How Much Money Have You Wasted On Rent?

nollag2006

neverdespairgirl wrote: »

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).

Oh dear - you don't quite get this do you?

Let me walk through it nice and slow for you.

Original deposit was £100k: £50k for each, based on a sum purchase cost of approx £448k (incl mortgage fees, SDLT, and legals).

Mortgage was originally £348k

Value today of each is approx £255-260k (based on neighbours that have recently sold in the same block).

If I sold both today, I'd get back approx £510k (assuming no early redemption costs). Mortgage is now roughly £325k.

So my original investment of £100k has now gone up to £185k!!!!

:eek:

Add to that rental yield has risen from just under 6% two years ago to over 7% now, and it's been a lovely little earner in terms of cash flow too!!

What sort of yield is gold offering these days??

:rotfl:

nollag2006

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.

Nonsense.

Buying is cheaper than renting in the overwhelming majority of UK towns:
http://money.uk.msn.com/news/money-n...ntid=158230800

JonnyBravo

Percy1983 wrote: »

And sorry to keep bringing the same question up but you never seem to answer this one, can I have you thoughts on the following statement:

"A real man never objectifies or belittles another to make himself look better."

I'd be interested to hear your thoughts on the matter too Percy. :rotfl:

Percy1983 wrote: »

Nope, its better that they dropped a little further so said FTB's can buy them instead of buying them for a parasite.

Percy1983

Which bit concerns you Jonny? sorry if I have caused any offence.

reweird

0 to 5k

More than likely the hypocritical bit Percy lad. Thank you for the apology.

JonnyBravo

Percy1983 wrote: »

Which bit concerns you Jonny? sorry if I have caused any offence.

Ah right. So I was right about you not being serious. Thing is, your mate reweird now knows this too.
Good luck on calling him out on anything from now on.

Percy1983

I suppose it does depend on your usage of the word belittle, I would usually use it as in trying to make somebody look small due to reasons mostly out of there control.

So my reference of landlord = parasite maybe doesn't fit within that as they 100% choose to be landlords, but I will agree that maybe its not the best of phrases to use and had made the effort to cut that one out but do still slip occasionally.

With that apparently I am still a mere baby so I am still learning.

kabayiri

>100k

I'm looking forward to Reweirdo's next diatribe disguised as a bogus questionnaire.

I reckon he has a little wee of excitement when he thinks one up.

neverdespairgirl

nollag2006 wrote: »

Value today of each is approx £255-260k (based on neighbours that have recently sold in the same block).

Improbable, that. Because of the £250k stamp duty threshold, surely?

Jimmy_31

kabayiri wrote: »

I'm looking forward to Reweirdo's next diatribe disguised as a bogus questionnaire.

I reckon he has a little wee of excitement when he thinks one up.

So thats why he stinks of pi55, all makes sense now:)