Buying is £124 a month cheaper than renting

time2deal

mrginge wrote: »

Funny how people who bought at the bottom of the market twenty odd years ago and then benefitted from an unprecedented level of hpi always seem to be the ones banging on about how great it is to buy....

Apart from the odd blip, basically everyone who has bought a house at any time in the last 20 years has made money. Probably in the last 100 years! I bought in 2006 and 2009 and both have increased in value.

It's NEVER easy to buy a house, it just looks like it in hindsight.

Colin_Hunt

If you're going to work, then buy.
If you're not going to work, then rent (or should I say let someone pay the rent for you.).

SG27

I wish people from the 'debate house prices' forum would keep their rubbish and petty arguments on there rather than intentionally winding up unsuspecting posters here.

MrRee_2

jaylee3 wrote: »

Well words fail me.

I think the two of you are not living in the same world as many others, and quite frankly, much of what you are saying is utter nonsense.

The two of you are talking drivel that could be very misleading to people considering buying.

I wouldn't feel sorry for anyone renting either 'Mr Ree.'

You're quite right - words HAVE failed you ... as they don't make sense.

The choice is really painfully simple ...

1. Buy and be your own master for all time.

2. Rent and be a slave for all time.

Owning property gives you a massive advantage in later life - I know what I'm talking about ...... it gives you flexibility to do what you want and live where you want.

Renting means that you are relying on the council to house you in your twilight years, probably in a small 1 bedroom hell hole on a council estate.

That's the truth of it all ................

Anyone who bought property in the past, at any point in the past, and kept it for 20 years plus has made back every penny spent - plus more I should imagine.

So, over the long term, buying is actually FREE!

It's a no brainer ..... not only in my world, but in the REAL world!

Think away from the state looking after you and get off that rear end and make things happen how you would desire them to happen .....

chucknorris

jaylee3 wrote: »

Well words fail me. I think the two of you are not living in the same world as many others, and quite frankly, much of what you are saying is utter nonsense. The two of you are talking drivel that could be very misleading to people considering buying.


You two both sound like you're protesting too much, and trying too hard to convince everyone that buying is best. :cool:

Please enlighten me, what drivel have I spoken? Please be specific.


Protesting? Hardly! Renters are paying my mortgages/other costs (and profits), keep up the good work, it is much appreciated.

HAMISH_MCTAVISH

Soleil_lune wrote: »

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.

Where *I* live, rent for a 1 bedroom flat is around £650 a month, for a 2 bedroom flat it's around £900 a month, and for a 3 bedroom terrace it's around £1200 a month.

The cost to buy is around 110K for a 1 bed, 160K for a 2 bed, and 220K for a 3 bed.

And that's many hundreds of miles away from London.

It makes far more sense to buy, even with only a 5% deposit, even including maintenance, and even at today's prices up here.

As indeed it does in most of the UK.

chucknorris

HAMISH_MCTAVISH wrote: »

Where *I* live, rent for a 1 bedroom flat is around £650 a month, for a 2 bedroom flat it's around £900 a month, and for a 3 bedroom terrace it's around £1200 a month.

The cost to buy is around 110K for a 1 bed, 160K for a 2 bed, and 220K for a 3 bed.

And that's many hundreds of miles away from London.

It makes far more sense to buy, even with only a 5% deposit, even including maintenance, and even at today's prices up here.

As indeed it does in most of the UK.

I find it amazing Hamish how they can argue renting is financially better, do they imagine that all/most private landlords are making losses? I would love to sell up during the next boom, but you know what, we can't think of anywhere better to invest in than where the equity is right now.


Fair enough if you are on HB (and expect to stay on) or if your career forces you to move around a lot.

[Deleted User]

Renting and purchasing are very different, it's exceptionally rare for someone to ask "Should I rent or should I buy?" with the only consideration being what impact it will have on their financial standing. Purchasing a house is a good long term decision for someone who wants to make a commitment to living in the same place but it's far from a guaranteed winner for someone that wants to maximise their net worth.

There are a huge number of considerations when it comes to rent vs. buy, opportunity cost is one of the greatest. Money on rent is not throwing money away, it's money spent on a convenience. Trying to distil the "cost" of rent vs. buy into a single monthly figure is absurd, it's categorically impossible. The closest you'll come to working out which is more "expensive" is using some sort of projection that considers the various factors, incl. opportunity cost.

Here's an example of a situation in which buying would have been a terrible financial decision: The year is 2002, you have £50,000 in cash, you have 2 options: purchase stock in Apple and rent at a cost of £500 per month or purchase a £50,000 house. Fast forward to 2014: If you had bought the house you would now have a property worth roughly £150,000. If you had bought the Apple stock... you would have spent £60,000 in rent and gained millions of pounds from the stock value.

If an individual wants to try and project the real cost of rent vs. buy in their situation then there's a very good calculator from NYT that will give some really interesting figures but even then it's not that simple. Making sweeping statements in any direction about rent vs. buy is wrong, depends too much on the individual.

MrRee_2

Indeed where *I* live rents are even more bonkers than those above:-

a Studio Flat is £550 a month

1 Bed House is £750 a month

2 Bed is £950

3 Bed is £1200

4 beds, well, £1500 for a small place ...

My place would be £2000 a month ..

So there you have it ..........

MrRee_2

citricsquid wrote: »

Renting and purchasing are very different, it's exceptionally rare for someone to ask "Should I rent or should I buy?" with the only consideration being what impact it will have on their financial standing. Purchasing a house is a good long term decision for someone who wants to make a commitment to living in the same place but it's far from a guaranteed winner for someone that wants to maximise their net worth.

There are a huge number of considerations when it comes to rent vs. buy, opportunity cost is one of the greatest. Money on rent is not throwing money away, it's money spent on a convenience. Trying to distil the "cost" of rent vs. buy into a single monthly figure is absurd, it's categorically impossible. The closest you'll come to working out which is more "expensive" is using some sort of projection that considers the various factors, incl. opportunity cost.

Here's an example of a situation in which buying would have been a terrible financial decision: The year is 2002, you have £50,000 in cash, you have 2 options: purchase stock in Apple and rent at a cost of £500 per month or purchase a £50,000 house. Fast forward to 2014: If you had bought the house you would now have a property worth roughly £150,000. If you had bought the Apple stock... you would have spent £60,000 in rent and gained millions of pounds from the stock value.

If an individual wants to try and project the real cost of rent vs. buy in their situation then there's a very good calculator from NYT that will give some really interesting figures but even then it's not that simple. Making sweeping statements in any direction about rent vs. buy is wrong, depends too much on the individual.

What utter, utter, tosh ................... ha ha ha ha ha ... NOW the rent lovers wheel in that IF you bought APPLE shares in 2002 rather than buy a house you would be RICH!!

Ha ha ha ha ha ...... OK, let's play the silly game - IF you had invested in the 90% of other companies who went bust since 2002 ... you would have lost all that money AND thrown all that other money away in rent!

I will take the CERTAINTY of buying all the same ......... any day of the week, month, year ....