Buying is £124 a month cheaper than renting

System

ukcarper wrote: »

what would you call short term

In the context of this discussion that is irrelevant. The landlord would not have been able to factor in the cost of the maintenance of a property into his/her rental chargeable to the tenant. The rental charge is a given range for almost all types of property.

ukcarper

Walcott wrote: »

In the context of this discussion that is irrelevant. The landlord would not have been able to factor in the cost of the maintenance of a property into his/her rental chargeable to the tenant. The rental charge is a given range for almost all types of property.

I don't see to many people taking a hit on the rent in the hope of short term capital gain and as you say the rent is a given so any serious landlord would take that into consideration before buying.

System

ukcarper wrote: »

I don't see to many people taking a hit on the rent in the hope of short term capital gain and as you say the rent is a given so any serious landlord would take that into consideration before buying.

The fact remains that there are areas where a person would pay less in rental than on a mortgage. These areas have BTLs in them.

ukcarper

Walcott wrote: »

The fact remains that there are areas where a person would pay less in rental than on a mortgage. These areas have BTLs in them.

Is that less than the interest on mortgage or the mortgage.

MrRee_2

jaylee3 wrote: »

she lives in a TWO bed, not a multi-bedroom

2 Bedrooms IS multi-bedroom!!

You couldn't make it up .... :rotfl:

System

ukcarper wrote: »

Is that less than the interest on mortgage or the mortgage.

The mortgage.

MrRee_2

Walcott wrote: »

The fact remains that there are areas where a person would pay less in rental than on a mortgage. These areas have BTLs in them.

Nah .... never going to happen ........

Let's try and make things painfully simple:-

Take an absolutely TRUE illustration:- someone BUYS a house 50 years ago, aged 20, that house cost £500.

The mortgage at the start was the same as the rent, a very reasonable assumption.

Within 15 years the mortgage is cleared, total cost would have been around £1250. For the remaining 35 years the owner has had no rent to pay, and no mortgage!

This saving has gone into investments and pension provision.

The house is now valued at £500,000 - that's tax free!

The owner has a property worth £500,000, plus investments worth around the same, plus a pension for life.

The owner also can pass on this bonanza to whoever they choose.

Now, let's take a renter 50 years ago - they pay the same as the buyer for around 3 years .... then the rent overtakes the mortgage and continues increasing - today it stands at £2,000 a month, every month, month in month out.

The renter hasn't been able to do anything to their properties, no pets or even no children, magnolia walls surround them. Yes, when the boiler went 30 years ago they didn't have to pay anything - whooopie dooo!

The renter hasn't had spare cash to invest, so the investments are a poor shadow of the buyers investments - in pure cash terms.

The renter wants to retire, they cannot afford the £2,000 a month to stay where they wish to - they throw themselves upon the council - who house them in a bedsit. They then retire and live off their pension and investments.

They could use their investments to remain in the £500,000 house, of course they could.

But, the buyer/owner doesn't have to spend their investments on anything so boring - they can spend them on cars, boats, holidays, whatever they care to.

The above is historic, of course. But it's also true - it's a fact that all 70 year olds are experiencing.

Whatever anyone says, buying is ALWAYS the better bet over the medium to long term ...... it may be better over the short term too, but that is down to luck.

System

I think we established already that you have a habit of making things up

MrRee_2

And you have a habit of one liners saying absolutely NOTHING!

You have zero to add, please exit this thread via the fastest route possible - thank you for playing ...............

ukcarper

Walcott wrote: »

The mortgage.

The BTL mortgage will be interest only so any thing above that can be used for the maintenance payments.




If we are comparing the cost of renting to the cost of buying it is possible that initially the renter will paying less but a proportion of the buyers payment is savings. Also in time the mortgage payments will be less than the rent.