Saturday, Oct 17, 2009
.... unless you dont have a 25% deposit and unless you live in Londinium
Love money .com: Why it's cheaper to buy than to rent
The average monthly rent (not including London) comes to £434, while those buying a property would currently see a monthly mortgage bill of £382 - an average saving of £52 per month.
In the capital, expensive house prices make renting a more affordable option. Those looking to buy in London now would be a massive £466 worse off a month compared to renting.
In Wales prospective buyers are the best off each month, saving £90 by buying rather than renting, followed by those in the North West who save £87. Below is a breakdown of what you can save by buying a property across the country instead of paying off your landlord's mortgage:
Posted by techieman @ 02:05 PM (989 views) Add Comment
11 Comments
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1. paul said...
All based on interest-only mortgages.
So renting from the bank or renting from a landlord, it's still renting.
2. Tpbeta said...
I don't get the logic of this. One can rent a much nice place than one can afford to buy in the current market.
3. techieman said...
actually im not sure where they get the figs from for london. £650 for a flat? I'm not sure where that is or even if a property "worth" £270k would be rented out for £650. Im not being bullish- but if you are looking at average values of properties that are not rented out and compared with the average of the rental properties then its the old Oranges and Apples...
Its really unclear but then again maybe the Abbey have a more useful explanation, although i cant find anything on their site.
4. brickormortis said...
£382? Your joking are you not? At 5%, interest only on a £120,000 mortgage is £500 a month interest only (£710 capital repayment). That is with a 25% deposit on an "average, £160,000 house". Let me know if anyone can get less than 5% with 25% deposit! And what about insurnace, life insurance and all the other bits adn pieces, like survey and legal fees, boiler maintenance charges etc.? Oh yeah, and the £40,000 deposit. Where does that come from when you just left university with £20,000 debt, don't yet have a car (with car loan) or a credit history other than defaulting on your radio rentals TV rental and a few late credit card payments?
And when rates rise, lets say to 6% then you will be paying £600 a month (£783 capital repayment).
5. techieman said...
Brickormortis.... yes the more i think about this the worse the actual article gets. I was about to apologise for posting.... but the point is how many people actually take these things at face value.... and then act upon them?
6. brickormortis said...
Techieman, I think we both know the answer to that one - most people! That's why we are in this mess, because the sheep do as the shepherd tells them.
To be honest, I have had enough of the UK b@@sh!t machine. From every angle I hate the society that has been created and I despise the government that have presided over the destruction of our society of individuals who think and feel for themselves and who are not solely driven by an obsession of property.
The world has become a place I am learning to hate, for everything it stands for and everything that is so clearly wrong with it!
7. mdmick said...
It is fortunate that the article is pro-house-purchase since it hyperlinks off to a LoveMoney mortgage service;
if it was anti-buying-property then the hyperlink would be little visited.
You have to give the site credit for allowing the comments which spell out in simple terms how the journalist and editor might not have thought things through as lucidly as they might have done.
8. estrader said...
I can give you exact figures accurate as at 17/10/2009
I am selling my flat: Value £97,500 (I am probably taking less than I could because my property needs some work)
The upstairs flat, which is almost identicle being a converted property, is rented at £525/month
9. crunchy said...
5. brickormortis
Welcome to the NWO that never existed untill now. Order out of chaos? and to think, these are just the first tentative steps to an improved
global society and monetary system. You should feel privileged and enriched by the virtues that have been bestowed upon you by the
great international bankers of today that know so much better.
There is no place for Terrorism or discourse in this New World Order, or are they now calling it New Global Odour.
Remember anything that starts with "Nu" must be good.
10. icarus said...
Nowhere in the article is the caveat "as long as interest rates remain at the current historically and artificially low level".
11. growler said...
... not forgetting the bills.
My landlord has bought a new dishwasher, fixed the oven twice, fixed the bathroom fans.... etc etc