Moving Home - Zoopla Hurts!

GDB2222

HJS86 wrote: »

Dopester is entitled to his opinion but has no right in insulting mine. Which I'm sorry if you're their buddy but he did!!

Can you please advise me where the helpful advice was in that comment?

How about this? "Renting is strategically preferable to put themselves into schemes where they overpay for the property, risking putting themselves into hardship with even a slight market correction. "

Of course, it may not be helpful to you, if your mind is closed, but it may help others reading this thread.

HJS86

GDB2222 wrote: »

How about this? "Renting is strategically preferable to put themselves into schemes where they overpay for the property, risking putting themselves into hardship with even a slight market correction. "

Of course, it may not be helpful to you, if your mind is closed, but it may help others reading this thread.

Excuse me but just because I don't agree with someone opinions does not mean I am closed minded!

I do not believe it's preferable as renting is so expensive. We pay £234 a month in mortgage and £50 in the scheme. Rent for the same place is £450 and I wouldn't own the place. Neg equity or not.

spannerzone

I think it's too easy to get sucked into the 'my house will be worth £xyz in 20 years and we'll make a nice profit' scenario because firstly you need a safe financially secure home now, secondly who knows where and what you'll be doing in 20 years, let alone what the market will be doing and thirdly unless you downsize there's not really any 'profit' and even then the house prices are all relative at a given time. The only time it's real profit as far as I can see is if you own a second house, buy it now for £100k, rent it out and sell it in 20 years time for £500k.

I'm not having a go at anyone but just saying that I too got sucked into the TV shows where middle class people 'made' £100,000's profit by buying and selling in the height of the property boom.

Ulimately your house value is somewhat irrelevant providing you can afford to pay the mortgage and don't intend to move.... if you do move then you're still at the same positive/negative situation that all other houses are at so you're never going to be able to sell your's at a over market price and buy a bigger/better house at less than market price unless you're very lucky. If your house is 10% down on value the chances are other homes will be too, unless it's one of those locations where properties somewhat defy the national average.

Graham_Devon

HJS86 wrote: »

Excuse me but just because I don't agree with someone opinions does not mean I am closed minded!

I do not believe it's preferable as renting is so expensive. We pay £234 a month in mortgage and £50 in the scheme. Rent for the same place is £450 and I wouldn't own the place. Neg equity or not.

You do have to spend around 25k at least to get out though.

That's nearly 4 years rent at £550 a month.

It certainly has not ended up cheaper for you.... unless you are now going to say you don't want to move anyway. You are only looking at the monthly payment.

GDB2222

HJS86 wrote: »

Excuse me but just because I don't agree with someone opinions does not mean I am closed minded!

I do not believe it's preferable as renting is so expensive. We pay £234 a month in mortgage and £50 in the scheme. Rent for the same place is £450 and I wouldn't own the place. Neg equity or not.

But you seem to have lost around £500-1000 a month in capital value. It's been incredibly expensive for you.

Plus you are ignoring expenses that a landlord picks up: insurance, service charges, maintenance, and depreciation on the furniture, etc.

DVardysShadow

HJS86 wrote: »

The main reason however is that its cheaper to buy in that the mortgage repayments are cheaper.

If only.

HJS86 wrote: »

... I do not believe it's preferable as renting is so expensive. We pay £234 a month in mortgage and £50 in the scheme. Rent for the same place is £450 and I wouldn't own the place. Neg equity or not.

The bit you have forgotten is the depreciation in the value of your property. The people who say 'renting is dead money' always fail to acknowledge the effect of depreciation on property. Yes, renting is dead money - when property is level or rising in value. But buying is also dead money if property is falling in value.

If your property has depreciated by £250/month, the costs of owning are not £284/month, but £534/month. Suddenly the £450/month rent looks attractive.

And don't delude yourself that the depreciation is not real money. If you could sell up, that money is made up of lost deposit and money you still owe.

HJS86

Graham_Devon wrote: »

You do have to spend around 25k at least to get out though.

That's nearly 4 years rent at £550 a month.

It certainly has not ended up cheaper for you.... unless you are now going to say you don't want to move anyway. You are only looking at the monthly payment.

Where does the 25k come from?

HJS86

GDB2222 wrote: »

But you seem to have lost around £500-1000 a month in capital value. It's been incredibly expensive for you.

Plus you are ignoring expenses that a landlord picks up: insurance, service charges, maintenance, and depreciation on the furniture, etc.

But you're ignoring the fact that we would have hd to rent for a very very long time in order to save £12000. We might well be here for another few years, we'll still come out fine, probably approximately the same, but we've gained a lot of experience owning our own property which some may think it's important, but to me the experience is invaluable.

GDB2222

HJS86 wrote: »

But you're ignoring the fact that we would have hd to rent for a very very long time in order to save £12000. We might well be here for another few years, we'll still come out fine, probably approximately the same, but we've gained a lot of experience owning our own property which some may think it's important, but to me the experience is invaluable.

You said:

I do not believe it's preferable as renting is so expensive. We pay £234 a month in mortgage and £50 in the scheme. Rent for the same place is £450 and I wouldn't own the place. Neg equity or not.

So, the present place is costing you £284, plus insurance and all the other stuff I mentioned - just wait until your boiler breaks down, or the washing machine. The true cost of your place to you, in the long run, could easily be close to £450/mth when you really add in all the other costs I mentioned. And don't forget that mortgage interest rates are at the lowest level they have been in 50 years.

You seem to be saving between £200 and £500 a month at the moment, so how long would it have taken you to save up the £12k? Looks like 3 years at current rates. Oops, that's about the time since you bought the present flat.

franklee

HJS86,

Everyone makes mistakes (I know I have) but I think you should forget meaningless sound bytes like "renting is dead money" and learn a bit more about finances. You should be looking in detail at interest on the mortgage, loss of interest on deposit savings and the change in property price if you want to compare the costs of renting vs buying.

I have not seen a clear statement how much it's going to cost you to move at various sale prices and how long it'll take you to save the shortfall. I say this as I do not know how old you are but I doubt your property will sell at the price you want in anything like your hoped for two years impacting your plan to move before starting your family.

I think some of the above posts intend to help you understand some of this, which you will have to do if you don't want to waste time or get it so wrong again.

In short I think people are trying to help!

PS: I do get saddened when evermore young people are pulled into financial difficulty due to the housing bubble being kept artificially inflated e.g. by over low interest rates and by government home buy schemes. If the bust had been left to run it's course those young people could have purchased at more sensible prices and not have joined the over indebted.