cakehead Posted November 18, 2010 Share Posted November 18, 2010 Renting is cheaper if you take interest rate at say 4% IO....Prices are stagnant or falling, people also underestimate the true cost in maintaining a property...only those that own one know how this can drain the finances....also renters can shop around and can move quickly if need be...when interest rates start to rise again and there is a far less choice of places where you can remortgage, that is if you can, things could get more difficult....renters imo are not as silly as some make them out to be. True, but most renting advocates are single folk or dinkys in urban areas with letting choice. Families tied into schools and rural dwellers don't have anything like the same flexibility anyway, meaning a mortgage is more attractive than tenancy. Link to comment Share on other sites More sharing options...
Dr Renter Posted November 18, 2010 Share Posted November 18, 2010 Why 5%? £300k at 4% = £12k minus 20% tax = £9.6k = £800 a month - if his rent is less than £800 then 4% is enough on £300k If I had £350k in the bank I'd want to live in a better house than what £800pcm would get. If I was in this position there is no way I'd rent. Some things are more important than modest financial gain. Link to comment Share on other sites More sharing options...
winkie Posted November 18, 2010 Share Posted November 18, 2010 True, but most renting advocates are single folk or dinkys in urban areas with letting choice. Families tied into schools and rural dwellers don't have anything like the same flexibility anyway, meaning a mortgage is more attractive than tenancy. Being attractive is different than whether it is cheaper or not...attractive things often have a cost attached to them...you pay your money you take your choice. Link to comment Share on other sites More sharing options...
cardiffone Posted November 18, 2010 Share Posted November 18, 2010 £350k at 4% = £14k - 20% tax = £11,200 in interest income - that's what he loses if he withdraws the cash. If his rent is less than £933.33 or less it is covered by the interest. he can afford 22,000K ( after tax and NI ) a year in rent and savings and is only paying 20% tax? Link to comment Share on other sites More sharing options...
bb7t6 Posted November 18, 2010 Share Posted November 18, 2010 £350k at 4% = £14k - 20% tax = £11,200 in interest income - that's what he loses if he withdraws the cash. If his rent is less than £933.33 or less it is covered by the interest. Wouldn't mind finding a £350k house that I could get for £933 a month, I'd sell up and rent! Unfortunately most houses worth £350k tend to rent out at £1300-1500 a month. Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 18, 2010 Share Posted November 18, 2010 If I had £350k in the bank I'd want to live in a better house than what £800pcm would get. If I was in this position there is no way I'd rent. Some things are more important than modest financial gain. Where did the £800pcm come from? Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 18, 2010 Share Posted November 18, 2010 Wouldn't mind finding a £350k house that I could get for £933 a month, I'd sell up and rent! Unfortunately most houses worth £350k tend to rent out at £1300-1500 a month. I pay less that £933 a month rent, £350K house, south east, top area . Link to comment Share on other sites More sharing options...
cakehead Posted November 18, 2010 Share Posted November 18, 2010 Wouldn't mind finding a £350k house that I could get for £933 a month, I'd sell up and rent! Unfortunately most houses worth £350k tend to rent out at £1300-1500 a month. Agreed. Link to comment Share on other sites More sharing options...
cardiffone Posted November 18, 2010 Share Posted November 18, 2010 I pay less that £933 a month rent, £350K house, south east, top area . which is more than the mortgage on my 350K house.... and of course the capital is being paid off out of that.... Link to comment Share on other sites More sharing options...
Dr Renter Posted November 18, 2010 Share Posted November 18, 2010 Where did the £800pcm come from? Ask Redhat Sly, but I suppose sums aren't his strength either. Link to comment Share on other sites More sharing options...
bb7t6 Posted November 18, 2010 Share Posted November 18, 2010 Agreed. ...but hey this is the Internet, where we can make all sorts of unsubstantiated claims of 'fact' to underpin our argument that can never be disproved. I have a huge ***** by the way. Fact. Link to comment Share on other sites More sharing options...
Dr Renter Posted November 18, 2010 Share Posted November 18, 2010 Wouldn't mind finding a £350k house that I could get for £933 a month, I'd sell up and rent! Unfortunately most houses worth £350k tend to rent out at £1300-1500 a month. Spot on. Bruce obviously lives in that fabled place "round my way" where things are all rosy and the poster is significantly better off financially than would be expected if he lived anywhere else in the country. Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 18, 2010 Share Posted November 18, 2010 Hmmm, there seem to be a few worried estate agent types posting on this thread . They try to pick holes in my figures and when they fail they suggest I'm lying . Link to comment Share on other sites More sharing options...
bb7t6 Posted November 18, 2010 Share Posted November 18, 2010 If renting is so great, why spend your life on an Internet forum that dedicated and obsessed about the price of property? Link to comment Share on other sites More sharing options...
