Why is it that people are so desperate to own houses?

robmatic

nickmason wrote: »

But at that £350-£500k vs £1300-£2000pm, buying is roughly twice as expensive in the immediate term. (While after 25years, buying does work out cheaper - about £120K in today's money.)

Well, in the other thread we're assuming mortgage rates of 6% per year. It's a reasonable assumption over a longer time period but one should take care when applying it to the immediate term, when a typical mortgage rate might be between 2% and 4% per year.

Jimmy_31

nikkipea wrote: »

I have previously been a homeowner and now rent, I will never buy again. Renting is cheaper, anything goes wrong you just ring the landlord, it's not your problem. A lot of people like the security of owning their own property but I like the freedom of not. If I decide to relocate to another city or emigrate to Oz, I only have to give 1 months notice. The fact that the landlord only has to give the same to throw me out does not phase me, there are plenty of decent properties around to rent. I also like the fact that if I were to lose my job (which I did last year) I get most of my rent paid and also my council tax, I'm not sure you get help towards a mortgage??

I suppose everyone has their own opinion but I say live for now (I'm in my late 20's). Yes, I will reach retirement age one day (hopefully) and I will not own my own home but again I know people in this situation and you get your rent paid for you. I would much rather have the cash in the bank than in bricks and mortar.
My rented house is just as I want it, the landlord pretty much lets us do what we wish. I have watched friends save for years for a deposit on a house, missing out on nice holidays and cars etc... a few years down the line they split up and because people mortgage themselves upto their eyeballs either get stuck in a property, or sell and lose all of that hard earned deposit! Pointless really.

The cash you mention that will be in the bank because you chose not to buy a house will get spent on rent, its a good job i noticed that because you nearly tricked me into renting:rotfl::rotfl::rotfl:

Pete111

nickmason wrote: »

This is why I started the other thread.
While I'm very happy for you Pete, I'm not certain your situation is a fair comparison, as it's likely to be hugely skewed by the benefits you have enjoyed over the last 10 years of HPI.

On the other thread, a variety of example London prices were given, which seemed to vary from about £350k-£500k, with equivalent rent at about £1300-£2000pm. Some people, myself included, have much more favourable (lower yielding) rents; and no doubt you will tell us that your flat that you rent for £1300pm is worth much less than £300k and so is higher yielding.

But at that £350-£500k vs £1300-£2000pm, buying is roughly twice as expensive in the immediate term. (While after 25years, buying does work out cheaper - about £120K in today's money.)

Only owned for 7 years - the last 3 of which have been pretty dicey!

Pete111

robmatic wrote: »

Well, in the other thread we're assuming mortgage rates of 6% per year. It's a reasonable assumption over a longer time period but one should take care when applying it to the immediate term, when a typical mortgage rate might be between 2% and 4% per year.

Quite.

I've never paid more than 5.19% and currently paying 3.8% (fixed)

Lots of people on trackers are doing better than that and interest rates aren't going anywhere for a while...

smckay

Not read all of the post but my reason for buying is that I love to visit B&Q at the weekends and have a medical condition that means I have to paint a wall once every 3 months.

birkee

smckay wrote: »

Not read all of the post but my reason for buying is that I love to visit B&Q at the weekends and have a medical condition that means I have to paint a wall once every 3 months.

That's not economics, that's marriage! :rotfl:

Batchy

My reason for buying a house was so that I wouldn't have to appear to be desperate to own a house anymore... And because the freedom and independance it gives you are very refreshing indeed. It makes you grow up, and enjoy the finer things in life.

I appear to be a role model to those closest to me, many people say, how can you be doing so well, when your family are all jokers, making babies and having fun.

I personally think I work hard and play hard, and have reaped the rewards! :-) Buying a house was a natural thing to do, the only people who think its not a great idea to buy a house are those who are happily renting and counting their 10k which frankly is nice... but still not big enough of a deposit to buy a house! Those generally who can... DO, those who can't ...RUBBISH the idea away.

If most people are desperate to own, it suggests that house prices are only going to go ONE WAY, when credit access eases... do you therefore not agree, get on board ... chooo chooooo... its leaving soon! ;-) lol

If you missed whatever boat set sail a few years ago... stop flapping it, and do something about it.

Batchy

birkee wrote: »

That's not economics, that's marriage! :rotfl:

Stop it the gf keeps asking me to grow a pair and do something like that... :-S

Jimmy_31

Batchy wrote: »

My reason for buying a house was so that I wouldn't have to appear to be desperate to own a house anymore... And because the freedom and independance it gives you are very refreshing indeed. It makes you grow up, and enjoy the finer things in life.

I appear to be a role model to those closest to me, many people say, how can you be doing so well, when your family are all jokers, making babies and having fun.

I personally think I work hard and play hard, and have reaped the rewards! :-) Buying a house was a natural thing to do, the only people who think its not a great idea to buy a house are those who are happily renting and counting their 10k which frankly is nice... but still not big enough of a deposit to buy a house! Those generally who can... DO, those who can't ...RUBBISH the idea away.

If most people are desperate to own, it suggests that house prices are only going to go ONE WAY, when credit access eases... do you therefore not agree, get on board ... chooo chooooo... its leaving soon! ;-) lol

If you missed whatever boat set sail a few years ago... stop flapping it, and do something about it.

If only you had waited another 12 to 18 months before you bought eh.

I thought this was supposed to be a money saving website:rotfl:

FATBALLZ

birkee wrote: »

That's hypocrasy!
How many charity collectors do you turn away?

There are sufficient charities collecting these day, to clear the bank accounts of every person on here. They don't want contributions any more, they want access to your bank account to help themselves.

We have to choose the charities we will support, and turn the rest away.

Oh look, there's another 4 charity bags through my door this morning,.... that's 10 this week so far. Ah well, they're useful bin liners. I suppose I could pop down the High Street and buy some, but not ONE of those charity shops sell them. I'll just have to wait until I jump in the car and go to the supermarket and fight my way through the charity collectors and get them there.
Hope we don't get too many door knockers this week either.

Your theoretical morality, is streets away from reallity.
I've had five siblings die with cancer so far, but you want me to supply water to Africa or be classed as immoral by you?
What about lifeboats? people volunteering for dangerous unpaid work and saving lives, but you want me to send food to war torn Ethiopia? They CAN stop killing each other voluntarily.

Just wondering where your morality ends, or where your infinite supply of charity donation money comes from.

!!!! me, you managed to type your way through those whole 6 paragraphs without realising my point had completely passed you by.

For clarity, my point was "life isn't fair" is a stupid argument to attempt to justify ignoring any injustice with. Resorting to it demonstrates the reasoning abilities of a small child. That isn't to say you have to give all your money to charity.