efdemin
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Posts posted by efdemin
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On the contrary, I think it's pretty clear cut.
I can't think of many circumstances where buying a house at the moment is going to leave you in a better financial position.
As I said (but you seem to have missed it) 'value' is not a purely financial measure. Maybe you don't value having somewhere to call your own that much but other people do and good luck trying to convince them otherwise.
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Your argument about having a house rather than cash is that holding cash doesn't keep up with inflation.
To be truly comparable, you also need to see how the 'value' of your house is keeping up with inflation, too.
If the house inflation does not matter, then neither does your pot of money.
Yes, but 'value' is not necessarily the price it would sell for is it? All I'm trying to say is there is no absolute right or wrong answer, only it depends on your own circumstances.
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To compare eggs with eggs, how would your "investment" be doing if you were in housing?
In an actual house to live in, in a BTL, or in a property-based fund?
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You really would have had to be a pretty stupid investor not to have kept pace with prices since August 2007. You are looking at around 3% compound on the RPI measure 239.4 /207.6 (I think), slightly less on the CPI. Until 2008 fixed rates were up at 7% gross, including a five year deal from the then nationalised Northern Rock (Dec 2007 deal) at 7% with an ulimited capital guarantee ( since reduced to 85K for new investments). Moreover, I would expect inflation now to fall back pretty quickly. 2% might actually be doing the job now, if you are thinking in terms of where inflation is at currently rather than looking backwards over the last 12 months.
Totally agree with those that point to the indirect costs of owning, massive does not 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.
I am renting a HA property with partner at £77.75 per week, knowing fully well that I will have increased drawings when I buy mortgage free to allow for all the associated costs of owning.
Unless capital values are rising, home ownership is more than dead money it is a liability.
Erm, how long has the reported CPI/RPI been over 3% now? And do you think that reflects the real rate of inflation in food, fuel and utilities?
7% gross, minus 20 or 40% tax, so in reality 5.6 or 4.2%. Just about squeaking past the official RPI/CPI figures - brilliant.
NS&I index-linked certificates have done well though.
I suppose the fund managers for my stakeholder pension are 'pretty stupid investors' because they have barely kept up with CPI/RPI as well.
You could have done well in the yellow shiny stuff but equally, done really badly in FTSE trackers so good luck if you're currently up on your investments.
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The money I'm saving by renting allows me to build up cash to buy somewhere when the price is right. At the moment, renting is far, far more sensible to buying somewhere.
Funnily enough, the money I am saving on rent (mortgage interest much lower than rent for equivalent property) means I can 'save' (i.e. build up equity) quicker than I could when I was renting. And it's an offset mortgage so it's not all locked away either.
But I had to save for a long time to be able to get a big enough deposit to get a good mortgage deal.
So in my case renting is not far more sensible. Swings and roundabouts, as I said.
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Viva the car-less recovereh!
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But you are - you're paying because your money is tied up in a house, not earning interest for you. Instead, your asset is falling into a state of disrepair (unless you're maintaining it, of course - but then you're spending money on it)
You're also spending money on house insurance (I hope) - something you don't have to do if renting.
You're also paying to maintain, upkeep and replace all the fixtures and fittings, something I, as a renter, do not have to do.
And for renting...
Unless you are happy to stay on a rolling periodic tenancy you will have to re-sign a contract every 6/12/x months and this usually comes with a £50+ 'admin fee'.
You still need contents insurance for your own stuff. For me, this was about half of what I pay for contents & building.
Unless you are renting fully furnished you still need to invest in beds, sofas, TVs, kettles, toasters, possibly even a fridge or washing machine if white goods are not included.
Rent levels can change as well. Although the rent market is just as localised and the buying market so they may go up or down depending on where you are. Over the length of a mortgage I'd bet the would go up though, particularly in the SE.
You still have to pay council tax & utilities (although some may be included in the rent).
Unless you are a good/lucky investor you will be seeing the real value of your investment pot being decreased by inflation year on year.
Swings and roundabouts.
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Thanks.
It sounds like it isn't from a reputable builder and will struggle to sell.
This one has been on and off the market since at least April 2009 and seems to suffer from similar problems.
This one is also bland and dreary. It's like someone who is used to more modest 4/5 bed detached houses thought that just because it was bigger it would be worth more i.e. they've missed the point of exclusive houses at very high prices.
The one at £3mill or so looks good though, even if it is too big and blingy.
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Bloody hell, why aren't you charging her fuel interest?
Edit: To save a third of £900 pcm is awesome. I hope that she learns how to invest the excess once she gets a decent rainy day buffer put away.
