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Buying Now Cheaper Than Renting In Scotland...

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BBC

Based on HBOS research over 3 years.

"In March, the average monthly cost of a three-bedroom home for a buyer with a mortgage was £514, compared with £531 to rent the same property."

Also apparently "include include mortgage payments, household maintenance, repairs, minor alterations and insurance costs."

Doesn't mention what sort of mortgage however -capital or interest only ? Also doesn't mention deposit required.

So buying the average 3 bedroom place in Scotland, and including all repairs, maintenance, mortgage costs, insurance etc.. costs only £514 per month. :blink:

Thoughts ? Sounds rather low to me. Just did a basic mortgage calculation on the RBS website calculator. Based on £150k repayment over 25 years. Total does not include a deposit. Average tracker cost ends up at roughly £700.

Have to put in only about £100k mortgage required to get a payment of about £475 per month. Which even then only leaves £50ish per month for Insurance, maintenance etc....

Unless I am missing something - it does not add up.

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BBC

Based on HBOS research over 3 years.

"In March, the average monthly cost of a three-bedroom home for a buyer with a mortgage was £514, compared with £531 to rent the same property."

Also apparently "include include mortgage payments, household maintenance, repairs, minor alterations and insurance costs."

Doesn't mention what sort of mortgage however -capital or interest only ? Also doesn't mention deposit required.

So buying the average 3 bedroom place in Scotland, and including all repairs, maintenance, mortgage costs, insurance etc.. costs only £514 per month. :blink:

Thoughts ? Sounds rather low to me. Just did a basic mortgage calculation on the RBS website calculator. Based on £150k repayment over 25 years. Total does not include a deposit. Average tracker cost ends up at roughly £700.

Have to put in only about £100k mortgage required to get a payment of about £475 per month. Which even then only leaves £50ish per month for Insurance, maintenance etc....

Unless I am missing something - it does not add up.

The details are just too vague to make any real comment. The calculation could be based on a 60%LTV and I doubt the average buyer has that sort of cash sitting around. More VI spin methinks. Also the VI and sheep rarely consider the true cost of buying/owning a property.

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Ramping machine goes into over drive as the spring bounce has barely made a skip ,the hole in the bubble is getting bigger, the smell of fear is all around

+1

social anecdote - people are picking up on this and using it to justify their peak-price purchases, so this is denial def happening.

should not worry too much, just part of the hpc process

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should not worry too much, just part of the hpc process

Let's face it. If this "crash" continues moving at this pace then buying doesn't seem such a bad idea.

Will you wait another 2 or 3 years just to see prices droping by 4% per annum (nominally) while infaltion is running at over 4%?

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Let's face it. If this "crash" continues moving at this pace then buying doesn't seem such a bad idea.

Will you wait another 2 or 3 years just to see prices droping by 4% per annum (nominally) while infaltion is running at over 4%?

yes, why not when my considerable savings are well inflation-proofed and rentals are cheap?

my only caveat is security of tenure - in my region that is fine, but I realise for some others that is not so

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yes, why not when my considerable savings are well inflation-proofed and rentals are cheap?

I agree with you.

My only point was that months and years are passing by and I still see more or less the same silly prices being advertised (especially in Edinburgh).

On the other hand, I've come to realise that high house prices are the only thing that keeps this country from a total financial collapse.

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Those HBOS figures seem dubious to me - comparing renting to buying with a stonking deposit is hardly a valid comparison. And of course it's very area dependent - renting is pretty cheap in central Edinburgh relative to purchase prices but I imagine this changes somewhat in outlying areas.

Mind you, I did buy my first property in central Edinburgh last summer and I'm feeling pretty positive about the decision, so what do I know!

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I agree with you.

My only point was that months and years are passing by and I still see more or less the same silly prices being advertised (especially in Edinburgh).

speaking for myself, I have no personal volition to own - so i don't feel left out except in social-cost

On the other hand, I've come to realise that high house prices are the only thing that keeps this country from a total financial collapse.

comnpletewly and utterly disagree with you there - it is not the height of the peak that matters, it is the high rate of collapse that would endanger the economy

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Ramping machine goes into over drive as the spring bounce has barely made a skip ,the hole in the bubble is getting bigger, the smell of fear is all around

Well I was thinking this. I googled for more details and tried the HBOS website - but no real luck in getting details of this.

Seems pish, smells of pish, looks like pish.

Pish.

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Well I was thinking this. I googled for more details and tried the HBOS website - but no real luck in getting details of this.

Seems pish, smells of pish, looks like pish.

Pish.

Does not matter, it works.

Woman at my work today (who's husband is up to his backside in property) spoke to me to say she had been reading in the papers over the weekend that buying was now the cheapest option now so why didnt I just buy somewhere.

