DannyT Report post Posted April 23, 2011 http://www.dailymail.co.uk/news/article-1379800/Low-rates-Buying-home-100-month-cheaper-renting.html http://www.dailyexpress.co.uk/posts/view/242438/Low-cost-loans-mean-owning-your-home-is-cheaper-than-renting being covered on Sky News too Quote Share this post Link to post Share on other sites
Fairies Wear Boots Report post Posted April 23, 2011 Jesus, the catch is in the title.... Buy a home and save £100 a month because of low interest rates. Quote Share this post Link to post Share on other sites
Bruce Banner Report post Posted April 23, 2011 The pro HPI stalwarts in the main stream media are launching a massive last ditch stand stand to revive the flagging spring bounce. Sheer desperation . Quote Share this post Link to post Share on other sites
Bruce Banner Report post Posted April 23, 2011 From the Express article. BUYING a home has become nearly £100 a month cheaper than renting one, thanks to record low interest rates and falls in house prices. That's funny, I thought the Express were reporting a rise in house prices last week . Quote Share this post Link to post Share on other sites
EmmaRoid Report post Posted April 23, 2011 If someone can point me in the direction of where I can borrow £180k @ 75% LTV and 4x income for less than £400 per month the article might have some merit. Otherwise.... Quote Share this post Link to post Share on other sites
Bloo Loo Report post Posted April 23, 2011 If someone can point me in the direction of where I can borrow £180k @ 75% LTV and 4x income for less than £400 per month the article might have some merit. Otherwise.... IO discount, shared purchase with the builder and his government mates. Quote Share this post Link to post Share on other sites
porca misèria Report post Posted April 23, 2011 If someone can point me in the direction of where I can borrow £180k @ 75% LTV and 4x income for less than £400 per month the article might have some merit. Otherwise.... Around here £400/month would be stretched to rent you an £80k property ... Quote Share this post Link to post Share on other sites
Ah-so Report post Posted April 23, 2011 Around here £400/month would be stretched to rent you an £80k property ... However, the truth is that house price falls, record low interest rates and rising rents mean that now it is cheaper to buy than rent in many places. It again reinforces the "renting is dead money" argument. However, this is based on interest rates being 0.5%. IRs can only move up and when they do, renting will probably become the cheaper option again. Quote Share this post Link to post Share on other sites
porca misèria Report post Posted April 23, 2011 However, the truth is that house price falls, record low interest rates and rising rents mean that now it is cheaper to buy than rent in many places. It again reinforces the "renting is dead money" argument. However, this is based on interest rates being 0.5%. IRs can only move up and when they do, renting will probably become the cheaper option again. Indeed, that seems plausible. Some areas more than others. But I think housing benefit levels matter a whole lot more than interest rates. People can budget interest rates vs saving and discretionary expenditure, but housing benefits underpin rents no matter what. Quote Share this post Link to post Share on other sites
Bruce Banner Report post Posted April 23, 2011 However, the truth is that house price falls, record low interest rates and rising rents mean that now it is cheaper to buy than rent in many places. It again reinforces the "renting is dead money" argument. However, this is based on interest rates being 0.5%. IRs can only move up and when they do, renting will probably become the cheaper option again. But if you've shopped around you won't be on 0.5%. I'm getting 3.9% from NS&I and if I were to draw sufficient money out of that account to buy the house I'm currently renting, I'd lose more in interest than I pay in rent and that's not taking into account that my money would then be tied up in a depreciating, illiquid asset. "Renting is dead money", don't make me laugh . Quote Share this post Link to post Share on other sites
Bloo Loo Report post Posted April 23, 2011 However, the truth is that house price falls, record low interest rates and rising rents mean that now it is cheaper to buy than rent in many places. It again reinforces the "renting is dead money" argument. However, this is based on interest rates being 0.5%. IRs can only move up and when they do, renting will probably become the cheaper option again. except in the other thread from thisismoney: House prices in England and Wales are now 1.9% lower than they were a year ago and 11.1% below the price peak in February 2008, and Chesterton Humberts calculate that since then, £21,698 has been wiped from the typical house value. thats £7000 a year in capital losses......thats about £580 per month the owner is losing on his average plot. Quote Share this post Link to post Share on other sites
EmmaRoid Report post Posted April 23, 2011 Around here £400/month would be stretched to rent you an £80k property ... My rent is more but the cost compared to buying atm is that. Includes fair owning vs renting cost comparison but none of the potential unforeseen or new kitchen type ownership costs. Quote Share this post Link to post Share on other sites
thecrashingisles Report post Posted April 23, 2011 The stat seems to be based on the average cost of people's existing mortgages compared to the rent for an equivalent property. It has absolutely no relevance to whether renting or buying today is cheaper. Quote Share this post Link to post Share on other sites
