Buying is a no-brainer

Crashy_Time

http://uk.businessinsider.com/china-will-bring-volatility-to-markets-2017-11?r=US&IR=T


Really not the best time to be in big mortgage debt.....

Jack_Johnson_the_acorn

Crashy_Time wrote: »

http://uk.businessinsider.com/china-will-bring-volatility-to-markets-2017-11?r=US&IR=T


Really not the best time to be in big mortgage debt.....

Oh no you're right, what people people should be doing is !!!!ing away money and guarantee themselves a loss (i.e renting).

Remember when you told me that I was an idiot for buying and that I had made a huge mistake.
We bought for £130k.
13k deposit

Initial rate was around 4.99% meaning we where paying about £630pcm in repayments. Equivalent rent at that time was around £650-£700 for similar properties although none as nice were available to rent.

2 years later and our rate had dropped to 4%. about £550pcm

Then a few years later we took out a new fix @ 2.49% meaning our mortgage is now only £448.

The equivalent rent for a similar property to rent would cost between £750-£900 depending on the exact area.

Our property is now valued around £180k. :rotfl::rotfl::rotfl:

Do you want to tell me how wrong you were? or should I dig up your old posts

cjmillsnun

Buying really is a no brainer.

Look at it this way.

I have a 3 bedroom house that I am paying less on my mortgage for than a two bed flat cost me to rent.

Even if interest rates go up and I pay more than that after my fix ends, I'll find the money, because come the end of the term I don't have to pay anyone a penny in rent. Even if the value drops, it doesn't matter. I'm investing in my home, not somewhere for a quick buck. I'll pay my mortgage and tighten my belt if I have to.

Crashy, you've been renting for 20 years? Had you bought somewhere at that time instead of renting, you could've had 5 years left on your mortgage. 5 years before you owned outright.

I can understand why you're bitter.

00ec25

Jack_Johnson_the_acorn wrote: »

Do you want to tell me how wrong you were? or should I dig up your old posts

you will never persuade Crashy that he is wrong because he is not interested in being right, merely in posting.

The best way to deal with him is to enjoy his nonsense for what it is and have some fun reading it and comparing it to the real world as recorded by the Land Registry, not some rabid tabloid journo.

"As of September 2017 the average house price in the UK is £226,367, and the index stands at 118.72. Property prices have risen by 0.4% compared to the previous month, and risen by 5.4% compared to the previous year."

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

the crash will come.... it just may not be a crash, merely a "readjustment" :cool:

Jack_Johnson_the_acorn

00ec25 wrote: »

you will never persuade Crashy that he is wrong because he is not interested in being right, merely in posting.

The best way to deal with him is to enjoy his nonsense for what it is and have some fun reading it and comparing it to the real world as recorded by the Land Registry, not some rabid tabloid journo.

"As of September 2017 the average house price in the UK is £226,367, and the index stands at 118.72. Property prices have risen by 0.4% compared to the previous month, and risen by 5.4% compared to the previous year."

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

the crash will come.... it just may not be a crash, merely a "readjustment" :cool:

Indeed, See this post from 2014 were he admitted to selling in the early 90's and rented ever since.... Nearly 30 yrs of rent paid. He could have paid off 2 mortgages!

Crashy_Time wrote: »

Had to move to a different part of the country, broke about even on the sale, no big deal. The Ponzi Forever meme wasn`t even on the horizon at that time, early 90`s. We will soon be back to a point where property is just something you live in for a while and sell if you have to. People getting their knickers in a twist on here about how it is going to stay at forever silly valuations are going to look silly, and broke.

csgohan4

Renting might be better in the short term so you don't get tied down anywhere long term, your career my take you to other cities for example.


While it might be cheaper to pay a mortgage now, the interest rates are rising and that will soon change,


don't forget the cost of maintenance for a house/flat, do you know how much a new boiler or a new roof costs? Can he absorb that into his salary


If his budgeting goes wrong, with a mortgage, it will affect his credit file badly and may affect future remortgage or new mortgage applications.

gycraig_2

Iv just bought at 26, iv lived in 3 cities had numerous jobs / girlfriends in different cities, commutes miles etc etc.

Yes it's better to buy but not till you get somewhat settled

HouseMouse

OK then, another view.

I know a lady in her 60's.

She's an owner occupier, having been given the house as part of a divorce settlement over 20 years ago. It's in the north & not worth that much especially given its condition.

She lives off pension credit.

The house is falling down around her because she can't afford any repairs/maintenance. If she was renting she would be getting HB to cover the rent. Renting means the repairs & maintenance are someone else's responsibility.
Pension credit doesn't give houseowners anything extra to cover repairs.

She can't understand why so many people make a fuss about home ownership when they aren't being made aware of the perils & pitfalls when you get older.

To the original poster I would add that seeing a house as a way to invest or make money, rather than a way to have more autonomy about your living conditions, is probably contributing to the astronomical house prices in some parts of the country.

Jack_Johnson_the_acorn

HouseMouse wrote: »

OK then, another view.

I know a lady in her 60's.

She's an owner occupier, having been given the house as part of a divorce settlement over 20 years ago. It's in the north & not worth that much especially given its condition.

She lives off pension credit.

The house is falling down around her because she can't afford any repairs/maintenance. If she was renting she would be getting HB to cover the rent. Renting means the repairs & maintenance are someone else's responsibility.
Pension credit doesn't give houseowners anything extra to cover repairs.

She can't understand why so many people make a fuss about home ownership when they aren't being made aware of the perils & pitfalls when you get older.

To the original poster I would add that seeing a house as a way to invest or make money, rather than a way to have more autonomy about your living conditions, is probably contributing to the astronomical house prices in some parts of the country.

I should be mortgage free in the next 10 yrs. When I'm roughly 40. That means i can pay into a pension for the next 30 years to give myself a comfortable retirement. A renter couldn't do that.

But if you aspire to live a meagre life on benefits and then pension credits then go for it.

teddysmum

You could spend your spare income while renting and get free care in old age or go without to have enough to buy and maintain a house, ending up giving it up to pay for care.