Surely Rent Is The Same A Debt? - House Price Crash forum

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#1 cardiffone

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Posted 18 February 2011 - 04:17 PM

Surely paying rent is the same as being in debt?

Some people on this site seam to think they are not in debt when renting, but you are.

What the difference?

if you have a mortgage you have payments to make every month.
If you rent you have payments to make each month.

If you don't pay rent you are kicked out.
If you don't pay mortgage you are kicked out.

cheers

This post has been edited by cardiffone: 18 February 2011 - 04:18 PM

#2 Harry Monk

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Posted 18 February 2011 - 04:24 PM

You are not in debt when you pay for rent any more than if you buy a tank of petrol.

.........................................................................................................................................................................

#3 Sledgehead

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Posted 18 February 2011 - 04:24 PM

cardiffone, on 18 February 2011 - 04:17 PM, said:

239 posts and you are still at that level?

Bubble Thinking & The Wisdom of the Property Bulls (click the pink arrow to see it in full!):

QUOTE(BTLlondon @ Jun 13 2005)

You have missed the HMS "good time to buy boat." ........Now is a good time to buy

QUOTE(nodumsunreader @ Aug 10 2005, 03:48 PM)

.....if your wished for HPC actually happened ..... The only winners will ....be those who own property

QUOTE(TheLittleGuy @ Aug 13 2005, 02:16 PM)

I think that the market will eventually have a proper crash ... I used to be an HPC believer, but that was a long time ago

#4 cardiffone

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Posted 18 February 2011 - 04:28 PM

Sledgehead, on 18 February 2011 - 04:24 PM, said:

239 posts and you are still at that level?

explain?

I reality there is no difference, and you know it.

#5 bobthe~

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Posted 18 February 2011 - 04:30 PM

cardiffone, on 18 February 2011 - 04:17 PM, said:

It's all about when you buy...

If the good times lasted forever, then they wouldn't be called "the good times", they would just be called "the times".

#6 cardiffone

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Posted 18 February 2011 - 04:31 PM

Harry Monk, on 18 February 2011 - 04:24 PM, said:

You are not in debt when you pay for rent any more than if you buy a tank of petrol.

Again the effect is the same, if you must buy petrol, you are in effect "in debt" to the petrol sellers.

#7 Reck B

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Posted 18 February 2011 - 04:34 PM

cardiffone, on 18 February 2011 - 04:17 PM, said:

rent for 25 years pay 0% interest
buy over 25 years, pay a fluctuating amount of interest depending on the state of the economy.

buy = long term commitment, or be penalised for early exit
rent = short term commitment, feedom, options

This post has been edited by Reck B: 18 February 2011 - 04:36 PM

Fin de siècle.

Behind your thoughts and feelings, my brother, there stands a mighty ruler. An unknown sage - whose name is self. In your body he dwells. There is more reason in your body than in your best wisdom.

#8 andydtaylor

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Posted 18 February 2011 - 04:35 PM

They are both contractual liabilities

#9 enrieb

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Posted 18 February 2011 - 04:35 PM

cardiffone, on 18 February 2011 - 04:28 PM, said:

explain?

I reality there is no difference, and you know it.

Just because you're to stupid to know the difference, doesn't mean there's no difference, it just means you're to stupid to know the difference.

Ignorance is no excuse and no one is under any obligation to educate you in this very, very simple matter. Negative proof is not a valid argument.

70% of the land is owned by 1% of the population. There are 60,000,000 acres of land in the UK. 28,000,000 of which are owned by just 40,000 families, these are the families where many of the ruling elites come from. Politicians, CEOs, senior civil servants, magistrates. police chiefs, media cronies etc..

