how many REALLY think there'll be a crash rather than a stabilisation ?

nicola1982_2

keeperbear wrote: »

Most homeowners also see their house as a place to live in and not an investment. Renting long-term makes absolutely no financial sense. In 25 years time, a homeowner will be virtually retired with no rent to pay. As a long-term renter, you will be virtually retired with an inflation-adjusted rental payment to find every month.

As for not worrying about paying for fixing a boiler, do you know that your rent includes charges for repairs? For example, if the roof needs repairing, your rent will be going up eventually.

My point isn't that renting was better than buying, my point was that it's not always a case of being unable to buy - renters aren't necessarily the poor relations of buyers who are lying in wait for a property crash. To me long-term renting makes sense right now. For example - I live in a 2 bed flat, which we could've bought last year. This year I found out I'm expecting so obviously the flat isn't suitable. If I'd bought I would be one of 4 flats in my buiding selling at a loss. There are other possible scenarios that may come up in the next few year that will also mean a similar flexibility that only renting could give me. It just isn't feasible to sell every 2 or 3 years is it?

And by the way of course repairs are covered in my rental contract - I wouldn't have otherwise.

rizla01

nicola1982 wrote: »

My point isn't that renting was better than buying, my point was that it's not always a case of being unable to buy - renters aren't necessarily the poor relations of buyers who are lying in wait for a property crash. To me long-term renting makes sense right now. For example - I live in a 2 bed flat, which we could've bought last year. This year I found out I'm expecting so obviously the flat isn't suitable. If I'd bought I would be one of 4 flats in my buiding selling at a loss. There are other possible scenarios that may come up in the next few year that will also mean a similar flexibility that only renting could give me. It just isn't feasible to sell every 2 or 3 years is it?

And by the way of course repairs are covered in my rental contract - I wouldn't have otherwise.

Am I missing something here, Nicola.

You say you rent because you choose to.
You say you could buy a house (100% of it? does that mean cash?)

But you have huge debts and hope to be clear of them in 3 years.

How would it be if you had a Mortgage?

Are you sure that you are not renting out of necessity?

nicola1982_2

I have a partner with a much bigger income than me and no debt plus we live in the midlands - not exactly expensive here! My debt is payable in 3 years yes because we rent, however if we didn't I could still repay it, it would just take longer! And I'm in debt because of an ex partner who was bad with money so it's not like I'm a silly spender!

By 100% I was refering to not using a shared ownership system.

Yes we rent because we choose to. I appreciate it may seem hard to believe however OH and I are in our 20s, we may find another person living with us soon (long and private story) and we may need to relocate in the next few years.

I personally think many other long term renters have other none financial reasons like this to want to rent too. However this is going a bit off topic - with regards to house price crash, don't see it as a good thing, think it is more likely to happen in poorer areas and less likely in south esp central london and I think flats will suffer the most

Gorgeous_George

Of course people see their home as an investment. This may not be their prime reason for owning but it must form part of the rationale during the buying process.

The return on their investment may just be 30 - 40 years of rent-free and mortgage-free living. Not a bad return by any measure and totally independent of price fluctuations.

Renting, on the other hand, allows people to be free to move without all the stresses and associated costs that involves. Living rent-free (and mortgage-free) whilst unemployed or on a low wage is another attraction that renting brings.

Vive la difference.



GG

PasturesNew

Bestthingsinlifearefree wrote: »

saunaboy wrote: »

Just been on housepricecrash.co.uk, I get the impression that they all are wishing for a real catastrophic crash.

quote]

Those guys on that site are totally bonkers they have been "predicting" a crash every year since 2003 !! No one takes then seriously but it's a good site for a laugh.

Even the man with the sandwich board declaring the end of the world is nigh must be right one day .... and what if he's right today?

nicola1982_2

I've also noticed alot of my FTB friends are buying at the moment on interest only mortgages. Surely with house prices in our area not increasing this is no better financially that renting? Is this not only sensible if house prices are continually rising strongly?

Gorgeous_George

nicola1982 wrote: »

I've also noticed alot of my FTB friends are buying at the moment on interest only mortgages. Surely with house prices in our area not increasing this is no better financially that renting? Is this not only sensible if house prices are continually rising strongly?

It is no better than renting except it gives you a home of your own - ish. A home that you can modify how you see fit and do in whatever you desire. It also locks in the price that you will pay for the same house regardless of HPI.

Of course there are negatives and prices could fall. Whilst buying in IO would not be my cup of tea, it can make sense for those who buy a house that will suit them for years to come.

If the chioice was a bachelor flat on a repayment or a family home on IO, I'd recommend the family home every time. Wages can, and do, catch up eventually and you can switch to repayment at a more convenient time.



GG

nicola1982_2

Good point GG

dolce_vita

nicola1982 wrote: »

I've also noticed alot of my FTB friends are buying at the moment on interest only mortgages. Surely with house prices in our area not increasing this is no better financially that renting? Is this not only sensible if house prices are continually rising strongly?

The only reason your friends are using IO mortgages is because house prices are so high this is the only way they can afford the repayments.

And yes, in a fast rising market you can rely on HPI to allow you pay off your mortgage, sell on and start again.

But there comes a point where you have to pay back what you owe.

HokeyCokey_3

keeperbear wrote: »

As for not worrying about paying for fixing a boiler, do you know that your rent includes charges for repairs? For example, if the roof needs repairing, your rent will be going up eventually.

Well there is nothing stopping us from moving! I was in my last place for four years and the boiler broke down twice (as well as other things going wrong). My rent didn't go up at all. Maybe I was just lucky, but my landlord never tried to pass on the cost. I think he was just pleased someone was renting the place.