kempstar Posted July 5, 2005 Share Posted July 5, 2005 Can someone help me please? I am having an argument on another forum about whether it is cheaper to rent or buy. Does someone have a comprehensive example explaining how it would be cheaper to rent than buy over the term of a mortgage? They are basing their arguments on the article from Abbey showing how it is cheaper to buy Quote Link to comment Share on other sites More sharing options...
A Fool & His Borrowed Money Posted July 5, 2005 Share Posted July 5, 2005 Can someone help me please? I am having an argument on another forum about whether it is cheaper to rent or buy. Does someone have a comprehensive example explaining how it would be cheaper to rent than buy over the term of a mortgage? They are basing their arguments on the article from Abbey showing how it is cheaper to buy <{POST_SNAPBACK}> Send them to this page: http://www.nodebtever.com/debt-help/Shave-...G-20050621.html Quote Link to comment Share on other sites More sharing options...
kempstar Posted July 5, 2005 Author Share Posted July 5, 2005 Perfect, thats exactly what I needed Quote Link to comment Share on other sites More sharing options...
A Fool & His Borrowed Money Posted July 5, 2005 Share Posted July 5, 2005 Now tell the Sheeple a "Wolf" is coming!!! Bahahah! Quote Link to comment Share on other sites More sharing options...
laurejon Posted July 5, 2005 Share Posted July 5, 2005 How long is a piece of string?. If you purchased a few years ago then for sure Buying is going to be much cheaper. It depends on what you are buying, and the price you pay compared to what you are renting. In most cases Renters will rent a property that is more luxurious than what they would purchase and therefore the rent is higher than a purchase of say 1 Bed Flat. The problem is seen around the country and Renters are no exception to the general population that are currently living beyond their means. Quote Link to comment Share on other sites More sharing options...
gilf Posted July 5, 2005 Share Posted July 5, 2005 How long is a piece of string?.If you purchased a few years ago then for sure Buying is going to be much cheaper. It depends on what you are buying, and the price you pay compared to what you are renting. In most cases Renters will rent a property that is more luxurious than what they would purchase and therefore the rent is higher than a purchase of say 1 Bed Flat. The problem is seen around the country and Renters are no exception to the general population that are currently living beyond their means. <{POST_SNAPBACK}> Laurejon is right in the sense of when you buy or rent. A few years ago (3-4) it would have been cheaper to buy but right now thats not the case.... Check this link out for an example, http://www.housepricecrash.co.uk/forum/ind...topic=11668&hl= This one clearly shows it's cheaper, to the tune of £500 a month (yes that much) in this example, to rent than buy right now. There is no argument about this one has a better kitchen, bigger garden etc as it's exactly the same place. Quote Link to comment Share on other sites More sharing options...
Cityfool Posted July 5, 2005 Share Posted July 5, 2005 Laurejon is right in the sense of when you buy or rent. A few years ago (3-4) it would have been cheaper to buy but right now thats not the case.... Check this link out for an example, http://www.housepricecrash.co.uk/forum/ind...topic=11668&hl= This one clearly shows it's cheaper, to the tune of £500 a month (yes that much) in this example, to rent than buy right now. There is no argument about this one has a better kitchen, bigger garden etc as it's exactly the same place. <{POST_SNAPBACK}> Exactly it depends on where you are. At the moment my landlord is trying to sell my house for £305,000 whereas I pay a monthly rent of £950. I'll leave you to do the sums to avoid some nonsense from Laurejon or dogbox about how you could get a mortgage where they pay you to borrow the money or similar but the basic stats are that, at that price (if anyone is crazy enough to pay it) the property would have a gross yield of 3.75%. Since base rates are currently 4.75% it doesn't take a genius to work out which is cheaper. I would just add that although it is a lovely house (victorian terrace in a very smart rural part of Herts) it has been BTL a long time and will need £7-10K spent on it over the next 3-5 years in maintenance costs. CF. Quote Link to comment Share on other sites More sharing options...
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