Buying cheaper than social housing for half the country

Rolandtheroadie

cells wrote: »

that sounds true but I have never rented from the council so dont know.

For anyone with the knowledge what is the council landlord responsible for? for instance im thinking they dont put in a new kitchen or bathroom every 10 years? Do they fix the boiler and wetworks of a house or is that down to the tenant and do they do annual gas safety checks etc?




*buildings insurance is about a tenner a month not even worth mentioning.

It's not really anything to do with what the council does, I'm talking costs a homeowner has, forever, that's missing from the calculations.
You can't really say "not worth mentioning" as it's only a tenner, how many home owners have central heating cover? How much is that? Say its £20. There's £30 a month added.
There may also be maintenance costs or service charged due to the upkeep of common areas, something the council take care of. Another "its only" that adds to the cost of ownership.

cells

Graham_Devon wrote: »

You asked if £400 a month is affordable. I gave you an answer - depends on A) whether you can afford those payments (many many can't and receive housing benefit because they can't afford anything otherwise.

The second, more important point is that there will inevitably always be cheaper houses. The normal reason for this is the type of house and the area - so even if you could afford it many times you'll ignore it.

This is reality. Get all stupid with "person A, person B" stuff all you like. You won't change reality.

You can pick up houses for 15 grand. It doesn't prove the point that "houses are cheap". It just proves the point that some houses are cheap - and there will be a reason that its so cheap but still not snapped up.

In general people buy houses that suit them. They don't just buy any old house because they can afford "that one". All you arguments rely on the assumption that people should buy whatever house is in their budget (regardless of area, condition or whether it suits their needs). That's not the real world. It's simply your world (and wotsthat's, apparently).

but I was not talking about one little steet in one little town. This is about more than half the country!

cells

Rolandtheroadie wrote: »

It's not really anything to do with what the council does, I'm talking costs a homeowner has, forever, that's missing from the calculations.
You can't really say "not worth mentioning" as it's only a tenner, how many home owners have central heating cover? How much is that? Say its £20. There's £30 a month added.
There may also be maintenance costs or service charged due to the upkeep of common areas, something the council take care of. Another "its only" that adds to the cost of ownership.

I compared renting a social house/flat to buying a terrace home and a terrace home is freehold so no service charge

Also the mortgage is the same for the 25 years (or thereabouts) while the council keep increasing the rent by ~4% a year

So its more like

£400 for mortgage vs £400 social rent
£400 for mortgage vs £416 social rent
£400 for mortgage vs £433 social rent
£400 for mortgage vs £450 social rent
£400 for mortgage vs £468 social rent
£400 for mortgage vs £487 social rent
£400 for mortgage vs £506 social rent
£400 for mortgage vs £526 social rent
...
...
you get the idea


The additional rent the greedy social landlords charge is going to be more than £10pm for buildings insurance or a £5pm for the gas safety check.



anyway lets see if you are smarter than graham.

Does the north and midlands and wales look affordable. Consider that I have shown that in those regions the repayment mortgage is cheaper than even council flats.....so....?

cells

Graham_Devon wrote: »

It depends on many variables - obviously.

If you can't afford it, it's not affordable.

If you can, it is.

So what percentage of the renting privately population, can afford to pay social rents? And if they are living in half the country where a mortgage is cheaper than a council landlord would you advise them to buy or keep renting?

Rolandtheroadie

I wish I lived in your world where a house hasn't needed any money spent on it.
Roughcasting, a kitchen, rear fence, front fence, boiler replaced, water tank replaced, one valley renewed, ridge tiles done, velux flashing stripped out and redone, chimney flashing replaced, fusebox upgraded, roof air vents installed, general roof repairs.
I've been here 16 years now, so probably not too bad, but all costs a tenant wouldn't have, and all costs missing from your "facts".
You get the idea?

cells

Rolandtheroadie wrote: »

I wish I lived in your world where a house hasn't needed any money spent on it.
Roughcasting, a kitchen, rear fence, front fence, boiler replaced, water tank replaced, one valley renewed, ridge tiles done, velux flashing stripped out and redone, chimney flashing replaced, fusebox upgraded, roof air vents installed, general roof repairs.
I've been here 16 years now, so probably not too bad, but all costs a tenant wouldn't have, and all costs missing from your "facts".
You get the idea?

I do, but this is a repayment mortgage where at the end of it the mortgage falls to £0 and you own outright, but the social rent will grow each year and be twice what it is now

you get the idea?

p00hsticks

cells wrote: »

Area : Years to clear a mortgage (10% deposit 3% rate) paying just social rent

Stoke-On-Trent = 15 years
£311/month social rent
£45,000 average terrace house

Not sure where you are getting your figures from, but that average terrace house price seems pretty low. Looking on Rightmove for two bedroom houses in Stoke-on-Trent, and disregarding the auction guide prices and the repossessions, the cheapest one I could see showing is £44,950.

Rolandtheroadie

cells wrote: »

I do, but this is a repayment mortgage where at the end of it the mortgage falls to £0 and you own outright, but the social rent will grow each year and be twice what it is now

you get the idea?

£0 plus maintenance costs forever. You've still to recoup all those other maintenance costs you've already paid for.
You get the idea?

cells

p00hsticks wrote: »

Not sure where you are getting your figures from, but that average terrace house price seems pretty low. Looking on Rightmove for two bedroom houses in Stoke-on-Trent, and disregarding the auction guide prices and the repossessions, the cheapest one I could see showing is £44,950.

it is actual sold prices from the land registry

http://landregistry.data.gov.uk/app/hpi

So if you seach for stoke-on-trent for terrace homes it shows

September 2015, 269 terrace home sold for an average price of£42,643

August 2015 254 sold £42,513 average
July 2015 324 sold £42,424 average
June 2015 317 sold £42,118 average

etc etc

cells

Rolandtheroadie wrote: »

£0 plus maintenance costs forever. You've still to recoup all those other maintenance costs you've already paid for.
You get the idea?

yes thanks I got the idea

Id rather buy in those areas and pay less on a mortgage over 20-25 years than my equivalent renting a council house on a council estate not to mention rather buying than the private rented in the area

They may get a free gas safety check once a year but I get a free house at the end of the mortgage. They keeping paying the social rent which keeps increasing indefinitely and my mortgage drops to £0 per month.


If you want to take the opposite view to me (that prices in the north the midlands and wales are very affordable) then carry on its a free country and you are free to make as many mistakes as you like