winkie Posted March 15, 2023 Share Posted March 15, 2023 4 minutes ago, ChrisSussex said: There are alot of other costs involved in owning a house such a remortgage fees, insurance, legal fees and maintenance. You are probably better off owning than renting since most rental properties are slums. The biggest cost is the deposit.......that is now what stops most from buying. Quote Link to comment Share on other sites More sharing options...
spyguy Posted March 15, 2023 Share Posted March 15, 2023 3 hours ago, PeanutButter said: https://www.theguardian.com/business/2023/mar/15/uk-homeowners-still-better-off-than-renters-despite-spike-in-interest-rates Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax. The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more. This equates to a saving of almost £500 a year for owners. However, the gap has narrowed since 2016, when homeowners were saving £1,567 annually. Is it nearly/Spring/Easter .... Quote Link to comment Share on other sites More sharing options...
Stjames83 Posted March 15, 2023 Share Posted March 15, 2023 File this under “stating the bleeding obvious”. Anyone who is serious and genuinely able to buy, does do. ‘‘Twas ever thus. Quote Link to comment Share on other sites More sharing options...
PeanutButter Posted March 15, 2023 Author Share Posted March 15, 2023 2 hours ago, winkie said: Never rented or never rented anything out apart from a tax efficient bedroom to help with the cost of living......win,win. People will just have to be creative, there are more ways to skin a cat.......not just three ways of providing a roof over your head..... buying, private or social/housing association renting. I'm all ears to find out your alternatives to buying, private or social renting. You've never rented? You went straight from home to buying? Quote Link to comment Share on other sites More sharing options...
winkie Posted March 15, 2023 Share Posted March 15, 2023 42 minutes ago, PeanutButter said: I'm all ears to find out your alternatives to buying, private or social renting. You've never rented? You went straight from home to buying? Yes, in my 20s deposit saved myself, no gifts ....there are companies that provide housing for employees, a firm I once worked for did that, highly subsidised rents deducted from salary...... there are those that work in the armed forces, there are housing co-operatives...there are groups of people that come together to buy land collectively and build own homes on said land......there are people that rent and all the low rents go into the upkeep of said property, no landlord to pay, a trust......non profit making. Quote Link to comment Share on other sites More sharing options...
mandyshoes Posted March 15, 2023 Share Posted March 15, 2023 Even if renting was less expensive I would buy. In 5 years we will have no mortgage and not be paying rent which will greatly reduce outgoings - will then increase payments to the mortgage Quote Link to comment Share on other sites More sharing options...
mandyshoes Posted March 15, 2023 Share Posted March 15, 2023 1 minute ago, mandyshoes said: Even if renting was less expensive I would buy. In 5 years we will have no mortgage and not be paying rent which will greatly reduce outgoings - will then increase payments to the mortgage Pension not mortgage Quote Link to comment Share on other sites More sharing options...
winkie Posted March 15, 2023 Share Posted March 15, 2023 3 minutes ago, mandyshoes said: Even if renting was less expensive I would buy. In 5 years we will have no mortgage and not be paying rent which will greatly reduce outgoings - will then increase payments to the ̶m̶o̶r̶t̶g̶a̶g̶e̶ pension. Over time buying will work out cheaper than a lifetime of renting, over time drip feeding into a pension is better than doing nothing......when interest rates are low, that is the time if can, to overpay mortgage debt thus reducing mortgage term....leaving more working life to concentrate on pension saving......much better than any BTL IMO. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 18, 2023 Share Posted March 18, 2023 On 15/03/2023 at 12:21, PeanutButter said: I'm all ears to find out your alternatives to buying, private or social renting. You've never rented? You went straight from home to buying? Winkie bought cheaply in North London in the 90s. Fyi. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 18, 2023 Share Posted March 18, 2023 On 15/03/2023 at 10:55, spyguy said: Is it nearly/Spring/Easter .... It's such a ****** set of figures. Neglects opportunity cost and maintenance. Absolute trash. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 18, 2023 Share Posted March 18, 2023 On 15/03/2023 at 09:36, ChrisSussex said: . You are probably better off owning than renting since most rental properties are slums. This is a real issue Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 18, 2023 Share Posted March 18, 2023 On 15/03/2023 at 08:26, Martin_JD said: Renting is dead money, you're just paying someone elses mortage off for them. Omg the EAs are in the house again. Must be something going on Quote Link to comment Share on other sites More sharing options...
70PC Posted March 18, 2023 Share Posted March 18, 2023 On 3/15/2023 at 7:14 AM, PeanutButter said: https://www.theguardian.com/business/2023/mar/15/uk-homeowners-still-better-off-than-renters-despite-spike-in-interest-rates Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax. The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more. This equates to a saving of almost £500 a year for owners. However, the gap has narrowed since 2016, when homeowners were saving £1,567 annually. Renting for 2 more years, may end up saving £50,000 on a £350,000 house. A good reason to pay an extra £1,000 on renting over the period. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 18, 2023 Share Posted March 18, 2023 31 minutes ago, Si1 said: Winkie bought cheaply in North London in the 90s. Fyi. No I didn't.......in the 80s, 90s and onwards spent paying for it.... interest rates were high ..... Wages low. It was open to anyone who was there and working at the time.....buying wasn't particularly in vogue......some preferred to buy a nice car and enjoy their hard earned wages, didn't at the time blame them........others bought their council houses, many of them later rented them out and moved on to a different street. Quote Link to comment Share on other sites More sharing options...
