My obsession with not buying in UK - Prove me wrong

Schwarzwald

RobHT said:

[...]
In Germany, more than 50% rent and only for career purposes and the high cost in big cities (look at the rent limit in Berlin, against the international free market rules).

[...]

I don't see more rights in other countries for renters, it just depends from the common or custom contract the you make, that's it.

you also dont seem to actually have much knowledge about the things you write.

Tenants' rights are fundamentally different in, for example, Germany compared to the UK and one reasons, besides others, including historical reasons, that home ownership is so low in Germany and renting so prevalent.

In Germany you have such strong tenant protection that you can safely rent for decades and stay in the same property with very limited rights for the landlord to get you out, which takes away a key incentive to actually buy real estate.

Slithery

RobHT said

I don't agree with the CGT, but I'll double-check later even this...

Here you go...
https://www.gov.uk/tax-sell-home

MobileSaver

RobHT said:

It doesn't take long for a an house to get repossessed from the bank, I guess it's 3 months,

More nonsense; most lenders won't even start the process until you have missed 3 months of payments and the actual repossession process after that can easily take another 6 to 12 months.

theoretica

I think you are wrong - to make it into an obsession.  That implies a fixed mindset which is unwilling to consider changing circumstances and assess whether the decision you made is still the right one. 

Schwarzwald

RobHT said:

[...]

If my rent remains the same (1k), I'll pay 360k in 30y...

Obviously, I need to make other assumptions:
1. I didn't consider inflation, but that will impact the mortgage most probably, not the rent prices, it's not that easy to increase. For example, in the last 2y of pandemy it didn't increase
2. Interest rates can vary a lot, but I considered the lowest in my comparison
[...]

[...]

Do you have any basic understand of the relationship between inflation and interest rates?
What kind of an assumption is it that your rent remains the same over 30 (!) years?

This is a bullsh*t-in, bullsh*t-out kinda calculation truly not worth looking at the result.

TheJP

RobHT said:

TheJP said:

You spend x renting

You spend y buying

At some point y will no longer be an element of expenditure apart from minimal costs.

x will pay out 0 equity

y will pay out equity 

y will pay out equity only if all goes well , plus it needs reconstruction before to be sold or you need to sell at a low price in the future...
I'm pretty sure you won't have the cash to do so, maybe if you take the 25% lump sump from your pension, which is a bad idea...
Then what? You sell and where you go?
So we come back to the point that you need to reconstruct your house, mainly inside but also something outside, definitely the roof.
At the same time, be ready to rent elsewhere for 6 months minimum, if the company doesn't delay the project btw.
Tons of money man, tons of money...

A - find a house that doesn't need reconstruction, if it does you are still likely to benefit from the added value.

B - Move in, build equity, re-mortgage then reconstruct. Then added value perks up equity.

C - See A, but again I'm sure the added costs will be consumed by the equity/house rise over the years.

Tons of money on rent man, tons of money paid to someone else...

RobHT

Schwarzwald said:

RobHT said:

[...]

With the rent I'm free, out of troubles, not in debt with the bank, free to take work opportunities where I feel more comfortable, ready to downsize if needed.

[...]

Nice part of renting long term
1. Possibility to retire in a more appropriate place for pensioners, maybe seaside locations and not UK, but UK will reduce my pension (why not )
2. Moving due to the job demand, that's the most important things. As a renter and no cover from parents, I depend from the job, full stop.

[...]

I would argue a prime source of freedom and flexibility in life comes through financial independence. Financial independence is also a source of life quality for many.
Financial independence comes through wealth.
Renting long-term remains an expense, it does not inherently create wealth. Wealth beyond purely selling your time away for a monthly salary comes from appreciative asset ownership.
Real estate is one of the most common and most widely understood forms of asset ownership as everybody needs to sleep somewhere.
Unless you very smartly invest your equity deposit, that you keep by not buying real estate, constantly into other assets, e.g. stock market, commodity trading, etc., how do you build any wealth that creates the financial freedom that you seem to seek to be able to "retire in other places", "move around as you wish", etc.
For sure not by holding cash in either a low interest environment of the last 10 years and not in a high inflation environment as we are likely to see in the next 2-5 years. Asset ownership often benefits from both and is often a good hedge.

