Nationwide Oct: +0.6%

HAMISH_MCTAVISH

Graham_Devon wrote: »

Point proven.

Yes, for me.

Thanks for that and all, and you may want to consider just disappearing from the thread as you usually do at this point.

moneyinmypocket

Graham is a very jealous bitter poster

dryhat

Graham_Devon wrote: »

It was YOU who suggested you could buy stuff with your inputed rent you made on your yield in your own home. No one else. You.

Point proven.

Hamish also thinks you can buy stuff with "equity" as well.


What a silly boy.

robmatic

Graham_Devon wrote: »

Yer, which is why I said, they are saving 10k.

It was YOU who suggested you could buy stuff with your inputed rent you made on your yield in your own home. No one else. You.

Point proven.

It's certainly a lot easier to buy stuff with money that you haven't already spent.

Graham_Devon

robmatic wrote: »

It's certainly a lot easier to buy stuff with money that you haven't already spent.

Indeed. Not that that has anything to do with what we were discussing.

System

Gosh, I've been saving all this money over the last few years and I've now realised what a waste of time that was as I can't buy a sandwich! I should have rented

wotsthat

Graham_Devon wrote: »

Yer, but I did understand it, didn't I.

All I asked is if you could spend this money on a sandwich, and it's had you suggest you can buy loads of sandwiches with your inputed rent, which is nonsense anyway, as for anyone who has an inputted rent of £1000 a month, but no money left over after bills, they can't buy a sandwich. It may have passed you buy, but it's the money in your pocket that buys you things in shops....

No you didn't understand it. 'Hamish' is saving money by owning rather than creating it.

The person with an imputed rent saving of £1000 and no money left after bills can't buy a sandwich because he's skint and that's nothing to do with how imputed rent is worked out.

Say they were a renter then after rent and bills they'd be £1000 into their overdraft and no money left for a sarnie either.

I could decide to rent and be about £500/ month worse off. It doesn't mean I've created £500. I'm spending that £500/ month though - just on stuff other than rent - sometimes even a meal deal from Tesco.

Graham_Devon

Clearly I understood it and I honestly fail to understand why you guys are trying to reinvent the wheel explaining something I've already stated.

He is indeed saving 10k.

He's not generating 10k to spend though, which is what he was trying to imply.

Which is why I stated this:

Graham_Devon wrote: »

You've saved 10k a year vs renting Hamish. That is all. It's not an income. It's not a yield. It's just a saving vs renting the equivalent building.

Do you require guidance on what I was saying there? only it seems you haven't quite got it.

the_flying_pig

HAMISH_MCTAVISH wrote: »

Sure.

A house generates a rental yield, whether realised (cash paid to you) or imputed (cash you don't have to pay to rent instead of own).

Example:

HAMISH owns and lives in a house worth 220k. Rental yields in Aberdeen are typically 7%. HAMISH gets the benefit of an imputed rent of £15,400 a year.

Against that, HAMISH has to pay either interest on a mortgage of 2.5%, and/or take into account opportunity cost on cash holdings.

So I get paid around £10,000 a year to own instead of rent, based on the above.

Of course, in Aberdeen house prices also rose by 4% in the last year (Halifax). So that's another £8800, for a total gain of £18,800 from owning instead of renting in the last year alone.

Hope that clears it up.

a few months ago, i can link to the thread if you like, we pretty much agreed that, nationwide [i.e. RMW nonsense aside], the average rental yield is about 5%. also that the average mortgage SVR is about 4%. i put it to you that 1% wouldn't be a particularly high figure to assume for maintenance. all in all your £10k a year figure is fanciful for all other than utterly exceptional cases.

Graham_Devon

the_flying_pig wrote: »

all in all your £10k a year figure is fanciful for all other than utterly exceptional cases.

Hamish is an utterly exceptional case though!