Patience is a virtue

Sibley

BTL is a great idea for me.

I've got a house being paid off. I'd rather hit 65 years of age with a paid off house.

chucky

Graham_Devon wrote: »

You can't dumb it down to just that simple question though.

There are so many other factors to consider.

The problem is that I do have to dumb it down quite a bit for the usual clueless posters... Do I need to explain inflation to you yet again?

Would you rather be paying rent or owning your own house hat has no mortgage that was inflation proof when it was taken out?

We all know that you know the answer but you would rather not admit it due to your inbred lack of understanding of simple financial concepts.

chucky

Sibley wrote: »

BTL is a great idea for me.

I've got a house being paid off. I'd rather hit 65 years of age with a paid off house.

Well done Sibley, take your risks and make your money. If people are jealous of you doing well, it's their problem and their own bitterness that they have to deal with.

RenovationMan

Graham_Devon wrote: »

You can't dumb it down to just that simple question though.

There are so many other factors to consider.

Such as???

paulmapp8306

armour wrote: »

Patience is a virtue but it could cause one to miss out on the (inevitable) next upswing in the property market.
I believe that there are many people who have been patient, saving up sizable deposits (earning next to nothing in interest), paying high rents whose patience is running out and will be jumping into the property market before too long.

Well, I havent been paying high rents as Im in forces accommodation at around £90/month for a 4 bed home.

BUT, I have been saving - and with a year left of my Army service had an offer accepted yesterday to buy my first home. i felt the time was right. Prices seem stable at present and have been for a year or so really (small fluctuations) so I dont see them falling much more UNLESS interest rates rise significantly in a short period (which I cant see happening).

With the need to house my family post forces life i felt the need. Its a short term hit mind as ill be seperated from the family for the last year of my service and have to pay two lots of Council Tax and bills - BUT I got a 4 Bed Semi for £112k, and had a decent 20% deposit to keep the mortgage payments lowish once i take a (inevitable) pay cut (or even no job - at least short term) once I leave the forces.

Graham_Devon

RenovationMan wrote: »

Such as???

Wider economic factors. Theres a high chance right now that you could end up in negative equity to the tune of 10% plus.

Job security. Someone who doesn't feel secure may not feel it's best to opt for a 25 year loan.

Job locations. Many people now find themselves in a situation whereby buying a house means moving furher from the areas the jobs are in, which means an increased commuter cost.

Interest rates. Can only go one way. When they will go is a different issue, but mortgage rates are moving today....and up.

Family life. Buying today may not afford you the correct house for your needs. No point buying a 2 bed house if you plan to have 2 kids. You will outgrow the house within a short space of time and be looking to relocate.

Moving fee's. Not cheap. Stamp duty, legal fees etc.

Maintenance. Depends completely on the house bought, but you could end up with no maintenance bills, or large maintenance bills.

Theres far more to it than rent costs x a month and mortgage costs x a month. If the sums are based on someone buying one house and living in it for the rest of their lives, then yes, buying will most certainly always win. How many people live that type of lifestyle however, is another matter altogether. I certainly don't know many.

DpchMd

Graham_Devon wrote: »

Wider economic factors. Theres a high chance right now that you could end up in negative equity to the tune of 10% plus.

Oh no! Not negative equity! I think I might have to end it all if I fall into negative equity, how could I go on living?

Or, I guess I could just continue living in my home, knowing that long-term my investment will likely show a profit versus renting.

Besides, we all know you're exaggerating here Graham. Even those who took out 95% LTV mortgages are very unlikely to fall into negative equity to the tune of 10%, and even if they did, who cares?

Graham_Devon

DpchMd wrote: »

Oh no! Not negative equity! I think I might have to end it all if I fall into negative equity, how could I go on living?

Or, I guess I could just continue living in my home, knowing that long-term my investment will likely show a profit versus renting.

Besides, we all know you're exaggerating here Graham. Even those who took out 95% LTV mortgages are very unlikely to fall into negative equity to the tune of 10%, and even if they did, who cares?

Well done. You have just managed to ignore everything else I stated where negative equity could be a problem. I stated that if you buy one house and live in it for the rest of your life, it won't be a problem.

Must be bliss living in an insulated bubble.

i8change

Originally Posted by RenovationMan

Originally Posted by Graham_Devon
You can't dumb it down to just that simple question though.

There are so many other factors to consider.

Such as???

Are job prospects good, can you afford the Mortgage, long term?

Many thought so, before the the unexpected 15% interest rate and mass repossesions of the 1990's. They then were in debt and without a house!

Most got through it (many had high wage inflation on their side) and may already be enjoying a rent free lifestyle, like myself.
For others, their timing was bad and they suffered.

Will you be moving a lot with your work, would it be better to buy later?

Is your marriage stable, or would you be struggling to buy a house for your, possibly, soon to be ex-wife? :eek:

Are you regularly out of work, with the government paying most of your rent anyway, in housing benefit?

wotsthat

Graham_Devon wrote: »

Theres far more to it than rent costs x a month and mortgage costs x a month. If the sums are based on someone buying one house and living in it for the rest of their lives, then yes, buying will most certainly always win. How many people live that type of lifestyle however, is another matter altogether. I certainly don't know many.

There have been a number of calculations done where the poster has bent over backwards to try and bias towards renters. It takes an unlikely set of circumstances for renting to work out cheaper than buying.

Yet the best you'll offer is that it's almost certain that buying is cheaper than renting only if someone buys one house and stays there until they die?

Why don't you want people to buy houses?