How Much Money Have You Wasted On Rent?

worried_jim

0 to 5k

I had to rent for eight months in 2003 (£650pcm) and absolutely hated it- poured £5200 away into somebodies else's pocket. Have been paying a mortgage since Aug '03 on a much nicer place which is twice as big for roughly £650 pm in mortgage payments. I have £60k in equity and 17 years left to go. I love it December when my mortgage statement comes through as it is really reducing down every year now. I know home ownership isn't for everyone but the feeling of security and happiness it gives me is definitely worth it.

nollag2006

SailorSam wrote: »

I've never paid rent, went straight from leaving home to starting to buy my own place.
I'd see it as a waste but in many Countries renting is seen as the norm.

I've never seen renting as a waste.

Rents paid to me by tenants are gradually paying off my mortgages for me. What's wasteful about that??

kabayiri

>100k

Can I change my answer? I misread the question.

I thought it said "how much have you wasted on rent boys"

reweird

0 to 5k

kabayiri wrote: »

Can I change my answer? I misread the question.

I thought it said "how much have you wasted on rent boys"

Grow up. Of course just as you know answers cannot be changed but you knew that anyway as the question posed to you 3 times never included the word 'boys'.

You sum up the farce, intellect, argument, and intentional deception of being a forever perpetual deluded bear.

chucknorris

Flight2quality wrote: »

I have wasted zero on rent because unlike my peers who are paying off mortgages in a falling market and are responsible for upkeep and repairs and buying furniture - I am happy to wear our my landlords house and furniture waiting for the bottom for house prices.

If you are on an interest only mortgage then you are renting off the bank any way. The banks are laughing because they are not responsible for upkeep of the property. You are far better renting off a landlord and ring him every time the something goes wrong or you need a new washing machine or fridge freezer

But all the items you mention are included in my tax return and yet I still end up paying tax on profit at the end of each tax year (the white goods and furniture don't get specific mention of course but they are easily covered by the 10% wear and tear allowance). Doesn't that tell you anything?

Pimperne1

chucknorris wrote: »

But all the items you mention are included in my tax return and yet I still end up paying tax on profit at the end of each tax year (the white goods and furniture don't get specific mention of course but they are easily covered by the 10% wear and tear allowance). Doesn't that tell you anything?

And if he "wears" that furniture out at a greater rate than the landlord would expect then he will find that some of his deposit is going toward replacement of the said furniture. Every ones a winner.

chucknorris

Pimperne1 wrote: »

And if he "wears" that furniture out at a greater rate than the landlord would expect then he will find that some of his deposit is going toward replacement of the said furniture. Every ones a winner.

Two French tenants of mine just managed to break a sofa but it's now quite a few years old so I told them I wouldn't be taking anything off them

Pimperne1

chucknorris wrote: »

Two French tenants of mine just managed to break a sofa but it's now quite a few years old so I told them I wouldn't be taking anything off them

Yeah I'm only joshing. Recently one of my Indian tenants put a hot pan on the lino and it burned a round pan shaped hole - apparently in her house in India she has a stone floor! The lino was a few years old anyway so I didn't mind replacing it for free. I've only really charged a couple of my tenants one because he just wouldn't cut the grass (lazy twot) and a couple of Polish guys because they just left the place like a complete dump.

IveSeenTheLight

Emy1501 wrote: »

In the current Market in most areas rent is no different to the interest paid on a mortgage you could argue their both dead money. In the current Market the are pro's and cons to both

Really,
I'm, in the process of concluding on a family house where even if the mortgage was 100%, the mortgage interest would only be 63.2% of the achievable rent.

With the 30% deposit I'm putting down, the mortgage interest is 44.2% of the achievable rent.

My RY on the property is 6.49% of the property value and if you deduct the mortgage interest from the rent, my return is 12.05% on the deposit I've put down.

Certainly there are opportunities out there, although I understand if here are some area that are harder.

neverdespairgirl

nollag2006 wrote: »

The bottom was in Q1 2009. Glad I picked up a couple of BTLs in Ealing back then.

Price is up 15% on both since that time, and the rents are up 20% too.

:beer:

So you bought 2 flats @ £220k each in Jan 2009, in Ealing.

Costs:

£440k (purchase price)
+ £4.4k (stamp duty)
+ £2.5k - legals, searches, lease charges

= £446.9k

If you sold now:

£490k (average chance in prices in Ealing)
- £5k (EA charges)
- £1 (legals)

Profit - £39.1k

Inflation has been 11.7% in the period from then until now. So the house price in Ealing has actually gone up less than inflation.

Of course, had you put all your eggs in a different basket, gold has gone up from £580 / ounce in January 2009 to about £1,080 / ounce today, which means that if you'd spent your money on gold instead, it would have been worth about £830,000 today, or a profit nearly 10 x what you have actually made (and a profit rather easier to realise, at that).