What, so some fund manager can skim of a % of her hard-earned? She's learned about the loan sharks the hard way, I hope she doesn't find out about the investment sharks the hard way as well. 'Out of the frying pan and into the fire' springs to mind.
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It appears to have been designed by the architects Cut & Paste.
It's bland and lacking any interesting features other than it is big and in the countryside. For the best part of a million quid I'd want something with at least a modicum of style. Whether that is an old house or a modern 'grand design' style it doesn't matter, but it has to have something.
It's also built on land taken from another presumably older house, so is it overlooked at all?
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Funny you should say that, as I asked the builder about it. The prompt reply was "No way! XXX will never sell. He's too attached to his properties." That suits me fine.
Ps. Remember, my landlord doesn't need the money - he got the place for free. And his mum's house too when she passed away. And he bought his own house over 25 years ago. Lucky b'stard...
Fair enough, I was just playing devil's advocate
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My landlords builder came round to fix a leaking sink a few months back. I ended up getting a brand new bathroom: sink, bath, shower and toilet. And he re-tiled every wall, floor to ceiling. Also he also renewed the flooring. And he did a beautiful job, too.
I love the guy - always makes a little job a big'un.
Are you sure he's not just updating the property in order to get it in a good state to sell?
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......housing yourself costs money whatever way you look at it, some pay more doing it others less, some can afford to pay more mostly the ones who can afford to buy ....... so the punters that buy to let out are taking on a high risk investment when fewer can afford or are prepared to pay the rents they ask for/need so more unpaid rents and voids, add to that their investment capital is also losing money and costs are increasing not to mention the hassle factor........when property prices are falling property investors find other safer productive homes for their money.
I though we were talking about a house to live in, not to buy as an investment? If you were looking to buy as an investment then now wouldn't be a good time, generally speaking.
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What about those that bought for cash....they could well have lost that or more than that in interest and or income from other low risk investments...not only that their house has also lost 10% of its value over the last 12 months.
On the other hand, they have no rent, no mortgage interest, no negative equity. In the long term not having those ongoing costs will more than make up for any short to medium term loss on missed investments.
Knowing that the majority of your wealth is not passing through the hands of a load of middlemen each day is also a nice feeling to have.
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Genuine answer? OK...
The last 4 years I have spent renting cheaply. As I do so, I have no commitments, which means I can jump around finding the best work contracts. My rent in the last 4 years has been £31,200.00. The average price drop I'm seeing for 4 bed detached houses in Cheshire is a lot more than that. And those houses continue to decrease in price. In the last 4 years, due to my renting flexibility, those contracts have added another £330k (+ interest) to my "deposit", post tax. Happy now?
Ps. I'll prepare myself for the slagging that Bruce gets - as everyone on HPC hates a winner.
No, you're alright because you don't always crow about it. Nothing wrong with 'winners' per se.
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I was actually comparing apples-to-apples (4 bed detached, to a 4 bed detached.)
Yes, I accept at the lower end of the market, rental compared to income is a different equation. But then what loon on £20k p.a. would want to take on such a large mortgage and lose everything once interest rates rise? And that's working on the assumption that they could even afford the deposit and mortgage in the first place. Do. You. See?
No, you were comparing 1) the rent on a 4-bed house vs. its purchase price in reply to the example of 2) the rent on a 2-bed house vs. its purchase price. Comparing 1) to 2) is what I meant when I said an apples to oranges comparison.
Someone on £20k probably wouldn't be able to afford the £695 rent either so whether they could afford to buy is a bit of a moot point, no? However, if they were able to get HB then they could afford the rent. Oh, now I see why the rents at the lower end are less value...
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Mate of mine lives in Furzton, so I know the area.
Plenty of detached houses for rent at £1250 or so. And plenty for sale at £400k+, even 700k or so.
So your point about only being on £20k p.a. doesn't seem to be holding much water. People simply commute to London for better wages. My mates been doing just that for the last 30 years.
But you're comparing apples to oranges or rather, detached houses to 2 bed terraces / flats. Compared to the purchase price, that £1250 rent seems a lot better value than the 2 bed house at £695, no?
Do. You. See?
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What could I possibly gain from boasting under an anonymous pseudonym
. I say again. I post my personal circumstances, where relevant, solely to make a lie of some of the VI claptrap being posted here and, judging from the line of VIs queueing up to take ad hominem pops at me, it would seem to be having the desired effect
.All you've proved is that renting is financially better in your situation. Can you do the same for a prospective FTB with say a 10% deposit?
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Fully retired actually.
I only discuss my own situation because I know that what I'm saying is 100% correct.
If you're a VI, then yes, I am rubbing your nose in it. If you're an FTB then sorry if you think that's the case but, at my age, many people who have worked hard would expect to be mortgage free with some savings. Hopefully you will be in the same situation.
