Buying is £124 a month cheaper than renting

SG27

Not when you buy with a 5% deposit it isn't! And you will probably spend the saving mentioned on maintainence !

Paulaviki

We have been renting for 7 years and have been fortunate our rent has never increased, we are now in the process of buying our own place and our mortgage is going to be a couple of hundred quid more than we pay in rent. So it won't be cheaper for us!

MrRee_2

To, SG27 ..... EH?

Did you miss the bit where I said, "I would now, in my advancing years, have to pay £2,000 a month to live where I do"?

Instead I pay nothing ..........

If you want to retire to a 1 bedroom flat in the corner of a Council Estate in the worst part of town then continue renting ....

However, if you wish - as I do/have - to retire where you can see the sea, have no attached neighbours, have a double garage with a boat and sports car for when the sun shines ......... then BUY!

It really is a no brainer to me ......

MrRee_2

Paulaviki wrote: »

We have been renting for 7 years and have been fortunate our rent has never increased, we are now in the process of buying our own place and our mortgage is going to be a couple of hundred quid more than we pay in rent. So it won't be cheaper for us!

In 15 years time when the mortgage has been paid, you WILL be better off .................. FOR THE REST OF YOUR LIFE! :T

hawk30

My house would rent for at least £200 per month more than I pay on my mortgage. It's also better insulated than my last rental, so I save on heating bills. I certainly wouldn't have been as confident about choosing to go down to a single breadwinner if we had still been renting.

Paulaviki

MrRee wrote: »

In 15 years time when the mortgage has been paid, you WILL be better off .................. FOR THE REST OF YOUR LIFE! :T

15 years? More like 30 but yes that's exactly it! In the long term we will be much better off (fingers crossed!)

Soleil_lune

I agree with some people on here; the report in the OP is a load of bolleaux.

When people ramble on about how much better off you are buying if it's eg; £100-£150 a month less than renting, they always totally, totally forget all the maintenance and repairs and upkeep of the property. And there are so many things that you cannot do yourself now, as it often invalidates the insurance if it's not done by a registered professional.

Then there are the additional insurances, and all kinds of hassle that you don't get with renting. You're far more tied down with buying too, and if you have a horrid neighbour all of a sudden you can forget being able to sell! And also if you suddenly become unemployed, you're screwed, because DWP will NOT pay your mortgage, and there's always something in the small print that prevents the insurance company from paying the mortgage, and even when they do pay it, they don't pay it for long.

Buying is not the best option: not these days. I have heard numerous nightmare tales from friends and acquaintances this past few months alone. One friend moved into a house at the age of 52, and took on an extra £150K mortgage just to get a bigger house in a 'better' area, and within weeks, she had to fork out £3K for a new boiler. Another friend of mine has a mortgage and regularly has to pay out a thousand pound a time to have drains underneath the house unblocked and cleaned out, as she is at the bottom of a row of 12 houses and all the houses toilet waste comes to her and stays underneath her house. And the third one this year alone: another friend's husband has lost his job suddenly with no redundancy, and the insurance company have a 90 day waiting time before claiming (I mean !!!!!!?!) So he can't claim til the middle of June! So any savings they had (and there are little,) are going to go to pay the mortgage for the next 3 months. (Unless he suddenly finds a job of course.)

Like I said, buying is NOT the best option these days. I have done both: buying and renting: I choose renting every time. I have seen so many people who are buying, on the verge of a nervous breakdown.

OP, you're living in a different world to many other people. Your situation is NOT typical of the vast majority of people, and I don't know where the hell you live, or what kind of house you live in, but where *I* live, rent is around £500 a month, and that is for a 2 bed in a good area or a 3 bed in an average area. There's no horrible areas where I live, but in a 'rough' area about 10 miles from me, you can get a 3-bed house for £450. And a 4-bed for £500.

As for not having to pay anything when the house is paid for (and that will be when most people are pensioners!) People who rent will get housing benefit anyway at the age of 60 or 65, so it won't cost them anything either. So your 'argument' holds very little water.

SG27

MrRee wrote: »

To, SG27 ..... EH?

Did you miss the bit where I said, "I would now, in my advancing years, have to pay £2,000 a month to live where I do"?

Instead I pay nothing ..........

If you want to retire to a 1 bedroom flat in the corner of a Council Estate in the worst part of town then continue renting ....

However, if you wish - as I do/have - to retire where you can see the sea, have no attached neighbours, have a double garage with a boat and sports car for when the sun shines ......... then BUY!

It really is a no brainer to me ......

I was referring to the link that says buying is £124 cheaper than renting.

It all depends on the size of deposit.

chucknorris

Soleil_lune wrote: »

As for not having to pay anything when the house is paid for (and that will be when most people are pensioners!) People who rent will get housing benefit anyway at the age of 60 or 65, so it won't cost them anything either. So your 'argument' holds very little water.

If that's is all that someone wants to aspire to (being a pensioner on benefits) then fair enough.


As for the rest of your post, you are missing the most important point, and that is when someone buys a house the mortgage is based upon on a % of the purchase price, so the mortgage merely fluctuates, whereas rents will almost certainly increase over the years due to inflation. That differential widens as time progresses. A 3 bed flat in Battersea which I bought in 1991 initially had a rent of £750, that rent is now £1,711, and it needs increasing as I have fallen behind the market by up to 15%.

MrRee_2

Paulaviki wrote: »

15 years? More like 30 but yes that's exactly it! In the long term we will be much better off (fingers crossed!)

You will be surprised ...... in 10 years time you should be able to overpay - thus reducing the time substantially.

I do hope so ..... it's great being free of a mortgage and rent!