House ownership - Selling yourself into a lifetime of servitude

robmatic

debtistheft wrote: »

Until they lose their jobs, get divorced or become ill.

Paying rent can be a bit of an issue in these circumstances as well, so what exactly is your point?

ukcarper

debtistheft wrote: »

Thats very nice for you and so because you bought pre-boom, infact at the bottom of a crash, your case is valid for everyone. End of story. I have repeatedly asked you guys to look at house prices TODAY and see if your sums work out. None of you have bothered. Unless you think FTBers can go back in time, get cheaper houses, get MIRAS, get free university education then you really have no idea what its like to try and buy a house now.

Young people today are already saddled with debt before they even try to get onto the housing ladder, something your generation didn't have to deal with. House prices are three times what you paid, yet salaries are barely kept pace with inflation. Its a joke that you guys come onto a house price forum and extoll the virtues of home buying. You have no idea what it is like for people just starting out in life.

In fact I would go further and say that the reason you come on here is to lord it over people who haven't had the advantages you had back in your day.

With regard to student debt, I believe that you will have to pay back 8% of your salary over a certain amount making a effective rate of tax of 28%, basic rate income tax was 33% in the 70s.

SandC

But your original post was telling people to rent to be free of the servitude which the financial institutions and buyers of the past have put those starting off in adult life off into.

You spoke about being encouraged to climb the ladder etc. etc. getting into more and more debt.

What we have done is explain why we feel if you can, it is better to buy because ultimately you will end up with a house that belongs fully to you and you will not therefore have to find rent after you are no longer working.

The only reason any of us have given our personal experiences is because you were so insistent that renting was the better option and your point was that we have wasted money buying our 'boxes' when we could've invested it instead and just rented.

So if you were starting out back in the mid nineties and you had 10% deposit and could get a mortgage on a small property at 3x salary either you or joint, would you have done it or not?

Oh and by the way, I agree, it's awful how the prices have gone - that's precisely why I keep saying to you that I do not see my house as cash because it isn't. It would be no skin off my nose if prices reverted back to what they were when I bought. I haven't lost a bean. But as has been pointed out time and again, I will be better off because my mortgage payments are so much less than current rent.

Either this is about having a noose around your neck or being a bit put out that you can't have what the previous generation had. My generation dont get the massive pension provision my parents got but so what? Such is life.

debtistheft

Well, as is usual in these sorts of debates, whether online or in person, those this the biggest mouths and the largest VI are the ones who dominate the debate, ridiculing anyone who dares have an alternative opinion and therefore making it pointless and often frightening for others to add their alternative viewpoints.

Well, for the lucky people who bought before the boom, well done. Thanks for coming on here to tell those people who haven't had your success or luck just how good you have it.

To those people who are now looking at a mountain of debt from education on top of the mountain of debt that you will have to take on to buy a house, don't feel like secondclass citizens, there is an alternative. You should also lobby your local MP to try and get European style letting laws instead of the skewed ones we have now. Owning a house is not the be all, end all that the bigmouths on here will have you believe. Its an overpriced business model where a lot of people are sucking at the teat and hate the fact that some of us are opting out - look at how these estate agents and mortgage brokers have jumped on this thread to see just how insecure they are.

Vote with your feet, bring the system crashing down. Do your research, find a let where you can stay long-term, can decorate to your taste, learn how to invest wisely and live your lives with money in the bank instead of a debt around your neck!

Good luck to all of you. You are NOT second class citizens because you rent. Yo are NOT second class citizens because you don't believe debt is wealth.

wotsthat

debtistheft wrote: »

If the renter just put his £7k away (deposit & legal fees you mentioned) and received 6% compound interest, he would have 100822.37 after 25 years, let alone how much he could have gained from putting the equivalent of capital payments away.

Hmnn, that amortization calculator was obviously wrong! My apologies.

I think you need to get a grown up to help with your calculations. Otherwise you'll end up paying a lifetime of rent - I'm sure your landlord(s) will be delighted though.

£7k compounded at 6% is £30,000 (as has been pointed out and ignored by you).

Can your carer help?

wotsthat

debtistheft wrote: »

Good luck to all of you. You are NOT second class citizens because you rent. Yo are NOT second class citizens because you don't believe debt is wealth.

Nothing to do with being a second class citizen. If someone chooses to rent that's fine - it's cheaper to buy that's all.

vigilaire

If you rent you are still buying a house - but for someone else ( your landlord ) rather than for yourself.

robmatic

debtistheft wrote: »

Vote with your feet, bring the system crashing down. Do your research, find a let where you can stay long-term, can decorate to your taste, learn how to invest wisely and live your lives with money in the bank instead of a debt around your neck!

Good luck to all of you. You are NOT second class citizens because you rent. Yo are NOT second class citizens because you don't believe debt is wealth.

Did my own research, bought last year, pay less to service (and repay as well actually) my mortgage than I would to rent the equivalent flat.

There's nothing wrong with renting, and I'm glad I did so for a few years whilst the numbers weren't stacking up in favour of buying, but this assertion that paying the cost of servicing a mortgage is a millstone around your neck and that paying rent is different is nonsense.

debtistheft

robmatic wrote: »

There's nothing wrong with renting, and I'm glad I did so for a few years whilst the numbers weren't stacking up in favour of buying.

What changed so that the numbers suddenly DID stack up in favour of buying?

robmatic

debtistheft wrote: »

What changed so that the numbers suddenly DID stack up in favour of buying?

Personal debts being paid off, growing deposit, access to a cheap mortgage rate.