My personal situation is relevant because it shows the often quoted "you can't be renting when you're retired so take out a mortgage now" mantra to be a load of rubbish.
Am I a VI? Hmm, not sure anymore. I joined HPC as a prospective FTB but I've made the plunge in the last year or so, so maybe I am now. I can still vividly remember the pain of seeing house prices increasing faster than I could save a deposit though. And living like a student in shared houses until I was nearly 30.
I think you are in a different market for rentals tbh. It seems in general you can get good 'value' renting a nice 3 or 4 bed detached house, compared to the purchase price at least. But at the other end of the market, it is not as clear cut. I.e. £750+ or so for a two-bed flat or terraced house that may cost between £160k- £220k ish around me.
If you can show me a two-bed house/flat that is as good value to rent as the house you are in I'd 1) be surprised. 2) be willing to admit you're not just posting on here like LoadsaMoney to rub it in our poor FTB faces.
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This, below. I notice very few challenge the "renting is deadd money" mantra that we get day in, day out.
Outside of the HPC forum, it's even more lob-sided.
Long may your annoying the VI's continue, Bruce. My resolution is to post my different circumstance that also shows that "renting IS NOT dead money" to challenge the opposite statement wherever I see it.
The issue with Bruce is I think he is not really representative of the majority on HPC. He is semi-retired and has a great big pile of cash that he has earned either via his own business or by STR'ing. So of course he has all the odds stacked in his favour when it comes to getting good rental deals and looking for the house he wants - he is under no real pressure to settle down and have kids (I guess he has already gone through that phase).
On the other hand, many FTB's don't have a big pile of cash to sit on until the time is right, they do have pressure to settle down and start a family and they also have a restricted choice based on commuting to work.
So although Bruce is correct, it is only for his specific situation. I doubt his posts would be as smug if he was a potential FTB'er with a small deposit and student loans to pay off.
His posts do grate a bit because he seems to be rubbing our noses in it a lot of the time rather than discussing a point.
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Good grief. Ring Transco today or as soon as possible to get a second opinion. The first guy you had around sounds like a numpty who only said it was fubarred because he doesn't know what he is talking about.
I thought carbon monoxide alarms were required for rental properties now? I know the place I used to rent had one and seeing as the landlord was as tight as a gnats whatsit I doubt they bought it out of the kindness of their heart.
Basically, man up and get things moving instead of over analysing it on the internet.
Edit: From the link you posted, the boiler seems to be a fairly modern one (and Vaillant are generally regarded as an ok make). However, a quick google threw up this page: http://www.vaillant.co.uk/installers/Service/service-reminder/. So it may be the seal mentioned in there has not been replaced with the graphite version, it's got damaged and the soot you see is the result of something getting burnt. But you really need a proper gas engineer to look at it.
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Building percentage proposal
Nicolas Sarkozy’s proposal last week to increase by 30 per cent the existing amount of residential building allowed on building land throughout France may not necessarily produce cheaper new homes. However, it could be a bonus, if voted by French MPs (députés) and the Senate in February, for existing homeowners with plenty of space left on their plot of land. They would find it cheaper, if they need more accommodation and want to stay in the same area, to build extensions – subject to not backing directly onto neighbouring properties – rather than moving to a larger property.
http://www.rivieratimes.com/index.php/real-estate-article/items/property-news-flash-7392.html
Ouch. Sounds a bit like the planning changes Labour made that lead to lots of 'garden grabbing' developments - law of unintended consequences etc.. Thankfully the coalition got rid of them pretty soon after getting into power.
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Yea. But I just don't like reading kindles any more than I like reading large volumes of text on a computer.
Don't buy one then.
I like it for all the reasons already mentioned. Battery life of more than a day is also perfect for going on holiday and the weight and volume saving of not taking paper books helps with packing for the aeroplane.
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Yes, it's a loss-leader - they expect to make more money on the sale of eBooks over time. Although it shouldn't lose that much money, it's not really that amazing technology-wise.
Yes - you can add notes anywhere you want to on the Kindle. They are saved in your account as well, I think, so if you got another Kindle and put your account details into that, it would pick them up. They can also be shared, i.e. you can see other people's notes somehow. I don't use it myself so can't comment much more than that.
For Those Waiting For An Hpc
in Troll sub-forum
Posted
No, as always it depends on your circumstances. IF you have a large deposit (>25%) AND you plan to stay there for at least 5 years AND the salary multiples are not too big AND you are in a fairly safe job, etc. etc.
I don't think I have tried to push anyone into buying a house, I am simply saying it is not as clear-cut as some of the rent-only loonies would have you believe.