Does Saving (and renting) now outweigh the benefits of buying?

moneysaver1978

You mentioned buying a flat - don't forget to factor in ground rent and service charges (which both will increase).

diystarter7

Hi OP

Sorry, but there is no right or wrong way forward as there are so many variables and the unpredictability of interest rates and property prices.

I know of people that bout bTL apartments, new builds in the north of the uk at the peak of the markets just before the crash in 2008 and their prices have still not reached those levels. In may other places inc London that prices have more than doubled.

Percentage of owner-occupiers in eu countries, UK is about 65%

https://www.statista.com/statistics/246355/home-ownership-rate-in-europe/
Thanks

Alexland

diystarter7 said:

I know of people that bout bTL apartments, new builds in the north of the uk at the peak of the markets just before the crash in 2008 and their prices have still not reached those levels. In may other places inc London that prices have more than doubled.

IIRC the glut of overpriced newbuild flats in some areas being sold to inexperienced buyers or long distance investors was a pretty obvious problem at the time. I think anyone buying a property needs to be selective and use their local knowledge to only buy good properties that are likely to hold their value well relative to inflation over time. My view is newbuilds are best avoided as they tend to be 10-20% overpriced, have a higher probability of early life problems, high maintenence charges / ground rent, poor build quality and their true value hasn't been established in the market yet.

Albermarle

diystarter7 said:

Hi OP

Sorry, but there is no right or wrong way forward as there are so many variables and the unpredictability of interest rates and property prices.

I know of people that bout bTL apartments, new builds in the north of the uk at the peak of the markets just before the crash in 2008 and their prices have still not reached those levels. In may other places inc London that prices have more than doubled.

Percentage of owner-occupiers in eu countries, UK is about 65%

https://www.statista.com/statistics/246355/home-ownership-rate-in-europe/
Thanks

There was a bubble in new build apartments for BTL  in Manchester in particular. Many were bought before they were even built. Partly hyped up by property companies extolling BTL as an easy get rich scheme, and offering their own road to riches in expensive property seminars. Many professionals living hundreds of miles away bought properties they had never seen and got their fingers burnt.

Albermarle

jimjames said:

I can't see any benefit long term of renting rather than buying IF you can afford to buy. Seeing people get into retirement and still need to be paying rent with no security of tenure seems very sad to me.

I agree that the lack of security of tenure, and the possibility of being turfed out of your home when in your old age, is much worse than having to worry about the garden, or buying a new washing machine.

jimjames

Albermarle said:

jimjames said:

I can't see any benefit long term of renting rather than buying IF you can afford to buy. Seeing people get into retirement and still need to be paying rent with no security of tenure seems very sad to me.

I agree that the lack of security of tenure, and the possibility of being turfed out of your home when in your old age, is much worse than having to worry about the garden, or buying a new washing machine.

I had an elderly couple come to see my property last year. Limited mobility yet the lack of choice locally meant they were considering a 2 bed house and had very limited time before their existing rental was being sold. I wouldn't have rented to them as I considered the house wasn't suitable but it really made me feel for anyone in that situation where they were being forced to move when in their 80s and potentially accepting property that was less than ideal.