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RickyM

2018-2019 Better Renting or Buying ?

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I have a 10% deposit and my mortgage monthly payment will be 20% higher than what I pay in rent currently.

At the end of first three years I would have only paid negligible principle but mainly Interest on a substantial borrowing. So at the end of 3 years I would be no richer than what I am now in terms of equity unless there is a "paper" rise in s prices.

Not sure what is the best way forward, Rent from private landlord or Rent from the Bank ?

This would be a no brainer in 2014 when prices were skyrocketing, but not sure what is the best way forward, wait or dive in.

Your thoughts / suggestions please ?

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Other option - rent a cheaper place again.

When buying you have longer term considerations, when renting you can downshift a bit knowing it's not forever.

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1 minute ago, Si1 said:

Other option - rent a cheaper place again.

When buying you have longer term considerations, when renting you can downshift a bit knowing it's not forever.

That's what I'm doing, have found a rental place smaller than I would like but "nice in a nice area." Could afford to spend more, but why? Luckily I am single though and not sure I could/would do same if still had family. 

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16 minutes ago, Funn3r said:

That's what I'm doing, have found a rental place smaller than I would like but "nice in a nice area." Could afford to spend more, but why? Luckily I am single though and not sure I could/would do same if still had family. 

I have done similar with family. Small but practical rented terrace house, just about sufficient space given we have young children. Middling area, not a bad street actually. Really plan to buy one day, current savings allow more ambitious purchase in future.

 

I got this idea off wicao.

Edited by Si1

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For me I have been simplifying my life a lot lately so will probably downsize and rent a smaller cheaper place and will be investing and diversifying more than worrying about housing

Problem is I have spent the last 5+ years wanting to buy and only seeing government propping up prices with stupid schemes and my money doing nothing for me due to low-interest rates, Whilst seeing everyone around me get deeper and deeper into debt with loans, car leasing, credit cards and trying to look like there a success

 

 

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..and the more debt they are prepared to get into, the more painful things become for you.

We have just bought. Probably a terrible financial decision but house prices are half sensible where we are (on a regional, not historic basis).

Sick of being treated like underclass. Sick of k-head landlords. Sick of playing the game "that price is mental, they will never get that, this must be the peak" only to see said house sell, and the next one come on even higher price.

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sick of renting. kids finishing primary and moving into secondary soon... I reckon sterling will get deliberately devalued so it may be an opportunity to jump in soon. 

I expect nominals to not fall much... but in real terms the value of sterling will collapse and I am hoping that will "save our bacon" in the long term. i.e not to lose too much since the "nominal" price we sign up for won't be much higher than the bottom nominal price. - I suspect that's what the govt has in mind too. 

Edited by hayder

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In a similar position looking to buy for a while, have held off and off but the other half wants to buy. Constant struggle to justify the argument when everyone else is and prices keep rising. Very frustrating as ultimately feel like we have been royally f*cked over, both have good jobs, money in the bank but I don't want to be a slave to debt for the ret of my days.

I was looking to buy in 2013, then HTB came along, it really has helped people hasn't it - prices have gone up 60% at least

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Just bought in the North West, big enough for a growing family and in catchment area for a top school, would have been impossible down South. At this point nobody knows how this will play out except that it is going to be painful for some.

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1 minute ago, Slimline said:

Just bought so expect a crash shortly. 

If you've got a decent deposit and go for a long fix it could be worthwhile.

Indeed, if you fix for 3-5 years that's enough time for the gov to react, that is to print money, introduce Help to Pay your Mortgage or negative IR :) 

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52 minutes ago, Paul77 said:

Indeed, if you fix for 3-5 years that's enough time for the gov to react, that is to print money, introduce Help to Pay your Mortgage or negative IR :) 

I wonder if they will bring in help to pay your rent scheme too? 

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9 hours ago, Funn3r said:

That's what I'm doing, have found a rental place smaller than I would like but "nice in a nice area." Could afford to spend more, but why? Luckily I am single though and not sure I could/would do same if still had family. 

I think we’re about to do this.  We want to sit tight and see how the next 6-12 months plays out.  Too many things chipping away at house prices plus the big one - a credit squeeze could be on its way.

 

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2 minutes ago, hayder said:

housing benefit?

Housing benefit for all?  If we go down that route then a lot less people would feel the need to buy and house prices would go right down.  No bad thing.

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Just now, Mancunian284 said:

Housing benefit for all?  If we go down that route then a lot less people would feel the need to buy and house prices would go right down.  No bad thing.

just increase the threshold to include more punters! print some more monayz! 

giphy.gif

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All depends on what you buy or what you rent, what you pay to buy or what you pay to rent....where you buy it or where you rent it......;)

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as of now my rental place is cheaper to rent than what the mortgage interest would be, and the house itself is losing value at a higher rate than my actual rental payments.

so not too unhappy. 

but of course landlord can boot you out at his whim.

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I've decided to rent for another year or two having sold my place last year. I was kicked out of my last place on a whim and I was almost tempted to buy in the SE to feel settled again but screw it, I'll just leave the South (or UK) in 2 years if things stay the same. Life is too short to saddle yourself with that amount of debt, depending on income etc. I've got a lovely flat in a great area at a good price. The landlord seems great and really interested in keeping it in a condition they would be happy to live in. Interview the landlord and don't take it if you have doubts. Good landlords do exist it seems, they are just hard to find.

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This May you can send a message to the CONservatives that you are sick of their corruption.. Vote Labour!

I have never voted Labour!

But I will in May, and if the corrupt CON’s still don’t do something about house prices I will again at the next GE! 

 

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5 hours ago, macca13 said:

This May you can send a message to the CONservatives that you are sick of their corruption.. Vote Labour!

I have never voted Labour!

But I will in May, and if the corrupt CON’s still don’t do something about house prices I will again at the next GE! 

 

Seems like the only way forward now that Corbyn fully supports Brexit and ending free movement.

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One of the main reasons why a two party system does not work is because people tend to vote for the party they think will keep the other party out, people think a party that has little chance of winning is a wasted vote.....that is why the Liberals have no chance....that is why if the only opposition party can be made to be or seen as an absolute disaster even a tactical voter will abstain, that then is a vote for the same......just saying, all clever stuff.;)

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1 hour ago, winkie said:

One of the main reasons why a two party system does not work is because people tend to vote for the party they think will keep the other party out, people think a party that has little chance of winning is a wasted vote.....that is why the Liberals have no chance....that is why if the only opposition party can be made to be or seen as an absolute disaster even a tactical voter will abstain, that then is a vote for the same......just saying, all clever stuff.;)

Basically the system is built to benefit the elite, full stop, we have seen that since Blair very very clearly.

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