anyone else want a CRASH...?

crashinit

Rates go up, you will only be allowed a mortgage if the bank feels you can pay it back, not like now. prices will drop taxes night go up. and yes iam waiting for a crash just put half of my money in euros this dollar thing is just the start it to much to go into, however now is not the right time to buy people will start to feel it late 2q next year.

PoorDave

Anyone got any factual examples outside of south east England?

ollyshaw

Ok guys,

I live in the north east. I pay £320 a month rent. The house is worth about £120k. I cant remember the exact figure but I reccon I am £500 a month better off renting at the min (not including any maintenances, insurance, other costs).

Olly

PoorDave

ollyshaw wrote:

Ok guys,

I live in the north east. I pay £320 a month rent. The house is worth about £120k. I cant remember the exact figure but I reccon I am £500 a month better off renting at the min (not including any maintenances, insurance, other costs).

Olly

So including what then?!

120k house on a mortgage of 5% rate costs 500pcm, but i presume the landlord would have bought the house a while ago (when it was cheaper, hence he'she has a smaller mortgage, plus i've ignored any deposit), hence 320pcm being acceptable.

Not sure how you come up with £500pcm, but the it's your life, an it's hard to guess how your figures would look.

manhattan

i am in cambridgeshire in a nice city a very sought after area and popular street paying £270 a month rent.

it is a 2 bed semi house owned by a local HA and is worth £120k.

we are also better off renting,whilst we carry on saving.

ollyshaw

PoorDave wrote:

So including what then?!

120k house on a mortgage of 5% rate costs 500pcm, but i presume the landlord would have bought the house a while ago (when it was cheaper, hence he'she has a smaller mortgage, plus i've ignored any deposit), hence 320pcm being acceptable.

Ok I had another look just now. I assumed 6% mortgage and 5k deposit. With that there is a £417 difference. I stand corrected. The £500 must have been a estimate including all other related costs!

As for the landlady, she inherited the property so every penny is profit for her. But yeah if she had bought 6 years ago she would have still been up and seen the value triple.

Olly

lynzpower

scorpio princess also said earlier in this thread ( i think) that shes in norfolk I think and renting is a couple of hundred cheaper than buying ( on monthly costs only - obv no SDLT/maintainence etc)

Alan_M_2

PoorDave wrote:

So including what then?!

120k house on a mortgage of 5% rate costs 500pcm, but i presume the landlord would have bought the house a while ago (when it was cheaper, hence he'she has a smaller mortgage, plus i've ignored any deposit), hence 320pcm being acceptable.

Not sure how you come up with £500pcm, but the it's your life, an it's hard to guess how your figures would look.

Yup I came up with the same figures, but what we're trying to arrive at is the postion we're in now.

You're probably correct assuming the property was bought for less, but again this highlights the fact that as of today, If you were considering buying a property there's no renatable inentment value in it.

Of course if your buying a home that may be irrelevant to you.

IO mortgage = £500pm (best case scenario at 5%)
Rent = £320

If you bought today how much capital increase would you expect on your £120,000.

Actually I was surprised, I was expecting at least a few renters providing figures that still showed a profit even on current values.

Do we have any more?

Alan_M_2

manhattan wrote:

i am in cambridgeshire in a nice city a very sought after area and popular street paying £270 a month rent.

it is a 2 bed semi house owned by a local HA and is worth £120k.

we are also better off renting,whilst we carry on saving.

IO mortgage @ 5% approx £500 pm
Rent = £270.

That's a no brainer.

So far we have : all the same pattern

North London
Surrey
Whitley Bay
Cambridgeshire

Keep them coming, 4 doesn't exactly prove anything.

cwcw

Ok, heres one for you:

2 bed (1 double, 1 single) flat in sought after area of Sheffield:

£136,000 - 10% deposit = £122,400 mortgage.

Repayment = £705 a month.
Interest only = £497 a month.

Rent for similar flat in same block = £550 pcm.


So, assuming the £705 monthly budget...

Buying: £13,600 deposit + £208 a month into equity
(Current local annual house price inflation: circa 8%.
Monthly 'dead' money: £497)

Vs

Renting: £13,600 and £155 a month into savings account
(Current best savings rate available (net): 4.25%
Monthly 'dead' money: £550)


Mortgage fixed at 4.89% for 2 years from commencement. Expecting to stay in the flat for the next 5 years.