House buying risks

MobileSaver

Crashy_Time said:

MobileSaver said:

The context was a home-owner having control over their monthly payments; when your claims were proven to be false, you've now suddenly introduced something completely different... 

But we know that it isn`t as straightforward as you have presented it, ... The deals people can access will depend a lot on their equity, credit score, deposit amount etc.?

Yes it is that straightforward and yes the particular deal people can access obviously depends on several variables.

You can huff and puff as much as you want but it is a very simple fact that the majority of home-owners with a mortgage are on a fixed-rate deal. (And even more could be on a fixed-rate but aren't that bothered right now while rates are so low.)

Crashy_Time said:

Can you post a link to a good starter home in a good area where there are jobs that you think represents value?

Why would I want to do that and what does that have to do with there being plenty of starter homes available all over the UK where people have no need whatsoever to stretch themselves into decades of debt?

It is of course quite interesting that you are now moving the narrative away from "basic shelter" being unaffordable to "a good starter home in a good area" being unaffordable, I guess that is the closest we will ever get to you admitting you were wrong about basic shelter.

getmore4less

For the OPs son, the basic shelter(studio) can, for the same money(+deposit), be swapped for 3 bed skipping the starter home completely.

 

Crashy_Time

getmore4less said:

Crashy_Time said:

getmore4less said:

Crashy_Time said:

AnotherJoe said:

OP, not sure if its come up before but your question is posed in a very one sided way.

What about "NOT buying a house" risks?

Long term, the near certainty of house price inflation pricing you out from EVER being able to buy a house.

Autonomy - do what you want to your house, not be forced to move on account off LL.

More control over how much you pay, since mortgage debt is gradually erased by payments and inflation (eventually to zero)

Cheaper longer term.

Not really, you are much more tied to a mortgage (and mortgage rate spike) than you would be with renting where you have the flexibility to find cheaper accommodation and move to it very quickly. Recent events have probably got the message through to even the most "can`t ever move too far from London!" types for example that moving out of London is indeed possible and desirable.................unfortunately if you rushed into buying an overpriced apartment with the wrong type of cladding for example, or any type of housing that has fallen out of favour due to Lockdowns, you will be staying put most likely whether you want to or not? 

The op is already at the bottom of the rental tree a studio.

next rung down is sharing.

Might as well be in his own 3 bed property (costing the same as the studio) than  someone else's property.

But he needs a lodger to do it, isn`t that sharing? You could have a better quality of life in a studio where you control who visits than in a lodger situation gone bad in a bigger property.

Your point was they would need to go down a notch cheaper on the rental stakes not stay in the studio.

That would be to shared.

no different to getting a lodger in there own 3 bed

Do keep up with your own nonsense.

My point wasn`t addressed to the OP, it was addressed to another poster, try to get the context first please before responding.

Mickey666

Crashy_Time said:

AnotherJoe said:

OP, not sure if its come up before but your question is posed in a very one sided way.

What about "NOT buying a house" risks?

Long term, the near certainty of house price inflation pricing you out from EVER being able to buy a house.

Autonomy - do what you want to your house, not be forced to move on account off LL.

More control over how much you pay, since mortgage debt is gradually erased by payments and inflation (eventually to zero)

Cheaper longer term.

Not really, you are much more tied to a mortgage (and mortgage rate spike) than you would be with renting where you have the flexibility to find cheaper accommodation and move to it very quickly. Recent events have probably got the message through to even the most "can`t ever move too far from London!" types for example that moving out of London is indeed possible and desirable.................unfortunately if you rushed into buying an overpriced apartment with the wrong type of cladding for example, or any type of housing that has fallen out of favour due to Lockdowns, you will be staying put most likely whether you want to or not? 

What's your definition of "very quickly" for renters who have signed up to a tenancy agreement of at least 6 months, but more likely longer?  Wont they only be able to cut the tenancy short with the landlord's agreement?  Sounds like a bit of a tie to me.

Keswick1uk

At least with renting you have control on the end date (even if it means waiting until the end of a contract date) it's not determined by chains and markets etc. And the most it should cost is the deposit.

Whereas, having to sell to move, the dates are  less in your control and it does cost more. You are more reliant on third parties and the market.

Many people are outside of the tenancy agreements and on rolling system where the notice is shorter (1 month/2 month,  I think?)

