Debate House Prices
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House ownership - Selling yourself into a lifetime of servitude
Comments
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debtistheft wrote: »"I generally rent from property management companies"
"They do not seek to sell the property from under you in order to cash in on a housing boom or because they are in financial difficulties.
You're not very clever at this, are you?
The clue is in "property management companies"
They manage the property for a private landlord. They don't own it.
Therefore the landlord could "seek to sell the property from under you in order to cash in on a housing boom or because they are in financial difficulties" if they wished.
Your theory is built on sand.Nothing is foolproof, as fools are so ingenious!0 -
tartanterra wrote: »Wow. Yes. I can see it so clearly now.
I shall immediately move out of my mortgage free home and rent a bedsit like debtistheft.
Oh....the freedom......:rotfl:
If you sold your home and invested the cash you would probably find that the return would pay for more than just a betsit. However,if you decide to live in a bedsit, you would be able to re-invest the surplus and grow your wealth even faster or you could spend it on whatever else would make you happy.
I personally like to travel and have found that the mobility provided by renting not only has allowed me to enjoy long-term holidays in far flung places, but it has also allowed me to make the most of any career opportunities that come along. My children speak four languages and correspond with friends all over the world, they ski, surf, swim and have enjoyed sampling many cultures and geographical locations. At one stage we were 'following the sun' by living and working in the Northern and then Southern hemispheres.
Perhaps because we dont live permanently in the UK, we haven't fallen for the spell of home ownership as the sole purpose in life. I cringe when I see people stating 'in 17 years when I am 56 I will be mortgage free and can then start living my life'. Its a shame they dont feel able to live their lives in their thirties and forties, its to be hoped that nothing goes wrong in that 17 years to prevent them from finally living their lives in their fifties.0 -
But we are not talking about investment we are talking about somewhere to live and if you did become unable to work for some reason a person renting or buying would end up in the same position.
A person who owns could have £100k equity in his house and no way to get at it. A person who rents and has £100k invested in bonds and shares has every way to get at it. In that scenario, he could move to the ubiquitous bedsit and live off the investment returns until he finds a new job or recovers from illness. I also believe that he could get his rent paid via benefits for far longer than a person can have the interest paid on a house via benefits.
There is also the stress factor. Someone who is ill and unable to work will be far more stressed if he is also likely to lose his house and all the money invested in it due to reposession for non-payment of mortgage. The tenant can simply move to a cheaper location or property type and concentrate on getting well.0 -
If I sold my home I would end up with about £275k. If I wanted to keep it safe I might get 3% after tax which would get me a nice 1 bed flat where I am. The problem there would be no increase in the capital and as rents increased there would come a time when the interest would not cover the rent.
If you are arguing that buying doesn’t suite everybody then I would agree but that’s not what you said is it.0 -
If I sold my home I would end up with about £275k. If I wanted to keep it safe I might get 3% after tax which would get me a nice 1 bed flat where I am. The problem there would be no increase in the capital and as rents increased there would come a time when the interest would not cover the rent.
If you are arguing that buying doesn’t suite everybody then I would agree but that’s not what you said is it.
If you choose to put it into an investment that just returns 3%, then that is your choice. I have had over 10% returns from government bonds, much safer than bank accounts. Though a lower return does suit your argument better, so I understand why you would go in that direction.
I think I have made it quite clear that I dont think buying suits the majority of people, unless they are buying property as an investment.0 -
debtistheft wrote: »A person who owns could have £100k equity in his house and no way to get at it. A person who rents and has £100k invested in bonds and shares has every way to get at it. In that scenario, he could move to the ubiquitous bedsit and live off the investment returns until he finds a new job or recovers from illness. I also believe that he could get his rent paid via benefits for far longer than a person can have the interest paid on a house via benefits.
There is also the stress factor. Someone who is ill and unable to work will be far more stressed if he is also likely to lose his house and all the money invested in it due to reposession for non-payment of mortgage. The tenant can simply move to a cheaper location or property type and concentrate on getting well.
If he was unemployed long enough the person would have to sell his house and any capital he had he would have to use to pay rent and when that was gone he would get support from the government. The person with investments would have to use his investments to pay rent then he would get support from government therefore both end up in same position.0 -
debtistheft wrote: »If you choose to put it into an investment that just returns 3%, then that is your choice. I have had over 10% returns from government bonds, much safer than bank accounts. Though a lower return does suit your argument better, so I understand why you would go in that direction.
I think I have made it quite clear that I dont think buying suits the majority of people, unless they are buying property as an investment.
I’m sure if you are prepared to risk your money you can get a better return but if it is your only means of paying rent you need it in a safe place that will give you a regular income.0 -
debtistheft wrote: »I think I have made it quite clear that I dont think buying suits the majority of people, unless they are buying property as an investment.
surely you mean that buying in an inflated marked doesn't suit the majority of people. I'm in my early 40s and mortgage free - it is a huge relief to know that I don't have to worry about a mortgage or rent, should I lose my job.0 -
debtistheft, what do you do with your money, rent buy or live with Mum and Dad also what financial guidance can you give us as I work the system to my benefit and eventually by using the system will opt out and be self sufficient by not paying taxes (theft) and living off my own means.0
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surely you mean that buying in an inflated marked doesn't suit the majority of people. I'm in my early 40s and mortgage free - it is a huge relief to know that I don't have to worry about a mortgage or rent, should I lose my job.
I can't go back in time and buy before the housing boom engineered by the banks and government so I am talking about buying in today's market.0
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