tracker around 3.8% on 25 year repayment this will be 880 a month. if rates rise 2% you will be looking down the barrel of 1100 a month.

If you need a KFI let me know

abaxas

chucknorris wrote: »

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?

Nice U turn there and thanks for agreeing with me.

chucknorris

abaxas wrote: »

Nice U turn there and thanks for agreeing with me.

I'm not agreeing with you, but I can understand how someone like you might think I am, like my wife says it's people like you that make us so successful.

So thanks (I really mean it).

Batchy

sarkin1 wrote: »

Can you tell me where you got this size of deposit from?
If you saved £500 a month after all of your outgoings it would take you 10 years to get the deposit together. With your rent figure of £750 thats £1250 a month after tax.

Am in the progress of paying a mortgage at the same time im averaging over £1k per month savings. if you dont earn enough to do that, you will struggle to interest rate movements!

abaxas

chucknorris wrote: »

I'm not agreeing with you, but I can understand how someone like you might think I am, like my wife says it's people like you that make us so successful.

So thanks (I really mean it).

I remember a while ago that you said to me that I should put my money into premium bonds (prize fund based on 1.5%) instead of a fixed rate bond paying 5% (3% net). It's no wonder you can't work it out.

Eh?

You cant win an argument by lying. At least you have shown your true colours, firstly changing argument, secondly by trying to win via lies.

To finish, no-one can be successful at business if they are liars, as they always end of lying to themselves.

chucknorris

JonnyBravo wrote: »

Do you think all landlords make a loss when you account for maintenance?

As strange as it sounds I think he actually does!

chucky

abaxas wrote: »

Eh?

You cant win an argument by lying. At least you have shown your true colours, firstly changing argument, secondly by trying to win via lies.

To finish, no-one can be successful at business if they are liars, as they always end of lying to themselves.

when you don't understand when someone is explaining to you that you are stupid i think the answer must be that you are stupid...

chucknorris

abaxas wrote: »

Eh?

You cant win an argument by lying. At least you have shown your true colours, firstly changing argument, secondly by trying to win via lies.

To finish, no-one can be successful at business if they are liars, as they always end of lying to themselves.

The arguement was won long ago, obviously tenants pay for the maintenance costs via the rent. You are just too silly to know it.

I'm not trying to win an arguement by lying I think you are referring to what I said about premium bonds. I went to search for the thread to verify but now suspect that I am probably mistaken as it seems that might have been someone called asheron. That was a genuine mistake which despite the fact you called me a liar I will still appologise for (it was not a lie, it was a mistake, do you always assume people are lying? how sad).

But the premium bonds are irrelevant, the point remains that the rent covers the maintenance costs!

Kohoutek

Batchy wrote: »

interest on 60k... WHAT INTEREST or are you talking about 0.10%??

If you get a 0.1% return on your savings and investments you're an idiot.

Let's assume for the purposes of the example interest rates stay the same for 25 years. You get 2.5% after tax, which is doable, especially considering you could fill your ISAs in six years.

After 25 years, you would have made £51,236.65 in interest/capital growth on your £60,000, giving you £111,236.65.

I'm sure buying is almost always better than renting in the long term, but the effects of compound interest is hardly insignificant, is it?

You need to deduct maintenance/insurance too in the buying example too – say 0.5% of the property value each year? That's £25,000.