When people talk about throwing money away renting...

Londonsu

Coveredinbees!!!! wrote: »

My 3 bedroom house cost me £165 a month, what can I rent for that?

Yes thats the whole point, I paid of my mortgage in 2008 and now live rent and mortage free.

In 2008 my Mortgage repayments were £136 per month, to rent the same flat would have cost me £1000 per month (thats what the one next door was going for)

In 2010 I sold my flat and moved to the Isle of Wight, I was able to purchase a house in Ryde with cash with only 1/2 of the money I got for my London flat

Ok I was lucky that my flat was in a trendy area of London (although it wasnt trendy when I bought) and sold with 4 days of going on the market.


Personally I would rather spend my own money on doing up my own property then have to live with what the LL decided was good enough for me.

Londonsu

robthesnapper wrote: »

I have a 2-bed flat which I'm about to try and sell after owning for 8 years.

I wont make any money on it. Solicitors and estage agents will. Because the mortgage companies changed their rules, the lease needs extending so some rich guy in London will get about £16k. I'll probably have a shortfall.

For only £100 more than what I'm paying on the mortgage I could rent a nice 4-bed detached house with a garden in an area away from the city. True, it wont be mine in 25 years time, but there's no way I could save enough even for the deposit on a decent house now. If the boiler breaks down, I don't have to pay for it.

Meanwhile, my mom has dementia and dad is....yep, probably going to have to sell the house to pay for her care.

Money can go down the drain either with buying or renting.

Take advise on this as it is not correct

If a couple are living in the same house and only one of them needs care the house cannot be sold to pay for that care whilst the partner/spouse is still living there - give me a mo and I will find the relevant information
there you go
Assessing care home fees for home owners

If you move into a care home permanently, the local council may count your home as capital from 12 weeks after you arrive there. However, your home won't be counted as capital if any of the following people still live there:

• your husband, wife, civil partner or someone you live with as a partner
• a close relative who is 60 or over, or incapacitated
• one of your children (including adopted children) who is under 18
• your ex-husband, ex-wife, ex-civil partner or ex-partner if they are a single parent

Your local council may choose not to count your home as capital if your carer lives there
Taken from the governements own website

franklee

shortchanged wrote: »

Surely the biggest drawback about renting is that you pay rent until the day you die.

Renting isn't a one way decision, you can rent and save and then buy. Or you can buy then sell and rent, then buy again. Surely it depends on the economy and the needs of the person at the time.

As for other posts on this thread I think education on how interest works on both savings and borrowings should be mandatory. It's hugely depressing to see people on this site who are probably the most aware having gone looking for help, not understanding the basics.

Interest charged on the mortgage doesn't go to pay off the loan, so that payment is similar to rent. If the interest charged on the mortgage is more than the rent then the renter isn't throwing money away, he can save the equivilent amount being paid off the loan (and get interest on those savings). That leaves house price rises or falls as the difference made between renting and buying plus the difference in costs for maintenance etc.

Frankly I think long term buying is the better bet but not right now whist house prices still look high and wage inflation is low.

moneysavermum_2

franklee wrote: »

Renting isn't a one way decision, you can rent and save and then buy. Or you can buy then sell and rent, then buy again. Surely it depends on the economy and the needs of the person at the time.

As for other posts on this thread I think education on how interest works on both savings and borrowings should be mandatory. It's hugely depressing to see people on this site who are probably the most aware having gone looking for help, not understanding the basics.

Interest charged on the mortgage doesn't go to pay off the loan, so that payment is similar to rent. If the interest charged on the mortgage is more than the rent then the renter isn't throwing money away, he can save the equivilent amount being paid off the loan (and get interest on those savings). That leaves house price rises or falls as the difference made between renting and buying plus the difference in costs for maintenance etc.

Frankly I think long term buying is the better bet but not right now whist house prices still look high and wage inflation is low.

I personally donot trust renting for one my rent would be in the region of £800 per month I pay £495 mortgage abd 2 I wouldnet trust my landlord a to keep the rent the same b to fix repairs immediately and c not to turf me out after 6 months. What happened to wanting stability for your family?

milliebear00001

I have done both intermittently. I have a young family now and (for various reasons) sold my house and rented with my Oh and kids for about four years. Am now in our own (albeit mortgaged) property again.

Renting has its place, but in the current system, tenants are at the constant risk of being homeless within a two month notice period. All the while I was renting (a very nice property, in a great area, with rent that would not have covered any mortgage I would have needed to buy it) this was this one niggle at the back of my mind.