SpiderLegs

Keswick1uk said:

At least with renting you have control on the end date (even if it means waiting until the end of a contract date) it's not determined by chains and markets etc. And the most it should cost is the deposit.

Whereas, having to sell to move, the dates are  less in your control and it does cost more. You are more reliant on third parties and the market.

Many people are outside of the tenancy agreements and on rolling system where the notice is shorter (1 month/2 month,  I think?)

Yes there are advantages to renting, in the same way as there as advantages for some people to travel everywhere on public transport rather than owning a car. 

Murphybear

Crashy_Time said:

getmore4less said:

You don't have to remortgage,

You can just stay with the same lender(pick a good one) and go on to the SVR if there has been a major crash and LTV is trashed or one of  their deals  for your current LTV.

If rates go through the roof it is the renters that have to worry as all those landlords will need to get more money of their tenants.

On the numbers it does not look that stretched £2k+ coming in  £550 rent changed to mortgage, will tick along nicely for a few years.

Keep the finances under control gives headroom if needed even with serious rate rises(go long 40y on initial term)
£950pm(rent + lodger money) covers rates up to 6.6%  start that early as overpayments and covered up to 9.2%

Lodger is a major drain on quality of life IMO, unless you are really good buddies with them. Eventually people will tire of having to take in lodgers/washing/ironing or whatever to buy basic shelter, but who will they vote for to lower house prices?

I shared with a total stranger 43 years ago.  We met up and ended up going for a drink and got on like a house on fire.  I moved out to get married then after divorce I moved in with her.  We were best friends until she died of cancer 20 years ago.  
maybe women are different  

Mickey666

Keswick1uk said:

At least with renting you have control on the end date (even if it means waiting until the end of a contract date) it's not determined by chains and markets etc. And the most it should cost is the deposit.

Whereas, having to sell to move, the dates are  less in your control and it does cost more. You are more reliant on third parties and the market.

Many people are outside of the tenancy agreements and on rolling system where the notice is shorter (1 month/2 month,  I think?)

Fair point, although to be pedantic, it's the landlord that has ultimate control over the end date, as in yes you can decide to leave but you have no control over being able to stay.
But you're right that there are more external dependencies in a house sale and purchase move, so in that respect renting is more flexible.  It's very expensive flexibility though.

Crashy_Time

Mickey666 said:

Crashy_Time said:

AnotherJoe said:

OP, not sure if its come up before but your question is posed in a very one sided way.

What about "NOT buying a house" risks?

Long term, the near certainty of house price inflation pricing you out from EVER being able to buy a house.

Autonomy - do what you want to your house, not be forced to move on account off LL.

More control over how much you pay, since mortgage debt is gradually erased by payments and inflation (eventually to zero)

Cheaper longer term.

Not really, you are much more tied to a mortgage (and mortgage rate spike) than you would be with renting where you have the flexibility to find cheaper accommodation and move to it very quickly. Recent events have probably got the message through to even the most "can`t ever move too far from London!" types for example that moving out of London is indeed possible and desirable.................unfortunately if you rushed into buying an overpriced apartment with the wrong type of cladding for example, or any type of housing that has fallen out of favour due to Lockdowns, you will be staying put most likely whether you want to or not? 

What's your definition of "very quickly" for renters who have signed up to a tenancy agreement of at least 6 months, but more likely longer?  Wont they only be able to cut the tenancy short with the landlord's agreement?  Sounds like a bit of a tie to me.

The percentage of people who don`t stay 6 months is probably tiny, in an emergency I`m sure a sub-let or something could be worked out to see out the lease, just doesn`t compare to the burden of having to sell a house to move on with your life though if the market is sluggish.

Crashy_Time

Mickey666 said:

Keswick1uk said:

At least with renting you have control on the end date (even if it means waiting until the end of a contract date) it's not determined by chains and markets etc. And the most it should cost is the deposit.

Whereas, having to sell to move, the dates are  less in your control and it does cost more. You are more reliant on third parties and the market.

Many people are outside of the tenancy agreements and on rolling system where the notice is shorter (1 month/2 month,  I think?)

Fair point, although to be pedantic, it's the landlord that has ultimate control over the end date, as in yes you can decide to leave but you have no control over being able to stay.
But you're right that there are more external dependencies in a house sale and purchase move, so in that respect renting is more flexible.  It's very expensive flexibility though.

Ultimately it is the law that controls it, plenty of threads about tenants staying a lot longer than the landlord would like (sometimes not even paying rent)