With all due respect but your entire OP reads like non-sense to me and you dont seem to understand very basic fundamentals of building wealth long-term. Wealth comes through asset ownership, which is appreciating, you dont necessarily need real estate for it, but for many it is a/the starting point.

Hi, I liked your answer.
I explain better, I invest 3k almost each month.
Technically speaking, what I did in the last few years only will pay off my retirement, even if I exclude the pension pot...
Obviously, I would love to have my own house, customize it etc, and even see it as a great asset, but to me, an house in UK looks only a liability.

There is a chance though, I take the mortgage and I rely entirely on my mortgage insurance, which btw it doesn't cover my entire paranoia about asset security .
Then, the day I'll lose my job and don't get another one that pays well too, I'd like to understand how do I pay my mortgage...
I think that I'll be always above 60k, which is enough for a mortgage, but not enough to stay quite and to offset any house issue later on... Plus it won't give me anymore the chance to invest properly and consistently.

I get it, I make this reasoning because now I'm full of cash every month (even though it's about coins in reality, I'd need much more), but it won't be always like that...
Normally, the people with low income tend to buy an house because they believe they have secured the asset from the day one, then explain me why many people declare bankrupcy and lose the house... All the people that declare bankrupcy own something in real estate, coincidence? I don't think so. It's simple, they own the debt not the house, when they declare bankrupcy, they lose all.

What do I lose instead? Just the rent, my credit history doesn't get destroyed and I can always stand up, my insurances are gonna cover up as well.
Surely it can go bad also for me in some weird situation, but again, I don't own any debt, this is the greatest safety of all time.
Imagine a person like a company, that owns such level of debt in %, would it be even allowed to get a talk with a fund manager or a venture capitalist to get funds?
Not at all , I've seen rare cases as such, and most of them were funded by the governments or affiliated.

Slithery

RobHT said:
then explain me why many people declare bankrupcy and lose the house.

The number of people who go bankrupt in this country is miniscule.

RobHT said:
All the people that declare bankrupcy own something in real estate, coincidence?

Also false. People who don't own property also occasionally go bankrupt.

RobHT

Schwarzwald said:

RobHT said:

[...]
In Germany, more than 50% rent and only for career purposes and the high cost in big cities (look at the rent limit in Berlin, against the international free market rules).

[...]

I don't see more rights in other countries for renters, it just depends from the common or custom contract the you make, that's it.

you also dont seem to actually have much knowledge about the things you write.

Tenants' rights are fundamentally different in, for example, Germany compared to the UK and one reasons, besides others, including historical reasons, that home ownership is so low in Germany and renting so prevalent.

In Germany you have such strong tenant protection that you can safely rent for decades and stay in the same property with very limited rights for the landlord to get you out, which takes away a key incentive to actually buy real estate.

I know that kind of rule, in Italy is similar but not that much, it sucks for landlords to rent out in those countries .
Then, in Germany the house prices is much lower, I'd be tempted to buy there no matter what, and they are properly built.

Btw, the quality of life is immensively higher in Germany .

RobHT

MobileSaver said:

RobHT said:

It doesn't take long for a an house to get repossessed from the bank, I guess it's 3 months,

More nonsense; most lenders won't even start the process until you have missed 3 months of payments and the actual repossession process after that can easily take another 6 to 12 months.

That's called slowness in the operation, not the actual rules/law.
When I applied for a mortgage, the lender was clear, 3 months or we claim the house, of course it will take longer but 3 months are enough to trigger the process in most cases.
Then I'm not sure if there is a general law, I'm not a lawyer.