House ownership - Selling yourself into a lifetime of servitude

debtistheft

robmatic wrote: »

to be fair to the poor boy he is having one of those days where nothing sinks in...

hate crime!!!!!

Alert! Martin Lewis, Alert!!!

Pete111

debtistheft wrote: »

Jeeze, can you people not read earlier posts?

I cant be !!!!!d typing it all again. Do a search for my username and 'downsizing'. Basically, for those who haven't the skills to search... Downsizing is the favourite for the idiot home owner who uses the refrain "My home is my pension". One wonders if they live in a mansion house and intend moving to the gatehouse? No, they own a nice, but modest 3 bed family home and intend to downsize to a nice but modest 2 bed home. By the time they have paid out to the estate agents and other assorted parasites there is notheing left.

Remember, to downsize you need to sell a house and then buy one. Not cheap. Certainly not as cheap as I could downsize:

Me: "Hi landlord, here is my notice on this 3 bed house. We don't need the space anymore".
Landlord: "Oh, that's a shame, you were a good tenant".

One month Later:

Me: Ah, our new cottage. Lovely.

Alternative for downsizing home owner:

Idiot: "Eh by gum our Enid, we need 'tut downside whatever that means. Ma pidgeon feed don't come cheap our lass.

One year Later:

Idiot: "Eh by gum our lass, we finally sold our 'ouse and moved from that soot infested louse ridden northern hell hole to a smaller house in a different and even scummier part of the northern hell hole".

Idiots wife: "Eh by gum but we took a hit on the housing sale. 10% reduction 'cos we were desprit, that 2% estate agent cost, the £2000 legal costs, the stamp duty on our new place, etc. etc.

Idiot's wife: "By 'Eck Our Eric. We're worse off after the move than before it!!

Idiot: "By gum Enid, Your right. We should have listened to that good looking, erudite chap on't 'tinternet all those years ago. No doubt he is on a yatch in the Med right now. Cheeky Southern superior bleeder.

And so ends this true story.

Oh purleeaaasss. Do be a good boy/girl and grow up. Soon as you can would be great.

debtistheft

Pete111 wrote: »

Oh purleeaaasss. Do be a good boy/girl and grow up. Soon as you can would be great.

I thought that was brilliant!

It made me giggle as I was typing it all. Our Pete.

Thrugelmir

debtistheft wrote: »

Remember that I told you about this life and you ignored me because all you need is your own home to be happy.

My late grandparents bought their house in 1932 on a 25 year mortgage. Never moved lived there all their lives. My grandmother lived to 4 months shy of celebrating a 100. So between 1957 and 1998 she lived happily rent free. 41 years is a good investment return in my eyes. For a 25 year committment.

IveSeenTheLight

debtistheft wrote: »

You say this as though it blows away my argument when actually it reinforces it. A pensioner who pays his rent using the return from some of his investments gets a roof over his head, the security of a lot of money in the bank and the security of knowing that any problems with the property will be addressed by the landlord.

Please show us an actual example whereby someone in retirement has been better off not buying property.

I can't think of one person who you could show to represent that renting is better than buying.

You seem to think that a renter has much more money to invest than an owner occupier when that has been painfully pointed out to you time and time again.

I have a property bought in 2004 that the mortgage interest is less than £100, yet the undervalue market achieved is 11 x more than that.

Extrapolate that - In one single year, the mortgage interest is less than £1,200 whilst the rent received is £13,200.

As a LL, I'm already £12,000 per year (and increasing each year as the interest reduces) better off than the renter.

Of course, there is maintenance, tax etc costs to be deducted, I'm not going to deny that, but the property investment is providing a profit that is allowing me to invest that money further.

In short, I can invest my own money and the profit from my tenants to substantially increase my overall value.

Can the tenant do likewise? Clue, the answer is a two letter word beginning with N

IveSeenTheLight

robmatic wrote: »

I would suggest that the person who will be better off in retirement will be the person who spends the lesser amount on housing costs over their working life and invests the extra wealth that they have gained from doing so sensibly.

There are plenty of people commenting on this thread whose repayment mortgage is less than the equivalent rent so it looks like they are the winners.

Yeah yeah, but if you ignore that and many other valid points, debtistheft might have something

nembot

IveSeenTheLight wrote: »

Please show us an actual example whereby someone in retirement has been better off not buying property.

It seems to work perfectly well on the continent, with statistics suggesting a better quality of life.

mutter

nembot wrote: »

It seems to work perfectly well on the continent, with statistics suggesting a better quality of life.

On the continent, you probably rent from a company or corporation who are able to let you sign a lease giving you 20 or more years security rather than from a private landlord who lets you sign up for 6 months and who may or may not have bothered to find out what his/her responsibilities were towards his/her tenants when s/he took out a BTL mortgage cos it looked like a get rich quick scheme when s/he saw it on the telly.

That's not taking a pop at ALL landlords, by the way, but there are a lot of dodgy ones around.

debtistheft

IveSeenTheLight wrote: »

Please show us an actual example whereby someone in retirement has been better off not buying property.

These people whould have been better off renting, especially the first one. If she sold to let she would have been in a great position:

http://news.bbc.co.uk/1/hi/uk/7909354.stm

robmatic

debtistheft wrote: »

These people whould have been better off renting, especially the first one. If she sold to let she would have been in a great position:

http://news.bbc.co.uk/1/hi/uk/7909354.stm

Actually, I think she would have been equally likely to have been the victim of fraudsters, which seems to have been the problem.