200k rent or buy????

ReadySteadyPop

Tabieth said:

I doubt you’ll get enough interest on 200k to pay for a decent rental house. Plus you have no security or control with a rental property. You can’t decorate it to your taste and, although harder to be evicted now than it was, you can’t guarantee it will be a long term home. And rents go up, likely far faster than interest rates. And what happens when you and your wife have retired and are on a pension? If you buy now the mortgage will likely be fully paid off by then and so your outgoings will be significantly less. If you’re still renting in retirement you are paying full rent on loess income. 

I rented for many years as an adult, I bought my house this year. I feel so much secure and settled now than I did. My mortgage is significantly less than my rent, I’ve made my house to my style. Renting for right for me for a time but it’s not the longer term option. 

Unless you have a very short mortgage term bond market volatility could make your house debt quite expensive over a normal term, there is nothing but downward pressure on rents now as the economy weakens and the mood shifts on how many people can turn up in the country requiring to rent or buy a property.

born_again

Having rented before. Would never go back, despite having a great landlord. Can't beat the thought of paying mortgage off & all the savings there. Renting you will still be paying out forever.

If OP wants to help kids with a deposit. Then as they are moving out, then can downsize & release funds.

ReadySteadyPop

born_again said:

Having rented before. Would never go back, despite having a great landlord. Can't beat the thought of paying mortgage off & all the savings there. Renting you will still be paying out forever.

If OP wants to help kids with a deposit. Then as they are moving out, then can downsize & release funds.

People coming off fixes just now probably wouldn`t agree.

Herzlos

ReadySteadyPop said:

born_again said:

Having rented before. Would never go back, despite having a great landlord. Can't beat the thought of paying mortgage off & all the savings there. Renting you will still be paying out forever.

If OP wants to help kids with a deposit. Then as they are moving out, then can downsize & release funds.

People coming off fixes just now probably wouldn`t agree.

Still significantly cheaper than the equivalent rent.  Your bizarre bias results in some terrible advice. 

The advantages of renting are:

maintenance - your landlord "should" sort it, 

and flexibility in that you can move when you want. 

The disadvantages of renting are:
lack of security, in that if your landlord wants to sell up / move in / goes bankrupt / dies, then you risk getting evicted. 
You're at the mercy of a landlord to do most things around the house.  
You get to pay rent at a rate that's only every going to go up. 
You're paying rent forever.
You get nothing out at the end. 

The advantages of owning are:

Stability - you aren't reliant on any 3rd party except the bank

Eventually it'll be paid off and your costs go down

Freedom to do whatever you want with the house

Equity - you can sell it later and take the cash out

Payments are only going to trend down as you have a lower balance and higher value. 

The disadvantages of owning are:

Lack of flexibity - moving can take much longer and cost more than renting. 

Maintenance - you need to pay for it yourself (though for balance you're still paying for it when renting just indirectly). 

Tabieth

ReadySteadyPop said:

Tabieth said:

I doubt you’ll get enough interest on 200k to pay for a decent rental house. Plus you have no security or control with a rental property. You can’t decorate it to your taste and, although harder to be evicted now than it was, you can’t guarantee it will be a long term home. And rents go up, likely far faster than interest rates. And what happens when you and your wife have retired and are on a pension? If you buy now the mortgage will likely be fully paid off by then and so your outgoings will be significantly less. If you’re still renting in retirement you are paying full rent on loess income. 

I rented for many years as an adult, I bought my house this year. I feel so much secure and settled now than I did. My mortgage is significantly less than my rent, I’ve made my house to my style. Renting for right for me for a time but it’s not the longer term option. 

Unless you have a very short mortgage term bond market volatility could make your house debt quite expensive over a normal term, there is nothing but downward pressure on rents now as the economy weakens and the mood shifts on how many people can turn up in the country requiring to rent or buy a property.

Sorry but this is nonsense. The rent on the flat I lived in before I moved has gone up from £1275 a month (two years ago) to £1600 (now)). It’s not unusual in that regard, I see from Rightmove that rentals in the area are all increasing their rents (and they’re being taken at those prices and not left vacant). My mortgage is significantly cheaper than my rent was. Interest rates will have to increase quite a lot before I’m paying that much a month, even if they double, I’ll be able to cope. 

I know you see nothing but doom and gloom and are constantly predicting a crash but please do be even slightly realistic. 

thegreenone

A mortgage is only a debt until it's paid off.  Renting only has an end date when you die.

Tabieth

thegreenone said:

A mortgage is only a debt until it's paid off.  Renting only has an end date when you die.

This exactly. And, unlike rent, once the mortgage debt is paid off an asset is owned. 

jimbog

If you were to buy a property it is possible to get some sort of equity release if you wanted to release some cash in future without moving. 

But it does have an impact on what your kids will inherit as well as eligibility for benefits 

jimbog

Regardless of whatever new legislation is put in place you don’t want to be hunting for a new rental in your twilight years

Tubearhole

Good afternoon all.
Thanku so much for all your valid  thoughts. It has given me lots to think about.