How Much Money Have You Wasted On Rent?

reweird

0 to 5k

Cleaver wrote: »

Probably like most people on here I didn't 'waste' any money on rent. For all the years I rented a property I did so because I wanted to, so I was buying a service I required. Therefore I wouldn't see it as a 'waste'.

No matter how you want to dress it up to justify it to yourself spunking £1000 per month rent is dead money as you simply pay off your landlords mortgage, not your own.

neverdespairgirl

chucknorris wrote: »

Whilst what you say is true I would add however:

1. Most would have bought with mortgages so the return should be based upon the deposit + costs rather than the full value of the flats + costs. This dramatically increases the % return, you cannot of course buy gold with a mortgage.

2. I can't imagine many buying in 2009 would sell up now, property is a long term investment (I bought mine in the 90's and don't expect to sell for about another decade) and I imagine anyone buying in 2009 would not be planning to sell until the market is far better.

3. If held for a longer period the rental profits contribute more to the overall value of the investment. Based on the purchase price I paid in the 90's and the current rent the gross yield is over 28%.

Everything you say is also true. But I was taking the poster's point about now, not the longer-term.

Nollag's getting a 5-6% gross yield at the moment.

RenovationMan

reweird wrote: »

No matter how you want to dress it up to justify it to yourself spunking £1000 per month rent is dead money as you simply pay off your landlords mortgage, not your own.

What if you get a 6 month contract in London for £600 per day and because you live in your own home in Kendal, you decide to rent a flat in London for the duration of the contract. Is that dead money? Should someone in this position buy a house in London for the 6 month contract? What happens after the end of that contract he gets another one in Aberdeen for 5 months, and so on?

chucknorris

neverdespairgirl wrote: »

Everything you say is also true. But I was taking the poster's point about now, not the longer-term.

Nollag's getting a 5-6% gross yield at the moment.

Yeah the initial yield is never that exciting but the long term rental growth and therefore higher future yields that is attractive (and compensation for the initial dissapoining yields). That said though after over 20 years I am getting weary of it all now and look forward to selling up when we eventually have a better market.

Cleaver

reweird wrote: »

No matter how you want to dress it up to justify it to yourself spunking £1000 per month rent is dead money as you simply pay off your landlords mortgage, not your own.

No, it isn't. When I was at university I didn't want to buy, I wanted to rent. So the money I spent on renting a property wasn't wasted as I got a product at a price I was happy with. Same as buying a burger from a restaurant, a flight on a plane or a rail ticket. All of these things are products or services that you don't get to keep but you're not 'wasting' your money as you got something you're happy to pay for. I know you're a troll but I still wanted to respond.

Percy1983

reweird wrote: »

So in essence you are taking great advantage out of your parents good nature. Not a surprise from someone yet to mature into manhood. Despicable really.

reweird wrote: »

No matter how you want to dress it up to justify it to yourself spunking £1000 per month rent is dead money as you simply pay off your landlords mortgage, not your own.

Just to be certain as you are clearly saying its stupid to rent which would rank me higher in your eyes.

An intelligent man-baby.

or

A stupid man.

IveSeenTheLight

kabayiri wrote: »

Isn't that what I agreed with? I thought so.

That's not what your statement said

Originally Posted by kabayiri
Renters need good landlords. Landlords need good tennants. There is no reason why there should be reasonable profit in this arrangement.

maybe you meant shouldn't

kabayiri

>100k

IveSeenTheLight wrote: »

That's not what your statement said



maybe you meant shouldn't

I phrased it badly, you're right. It shouldn't be ambiguous.

It's clear the rental market needs good landlords and good renters.

Jimmy_31

kabayiri wrote: »

Can I change my answer? I misread the question.

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

Its quite plain to see that reweird is very upset with you for mentioning the rent boy thing, just apologise to him as it has clearly hit a nerve:)

Jimmy_31

reweird wrote: »

No matter how you want to dress it up to justify it to yourself spunking £1000 per month rent is dead money as you simply pay off your landlords mortgage, not your own.

Boys, mummys, balls and now you throw spunking into the mix, just calm it down a bit will you:)