There are 5,000 families that own over 1000 acres each. Less than 5% of the available land (2,800,000 acres) is owned by 16,800,000 home owners. The land occupied by the royal family 677,000 (crown est, duchy cornwall, lancs and private)

Forestry commission 2,400,000, Mod 750,000, The National trust England Wales 550,000, Pension funds 500,000, Utilities 500,000, The Crown Estate 384,000, The Duke of Buccleuch 277,000, The National trust of Scotland 176,000, The Duke of Atholl 148,000, The Duchy of Cornwall 141,000, The Duke of Westminster 140,000, The Church of England 135,000, The Invercauld Trusts 120,000, the Alcan highland estates 116,000, The Duke of Northumberland 110,000, The Earl of Seafeild 101,000, The Portland Estates 95,000, The RSPB 90,000, Co-op farms 90,000, You 0.2 acres (if your lucky)

#10 cardiffone

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Posted 18 February 2011 - 04:40 PM

enrieb, on 18 February 2011 - 04:35 PM, said:

I think you're confused, i know the difference in technical definition, i'm asking a deeper question about true differences in practice...

really :lol:

#11 Sledgehead

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Posted 18 February 2011 - 04:42 PM

cardiffone, on 18 February 2011 - 04:28 PM, said:

explain?

I reality there is no difference, and you know it.

AWOOGA

Bubble Thinking & The Wisdom of the Property Bulls (click the pink arrow to see it in full!):

QUOTE(BTLlondon @ Jun 13 2005)

You have missed the HMS "good time to buy boat." ........Now is a good time to buy

QUOTE(nodumsunreader @ Aug 10 2005, 03:48 PM)

.....if your wished for HPC actually happened ..... The only winners will ....be those who own property

QUOTE(TheLittleGuy @ Aug 13 2005, 02:16 PM)

I think that the market will eventually have a proper crash ... I used to be an HPC believer, but that was a long time ago

#12 cardiffone

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Posts: 246
Joined: 13-September 10

Posted 18 February 2011 - 04:43 PM

Reck B, on 18 February 2011 - 04:34 PM, said:

Thats ignores inflation

rent for 25 years pay fluctuating and over time increasing amount depending on inflation, and a myriad of other factors.

My point really is, if you have to pay something, you might as well consider yourself to be in debt.

#13 PopGun

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Posted 18 February 2011 - 04:45 PM

Reck B, on 18 February 2011 - 04:34 PM, said:

Buy over 25 years pay price plus at least that again for house, but you'll at least have something at the end of it.

Rent over 25 years, zero liability, or interest paid, but you will of paid off your landlord's mortgage instead of your own. Plus you've got nothing to show for it apart from another rent demand.

Either way they have you screwed......unless you can buy outright of course.

In some ways the shift that happened in Counterinsurgency theory was a picture in microcosm of the much wider shift that was going to happen to all Western societies over the next thirty years. Politicians would give up on the idea that politics was about inspiring the people - and giving them a vision of changing the world. Instead the politicians would adopt the ideas, and the language, of economics, and turn to treating their population as individuals who could simply be incentivised and disincentivised by appealing to their self-interest. You didn't change society any longer - you managed it. - Adam Curtis

#14 LuckyOne

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Posted 18 February 2011 - 04:46 PM

cardiffone, on 18 February 2011 - 04:17 PM, said:

When you get kicked out and have a mortgage which results in repossession, your financial position is the liquidation value of the house minus the sum still owed on the mortgage. This could be positive or negative.

When you get kicked out because you haven't paid rent, you have no further financial gains or losses.

#15 theonlywayisdown

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Posted 18 February 2011 - 04:50 PM

cardiffone, on 18 February 2011 - 04:17 PM, said:

oh dear.

based on this logic, when you're born you're already in debt. you're in debt because you need to eat. food costs money. hence you need to keep paying to survive. :rolleyes:

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House Price Crash forum: Surely Rent Is The Same A Debt? - House Price Crash forum

Surely Rent Is The Same A Debt? Rate Topic:

#1 cardiffone

#2 Harry Monk

#3 Sledgehead

#4 cardiffone

#5 bobthe~

#6 cardiffone

#7 Reck B

#8 andydtaylor

#9 enrieb

#10 cardiffone

#11 Sledgehead

#12 cardiffone

#13 PopGun

#14 LuckyOne

#15 theonlywayisdown

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