Telegraph: Buying is cheaper than renting in more than 90% of the UK

nollag2006

Really interesting article:
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9736741/Buying-a-home-is-1000-cheaper-than-renting.html

Buying is cheaper than renting in 90pc of the top 50 towns in Britain, according to the latest data from Zoopla.co.uk. The property website found that servicing an interest-only mortgage on an average property in Britain cost £1,080 less per year than the cost of renting.

£1,080??? Wow - that really is a huge amount

:eek::eek:


Sad part is that mortgage availability is the main thing still holding back buyers.

Conrad

Interest only residential mortgages are almost outlawed so the assumption underlying this report is a nonsense unless referring to B2L?

Hey, thats got me thinking, FSA regulation has not only disbarred millions of capable would be buyers but it now favours landlords who can obtain interest only!!

ViolaLass

nollag2006 wrote: »

Really interesting article:
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9736741/Buying-a-home-is-1000-cheaper-than-renting.html



£1,080??? Wow - that really is a huge amount

:eek::eek:


Sad part is that mortgage availability is the main thing still holding back buyers.

Buying is supposed to be cheaper than renting as you're not taking on any risks if you rent (no need to replace the boiler etc).

Thrugelmir

nollag2006 wrote: »

£1,080??? Wow - that really is a huge amount

Doesn't go far in terms of maintaining a property on an annual basis.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Doesn't go far in terms of maintaining a property on an annual basis.

That's more than I've spent on maintenance in the last 5 years combined.

michaels

ViolaLass wrote: »

Buying is supposed to be cheaper than renting as you're not taking on any risks if you rent (no need to replace the boiler etc).

But shares are supposed to yield less than bonds because there is a chance for capital appreciation?

Thrugelmir

michaels wrote: »

But shares are supposed to yield less than bonds because there is a chance for capital appreciation?

Bonds are heading for a capital loss. (On the basis that interest rates will rise in the future).

Bonds do appear to be the next bubble.

michaels

Thrugelmir wrote: »

Bonds are heading for a capital loss. (On the basis that interest rates will rise in the future).

Bonds do appear to be the next bubble.

Only if you sell them before maturity of course....

moneyinmypocket

Further proof that buying is the way to go currently. What the HPC chain gang can't understand is while they wait for a "HPC" they pay rent each month - they have to hope houses are dropping faster then what they pay each month which of course we all know isn't happening

the_flying_pig

HAMISH_MCTAVISH wrote: »

That's more than I've spent on maintenance in the last 5 years combined.

does that include the [admittedly dubious in your case] value of your own time spent carrying out routine maintenance & improvements?

a lot depends on age & so on but certainly for Victorian properties such as the one that I live in now & the one that i lived in most recently before this, something like [plucks a fairly made up number out of the air] say £1 per year in maintenance per square foot that you own is not a high number at all. double or triple is very eminently possible. these are medium-term averages, of course, with some years being much better than this & some much worse.

the_flying_pig

thread title alert.

Telegraph: Buying is cheaper than renting in more than 90% of the UK

should read

Telegraph: Survey* says buying is cheaper than renting in more than 90% of the UK

* - put together by an estate agent-type website.