ralphmalph Posted January 24, 2009 Share Posted January 24, 2009 http://www.timesonline.co.uk/tol/money/pro...icle5579935.ece One day we get rents falling dramatically and the next we get it is cheaper to rent than buy but you can not get a mortgage. Seems like swings and roundabouts at the moment. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted January 24, 2009 Share Posted January 24, 2009 As long as you are not in Devon or bought after 1999 Quote Link to comment Share on other sites More sharing options...
@contradevian Posted January 24, 2009 Share Posted January 24, 2009 Buyers in Newham, east London, are £394 a month better off than renters, followed by Sutton in Surrey where they save £378 a month.“Lenders are squeezing the life out of the housing market with the extortionate mortgage rates they are demanding from those wanting to get on the ladder, said propertyfinder.com's director Nicholas Leeming. “Thousands are champing at the bit to take advantage of lower house prices, but simply can’t get a mortgage. It’s no wonder first-time buyers are now an endangered species.” Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 24, 2009 Share Posted January 24, 2009 DO NOT BUY NOW It doesn't matter what the rent is compared to what the mortgage would be, what matters is the relationship between the rent you pay and how much a similar property is falling in value per month. I pay £525 in rent and the value of my flat falls by £3000 a month. There would be no logic in buying it. Another factor is that interest rates are slated to rise enormously. Even when house prices are static, if I am earning 15-18% interest on my STR fund I will continue to rent. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted January 24, 2009 Share Posted January 24, 2009 Its just this kind of short-termist attitude that got us here in the first place. Lets be honest, the current Interest rates are basically government sanctioned teaser rates which will inevitably rise in due course. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted January 24, 2009 Share Posted January 24, 2009 (edited) Its just this kind of short-termist attitude that got us here in the first place. Lets be honest, the current Interest rates are basically government sanctioned teaser rates which will inevitably rise in due course. we know its facked. they know its facked. if the sheeple dont know, then let them go ahead and try. anyones who dumb enough to buy now would only make a similar catastrophic mistake in some other area of life later. you cant save blind idiots and fools. Edited January 24, 2009 by the-sign-jacker Quote Link to comment Share on other sites More sharing options...
porca misèria Posted January 24, 2009 Share Posted January 24, 2009 The historical norm is that mortgage payments are substantially less than rent on an equivalent property in many areas. But that was based on mortgage criteria that excluded people on lower earnings. Here in Devon, Plymouth is *much* cheaper to buy than the rural areas, but there's little difference in rentals. So in the city a mortgage is definitely cheaper, but out in the sticks it's likely to be more. Quote Link to comment Share on other sites More sharing options...
bendy Posted January 24, 2009 Share Posted January 24, 2009 Buyers in Newham, east London, are £394 a month better off than renters, followed by Sutton in Surrey where they save £378 a month.“Lenders are squeezing the life out of the housing market with the extortionate mortgage rates they are demanding from those wanting to get on the ladder, said propertyfinder.com's director Nicholas Leeming. “Thousands are champing at the bit to take advantage of lower house prices, but simply can’t get a mortgage. It’s no wonder first-time buyers are now an endangered species.” seems to not taken into acount the depreciating asset that they are 'saving' this 394 quid is losing on average around 2k per month. Quote Link to comment Share on other sites More sharing options...
tim123 Posted January 24, 2009 Share Posted January 24, 2009 For those looking to get on the property ladder Hounslow, in west London, is the best value area for a first-time buyer, as it is £518 a month cheaper to buy than rent a two-bedroom property This is a nonsense. They seem to be saying that people who buy/rent in Hounslow can save 500 pm by buying but that people in adjacent LAs (e.g. Hillingdon) can't That's ridiculous. The buy/rent profile of these two LAs is going to be virtually identical. ISTM that their survey has some biased data in it tim Quote Link to comment Share on other sites More sharing options...
bambam Posted January 24, 2009 Share Posted January 24, 2009 This is a nonsense.They seem to be saying that people who buy/rent in Hounslow can save 500 pm by buying but that people in adjacent LAs (e.g. Hillingdon) can't That's ridiculous. The buy/rent profile of these two LAs is going to be virtually identical. No it's not. Hounslow is grotty and Heathrow-blighted. Therefore the houses are much cheaper to buy than houses in leafier LB Hillingdon. However the rent is pretty much the same, there's a going rate for a zone 5/6 3-bed house in London, location doesn't matter that much. Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted January 24, 2009 Share Posted January 24, 2009 Mortgages Cheaper Per Month Than Renting A dramatic slide in house prices has failed to make it easier for first-time buyers to get on the property ladder, according to a new survey.It remains cheaper for would-be home owners to rent because of high mortgage rates. Quote Link to comment Share on other sites More sharing options...
