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Debate House Prices
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Buying a house vs renting
Comments
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If you can rent socially then input the social rent, if you can't then input the private rent. I don't get what the problem is, you don't need three options as social rent will always be cheaper.
You don't need 3 options for the calculator, no, but you do need 3 options for the discussion of which is best. For all but the youngest and most transient of householders, the tenure issue is too important to be left out of consideration.Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.0 -
You don't need 3 options for the calculator, no, but you do need 3 options for the discussion of which is best. For all but the youngest and most transient of householders, the tenure issue is too important to be left out of consideration.
But if you want housing security then you buy if you cant rent socially, there is no discussion to be had. The discussion is over which is cheaper financially.Faith, hope, charity, these three; but the greatest of these is charity.0 -
I personally believe home ownership is better, for the UK (compared to the rights a tenant gets within Germany for an example) . Especially if you have a young family with attachment to the local area (schools etc).
If you're a singleton / couple with work that relocates, then rent might be a more viable option.
By the way, that calculator that Hamish posted is off its head high on some weird math. It was likely developed by this guy http://youtu.be/YDAGs6fEc-A0 -
That calculator you gave is pretty useless, it makes no adjustment for the opportunity cost of the house deposit
Which is paltry, given that rent is £400 per month more than a mortgage from day one where I live. Which completely blows away any opportunity cost you had on a 20K deposit.
Again, to take advantage of investment returns, first you have to have the money to invest.or takes any account of ownership costs, stamp duty, mortgage arrangement fees or anything.
Small change in the big scheme of things.
In the region of £800,000 better off buying over 25 years, and £3.7 million better off over 50 years.
You'd have to be barking mad to rent.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
There seems a consensus opinion in this country that buying a house is always better than renting in the long term. I'll admit that I too am guilty of taking it as a given.
That's simply because it has been a better option for the last 20 years.
Human beings are simple creatures and like to extrapolate trends. We are also doomed to repeat the mistakes of our forebears time and time again.
When people use mortgages to leverage up bets on housing it's always going to look like a better investment than it actually is when it does up, as the returns are amplified.
People forget what happens on the downside.0 -
Also, when renting, it costs £1000 each time you move (potentially), with new credit checks, new admin fees, new check in fees, new check out fees ... and the overlap between the dates.
If people get moved on every 2-3 years, that's a significant cost.... and some would sell their first-born to be settled that long without a LL selling the place after their first 6 months.0 -
You'd have to be clutching at straws to justify some pretty bad lifestyle decisions to claim renting could ever beat buying financially in the UK.
I put in buying cost of £700K for a 1 bed flat in zone 1.
10 years (which is best guess at how long we'll be there)
£1500 rent (which is the real rent).
Net gain on the LHS was -85,046
Net gain on the RHS was 931,628
This is not clutching at straws, it's a real life example (with a degree of uncertainty).
I don't think it's a bad lifestyle choice to take a high paying job either.
hmmm,,,,,,,,,,I think house buying is great for some and possibly for most, but the I'd rather have balanced debate and look at the facts than be very entrenched in one position.0 -
HAMISH_MCTAVISH wrote: »Which is paltry, given that rent is £400 per month more than a mortgage from day one where I live. Which completely blows away any opportunity cost you had on a 20K deposit.
On the flip side it doesn't account for the fact over 25 years you can invest that extra money you saved on mortgage vs renting and have a substantially bigger pot that just the sum of the differences.Again, to take advantage of investment returns, first you have to have the money to invest.
Small change in the big scheme of things.
In the region of £800,000 better off buying over 25 years, and £3.7 million better off over 50 years.
You'd have to be barking mad to rent.
What figures do you use for the £800k?Faith, hope, charity, these three; but the greatest of these is charity.0 -
I'm currently mortgage free and if we move in the future I doubt we will need to take out another mortgage. This is our third property, from the day of our first mortgage to being mortgage free was seventeen years. If I were to rent my property looking at others in the estate it would cost between £850-£900 a month, our mortgage was £426 a month. If the value of my property goes up it doesn't effect me, if I was renting I couldn't afford the current rents around here, never mind if they increase in the future.
Maintenance, this will not be more than the cost of renting, it won't even come close.0 -
PasturesNew wrote: »Also, when renting, it costs £1000 each time you move (potentially), with new credit checks, new admin fees, new check in fees, new check out fees ... and the overlap between the dates.
If people get moved on every 2-3 years, that's a significant cost.... and some would sell their first-born to be settled that long without a LL selling the place after their first 6 months.
Indeed, thats why the calculator has an option for additional costs in renting.
I think if you pay £1000 to move though you're being ripped off.Faith, hope, charity, these three; but the greatest of these is charity.0
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