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'We've reached a tipping point' Signs of house price weakness
Comments
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73.5k purchase price in 1999. Mortgage paid off next year. Let's say I've paid double that, with interest (though the last 4 years it's been 1.5%) = 150k more or less.
Rental value = £675. For arguments sake let's assume it's been that for 15 years and will be for the next 15. 30 x 12 x 675 = 303k.
So, +150k better off after 30 years. Plus I have an asset that has more than doubled as of today and even by extreme HPC standards will surely be worth the same in 15 years.
150k from saved rent + 75k HPI - maintenance, say 25k all in. 50k if you want to be extravagant.
Minimum of 175k to the good.
Please explain where the downside is here?
the old buy v rent debate
yawn0 -
Yes. Which you won't discuss as you can't support your position.Bubble_and_Squeak wrote: »the old buy v rent debate
yawnA positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
Mortgage Balance = £0
"Do what others won't early in life so you can do what others can't later in life"0 -
Yes. Which you won't discuss as you can't support your position.
You probably would not want to discuss the main issues though:
1. You have to maintain the property.
2. If a comet destroys the Earth you would have wasted all that money paying off your mortgage.
3. If the daleks invade the Earth, properties with stairs will probably be exterminated.
She's wrong guys! Carry on paying your rent, nothing to see here.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
Yes. Which you won't discuss as you can't support your position.
my position is a lifestyle choice
i spent the best years of my life exploring the planet, meeting people, getting into adventures and partying
i could have spent the best years of my life paying a mortgage
had i done so i my financial position would have probably been far better than it is now
but
when i'm lying cancer ridden on my death bed in a few years from now i'm pretty confident i wont have regrets0 -
millions more would like the choice.
Why? Renting seems to be saving people a fortune.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
chucknorris wrote: »You probably would not want to discuss the main issues though:
1. You have to maintain the property.
2. If a comet destroys the Earth you would have wasted all that money paying off your mortgage.
3. If the daleks invade the Earth, properties with stairs will probably be exterminated.
She's wrong guys! Carry on paying your rent, nothing to see here.
who is your favourite doctor?0 -
1999 decision is justified.73.5k purchase price in 1999. Mortgage paid off next year. Let's say I've paid double that, with interest (though the last 4 years it's been 1.5%) = 150k more or less.
Rental value = £675. For arguments sake let's assume it's been that for 15 years and will be for the next 15. 30 x 12 x 675 = 303k.
So, +150k better off after 30 years. Plus I have an asset that has more than doubled as of today and even by extreme HPC standards will surely be worth the same in 15 years.
150k from saved rent + 75k HPI - maintenance, say 25k all in. 50k if you want to be extravagant.
Minimum of 175k to the good.
Please explain where the downside is here?
Score 1.
How about buying the exact same house, in the exact same circumstances (job, age, status), today?0 -
chucknorris wrote: »You probably would not want to discuss the main issues though:
1. You have to maintain the property.
2. If a comet destroys the Earth you would have wasted all that money paying off your mortgage.
3. If the daleks invade the Earth, properties with stairs will probably be exterminated.
She's wrong guys! Carry on paying your rent, nothing to see here.
Number 1 - owned since almost new so well maintained which works out cheaper than ignoring issues and hoping they'll go away. I'd allowed 50k for that anyway.
Number 2 - I'll stick my neck out and say it's not going to happen.
I'd never considered number 3 to be a risk
. All this time I thought I was doing the right thing, I can't believe I overlooked something so obvious. Surely the Doctor would stop that happening :eek:.
Going off to check RM for bungalows (one of our btl's is a bungalow though so all is not lost :T).A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort Mortgage Balance = £0
"Do what others won't early in life so you can do what others can't later in life"0 -
cynical reply.Why? Renting seems to be saving people a fortune.
There is no right or wrong general answer.
But what about buying v renting today? Government thinks buying isnt possible for many today and have introduced/continued schemes to help.
why?...maybe banks arent so sure about the return of their capital so much?0
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