Twenty Something Posted March 18, 2023 Share Posted March 18, 2023 1 hour ago, Si1 said: Omg the EAs are in the house again. Must be something going on Explain how you’re not paying someone else’s mortgage off if you’re renting? Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 18, 2023 Share Posted March 18, 2023 6 minutes ago, Twenty Something said: Explain how you’re not paying someone else’s mortgage off if you’re renting? Net yield (house) < net yield (global index tracker) So the opportunity cost is + for the LL QED Quote Link to comment Share on other sites More sharing options...
Quiet Guy Posted March 18, 2023 Share Posted March 18, 2023 On 15/03/2023 at 08:26, Martin_JD said: Renting is dead money, you're just paying someone elses mortage off for them. Yes, in most cases if you can afford it without stretching your finances too far and don't need to move location frequently, it should pay off in the end. But some people just can't in today's market. We need more social housing. Quote Link to comment Share on other sites More sharing options...
Twenty Something Posted March 18, 2023 Share Posted March 18, 2023 1 hour ago, Si1 said: Net yield (house) < net yield (global index tracker) So the opportunity cost is + for the LL QED So you’ve not answered the question then. Landlord has BTL mortgage on property You pay landlord xyz £‘s per month How are you not paying off their mortgage? The question isn’t if you invested your money in bitcoin / shares / whatever are you better off. Just simpler to label everyone an estate agent who posts what is a quite irrefutable fact? Quote Link to comment Share on other sites More sharing options...
Stjames83 Posted March 19, 2023 Share Posted March 19, 2023 10 hours ago, Twenty Something said: So you’ve not answered the question then. Landlord has BTL mortgage on property You pay landlord xyz £‘s per month How are you not paying off their mortgage? The question isn’t if you invested your money in bitcoin / shares / whatever are you better off. Just simpler to label everyone an estate agent who posts what is a quite irrefutable fact? Don’t expect a reply. Coping Strategy One involves hiding under the bed and is always deployed when an irrefutable point is made. But hey, don’t also forget that @Si1 doesn’t have a horse in this race seeing as he caved and bought a place last year… apparently. Quote Link to comment Share on other sites More sharing options...
spyguy Posted March 19, 2023 Share Posted March 19, 2023 (edited) 11 hours ago, Twenty Something said: So you’ve not answered the question then. Landlord has BTL mortgage on property You pay landlord xyz £‘s per month How are you not paying off their mortgage? The question isn’t if you invested your money in bitcoin / shares / whatever are you better off. Just simpler to label everyone an estate agent who posts what is a quite irrefutable fact? Pretty much all the BTL mortgages since 2002 are IO. Its really that stark. At best/worst you are helping the LL hold a property position. No capital is being paid off. Edited March 19, 2023 by spyguy Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 19, 2023 Share Posted March 19, 2023 15 hours ago, Twenty Something said: So you’ve not answered the question then. Landlord has BTL mortgage on property You pay landlord xyz £‘s per month How are you not paying off their mortgage? The question isn’t if you invested your money in bitcoin / shares / whatever are you better off. Just simpler to label everyone an estate agent who posts what is a quite irrefutable fact? You don't understand simple words and numbers. Fair enough. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 19, 2023 Share Posted March 19, 2023 (edited) 4 hours ago, Stjames83 said: Don’t expect a reply. Coping Strategy One involves hiding under the bed and is always deployed when an irrefutable point is made. But hey, don’t also forget that @Si1 doesn’t have a horse in this race seeing as he caved and bought a place last year… apparently. I didn't so much cave as have excess capital to allocate somewhere. I still try to take a grey view of the investment landscape. I gave a reply but it's hard to reply to someone who has no argument short of repeating themselves. Edited March 19, 2023 by Si1 Quote Link to comment Share on other sites More sharing options...
rantnrave Posted March 19, 2023 Share Posted March 19, 2023 22 hours ago, Twenty Something said: Explain how you’re not paying someone else’s mortgage off if you’re renting? You have cash in the bank which earns enough interest to cover the rent. Quote Link to comment Share on other sites More sharing options...
Quiet Guy Posted March 19, 2023 Share Posted March 19, 2023 55 minutes ago, rantnrave said: You have cash in the bank which earns enough interest to cover the rent. Sure, if you've enough spare cash to get a yield that will pay your rent, that sounds doable but how common is that ? From: https://www.money.co.uk/savings-accounts/savings-statistics The average person in the UK has £17,365 in their savings. 34% of adults had either no savings, or less than £1000, in a savings account And I'll bet most of those 34% are renting. because they've no realistic choice. Quote Link to comment Share on other sites More sharing options...
Twenty Something Posted March 19, 2023 Share Posted March 19, 2023 (edited) 5 hours ago, rantnrave said: You have cash in the bank which earns enough interest to cover the rent. Again not the point. However you are paying the rent, whatever investments you have, you are still paying someone rent to live somewhere, ergo you are paying their mortgage. What is so hard to understand about this for you all? It’s like saying well, I don’t pay council tax because my clever investments earn me more money than the monthly outgoings. I can take @spyguy’s point about the io aspect, but still, it is an interest only ‘mortgage’ and therefore you are still paying someone’s mortgage. Edited March 19, 2023 by Twenty Something Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.