Renting vs Buying

qwert_yuiop

motorguy wrote: »

If you're buying a home, and not trying to treat it as an investment then a property price crash matters little, particularly when prices at the moment are low.

It makes a huge difference. Anyone who bought a house in 2007 is paying approx. twice the mortgage of those buying the same house today , and has around 20 years of the same. Regrets, they have a few...

All you can say is it's a better time to buy than back then. Unless you're the psychic referred to in the other thread, you can't know what tomorrow's going to bring. And if you are the psychic, the truth is you don't know either.

Ticked

motorguy wrote: »

If you're buying a home, and not trying to treat it as an investment then a property price crash matters little, particularly when prices at the moment are low.

I absolutely agree. Thankfully we bought years ago, it's long paid off and we are sitting pretty, only the usual and unavoidable outgoings. We could not afford to rent now, 6 or 7 grand a year rent would tear the !!! out of the pension. Forget investment values, even if the house doesn't appreciate in value, you've got the capital value instead of a landlord having it. Renting long term is not a sensible option. Be your own landlord and reap the profits, landlords don't do it for fun or to help you.

qwert_yuiop

Ticked wrote: »

, landlords don't do it for fun or to help you.

That is of course the theory. However anyone who got into the buy to let game in ni anytime in the last ten years has lost a wodge - subsidised their tenants' lifestyles.

saverbuyer

Ticked wrote: »

I absolutely agree. Thankfully we bought years ago, it's long paid off and we are sitting pretty, only the usual and unavoidable outgoings. We could not afford to rent now, 6 or 7 grand a year rent would tear the !!! out of the pension. Forget investment values, even if the house doesn't appreciate in value, you've got the capital value instead of a landlord having it. Renting long term is not a sensible option. Be your own landlord and reap the profits, landlords don't do it for fun or to help you.

Depends where you are. My house would be over £500 a month cheaper to rent that an interest only mortgage. Then there's rates, maintenance etc.


For "expensive" houses in particular, it's almost always cheaper to rent.

ballyblack

Renting long term is not a sensible option

Agree!

Ask any long time renter who has just retired?.

paying a landlord out of your pension, just to have a roof over your head is not a nice choice

Ticked

qwert_yuiop wrote: »

That is of course the theory. However anyone who got into the buy to let game in ni anytime in the last ten years has lost a wodge - subsidised their tenants' lifestyles.

Maybe, but they are still doing it, they haven't sold and cut their losses. I think there's still money to be made being a landlord.

qwert_yuiop

I know a few who would like to bail out but can't face the crushing loss which would result. The rent has to be added to from their other income to pay the mortgage. The bank wouldn't let many of those who borrowed to buy sell since the shortfall would be colossal. The hope/wish/ prayer of course is that the prices will recover. It's taking its time, people, and now with brexit there's another level of uncertainty.

Anyone who bought their house in the 70s, 80s or 90s who still believes all the old cliches about rent being dead money, you can't lose on property etc just hasn't been paying attention for the last 10 years.

qwert_yuiop

Ticked wrote: »

Maybe, but they are still doing it, they haven't sold and cut their losses. I think there's still money to be made being a landlord.

There's probably money to be made if you bought well prior to 2000. The whole racket depends on property price appreciation, which has remained stubbornly and probably dismayingly low since the crash. Recent tax changes make life as a landlord look less appealing still.

Ticked

qwert_yuiop wrote: »

There's probably money to be made if you bought well prior to 2000. The whole racket depends on property price appreciation, which has remained stubbornly and probably dismayingly low since the crash. Recent tax changes make life as a landlord look less appealing still.

There's ups and downs in any and every business. Back to the OP's original post, buy or rent. Nothing I've read, seen or experienced would change my advice - buy. I wouldn't want to be a landlord, but I'm very thankful I'm a home owner, it was well worth the struggle in the early years. Payoff is now.

saverbuyer

Ticked wrote: »

There's ups and downs in any and every business. Back to the OP's original post, buy or rent. Nothing I've read, seen or experienced would change my advice - buy. I wouldn't want to be a landlord, but I'm very thankful I'm a home owner, it was well worth the struggle in the early years. Payoff is now.

Really depends. If I stuck the difference between my mortgage and renting into a lifetime ISA (with 4% growth) I'd have 600,000 available at retirement. I haven't though, I've bought. But I'd happily pay the rent out of that pot.


Obviously I don't know what's going to happen to inflation, interest rates, average rent etc. I could even live in Italy for 6 months of the year.