Pindar Posted January 24, 2009 Share Posted January 24, 2009 For those looking to get on the property ladder Hounslow, in west London, is the best value area for a first-time buyer, as it is £518 a month cheaper while interest rates are artificially low, to buy than rent a two-bedroom property. Remember that interest rates can go up as well as down. Corrected. Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 24, 2009 Share Posted January 24, 2009 get on the property ladder These five words demonstrate the reason behind the HPC- the notion that owning a house is somehow superior to renting one. It's never superior, it's sometimes a financially better option but now isn't one of those times. Quote Link to comment Share on other sites More sharing options...
tim123 Posted January 24, 2009 Share Posted January 24, 2009 No it's not. Hounslow is grotty and Heathrow-blighted. Therefore the houses are much cheaper to buy than houses in leafier LB Hillingdon. However the rent is pretty much the same, there's a going rate for a zone 5/6 3-bed house in London, location doesn't matter that much. Prices for two bed flats in Hounslow. Apart from one renagade one at 99, 145-160 seems to be the normal starter property (which is what the article was about). Rents start from 800 pm Prices for two bed flats in Hillingdon, 155-175. rents from 850 pm. Looks to me like the buy/rent ratio is pretty much the same in both locations tim Quote Link to comment Share on other sites More sharing options...
workingnomad Posted January 24, 2009 Share Posted January 24, 2009 Owning your own property is always better than paying off some greedy landlord's mortgage. Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted January 24, 2009 Share Posted January 24, 2009 Owning your own property is always better than paying off some greedy landlord's mortgage. Or .... Renting your house is always better than paying some greedy banker's interest and greedy seller's capital depreciation ...... Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted January 24, 2009 Share Posted January 24, 2009 Or ....Renting your house is always better than paying some greedy banker's interest and greedy seller's capital depreciation ...... While i dont think now is a good time to buy, and renting year on year may be cheaper, the average mortgage lasts, what, 25 years? Whereas you have to rent till you die. I know the somerset webb woman did a calculation on renting vs. mortgage, but im not sure whether she just calculated year on year, over a mortgage term, or over a lifetime. I would assume over a lifetime owning would be cheaper. Obviously if you move every year, have to pay stamp duty, agent fees, etc etc things might change drastically. If you only move once or twice in a lifetime id think owning would long term be cheaper. Quote Link to comment Share on other sites More sharing options...
Saberu Posted January 24, 2009 Share Posted January 24, 2009 What a retarded thread. Don't you understand what negative equity means? Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted January 24, 2009 Share Posted January 24, 2009 Owning your own property is always better than paying off some greedy landlord's mortgage. Not 'always' but it is if the earnings/borrowing ratio is right. I'm looking forward to living in a 'free' house ... Quote Link to comment Share on other sites More sharing options...
porca misèria Posted January 25, 2009 Share Posted January 25, 2009 Owning your own property is always better than paying off some greedy landlord's mortgage. Yeah, right. Take an average house (Halifax figures). If I bought a year ago, I paid £191k. Now, it's £160k. That's a saving of £31k. I live in a town where house prices are indeed very close to the national average. But the average rental is perhaps £750/month, or £9k/year. So I've made a clean £22k profit by renting rather than buying, and that's excluding mortgage payments. Furthermore, for the monthly price of a 25-year mortgage a year ago, I can now reduce that mortgage to 21 years. Or 18 years if I plough back my year's savings into a deposit. Looks to me like a pretty conclusive financial case for renting. Quote Link to comment Share on other sites More sharing options...
DementedTuna Posted January 25, 2009 Share Posted January 25, 2009 Owning your own property is always better than paying off some greedy landlord's mortgage. I don't understand why the vast majority of people (not just you, *everyone* says this) resents handing over a huge chunk of income to a private landlord every month, but are fine with giving a putting the same, or even higher, amount straight into the pocket of millionaire bankers. Personally, I'd rather it went to a landlord, at least that way it'll be taxed more (probably at 40%), and provide some good to society instead of being sucked up into the utterly corrupt and evil banking system. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 25, 2009 Share Posted January 25, 2009 I dont need a £35,000 deposit to rent, and what deposit I have doesnt get eroded by 15% of the WHOLE value of the house every year. Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 25, 2009 Share Posted January 25, 2009 Owning your own property is always better than paying off some greedy landlord's mortgage. I am paying my greedy landlord £525 a month while his flat, which I am living in, devalues by £3,500 a month. If I'm doing something stupid here, please explain where because I just don't understand it. Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted January 25, 2009 Share Posted January 25, 2009 I am paying my greedy landlord £525 a month while his flat, which I am living in, devalues by £3,500 a month. If I'm doing something stupid here, please explain where because I just don't understand it. That £3,500 isn't real money, and your landlord isn't going out to work to pay for it. Assuming he didn't withdraw equity against any rises in the flat's value, his position is still good. In a few years he will own a flat, which he can either live in for free, or continue to use to get an income. Your £525 is real money, and presumably you work for it. In a few years you won't own anything. He's losing nothing if he didn't spend the increase in 'value' Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 25, 2009 Share Posted January 25, 2009 That £3,500 isn't real money, and your landlord isn't going out to work to pay for it. Assuming he didn't withdraw equity against any rises in the flat's value, his position is still good. In a few years he will own a flat, which he can either live in for free, or continue to use to get an income.Your £525 is real money, and presumably you work for it. In a few years you won't own anything. He's losing nothing if he didn't spend the increase in 'value' Its not what the landlord is or isnt losing thats relevent. Its what YOU would be losing by buying the place as opposed to renting it. Quote Link to comment Share on other sites More sharing options...
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