Is there money to be made in renting?

Crashy_Time

[Deleted User] said:

SpiderLegs said:

[Deleted User] said:

SpiderLegs said:

[Deleted User] said:

csgohan4 said:

I moved out of London because I couldn't afford to save a deposit. Cost of living there was too high for me. 

So I moved out and able to buy a much larger house for the price of a box room in London. If you are unwilling to move from an expensive area, then you have to accept the challenges of getting a house there. But no... people still moan and think they are entitled to live in expensive areas.

I mean i would love to live in Kensington/Knightsbridge. But I would quickly go bankrupt and end up in a worse place. 

The obsession with buying when your young amazes me. How can you buy a house when you finish UNI? Your starter salary is peanuts compared to your promotion one. 


Took more than 15 years to buy a house and renting to get there. The entitlement amazes me

You were lucky. House prices rose £25k in the last year, that's way beyond what most people can save.

House prices rising by 25k does not mean people need to save an additional 25k

Depends. If they were already at the limit of the salary multiplier offered by many lenders then they need £25k. If not they can mortgage some of it and the deposit goes up as a proportion.

Assuming they can mortgage all of it and put down a 10% deposit then they need to save £210/month just to stand still. Average monthly household savings in the UK are £180. Yes it's averages blah blah but it's undeniably a disaster for many FTBs.

You commented about house price rises from last year. People who were offered a mortgage at the limit of salary multiple twelve months ago, have presumably already bought their house and are now likely on a fixed rate of interest and have on paper benefitted from the 25k increase in prices and are no longer at the limit of salary multiples.

No, in the last 12 months, as in September 2020 to September 2021. Figures for October are not available yet.

In any case, this is of little consolation to anyone trying to buy now.

Exactly, and the boost from the SDH will be reversed by any rate rises that come along.

[Deleted User]

Crashy_Time said:

[Deleted User] said:

SpiderLegs said:

[Deleted User] said:

SpiderLegs said:

[Deleted User] said:

csgohan4 said:

I moved out of London because I couldn't afford to save a deposit. Cost of living there was too high for me. 

So I moved out and able to buy a much larger house for the price of a box room in London. If you are unwilling to move from an expensive area, then you have to accept the challenges of getting a house there. But no... people still moan and think they are entitled to live in expensive areas.

I mean i would love to live in Kensington/Knightsbridge. But I would quickly go bankrupt and end up in a worse place. 

The obsession with buying when your young amazes me. How can you buy a house when you finish UNI? Your starter salary is peanuts compared to your promotion one. 


Took more than 15 years to buy a house and renting to get there. The entitlement amazes me

You were lucky. House prices rose £25k in the last year, that's way beyond what most people can save.

House prices rising by 25k does not mean people need to save an additional 25k

Depends. If they were already at the limit of the salary multiplier offered by many lenders then they need £25k. If not they can mortgage some of it and the deposit goes up as a proportion.

Assuming they can mortgage all of it and put down a 10% deposit then they need to save £210/month just to stand still. Average monthly household savings in the UK are £180. Yes it's averages blah blah but it's undeniably a disaster for many FTBs.

You commented about house price rises from last year. People who were offered a mortgage at the limit of salary multiple twelve months ago, have presumably already bought their house and are now likely on a fixed rate of interest and have on paper benefitted from the 25k increase in prices and are no longer at the limit of salary multiples.

No, in the last 12 months, as in September 2020 to September 2021. Figures for October are not available yet.

In any case, this is of little consolation to anyone trying to buy now.

Exactly, and the boost from the SDH will be reversed by any rate rises that come along.

Yes, the economic situation is very bad for FTBs. Lots of uncertainly, but an expected rate rise. Massive inflation too, especially for building work (due to lack of supplies and labour) so the option to buy a wreck and renovate it is also much less viable now.

Crashy_Time

[Deleted User] said:

Crashy_Time said:

[Deleted User] said:

SpiderLegs said:

[Deleted User] said:

SpiderLegs said:

[Deleted User] said:

csgohan4 said:

I moved out of London because I couldn't afford to save a deposit. Cost of living there was too high for me. 

So I moved out and able to buy a much larger house for the price of a box room in London. If you are unwilling to move from an expensive area, then you have to accept the challenges of getting a house there. But no... people still moan and think they are entitled to live in expensive areas.

I mean i would love to live in Kensington/Knightsbridge. But I would quickly go bankrupt and end up in a worse place. 

The obsession with buying when your young amazes me. How can you buy a house when you finish UNI? Your starter salary is peanuts compared to your promotion one. 


Took more than 15 years to buy a house and renting to get there. The entitlement amazes me

You were lucky. House prices rose £25k in the last year, that's way beyond what most people can save.

House prices rising by 25k does not mean people need to save an additional 25k

Depends. If they were already at the limit of the salary multiplier offered by many lenders then they need £25k. If not they can mortgage some of it and the deposit goes up as a proportion.

Assuming they can mortgage all of it and put down a 10% deposit then they need to save £210/month just to stand still. Average monthly household savings in the UK are £180. Yes it's averages blah blah but it's undeniably a disaster for many FTBs.

You commented about house price rises from last year. People who were offered a mortgage at the limit of salary multiple twelve months ago, have presumably already bought their house and are now likely on a fixed rate of interest and have on paper benefitted from the 25k increase in prices and are no longer at the limit of salary multiples.

No, in the last 12 months, as in September 2020 to September 2021. Figures for October are not available yet.

In any case, this is of little consolation to anyone trying to buy now.

Exactly, and the boost from the SDH will be reversed by any rate rises that come along.

Yes, the economic situation is very bad for FTBs. Lots of uncertainly, but an expected rate rise. Massive inflation too, especially for building work (due to lack of supplies and labour) so the option to buy a wreck and renovate it is also much less viable now.

Especially if they "bought" recently.