I rented in my twenties, without kids, without a care. I would be (and was) very unhappy if I had to do this with children. It is simply a much more unstable way to live for the majority of people. I believe children need a stable home, although I accept others may think this is less important.

Second factor is the age thing. It suddently occurred to me, that if we didn't buy again soon, we'd still be paying rent past retirement. I am looking forward to the day that I can sit back, with no rent or mortgage to pay, and live on my pension! The thought of still paying rent or a mortgage, without a salary, scares me to death.

My home isn't an investment as such (I don't much care whether it's worth more today than a year or five ago). It is though, my security for my children, and for my old-age.

petercollins2011

There exists a social stigma of people "owning" their own houses. It is a fantastic confidence trick performed by the banks.

The bottom line is we lend you £XXXk at a massive interest rate and you get to call yourself a success.

Every ad campaign they issue supports the idea....the nursery room, mowing the grass, etc. etc.

The vast majority of the general public fall for it and continue to work 7-10 hours per day to pay back their loan.

If you were to take a step back and ask yourself why people do it, you could come up with little reasons why.

People do it to fit in. Their wooden floors are an expression of who they are. It is that pathetic and sad.

Rent, rent, rent and travel the world. You and your family will have a much better, fulfilled life.

petercollins2011

milliebear00001 wrote: »

I believe children need a stable home, although I accept others may think this is less important.

Children need routine....they do not need to be dumped in a creche because mister and missus no brain have a mortgage they cannot pay without both working.

Your definition of a 'stable home' is so far removed from what children really need as to be laughable and ridiculous.

It is nothing more than an ostentatious display of your "success"....the child friendly car seat as you feed him chicken nuggets.

A disgrace.

petercollins2011

milliebear00001 wrote: »

Second factor is the age thing. It suddently occurred to me, that if we didn't buy again soon, we'd still be paying rent past retirement. I am looking forward to the day that I can sit back, with no rent or mortgage to pay, and live on my pension! The thought of still paying rent or a mortgage, without a salary, scares me to death.

An investment now in the correct markets would give a guaranteed higher return than any investment in property, namely an investment in stocks and shares, the best long-term investment over the last 40 years.

The poster is a dream to the life and pensions companies....ignorant, scared and oblivious to the real threats to their retirement.

It would be funny if it wasn't so pathetic.

Scott Adams was right - "You can never underestimate the stupidity of the general public"

Loanranger

petercollins2011 wrote: »

Children need routine....they do not need to be dumped in a creche because mister and missus no brain have a mortgage they cannot pay without both working.

Your definition of a 'stable home' is so far removed from what children really need as to be laughable and ridiculous.

It is nothing more than an ostentatious display of your "success"....the child friendly car seat as you feed him chicken nuggets.

A disgrace.

Milliebear is not here to refute your comments but she has a disabled husband and she is the breadwinner with a young family.

Check your facts before you flame someone.

breadlinebetty

AnnaV wrote: »

Are they perhaps forgetting the money you 'throw away' buying?

• Lost capital (if house value goes down)
• Interest
• Stamp duty
• Estate agents'/solicitors'/surveyors' fees
• Mortgage arrangement/repayment fees
• Paying the plumber/electrician/for the new boiler/etc yourself
• Maintenance

Just food for thought. It's not as clear cut as some people think

When you take out a mortgage your repayments become LOWER in time with inflation. Your repayments of, say £1000 a month will seem peanuts in 10 years time - but rents go UP with inflation. Not only do your mortgage repayments come DOWN over time, but you actually pay LESS as your capital increases. Every month you're owning more and more of that property - until evenually - you own ALL of it.

In 20 years time your property ALWAYS goes up witj inflation - so buying is a win-win situation!

Besides, who wants to pay someone else's mortgage for them?! That's what renters are doing. And when you own your own house, if you want to go off and travel the world, or even live somewhere else - you can rent your place out and live on the income you get from renters!!! PLUS, you will eventually one day leave all that money to your children......................

It's a very nice feeling , too, to know that you're the king of your castle and can furnish, decorate it how YOU like! It's YOUR home - not your landlords.

You will NEVER have anything to show for renting - it's just dead money. But after you've paid your mortgage you OWN that house. If you want to sell up and move anywhere on the world - you can. Or if you want to stay put - and never pay a single penny to do so - you can if you've bought it!!!!!!:money: