MW: IS buying cheaper than renting?

abaxas

All depends on timeframe.

If you look at the NE.....

Bought 2002 - cheaper to buy
Bought 2004 - cheaper to rent.

Blacklight

moneyweek lol

I haven't bothered to read it, I know what the conclusion will be.

IronWolf

There's more to buying a house than seeing it as an investment.

If you have kids and want them to grow up in a nice secure home you can make your own, then does it matter whether you might save £10k by renting if you're always at risk of getting evicted for no reason?

abaxas

IronWolf wrote: »

There's more to buying a house than seeing it as an investment.

If you have kids and want them to grow up in a nice secure home you can make your own, then does it matter whether you might save £10k by renting if you're always at risk of getting evicted for no reason?

Your home is only as secure as you job.

RenovationMan

ruggedtoast wrote: »

I'm paying about £450 interest a month on a house that would cost about £800 to rent. Anything I pay over this £450 is coming off the principle. In effect a tax free investment.

Out of interest, how much would your mortgage be if you had zero equity (i.e. you were renting from the bank as opposed to renting from a landlord?)

What I'm getting at is that I don't see how its really possible to compare renting and buying unless you compare like for like and so if a home owner has, say, £100k of equity reducing the cost of his mortgage, then you'd have to compare this to a tenant who has £100k in the bank earning him monthly interest that could go towards paying his rent, narrowing the gulf between the £800 rental and £450 mortgage in the example given.

RenovationMan

abaxas wrote: »

Your Mortgaged home is only as secure as you job.

Even then this depends on whether the household has other income that is not dependant upon the job and covers the cost of the mortgage.

ruggedtoast

RenovationMan wrote: »

Out of interest, how much would your mortgage be if you had zero equity (i.e. you were renting from the bank as opposed to renting from a landlord?)

What I'm getting at is that I don't see how its really possible to compare renting and buying unless you compare like for like and so if a home owner has, say, £100k of equity reducing the cost of his mortgage, then you'd have to compare this to a tenant who has £100k in the bank earning him monthly interest that could go towards paying his rent, narrowing the gulf between the £800 rental and £450 mortgage in the example given.

Looks like about £630 interest only.

HAMISH_MCTAVISH

Blacklight wrote: »

moneyweek lol

I haven't bothered to read it, I know what the conclusion will be.

Yep.

The conclusion is that if you create a highly improbable set of circumstances, renting might be almost as cheap as buying.

Moneyweek know the game is up, the crash is over, and it no longer makes sense to enrich your landlord rather than yourself. But they're trying to let the bears down gently. Can't lose all that subscription revenue all at once.;)

heathcote123

geneer wrote: »

Let the adhominem frothing begin!

erm, cash buyers pay less for properties in auctions than retail buyers with mortgages?

Now theres a real nugget of suprising and valuable information from moneyweek.

Conrad

abaxas wrote: »

Your home is only as secure as you job.

And 99% of owners sustain the home and do not get repo'd, so the odds are ok.
One cannot live a life by trembling in a corner - what an unworthy unstoic existence.