Grrrr If I hear 'renting is throwing money away' from another interest only holder

Mc4ndy

Kelinik wrote:

I was about to say that value of anything is only what someone is prepared to pay for it.

Yes, that painting by Jackson Pollock to me would be worth around £2. To someone else it was worth £6.62m

Kelinik

Lol - you and me both!

Mc4ndy

It seems to me that property is a good investment to people who have money to invest, giving a better return probably than bank interest and stocks and shares. Too many properties are being snapped up by investers for the purposes of letting them, and as a long term investment for theselves. The resulting increase in house prices caused by BTL investers pushes up prices until they become beyond the reach of many first time buyers and people on low incomes. Renting therefore to some extent accentuates this problem. Another case of the rich making money from the poor. Footballers with 10 houses for example because they have cash falling out of their shorts and in contrast Joe Public trying to get on the housing market but realising that with a 999 year mortgage at 50 times their income they can just about get a sh*t house in a sh*t area. Sounds immorral somehow.

The average age people stay at home with their parents has increased as a result of houses becomming unaffordable. Eventually, perhaps children will never leave home, and just inherit the house when their parents pass on. By then of course the house will be worth millions but the inheritance tax limit will be still £285,000 so then they will have to sell it to pay the tax. Ace.

earthmother

Something that came up in discussion with family the other day - not that long ago (50 years?) renting was the norm for many working and middle class people.


I wonder what changed?

gelato_cat

LOL! You had me going for a second...

Suze

guppy wrote:

Well I'm certainly going to buy rather than throwing my money away renting. I'd be better off burning it than doing that.

Besides I can afford to now with one of these new 999 year mortgages, the bank are going to lend me 27 times my salary too. I can pass on the debt to my grandchildren.

This is all going to be fine though because house prices never, ever fall. Its impossible.

Hmmm...

Anyone remember the early 1990s?

elisebutt65

Well I rent from the council and my full rent is £320 pcm. At the minute I'm at Uni so when my HB finally gets sorted out it will be about £160/month until I graduate and get a job.

It's a gorgeous 3 bed terraced cottage in the 'nice' end of Leamington and there is no way I could ever afford to buy it - not on a student loan anyways - lol. Who knows I could buy it with a massive discount when I'm working - but I won't!! It's public housing and when the kids are older and left home I'll transfer to a smaller property.

I've owned property in the past and TBH, it was a PITA!!! I hate DIY etc and equally hate forking out to possible cowboys for repairs. I've had a new kitchen and bathroom in the last year, a new roof the year before that and all the exterior painted as well.

When I get problems - like when my back door lock broke - the repairs people are only a phone call away.

Can honestly say I will now be a council house mum for the rest of my life - Unless I win the lottery(that's if I ever remember to buy a ticket)

fuzzgun19

Totally agree with you there elise. Im council too.

Although it'd be nice to own my own home, it's everything else e.g. repairs, and WAYYYYY to expensive to buy these days anyway!!

michaels

fuzzgun19 wrote:

Totally agree with you there elise. Im council too.

Although it'd be nice to own my own home, it's everything else e.g. repairs, and WAYYYYY to expensive to buy these days anyway!!

And so nice that tax payers who may well earn less than you are subsidising your housing...sweet

elisebutt65

michaels wrote:

And so nice that tax payers who may well earn less than you are subsidising your housing...sweet

And........

Go on the council list if it bothers you that much!

I earn nothing and live on my student loan and grant so I don't see now you can earn less than me?

azbij

one word - "gearing".

don't diss ownership (whether it means house or mortgage). for 5% deposit you can enjoy 20 times the rate of increase in the value of the house that you don't own.

Interest only mortgages are a perfectly legitimate way to buy and own a home too - as the price of the house increases over time your friend will own more and more percentage-wise, even if he doesn't pay off a penny of the original mortgage.