When people talk about throwing money away renting...

franklee

nje24 wrote: »

I personally donot trust renting for one my rent would be in the region of £800 per month I pay £495 mortgage

£800 per month is the going rate for a three bed house hereabouts but there is no way a mortgage on the equivalent house would be £495 unless the buyer had put a huge deposit down. Rent of £800 per month rents a house of about 225K in these parts. To buy at that price with say a 20% deposit would be 45K cash down and a 180K mortgage. At say 5% that's 1,053 repayment or 750 interest only. Not forgetting I'm getting 4.5% interest on my deposit money, on 45K that's 135 per month income. This makes renting initially about 85 a month cheaper than the interest only, so not a lot in it at those interest rates.

I suppose one could buy a house outright and then say renting is worse as the mortgage is zero but that's not taking into account what else the money invested in the property could do.

nje24 wrote: »

abd 2 I wouldnet trust my landlord a to keep the rent the same

Rents tend to move with house prices, so yes they can go up but then mortgage interest payments can go up if interest rates rise. If I thought house prices were going to rise soon I'd favour buying over renting now but I don't think that's likely as yet. Not forgetting that rises or falls in house prices are likely to be larger than changes in rent so what happens to house prices especially early on can make a huge difference.

nje24 wrote: »

b to fix repairs immediately and c not to turf me out after 6 months. What happened to wanting stability for your family?

I agree these points are a right pain when renting and are where renting loses. OTOH with renting it's easy to move if say you have to relocate for work or to be near the right school. It also costs a lot in fees and tax to buy a house, especially stamp duty so if renting for a few years means one less house purchase overall then that's one lot of stamp duty saved

Londonsu

petercollins2011 wrote: »

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"

Perhaps then you can tell me where I could have invested £136 a month (which was my mortage payments) and made a profit of over a 1/4 mill, which is the price I got for my flat when I sold it last year after paying off my mortgage in 2008

I still have over 1/2 of that left after buying my new house on the island so give us a clue as to where I should invest it - I am all agog


And pray tell me what is a bigger threat in retirement than being made homeless or having to up sticks and move to a cheaper property in old age.

You see the poster is right and I know this as I am living the situation right now, I find myself and Husband in our middle 50s early 60s living totally rent and mortgage free, whilst our neighbour who retired last year pays 500 pounds a month to rent the same type of house, her savings are paying her rent at the moment but of course as she well knows she could live another 20/30 years so there will be a time when her savings will run out and she will lose the house.

My parents are the same they rent through a HA they are in their 80s if they had rented their home through a private LL they would have lost their home years ago, they still might if the HA decides that their three bed house with garden is too big for them and is needed for a family.

So I am sorry the poster is totally right to be concerned she unlike you seems to be living in the real world

Londonsu

petercollins2011 wrote: »

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.

And that is the most pathetic post I have ever ever seen

milliebear00001

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.

I am not sure whose life the poster is commenting on here. As it's clearly not mine, I won't dignify our 'new member's' post with a defensive response.