Why buy – ever?

The-Joker

ukcarper wrote: »

I tend to agree 2 bed LHA in my area is £765 the cheapest flat on rightmove is £825 the next is £850 and cheapest house £895. Landlords are getting these rates.

People have to pay a little of their other benefits towards their rent, there is a limit however and if other benefits are cut then rents will have to fall into line, or there will be record numbers of defaults.

ukcarper

The-Joker wrote: »

People have to pay a little of their other benefits towards their rent, there is a limit however and if other benefits are cut then rents will have to fall into line, or there will be record numbers of defaults.

You assume that people on LHA make up the majority of renters this is not the case and in the better areas the numbers are very low.

Linton

CLAPTON wrote: »

Immigration increases population

population increase demand

demand and supply determine price in a reasonably free market place at the point of exchange

virtually 99.9999% of the people in the country live somewhere so have an effect on demand.

migration affects price.

Why doesnt Germany have similar housing problems to the UK - it has a slightly higher % of foreign born inhabitants?

martinsurrey

Linton wrote: »

Why doesnt Germany have similar housing problems to the UK - it has a slightly higher % of foreign born inhabitants?

they have better supply (easier to build) and their population inst on an upward trajectory

he said it effects price (and he is right), its not the only factor though.

dirtycredit

If you don't get your rent paid for you, where I live you would be paying double what your mortgage would be for an equivalent property. It's pretty obvious why you would buy.

The Tories will be in for another ten years and are selling new housing to the highest foreign bidders even before they come on to the market in this country.

Our population is exploding.

Some London councils are considering charging the market rate rent for their properties.

Rent is only going one way in this country and that is up.

enthusiasticsaver

If you do not buy a property and pay off your mortgage while working how on earth do people afford to pay rent on a pension which is usually considerably less than peoples' wages? That was always the reason we bought our house in that we thought why should we pay some landlord's mortgage rather than our own?


If we decide to sell up and rent at least we will have the sale proceeds to subsidise our savings. It beats me how some people think they will be able to afford to pay £800+ per month in rent on a pension and who trusts the government not to move the goalposts re housing benefit. Plus you are in control of where you live if you own a property and are not dependent on housing benefit to pay rent on some hovel somewhere.


That is why we bought our house for independence and financial security and have also helped our daughters buy their houses.

antrobus

Linton wrote: »

Why doesnt Germany have similar housing problems to the UK - it has a slightly higher % of foreign born inhabitants?

Because Germany got a lot of houses built by offering generous tax incentives to private landlords. Basically, up until about 2005, if you bought a new build and rented it out, you could write the cost of the property off against your tax bill.

They don't do that anymore because of expected population decline. (They are even demolishing housing in the east. )

Generali

dirtycredit wrote: »

Our population is exploding.

Not it's not. The UK's population rose by 0.6% last year. That's not exploding, it's barely growing!

chucknorris

antrobus wrote: »

Because Germany got a lot of houses built by offering generous tax incentives to private landlords. Basically, up until about 2005, if you bought a new build and rented it out, you could write the cost of the property off against your tax bill.

They don't do that anymore because of expected population decline. (They are even demolishing housing in the east. )

I didn't know that, that was a very significant tax allowance.

AG47

Generali wrote: »

Not it's not. The UK's population rose by 0.6% last year. That's not exploding, it's barely growing!

I can see even less growth going forward,the trend is to tighten up even on immigration.

Also there are more leaving the uk than ever before including native brits