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Ethel

Rent Or Buy?

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Whenever I mention how little rent I pay compared to what my mortgage would be on the same property, I am met with scepticism and disdain from certain members.

I just found this ad in my local paper and wondered what people on here would consider to be the best option in this situation.

The IO repayment on a £330k mortgage over 25 years at 6% (ha-ha you'll be lucky) is over £1600 a month. Repayment mortgage more like £2,150.

Oh, and by the way, just to put things into perspective, the average wage in this neck of the woods is less than £18k.

So, guys, let me have it, would you rent or buy?

buy_or_rent.jpg

post-4474-1183291591_thumb.jpg

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Can I call top now? That is the first evidence I have seen for a 'To Buy/Let' advert. This apparently is the bell weather indication of an imminent crash. Cheers Ethel.

Popcorn's in the microwave. :)

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Whenever I mention how little rent I pay compared to what my mortgage would be on the same property, I am met with scepticism and disdain from certain members.

I just found this ad in my local paper and wondered what people on here would consider to be the best option in this situation.

The IO repayment on a £330k mortgage over 25 years at 6% (ha-ha you'll be lucky) is over £1600 a month. Repayment mortgage more like £2,150.

Oh, and by the way, just to put things into perspective, the average wage in this neck of the woods is less than £18k.

So, guys, let me have it, would you rent or buy?

I was in the same situation ealier this year. Do I jump off the property ladder and rent a 3 bed semi for £600 a month, or do I get a mortgage on a similar property for £1100 a month?

It wasn't a difficult situation when I worked out how much extra cash I would be able to save.

Edited by cockrobin

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So, guys, let me have it, would you rent or buy?

You could always buy it on a BTL mortgage, rent it out and lose a grand a month!

Yet that is what people are still doing!

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You could always buy it on a BTL mortgage, rent it out and lose a grand a month!

Yet that is what people are still doing!

Yes, they're still scrambling over each other to do so.

To quote another article in the same paper:

"investors' confidence is such that nearly six out of ten respondents expect to buy more residential investment property over the next six months"

(A&A Property Services, Tiverton, Devon)

:lol::lol::lol:

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Heck, if you owned that house you could sell it, and the interest you got from putting your £330K in a savings account would pay the rent for you!

Oh, but then you wouldn't be able to benefit from the double digit price increases that ALWAYS happen every year with property. ;)

Edited by JoeDavola

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Heck, if you owned that house you could sell it, and the interest you got from putting your £330K in a savings account would pay the rent for you!Oh, but then you wouldn't be able to benefit from the double digit price increases that ALWAYS happen every year with property. ;)

Thats what the smart people are doing , you can now get around 6% TAX FREE for that 330k = £19,800 per year , more soon as rates are expected to go up :D .

They want £850 pcm for that dump easily knock them down to £800 pcm { maybe even £750 } but anyway 12 x £800 = £9,600 in rent , leaves £10,200 tax free a year in your pocket .

Renting all the way in this example ............ B)

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I believe the correct answer is...

"But Ethel, if you don't buy it, in 25 years time you'll still be paying rent!

And don't give us all that maths rubbish about if you don't buy you could put a grand in the bank each month instead. Houses are going up more than that every month and will continue to do so. "

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Thats what the smart people are doing , you can now get around 6% TAX FREE for that 330k = £19,800 per year , more soon as rates are expected to go up :D .

They want £850 pcm for that dump easily knock them down to £800 pcm { maybe even £750 } but anyway 12 x £800 = £9,600 in rent , leaves £10,200 tax free a year in your pocket .

Renting all the way in this example ............ B)

What you said, and then two years down the line, offer £150,000 to buy the place! :P

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I believe the correct answer is...

"But Ethel, if you don't buy it, in 25 years time you'll still be paying rent!

And don't give us all that maths rubbish about if you don't buy you could put a grand in the bank each month instead. Houses are going up more than that every month and will continue to do so. "

Fool!

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I believe the correct answer is...

"But Ethel, if you don't buy it, in 25 years time you'll still be paying rent!

And don't give us all that maths rubbish about if you don't buy you could put a grand in the bank each month instead. Houses are going up more than that every month and will continue to do so. "

I can only assume you we're being ironic here?

Gah! Yes you probably were as I've just noticed the quote marks finish at the end.

Edited by bomberbrown

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Fool!

Well that's what everyone APART from me thinks, (in my 'real life', not on HPC). Sorry, it's hard to indicate sarcasm in text. Maybe I should have used some of these. :lol:;)

I've heard things like

'House prices are absolutely CRAZY ! They just keep on going up and up.'

And then when I point out correct, they've gone up so much so they are totally overvalued, so a correction isn't that improbable...

I get ' oh no, house prices won't get cheaper, just look at how incredibly fast they are rising'.

So because house prices are inflating at a surprising rate at present, this points to them not going to fall at all.

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Well that's what everyone APART from me thinks, (in my 'real life', not on HPC). Sorry, it's hard to indicate sarcasm in text. Maybe I should have used some of these. :lol:;)

I'm the sorry one, didn't get the sarcasm first time I read it. I don't seem to able to find an 'embarressed' symbol to insert.

(Red cheeks)

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