getting my own place

System

If you buy, you get your money back

If you rent, you never see your money again

easiest decision EVER

monty-doggy

staffie1 wrote: »

..providing the mortgage is interest free

I just meant off the total not the capital!

Pixie5740

jamels2 wrote: »

I earn 1500 a month and could rent for 600, allow another 400 for bills etc and i can save 500 a month, 6k a year which would soon add up. I think after 10-15 years i could easily buy.

What about having a life or paying for emergencies that crop up? If you've never lived by yourself it is probably worth renting for a year or something to get a handle on costs etc. Renting has the benefit of you not being responsible for the maintenance of the property providing you get a decent enough landlord (and decent landlords do exist) who gets things fixed when necessary and does things by the book.

As for not wanting a mortgage I suppose it's down to personal preference. I'm currently renting but looking to buy this time next year with a 15% to 20% deposit (I am a similar age to you). Then I have a plan to pay my mortgage off in 6 years. The amount of interest I would end up paying (if all goes to plan and you know what they say about the best laid plans) would be small compared to the amount of money I would have to shell out in rent for 10+ years.

System

Very interesting thread.

IMO, us British are a bit 'strange' when it comes to property ownership. For a lot, property ownership is the be all and end all - regardless of whether it is the best option or even if it might financially cripple or destroy them. Regardless of the fact that it might cost 1000's to fix a house, maintain it etc, which are not costs covered in renting, a rent vs buy analysis almost always by the lay person is the cost of rent vs mortgage payment.

I kind of agree with the OP. I say 'kind of' because everyone has their own level of tolerance to risk. I am definitely risk averse. However, I would not go as far as being completely averse to debt.

Pixie5740

Walcott wrote: »

Very interesting thread.

IMO, us British are a bit 'strange' when it comes to property ownership. For a lot, property ownership is the be all and end all - regardless of whether it is the best option or even if it might financially cripple or destroy them. Regardless of the fact that it might cost 1000's to fix a house, maintain it etc, which are not costs covered in renting, a rent vs buy analysis almost always by the lay person is the cost of rent vs mortgage payment.

Renting looks fine on paper but the reality can be very different. There are many amateur LLs who don't have a clue what they're doing and can end up making tenants' lives absolute hell. Then there are LAs and whilst some are good there are those that are neither use nor ornament to either the tenants or the landlords. The industry is completely unregulated.

Where I live the majority of rented accommodation is fully furnished meaning the properties are furnished with items the landlord has deemed no longer good enough for their own homes or just cheap tat even though charging an arm and a leg for rent. There are some good landlords but they can be few and far between. Mind you I'm sure you get some absolutely awful tenants.

lazer

I bought 2 years ago - and the only reason for it is for the security of never having to move.

I hate the odea that i owe so much money, and that if somehting happens I will still have to pay maintenance costs etc for the house (Have insurance for the mortgage) but if i was renting and my income dropped to benefits only the government would take care of the rent and the landlord wold take care of the maintenance.

It's not even just about paying the mortgage, its about paying when things go wrong. It is also a burden should you choose to live in a different area - you have to sell, whereas if renting, its easier to move, you can't decide your career isn't what you want and you want to retrain, as you couldn't afford your mortgage while training or on a lower salary.

Taking on a mortgage is a a huge financial committment and shoudln't be taken lightly, but having the security of my own house is hopefully worth that committement

hazyjo

So you'll spend £600 on rent, £400 on bills, and save the other £500? What about holidays, presents, car expenses if you have one, haircuts, going out, clothes/shoes, living expenses, buying groceries/household stuff (or is that in with the bills? Sounds low to me if so!).

Have you worked out prices for gas/electric, council tax, tv licence/sky, phone, broadband, contents insurance, water, etc? Doubt you'll do a month's shopping for under £200.

Jx