Buying is a no-brainer

capital0ne

Interesting views from everyone, and in answer to some of them, he has a girlfriend, the two bed cottage he's renting is no better or worse than one he could buy in a fifteen mile radius. He has no out goings other than £300 to his 'rents, so £1,200 available for saving, spending whatever. Being a civil servant I know his pension is good and affordable. He's been working for 18 months now so must have saved a few bags!

And he can't drive so no car to run.

All I know is that when I started working I bought because I always thought renting was just throwing money away. And it was just as easy/difficult in the 1970's as now - graduate engineer on £200/month in 1975! Two bed terrace £6k Interest rate 5% - it wasn't easy!

Pixie5740

You seem to know an awful lot about this young man's income and expenditure. Just because you wanted to buy as soon as you started working does not mean it is the right choice for your friend's son at this time.

SuboJvR

capital0ne wrote: »

Interesting views from everyone, and in answer to some of them, he has a girlfriend, the two bed cottage he's renting is no better or worse than one he could buy in a fifteen mile radius. He has no out goings other than £300 to his 'rents, so £1,200 available for saving, spending whatever. Being a civil servant I know his pension is good and affordable. He's been working for 18 months now so must have saved a few bags!

And he can't drive so no car to run.

All I know is that when I started working I bought because I always thought renting was just throwing money away. And it was just as easy/difficult in the 1970's as now - graduate engineer on £200/month in 1975! Two bed terrace £6k Interest rate 5% - it wasn't easy!

21 is young, finding feet and all that. I'm now 32 and since I was 21 I have been self employed, gone to uni (moved 185 miles), graduated uni and gained employment in the same city, got married, moved employer (35 miles), relocated with work (another 180 mile move) and only now felt ready to buy...

Just because something felt right for you doesn't mean it's the right thing for everyone.

And even moving somewhere 15 miles away could be a big deal travel wise, especially for someone who doesn't drive.

ACG

Crashytime, I thought you might be interested in this as I know it is not your normal reading material...
https://www.mortgagestrategy.co.uk/house-price-5-4in-september-says-ons/

House prices up 5.4% in the last 12 months. Even London is up over 2%, it is just the increase is a lot less than previous years.

ScorpiondeRooftrouser

Maybe he wants to experience living in more than one tiny part of the world before he dies, so wants to be free to move around.

hazyjo

ScorpiondeRooftrouser wrote: »

Maybe he wants to experience living in more than one tiny part of the world before he dies, so wants to be free to move around.

Exactly. Maybe him and the GF are saving for a gap year. Maybe she's still studying and doesn't know where she'll work. My OH's son is 25 and just decided to travel for a year with his GF. Not the most 'responsible' thing according to their families, he'll be giving up a job in a school, and they're all worried, but I say sod it, you only live once. Plenty of time for mortgages, ties, kids, etc. They're still young, let them enjoy 'freedom' while they can. Hopefully he'll find something once back. She can work freelance.

Just because I had a mortgage at 21 doesn't mean I think it's right for everyone

Crashy_Time

ACG wrote: »

Crashytime, I thought you might be interested in this as I know it is not your normal reading material...
https://www.mortgagestrategy.co.uk/house-price-5-4in-september-says-ons/

House prices up 5.4% in the last 12 months. Even London is up over 2%, it is just the increase is a lot less than previous years.

Can you post up London sales volumes stats while you are in the mood please?

Crashy_Time

ACG wrote: »

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.

Some interesting bond yield moves today, and talking heads on Bloomberg saying "Three, maybe four U.S rate hikes next year" I would crack on with the repayments if I were you.

westernpromise

Crashy_Time wrote: »

Some interesting bond yield moves today, and talking heads on Bloomberg saying "Three, maybe four U.S rate hikes next year" I would crack on with the repayments if I were you.

Yes, because that way, one day they'll end.

When will your rent payments end?

Crashy_Time

westernpromise wrote: »

Yes, because that way, one day they'll end.

When will your rent payments end?

Will rents be going down when house prices are going down, or was it the other way around, or was there something going sideways as well? :rotfl: