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

Mr._Pricklepants

Carl31 wrote: »

There is about 1100 towns In the UK

50/1100 = 4.5%

90% of 4.5% = 4%

So, buying is cheaper than renting in 4% of the UKs towns?

I hope that was a joke.

Mr._Pricklepants

Thrugelmir wrote: »

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

13K a year? lol

HAMISH_MCTAVISH wrote: »

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

You've been lucky then, because we all know statistically you should have had 2 boiler replacements, your roof blown off twice and on your 3rd set of double glazing by now.

Thrugelmir

chewmylegoff wrote: »

If a bond is valued in excess of its par value, it depresses the yield. Why would people be sucked in by low yields?

If a bond is paying a coupon of 11% until 2017. What would you pay for a £100 of nominal stock?

So at £200 market value. The current yield is still 5.5%. A good rate at current levels. Downside is in 2017 is you'd only receive a £100 back.

Investors tend to but funds not individual stocks. Like BTL's they are chasing yield not looking down the road at implications on capital return.

homelessskilledworker

smamst wrote: »

So we have noticed Hamish.

http://farm9.staticflickr.com/8306/7867469760_c7551d42b6_b.jpg

What you have to remember about the average home owner/investor on the MSE property board who seem to spend 24/7 on here is that...

1. They nearly all have the perfect tracker mortgage
2. They are all swimming in equity
3. They nearly always purchased property 20% below value
4. They are all paying extra now to clear the mortgage
5. And in the world they live all of the people they have come across who rent their home are meths drinking unwashed underachievers who are pelted with rotton fruit & veg daily for daring to mix with the angelic homeowners.

IN THE REAL WORLD...

1. There are millions who cannot sell because they cannot get the price they need to just balance their debt.
2. Forebearance is the only thing that has saved many struggling mortgage holders.
3. Interest rate only mortgages with no repayment vechicle are at record levels(would be grateful if someone could give me exact numbers)
4. First time buyers have now been at record levels since 2007(for whatever reason)
5. Payday loans at criminal levels of interest rate and just debt problems in general along with paying bills is now a massive worry for millions in the UK today.

Ok the dozen or so Thailand living, retired early debt free cheap mortgaged(if any) three holidays a year, double digit rent raising landlords who have ten new clients at their doors five minutes after they put their rented homes on the market, with their small fortunes in their Swiss bank accounts only exist on this board.

Mr._Pricklepants

homelessskilledworker wrote: »

bile...spew...hate...envy...

You probably posted in the wrong thread, because this one is about the cost of renting vs. owning.

Any thoughts on the subject?

chewmylegoff

Thrugelmir wrote: »

If a bond is paying a coupon of 11% until 2017. What would you pay for a £100 of nominal stock?

So at £200 market value. The current yield is still 5.5%. A good rate at current levels. Downside is in 2017 is you'd only receive a £100 back.

Investors tend to but funds not individual stocks. Like BTL's they are chasing yield not looking down the road at implications on capital return.

What would I pay for it? Well the maximum future cash flows from your bond are £144 so I'm afraid I won't be giving you £200 for £100 of nominal value. If I was an institutional investor and it was a Bund I might give you around £130 to give me an effective yield of about 2% per annum. If it is some kind of junky corporate bond and i fancied taking serious risk, I might think about paying £90 to par...

If anyone offered £200 or indeed more than £144 they should be locked up.

Graham_Devon

homelessskilledworker wrote: »

What you have to remember about the average home owner/investor on the MSE property board who seem to spend 24/7 on here is that...

1. They nearly all have the perfect tracker mortgage
2. They are all swimming in equity
3. They nearly always purchased property 20% below value
4. They are all paying extra now to clear the mortgage
5. And in the world they live all of the people they have come across who rent their home are meths drinking unwashed underachievers who are pelted with rotton fruit & veg daily for daring to mix with the angelic homeowners.

IN THE REAL WORLD...

1. There are millions who cannot sell because they cannot get the price they need to just balance their debt.
2. Forebearance is the only thing that has saved many struggling mortgage holders.
3. Interest rate only mortgages with no repayment vechicle are at record levels(would be grateful if someone could give me exact numbers)
4. First time buyers have now been at record levels since 2007(for whatever reason)
5. Payday loans at criminal levels of interest rate and just debt problems in general along with paying bills is now a massive worry for millions in the UK today.

Ok the dozen or so Thailand living, retired early debt free cheap mortgaged(if any) three holidays a year, double digit rent raising landlords who have ten new clients at their doors five minutes after they put their rented homes on the market, with their small fortunes in their Swiss bank accounts only exist on this board.

That's actually quite a balanced true reflection, IMO.

Only thing left out is that those with are doing extremely well, and those without have been pushed back even further to protect those with. This can be shown in so many areas, even down to those with interest only mortgages being sheltered from having to move to repayment mortgages (whereas those who don't have one at all have no choice).

It's the same even down to savings now. Those with up to say 30k in the bank are really losing out now to funding for lending (which again, has only gone to those with)

I laughed the other day when I saw the National grid has been given the green light to take £12 a year off all of us to upgrade the network. What next? we all chip in £2 a year into a seperate tax pot for Tesco to upgrade their stores?

wotsthat

homelessskilledworker wrote: »

What you have to remember about the average home owner/investor on the MSE property board who seem to spend 24/7 on here is that...

1. They nearly all have the perfect tracker mortgage
2. They are all swimming in equity
3. They nearly always purchased property 20% below value
4. They are all paying extra now to clear the mortgage
5. And in the world they live all of the people they have come across who rent their home are meths drinking unwashed underachievers who are pelted with rotton fruit & veg daily for daring to mix with the angelic homeowners.

IN THE REAL WORLD...

1. There are millions who cannot sell because they cannot get the price they need to just balance their debt.
2. Forebearance is the only thing that has saved many struggling mortgage holders.
3. Interest rate only mortgages with no repayment vechicle are at record levels(would be grateful if someone could give me exact numbers)
4. First time buyers have now been at record levels since 2007(for whatever reason)
5. Payday loans at criminal levels of interest rate and just debt problems in general along with paying bills is now a massive worry for millions in the UK today.

Ok the dozen or so Thailand living, retired early debt free cheap mortgaged(if any) three holidays a year, double digit rent raising landlords who have ten new clients at their doors five minutes after they put their rented homes on the market, with their small fortunes in their Swiss bank accounts only exist on this board.

Nice window into how your mind works.

Foxy logic - everyone who posts on here s**ts five pound notes - therefore if you don't post on here you must be living on the poverty line.

Probably not a very balanced view as evidenced by Graham thinking it's reasonable.

Graham_Devon

wotsthat wrote: »

Nice window into how your mind works.

Foxy logic - everyone who posts on here s**ts five pound notes - therefore if you don't post on here you must be living on the poverty line.

Probably not a very balanced view as evidenced by Graham thinking it's reasonable.

When did you last hear of anyone suggesting house price rises are a good thing, ever state they don't have much money?

It's all about how well they are doing. If you've got a post in mind that suggests this view is wrong, then I'd love to see it to change my viewpoint. As it is, I feel Homeless is spot on with this one.

wotsthat

Graham_Devon wrote: »

I laughed the other day when I saw the National grid has been given the green light to take £12 a year off all of us to upgrade the network. What next? we all chip in £2 a year into a seperate tax pot for Tesco to upgrade their stores?

I laughed too. I thought the network upgrade might have to be paid for from profits which could have impacted my dividend receipts.