We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
An entire generation locked out of property ownership
Comments
-
Graham_Devon wrote: »Unfair comparison really.
Straight away, you have knocked 20% off the total mortgage figures and given absolutely nothing to the renter. (interest for instance on that 20%).
Read it again Graham I've reduced rent by £110 a month.
It's a similar house. It’s the cheapest 2 bed in area others are £895.0 -
Read it again Graham I've reduced rent by £110 a month.
It's a similar house. It’s the cheapest 2 bed in area others are £895.
Well you need to reduce the rent by more than that.
92,600 interest on that 40k (200k value minus 20% = 40k, not 24k) works out as £191 a month at the end of the 40 year period. Not 110.0 -
Graham_Devon wrote: »Well you need to reduce the rent by more than that.
92,600 interest on that 40k (200k value minus 20% = 40k, not 24k) works out as £191 a month at the end of the 40 year period. Not 110.
Why 3% of £44k = £1320 divide by 12= £110
I've correct my typing error it should have read £44K0 -
Graham_Devon wrote: »I'd suggest doing it again on averages. Not your street. However, even with the very high rent for a 2 bed, you have only calculated after 39 years that the renter is just 17k worse off. Less than one years average wages.
Yes you're right; the renter is only 17k worse off. That and the 200k house they don't own.
That's with a 40 year mortgage - what do you think a more realistic 25 year mortgage would do to the breakeven?0 -
Why 3% of £44k = £1320 divide by 12= £110
Compounded interest.
Put 40k in a savings account paying a meagre 3% and you end up after 40 years with £132,600. 96.2k of that is interest. 92.6k / 40 / 12 = £192.
We still haven't spent the original 40k on housing yet (the mortgagegee has). Just the interest.0 -
you can also add the 2% inflation into there.Yes you're right; the renter is only 17k worse off. That and the 200k house they don't own.
That's with a 40 year mortgage - what do you think a more realistic 25 year mortgage would do to the breakeven?
Year 1 Rent is £730 per month
Year 40 Rent at 2% inflation will be £1,612 per month
but obviously that's not fair because for Devon because we don't know what future inflation will be and house prices are going to fall for 40 years...0 -
Yes you're right; the renter is only 17k worse off. That and the 200k house they don't own.
That's with a 40 year mortgage - what do you think a more realistic 25 year mortgage would do to the breakeven?
I've never argued any different. I've not argued mortgaging isn't better in the long term. I only stated it would be better to rent than to take a 40 year mortgage at present. Which, as I said it, caused a raucous, and then, all this.0 -
Graham_Devon wrote: »Compounded interest.
Put 40k in a savings account paying a meagre 3% and you end up after 40 years with £132,600. 96.2k of that is interest. 92.6k / 40 / 12 = £192.
We still haven't spent the original 40k on housing yet (the mortgagegee has). Just the interest.
Well a good rate after tax would be 3% renter will have £40k deposit and £4k fees £44k use the interest to reduce rent therefore £1320 interest divided by 12. Of coarse if you are using interest to pay rent you will still only have £44k at the end of £40 years0 -
you can also add the 2% inflation into there.
Year 1 Rent is £730 per month
Year 40 Rent at 2% inflation will be £1,612 per month
but obviously that's not fair because for Devon because we don't know what future inflation will be and house prices are going to fall for 40 years...
To be fair I've already done that.0 -
Graham_Devon wrote: »Plus 2 bed for £850? Is that average? Seems pretty high to me!!
It is in my VI area.
Just a few as examples
http://www-q.aspc.co.uk/cgi-bin/public/LiveProperty/289493?ID=FBMIOBGD#picture
http://www-q.aspc.co.uk/cgi-bin/public/LiveProperty/289449?ID=FBMIOBGD#picture
http://www-q.aspc.co.uk/cgi-bin/public/LiveProperty/289335?ID=FBMIOBGD#picture
http://www-q.aspc.co.uk/cgi-bin/public/LiveProperty/288809?ID=FBMIOBGD#picture:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards