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Surely Rent Is The Same A Debt?


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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

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.
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#3 Sledgehead

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Posted 18 February 2011 - 04:24 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



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 View Post

QUOTE(nodumsunreader @ Aug 10 2005, 03:48 PM)
.....if your wished for HPC actually happened ..... The only winners will ....be those who own property View Post

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 View Post

#4 cardiffone

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Posted 18 February 2011 - 04:28 PM

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

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


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

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

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


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

Edited by Reck B, 18 February 2011 - 04:36 PM.

Help to Buy, as described by Albert Edwards of French bank Societe Generale;

"I believe it truly is a moronic policy that stands head and shoulders above most of the stupid economic policies I have seen implemented during my 30 years in this business."


An nescis, mi fili, quantilla prudentia mundus regatur.

#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

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

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.


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

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 View Post

QUOTE(nodumsunreader @ Aug 10 2005, 03:48 PM)
.....if your wished for HPC actually happened ..... The only winners will ....be those who own property View Post

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 View Post

#12 cardiffone

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Posted 18 February 2011 - 04:43 PM

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


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

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


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.
"the remarkable result is that under Mrs Thatcher from 1979-90, just as under Tony Blair from 1997-2007, the real value of Housing Equity Withdrawal is larger than the real value of GDP growth"

#14 LuckyOne

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Posted 18 February 2011 - 04:46 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


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

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


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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