Buying is a no-brainer

saajan_12

Few things you don't seem to have considered
1. Mortgage doesn't include cost of maintenance, repairs
2. Buying costs (solicitors, survey)
3. Lost return on deposit (while renting he could invest the £4k)
4. Inflexibility if he wants to move (3-6 months and £1-5k cost to sell & buy elsewhere)

HouseMouse

ReadingTim wrote: »

Home ownership is no more onerous than car/motorbike ownership, and comes with considerably less responsible than dog ownership. Given many 21 year olds seem to take on these responsibilities, I don't think home ownership will be beyond them.

Didn't say it would be beyond them, just that some young people may decide not to undertake it. And it DOES require a degree of responsibility - keeping up with necessary maintenance being one.

Comms69

ProDave wrote: »

For all those in favour of renting rather than buying.

Make sure you factor into your sums paying a lot more into your pension so that when you retire you have enough pension income to carry on paying rent until you die.

Of course if you buy a house, it will all be paid off by the time you retire so you won't need as much pension income, or will have a better standard of living in retiirement.

I don't think anyone is suggesting renting for eternity (though many do this), I think most are saying the chap is 21.......

Cakeguts

I think it is a really good idea to do this for a couple of years. He is going to learn how to budget with that amount of rent going out. Doing this for a couple of years will help him to learn how much he can afford to spend on a mortgage. Renting can be for only 6 months so if he gets into difficulty he can leave. If you buy a property you are stuck if you get into a financial problem.

I don't think you are giving credit to this 21 year old for a really smart move.

hazyjo

He may have a GF/partner too and might not feel happy about buying alone as they may wish to buy together in a few years' time. Or maybe even anticipating this problem if he's not seeing anyone. It's very expensive to move home - nobody wants to do it any more than they have to (apart from me lol).

Ozzuk

Not this again. In summary:

There are valid reasons for both renting or buying, do what is right for you.
Crashy will post we're all doomed and prices are falling/will crash - very easy to counter this so best ignored

Next thread?

Crashy_Time

Ozzuk wrote: »

Not this again. In summary:

There are valid reasons for both renting or buying, do what is right for you.
Crashy will post we're all doomed and prices are falling/will crash - very easy to counter this so best ignored

Next thread?

As he can buy a two bed for 80k they may not have much further to fall where he lives .......on the other hand.....

Crashy_Time

I`m guessing the two bed cottage is a much nicer living environment than the property he will buy for 80k and struggle to sell if he decides to move?

chappers

Crashy_Time wrote: »

there is no longer an army of people like your friends son, just itching to sign up for bubble sized debt at the lowest interest rates in history?

Don't you believe it, there are no end of people out there, willing to stretch themselves to their limit(and beyond) to get onto the housing ladder. it's lending criteria that prevents it.

ACG

Crashytime, it really frustrates me how you will always find articles about doom and gloom but never about price rises. If you are going to make an argument, at least do it objectively.

I bought my first home 5 years ago and sold it earlier this year. It made £70k in that time, added to the fact my Mortgage balance was about £3k less than it started and my Mortgage was £300-350 a month where as the same house 2 doors away was available to rent for £650.

If I listened to your posts I would have been:
£70k worse off by house price increases.
£12k (minimum) worse off by paying double in rent over my mortgage payments
£3k worse off by not benefiting from my Mortgage reducing.

---

£85k in 4 years is a LOT of money (for me at least).

As the house only cost me £85k a meteor would have literally had to have hit it AND the insurance company refuse to pay out for me to be out of pocket by the same amount.

I dont for one minute think buying is for everyone, but your posts are absolute nonsense for the majority of the country.

As I have said before, if you keep saying it for long enough eventually you will be right but by that time I could be Mortgage free where as you will still be paying rent.