House prices surge......

wotsthat

MrRee wrote: »

Take a 2 bedroom terrace property where I live, £200k

Deposit £50,000 - Mortgage at 5% on £150,000.

The rental on that place would be £900 a month - to buy it over 25 years would cost £886.

It's close, I'll admit, but - buying gives you something at the end of it all.

If everything remains the same, the buyer sells for £200k after 25 years. The renter still pays £900 for every month thereafter until death.

The stark facts are painfully simple - it does surprise me hugely that more people don't see it?

The figures are stark but I'm less surprised. I think because people are led by what other people say rather than doing the sums to suit their own circumstance.

- someone might say that the renter does have something and that the £50,000 deposit that they didn't spend on a house earning x% interest.

- they might say that maintenance is very expensive what with the roof blowing off every winter etc.

- if there's a house price crash then why pay £200,000 for a house when it might be £100,000 this time next year.

Unfortunately, peoples view of long term seems to be shortening.

Mallotum_X

MrRee wrote: »

EFA as you don't show the courage to do so.

You really are quite pitiful.

But I wouldn’t want to kick a man when he’s clearly down, if it helps I *really do* believe you have all those fast cars, yachts and mansions you claim. Clearly you are a high roller with a great job.

Keep believing champ your a winner!

MrRee_2

Mallotum_X wrote: »

your a winner!

I think you will find it's spelt YOU'RE ........

I don't mind banter with my intellectual equal, but I'm not going to fight someone who clearly has one arm tied behind his back :rotfl:

Mallotum_X

MrRee wrote: »

I think you will find it's spelt YOU'RE ........

I don't mind banter with my intellectual equal, but I'm not going to fight someone who clearly has one arm tied behind his back :rotfl:

Oh dear, best get back to your "Yatch" then.

Even your usual intellectual equals in the playgroup might have spelt that one right... Y is for...

Jimmy_31

MrRee wrote: »

I have never mentioned living at home with mummy as a bad thing ...... I'm not sure if the Jimmy 31 means you are 31 year old? If it does mean that you are 31 then there is something wrong, somewhere.

At that age, no girlfriend, no wife, still with Mummy or in the bosses cellar, I think you will have to get a mail order bride yourself. And, really, at 31 you should be the site foreman, not the hod carrier!

As for a young lady living at home - well, these days, the girls leave home earlier than mummies boys and they earn just as much (if not more) - definately more than a hod carrier who has to live 'on site' in an unfinished shell ... that can't be right, surely at 31 it has come to more than this?

Anyway, you did mention that you could buy a home for £25,000 or something ..... just 100 months at £250 a month.

Waiting for 8 years to buy outright a house costing £25,000 is not my idea of fun to be honest - £25,000 wouldn't cover the cost of my garage!

The 31 refers to my inside leg.

If i wanted to be a site foreman then i would go and be a site foreman. Not much point wages wise as they get more or less the same as me (plus i would hate it) but i have met a few hod carriers in my time who can clear 1 to 2k a week no problem when the work is available.

Im quite happy with the choices i have made in the past, they will probably result in me never having a mortgage in my life, which in turn lets me do whatever i want in life.

I am hoping to save up another 70k when i do buy my first house so i can build a high spec detached double garage, ive got a feeling this could be a real knicker dropper when im in the ale house talking about my portfolio. Not done the sums yet so i dont know if it would be cheaper to buy a wife or build an amazing garage. Also could you advise me on which is the better option financially, Thai or russian ?. I know i should base it on which one pretends to love me the most but i have to be reliastic with the numbers due to me being a lowly building site scally.

Almost forgot, we dont live in a shell on site. If we are throwing up a new build estate we just dig it for a while and then finish a house quick time and live in that (for free). If we are building something else or doing a refurb we just install whatever we need and remove it before we leave (this also results in free rent). Plus we more often than not will still get paid digs money even if we choose to live on site, (just depends on the foreman) .

See ya in a bit:)

undetterred

Jimmy_31 wrote: »

The 31 refers to my inside leg.

If i wanted to be a site foreman then i would go and be a site foreman. Not much point wages wise as they get more or less the same as me (plus i would hate it) but i have met a few hod carriers in my time who can clear 1 to 2k a week no problem when the work is available.

Im quite happy with the choices i have made in the past, they will probably result in me never having a mortgage in my life, which in turn lets me do whatever i want in life.

I am hoping to save up another 70k when i do buy my first house so i can build a high spec detached double garage, ive got a feeling this could be a real knicker dropper when im in the ale house talking about my portfolio. Not done the sums yet so i dont know if it would be cheaper to buy a wife or build an amazing garage. Also could you advise me on which is the better option financially, Thai or russian ?. I know i should base it on which one pretends to love me the most but i have to be reliastic with the numbers due to me being a lowly building site scally.

Almost forgot, we dont live in a shell on site. If we are throwing up a new build estate we just dig it for a while and then finish a house quick time and live in that (for free). If we are building something else or doing a refurb we just install whatever we need and remove it before we leave (this also results in free rent). Plus we more often than not will still get paid digs money even if we choose to live on site, (just depends on the foreman) .

See ya in a bit:)

Great post from the heart of a building site:money:

Thrugelmir

Dan: wrote: »

That's okay, because you don't need to save up 25%

However it does change the basis of the original post.

Jimmy_31

andybenw wrote: »

I am probably in the same sort of situation as someone living with their mum as regards to saving. With my motgage paid I am now saving for a BTL. I aim to buy cash in a couple of years for 100k which where I am will buy an average FTB type house. But certainly not an average 165k house.

I'd imagine Jimmy is aiming for something like this. He says he pays his way when he is at his mums and is also saving a fair amount.

I'd imagine he has already saved a whack and is well on the way.

Surely it's to be commended to be saving hard so as to buy quickly and if it can be done, to buy for cash or at least with the smallest mortgage possible

I have ended up being in this situation because i have always had to save a large deposit for a house due to me being self employed in the construction industry. The mortgage people give us higher rates because of the nature of our work. They also constantly offered me lots of money during the boom but i knew i wouldnt be able to pay it back if i came out of work so stayed clear.

I decided to sit out the housing boom because i couldnt bring myself to pay a large amount of money for something that represented no value for money.

A few years ago i decided to start saving hard in the hope that i would get a 50% deposit together, this was so if i came out of work i could still afford my mortgage and bills by taking a lower paid job.

House prices continually crashing has got me to the stage were if i can manage to stay in work for the next 12 months, i will have a very good chance of buying a 2 bed terrace in the area i want to live in and have no mortgage to pay.

Jimmy_31

MrRee wrote: »

Absolutely commenable, indeed.

The point I am making is that if saving the cash needed to buy without a Mortgage - or a small Mortgage - takes you many years down the line ... then you have missed the cheap house prices now.

If you are saving say, £500 a month, and house prices are increasing £600 a month on the place you want ..... you are better off buying NOW!

As, generally, you are paying rent, somewhere in any case - AND an extra £100 a month worse off.

I started saving a few years ago so what you said does not apply to me.

Dan:_4

Thrugelmir wrote: »

However it does change the basis of the original post.

Not really.

Mortgage cost will initially cost more then renting it, but this won't be the case over the entire duration, and the end result is the same after the 25 years.