She was slightly at a loss for words when I pointed out the flaw to the argument - I am sure if one had bought 10 years ago and were now on a tracker then yes I it would be cheaper to pay the mortgage than rent. But to take out a new mortgage now I would have to move to a complete dump (and aquire a larger deposit) to be able to buy for less than my rent.

There is a certain class of boomer who have lost any kind of reality of what a reasonable house price should be - they are all tucked away in their 4/5 bedroom houses and wondering why FTBers seem so unable to buy right now - after all they were able to buy at a young age.

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Does not matter, it works.

Woman at my work today (who's husband is up to his backside in property) spoke to me to say she had been reading in the papers over the weekend that buying was now the cheapest option now so why didnt I just buy somewhere.

She was slightly at a loss for words when I pointed out the flaw to the argument - I am sure if one had bought 10 years ago and were now on a tracker then yes I it would be cheaper to pay the mortgage than rent. But to take out a new mortgage now I would have to move to a complete dump (and aquire a larger deposit) to be able to buy for less than my rent.

There is a certain class of boomer who have lost any kind of reality of what a reasonable house price should be - they are all tucked away in their 4/5 bedroom houses and wondering why FTBers seem so unable to buy right now - after all they were able to buy at a young age.

Yep. Although I think much of this is based on fear. People want others to do what they did themselves. They don't want to hear of others doing things differently. It frightens them.

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Yep. Although I think much of this is based on fear. People want others to do what they did themselves. They don't want to hear of others doing things differently. It frightens them.

it doesn't just frighten them for abstract 'different = scary' reasons either - their future lives and plans depend on high house prices, if current potential FTBs stay away, then it upsets the HPI continuum that they depend on for their future, it is something they have to deny to feel good about themselves, it questions their basic sense of self-worth, says they aren't rich after all. They HAVE to deny it. Deny deny deny. Make 5.6% in one year nominal house price falls in London go away. Must go away. Must go away....

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Does not matter, it works.

Woman at my work today (who's husband is up to his backside in property) spoke to me to say she had been reading in the papers over the weekend that buying was now the cheapest option now so why didnt I just buy somewhere.

She was slightly at a loss for words when I pointed out the flaw to the argument - I am sure if one had bought 10 years ago and were now on a tracker then yes I it would be cheaper to pay the mortgage than rent. But to take out a new mortgage now I would have to move to a complete dump (and aquire a larger deposit) to be able to buy for less than my rent.

There is a certain class of boomer who have lost any kind of reality of what a reasonable house price should be - they are all tucked away in their 4/5 bedroom houses and wondering why FTBers seem so unable to buy right now - after all they were able to buy at a young age.

I think the older generations have had a completely opposite experience to ours and struggle to comprehend the issues that FTBers have to deal with. A typical graduate now will have a relatively modest income, debt and house prices which although declining are still high. Also, there is a tendency that people of all generations aren't that well equipped to think rationally about their decisions or to do the sums and make their own mind up and will instead go with the social consensus.

At least you're doing well to educate your colleague... might not sink in though...

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As many others have experienced, I have also been hearing this from people with an interest in property.

I actually feel pretty liberated to be staying at home and saving dosh - all my pals are skint (they 'own') and I'm doing lots of interesting things. Does it even make sense now when people move so much in their formative career years? Anyway, a bit of a tangent there...

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Being able to stay at home is if you can do so is probably the ideal way of accumulating some savings. Problem many people have though is moving away from home at a young age to attend university and then they have relentless rent demands to contend with.

I read somewhere a rule of thumb stating that you should rent rather than buy if you expect to be moving within 5 years (which I think could apply to many people in their 20s) due to the costs you incur when you buy/sell: solicitors fees, stamp duty, decorating, furnishing. Seems reasonable to me.

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Scotsman

:o

"but experts say house HOUSE PRICES NEED TO FALL FURTHER before buyers without large deposits can make the move from renting to ownership."

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What about the cost of risk of loss of capital ? House prices aren't going up anytime soon......its not like they can drop interest rates.

At what point do you realise this loss? A decline in house prices in the short term should not be a huge concern for a prospective buyer if they stay in their property for years/decades.

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At what point do you realise this loss? A decline in house prices in the short term should not be a huge concern for a prospective buyer if they stay in their property for years/decades.

Bargaining stage

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At what point do you realise this loss? A decline in house prices in the short term should not be a huge concern for a prospective buyer if they stay in their property for years/decades.

If only people thought that its not real profit/'income' as prices went up........Personally I'd be OK with a flat to slight drop without too many tears but once you get to 5 figures I'd be a bit sore as the impact is actually doubled on your mortgage costs if could get it 10K cheaper meaning you could put 10K more down.....

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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