winkie Posted November 18, 2010 Share Posted November 18, 2010 Picked a postcode...and I don't know the area. NR6. Rent £750 pm http://www.rightmove.co.uk/property-to-rent/property-28446640.html?showcase=true Buy £299k (think of costs to be added, mortgage fees, stamp duty, solicitors etc) £300k @ 4% IO = £1000 per month. http://www.rightmove.co.uk/property-for-sale/property-16245888.html Link to comment Share on other sites More sharing options...
cardiffone Posted November 18, 2010 Share Posted November 18, 2010 Picked a postcode...and I don't know the area. NR6. Rent £750 pm http://www.rightmove.co.uk/property-to-rent/property-28446640.html?showcase=true Buy £299k (think of costs to be added, mortgage fees, stamp duty, solicitors etc) £300k @ 4% IO = £1000 per month. http://www.rightmove.co.uk/property-for-sale/property-16245888.html eh totally different houses.... Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 18, 2010 Share Posted November 18, 2010 he can afford 22,000K ( after tax and NI ) a year in rent and savings and is only paying 20% tax? What on earth are you on about . Link to comment Share on other sites More sharing options...
winkie Posted November 18, 2010 Share Posted November 18, 2010 eh totally different houses.... One has a garden the other is a strip of grass that goes around it....no house is exactly alike...ok one is a bungalow and the other is a semi, but if I could be bothered to look I could find lots of examples where renting is cheaper than buying...all things being equal. Link to comment Share on other sites More sharing options...
Dr Renter Posted November 18, 2010 Share Posted November 18, 2010 What on earth are you on about . OMG I've just seen your signature I feel honoured that I've made your signature despite having made about 6 posts in the last 6 months. You are seriously paranoid. I'm hardly a VI, I own my home with a good amount of equity and will be moving up the ladder a few times in the next decade. I do not want prices to rise. However, you are clearly of the opinion that you are right and anyone who disagrees has an ulterior motive. As I've said before, its people like you who've made this forum almost unbearable. Link to comment Share on other sites More sharing options...
Dr Renter Posted November 18, 2010 Share Posted November 18, 2010 He doesn't seem to want to answer my post either. Maybe facts disturb him or perhaps that you don't live in the only place in the country where it makes sense to rent What, you mean your post where you're trying to say that renting an orange is cheaper than buying an apple? It didn't warrant a response. Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 18, 2010 Share Posted November 18, 2010 OMG I've just seen your signature I feel honoured that I've made your signature despite having made about 6 posts in the last 6 months. You are seriously paranoid. I'm hardly a VI, I own my home with a good amount of equity and will be moving up the ladder a few times in the next decade. I do not want prices to rise. However, you are clearly of the opinion that you are right and anyone who disagrees has an ulterior motive. As I've said before, its people like you who've made this forum almost unbearable. It's not a case of right or wrong, I am merely posting my own situation. I rent a £350K house for less than £933 a month. If I were to draw £350K out of the bank and buy it, I'd lose more in bank interest (after tax) than I pay in rent. Fact, not opinion. Link to comment Share on other sites More sharing options...
cardiffone Posted November 18, 2010 Share Posted November 18, 2010 What on earth are you on about . er If he earned 44K , after tax he would have 32K left minus 22K in rent and saving leaves only 10K a year for everything else. Maybe fine for a single person, but not a familly.. Earning less he would have almost nothing left. Earning more and well into 40% tax on his savings... Link to comment Share on other sites More sharing options...
Dr Renter Posted November 18, 2010 Share Posted November 18, 2010 No I picked 2 houses near each other with similar internal layout. You just don't want to listen to anyone who doesn't agree with you. I know for me that renting at present is better and cheaper than buying and I see the evidence of it round me every day. But it's pointless. Anyone can pick two houses in their area to prove a point. Plus it's Northern Ireland and TBH I couldn't give a sh1t. Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 18, 2010 Share Posted November 18, 2010 he can afford 22,000K ( after tax and NI ) a year in rent and savings and is only paying 20% tax? You were referring to a post about my situation. £350k at 4% = £14k - 20% tax = £11,200 in interest income - that's what he loses if he withdraws the cash. If his rent is less than £933.33 or less it is covered by the interest. I pay less than £11K a year in rent. My tax rate is 20%. I do not pay NI. Read my posts on this thread before posting nonsense. Link to comment Share on other sites More sharing options...
Lepista Posted November 18, 2010 Share Posted November 18, 2010 But it's pointless. Anyone can pick two houses in their area to prove a point. Plus it's Northern Ireland and TBH I couldn't give a sh1t. but not to disprove a point. Like the raven paradox. http://en.wikipedia.org/wiki/Raven_paradox I can disprove a theory by showing one case where it is nmot true. The theory that you cannot rent a £350k house for less than £900 has been disproved. Fact. Link to comment Share on other sites More sharing options...
Recommended Posts