winkie Report post Posted April 23, 2011 A combination of record low interest rates and falling house prices means buying a house is increasingly affordable, according to findings published today by Halifax bank. ...not saving if house prices are falling by more than £100/mth. Quote Share this post Link to post Share on other sites
cashinmattress Report post Posted April 23, 2011 Utter codswallop. Quote Share this post Link to post Share on other sites
Wad Report post Posted April 23, 2011 It doesn't take take into account any of the other costs of buying/owning either like initial refurbishment, stamp duty, ongoing repairs and insurance. I rent my house and I know the end of the house needs 30k of repairs and internal redecorating when I leave. I will not be paying for that. Quote Share this post Link to post Share on other sites
Lagarde's Drift Report post Posted April 23, 2011 My landlord has still to fix the roof. That alone costs more than a year's gross rent, much less any other deductions. Houses are like cars, really. Aging assets that fall apart with time and require much time and money to keep going. Only the very best quality represent decent investments. Quote Share this post Link to post Share on other sites
Laughing Gnome Report post Posted April 23, 2011 Repairs aside, I would expect servicing a mortgage would be far cheaper than that. £650a month would get you about £150 000. A two bedroom terrace, about £150 000, rent about £850/month. Quote Share this post Link to post Share on other sites
Bruce Banner Report post Posted April 23, 2011 Repairs aside, I would expect servicing a mortgage would be far cheaper than that. £650a month would get you about £150 000. A two bedroom terrace, about £150 000, rent about £850/month. I'm renting a 3 bed, estimated current value £350,000, for just over £900 per month. Quote Share this post Link to post Share on other sites
Lagarde's Drift Report post Posted April 23, 2011 Repairs aside, I would expect servicing a mortgage would be far cheaper than that. £650a month would get you about £150 000. Er... the house I live in costs about that , and rent I pay is about that. I don't have to repair ****** all and am not exposed to its declining price. The situation would be rather different if I lived in the Landan, but hey, I don't live there! Quote Share this post Link to post Share on other sites
EmmaRoid Report post Posted April 23, 2011 Repairs aside, I would expect servicing a mortgage would be far cheaper than that. £650a month would get you about £150 000. A two bedroom terrace, about £150 000, rent about £850/month. May I ask where this is? Quote Share this post Link to post Share on other sites
cashinmattress Report post Posted April 23, 2011 £650a month would get you about £150 000. Perhaps interest only, which isn't really buying a home now, is it? Why not include the cost of the stamp duty, ALL conveyancing fees, maintenance, etc, and resubmit your sum. Quote Share this post Link to post Share on other sites
South Lorne Report post Posted April 23, 2011 ...borrow on a mortgage to expose yourself to falling prices , negative equity, lack of flexibility to move town or abroad...and possibly lock yourself in for a generation ....not an inspired choice ...just VI nonsense....they should be heavily fined for such words which are misleading for those who are not too bright ...protect the weak.... Quote Share this post Link to post Share on other sites
interestrateripoff Report post Posted April 23, 2011 http://www.dailymail.co.uk/news/article-1379800/Low-rates-Buying-home-100-month-cheaper-renting.html Buying a property is nearly £100 a month cheaper than renting one, research shows.A combination of record low interest rates and falling house prices means buying a house is increasingly affordable, according to findings published today by Halifax bank. It reports that mortgage payments and maintenance costs for a three-bedroom property cost homeowners an average of £608 a month. But rent on a similar house would set them back £706 over the same period – costing the household an extra £98 per month. Buying a home is now 14 per cent cheaper than renting one, the report found. This marks a considerable turnaround from 2008, when buying cost 43 per cent more than renting. A low Bank of England base rate of interest, combined with falling house prices, has driven the cost of mortgages down, making buying a more affordable option. ....... But, despite improvements in the affordability of property ownership, tight lending criteria introduced by some banks since 2007 have made it difficult for many potential buyers to get the mortgage they need. I know this will bring joy to many reading on here, what better time could there to be to buy. Record low interest rates, falling house prices I mean could there be a better time to buy? And the only real negative is getting a mortgage..... What isn't mentioned is what happens when rates go up, will buying be more affordable then over a 25 or 30 year period. A last ditch attempt at trying to kickstart a dying market? Quote Share this post Link to post Share on other sites
Flat Bear Report post Posted April 23, 2011 If someone can point me in the direction of where I can borrow £180k @ 75% LTV and 4x income for less than £400 per month the article might have some merit. Otherwise.... So you are paying under £650 pcm for an alledged £240,000 house? Where did you get the estimated value of the house? Quote Share this post Link to post Share on other sites
