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exiges

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Posts posted by exiges

  1. I notice you didn't comment on the costs involvd in (2) or (3)...

    The average cost in maintaining a house is 2% of the house price per year, as has been referenced earlier in this thread.

    You'll notice I did:

    "If you can't cover those costs with the extra £180 (or £300 in my second example) saved a month then there's something seriously amiss. Insurance is only another £15pcm. "

    The latter example provides an additional 2.5% (£3600 of £142k) towards maintenance. Again that's without comparing the costs that renting incurs which haven't been acknowledged by the renters here.

    http://www.guardian.co.uk/money/2010/mar/13/letting-agents-hidden-charges and http://www.citizensadvice.org.uk/press_20090521

    On this very website are many threads complaining about exorbitant letting fees.

  2. Then why do you keep posting houses for sale that are also for rent saying it makes more sense financially to buy than rent?

    Because in those instances it's true. Must I only comment on a certain sector of the market ?

    Look you've made your decision, now go "get on with your life".

    Is this forum only for renters ?

    Both you and Bruce suggest the fact I now own a home as a reason for my stance, then how do you explain the fact I held the same view when renting ?

  3. You have been busy making a case for saying that the more expensive the house the more value there is in renting it.

    Why would you spend your time doing that when reading the Northampton thread you haven't bought an average house!

    Since you've read the thread you know of my reasons for moving, they weren't financial. That doesn't preclude me from commenting on the topic.

    Isn't one of the HPC mantras "FFS. it's supposed to be a home not an investment" ?

  4. What? £1200 to move rentals? Que?

    We had one landlord that lost his job and wanted back in after just 6 months, so our average tenancy was less than 12 months in a 3yr period. We also had a larger than average house to move. However according to ReallyMoving.com the average removal cost is £600, so if you had to move every 6 months, yep, £100 a month it is. But realistically, you could say £50 a month for the average home.

  5. There are other costs in buying that you don't hav with renting. Once more, for your benfit...:

    1. House maintenance costs;

    2. Fixtures / fittings maintennce / replacement costs

    3. House insurance costs

    Really, that all you've got ? I'll consider my point proven.

    If you can't cover those costs with the extra £180 (or £300 in my second example) saved a month then there's something seriously amiss. Insurance is only another £15pcm.

    Not forgetting there are costs in renting too, such as budgeting for removals every 12 months (it cost us on average £100 a month over 3yrs) at the whim of the landlord, credit checks, agency fees etc.

  6. True, but I've not seen one example yet where it's cheaper to buy than to rent.

    I provided one. Here it is again to save you looking:

    Rent: £695 : http://www.rightmove.co.uk/property-to-rent/property-32944507.html

    Buy: £130k http://www.rightmove.co.uk/property-for-sale/property-36551393.html

    Interest at 4% on £130k is £433. Repayment mortgage is £695.

    The annual HPI for Milton Keynes is -0.8% (source LAND REGISTRY) which equates to £86pcm

    If you're comparing renting vs. interest only + adjustment for HPI (ie. you're gaining no equity in either position) that property is £180pcm cheaper than renting. As for the old chestnut of "repairing the boiler" costs, £12 a month to EON insures it.

    There's little point comparing renting with repayment, since you're rent increases over the 25yr term with no equity vs increased equity, .

  7. Here's some top end buy/rent examples. Buying makings NO sense

    Indeed, there are some "bargains" (relatively speaking) to be had at the higher end of the market, in terms of renting. The main reasons are that

    a) They tend to be reluctant landlords or overseas-working landlords, desperate to get some money in. Professional landlords wouldn't even consider such properties.

    b ) Renters don't necessarily want a big house, it's a vanity, when they can rent a much smaller house (same number of bedrooms) before moving onto their purchased property.

    We went from owning a large house, to renting a small house (stuff in storage) to owning a large house, we couldn't justify spending a rent premium on a large house.

    Just out of interest Count, do you have examples of "averagely priced" houses and their rentable value ?

  8. You can repeatedly post examples of ones that make the house seem cheaper to buy but only one is allowed that makes the house seem cheaper to rent? :lol:

    Not at all, I just wasn't sure what point you were trying to make since we'd covered the topic of diminishing yields earlier on in the thread.

    "Most people" are going to be buying in the £160k range, as that's the average house price. It doesn't seem right to use high value houses or special deals done with an amateur landlord to argue a case for the market in general.

  9. Re all this stuff about rentals being expensive in relation to the same house for sale. I've just seen a house for sale at £445k and the rent is £850 a month!

    This has been covered already in this thread, namely the more expensive the house, the lower the rental yield.

    For "the average house" however, circa £166k, things are quite different. I'd be very surprised to see a £166k house rented for the same yield, ie. £310pcm.

  10. Are there really such "institutional landlords" within the residential market?

    Yep, my mother in law is in one. If you go around the villages of the Claydons (Steeple Claydon, Botolph Claydon etc.) you'll see houses with light blue eaves and front doors, they're all owned by the same estate management company. It's not an housing association etc.

    Here's a STREETVIEW of one. If you continue, you'll see another on the other side of the road.

  11. I hope your tongue was firmly in cheek when you wrote that...? :P

    Maybe... :D

    I can't imagine the rental market is solely populated by amateur/reluctant landlords. It makes you wonder why the institutional landlords didn't sell up given they have large portfolios and stand to lose millions. I know some have sold up, but they do that during a boom or bust.

  12. Totally agree with those that point to the indirect costs of owning, massive does start to describe it. According to moneysaving expert you actually buy your house all over again (after allowing for inflation) every fifty years in refurb costs.

    It really does make you wonder why so many businesses are foolish enough to rent out properties when their money would be better off earning them interest in the bank or invested in gold, especially given what little rent they receive for the value of the house, and the high costs of maintenance.

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