Owning a home now 17% cheaper than renting....rental sector hits crisis point

andybenw

wotsthat wrote: »

It's cheaper to buy than to rent end of. The credit crunch didn't and hasn't changed this simple fact.

The OP talks about monthly costs. Once you start looking at lifetime costs it couldn't be more obvious.

If predictions of small increases in nominal house prices and small decreases in real house prices are correct it could be good news..

- current homeowners see house prices 'increase' and so don't feel poorer
- potential homeowners have time to save without the fear of house prices running away
- rental providers get a yield on their investments plus a nominal increase in property value
- renters might see some stabilisation in rents

The losers will be those waiting for the crash and those who won't/ can't save a deposit as the same old problem remains - there isn't enough housing being built so the longer term pressure has to be upwards.

Fully agree with the statement about 'lifetime' costs. What these comparisons don't take into account are a possible 30/40/50 years of mortgage free living depending on how young you buy and how quickly you pay the mortgage off.

So even if you think there will be nominal price falls if those falls take time you've got to factor in other things in your own personal calculations. At the higher end of the spectrum it is often cheaper to rent on a 'month by month' comparison cost. At the lower end it is almost always better to buy.

abaxas

andybenw wrote: »

Fully agree with the statement about 'lifetime' costs. What these comparisons don't take into account are a possible 30/40/50 years of mortgage free living depending on how young you buy and how quickly you pay the mortgage off.

So even if you think there will be nominal price falls if those falls take time you've got to factor in other things in your own personal calculations. At the higher end of the spectrum it is often cheaper to rent on a 'month by month' comparison cost. At the lower end it is almost always better to buy.

It all depends in your housing is subsidized or benefits from economies of scale.

There are lots of good LA/housing associations where the cost of renting over lifetime of product are MUCH cheaper than buying and maintaining an equivalent property.

The issue is finding or being able to move into these.

chewmylegoff

purch wrote: »

Why would you <spit> after the name Ken Livingstone ? :eek:

interestingly, when it was announced that boris johnson had won the mayoral election, i was in a pub with a load of people. my girlfriend said "thank god that nasty left wing man lost" (i am paraphrasing, of course) rather loudly, and some militant ken supporter actually spat in her face.