Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
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Just a few ideas that have been floating around my head the past couple of weeks.
With the state of things at the moment and needing around a 20% deposit and to get a decent house in a fairly decent area around here is still going to cost us 200k I've started to think about renting.
Now for some reason in this country renting is frowned upon, yet in Europe people tend to rent until they can normally afford to put down at least 50% of the value of the house through even inheritance or savings and therefore people don't buy until a lot later in their lives.
Renting for me would be more suitable, I can find a decent house with driveway and garage for around £800 a month in decent area, that is the difference in that the houses up for rent are usually not town houses and usually in decent suburbs so I can have a drive and a garage.
Opinions?
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John
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Registered: 30th Jun 03
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Nobody frowns upon it, most people just think it's dead money that's paying of someone elses mortgage. If it's best for you personally do it.
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jrsteeve
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Registered: 3rd Apr 02
Location: Manchester
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Well i make my living from letting properties and see nothing wrong with it at all. It's also quite a bit safer for the tenant with the whole deposit protection law. It often works out cheaper than buying anyway when you consider legal costs, maintenance etc and is a good way of working out exactly where you want to be and what you want.
To sum up, nothing wrong with it 
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willay
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Registered: 10th Nov 02
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its always people saying "you're paying off someoenes mortgage" which is true to an extent but then you arent the one lumbered with all the risk of an unpaid house.
And yeah you're right about its only us fools who are crazy about buying a house!
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Demo
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Registered: 27th Sep 01
Location: south wales Drives: astra sri ecoflex
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agreed. a lot of fuss and stigma in this country about owning property instead of renting
me and the missus were looking at renting but managed to muster up a deposit so have bought instead.
its a catch 22 situation. if you rent you may find it hard to save for a deposit. and without a deposit you wont get a mortgage so will be unable to buy
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Robbo
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Registered: 6th Aug 02
Location: London
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It is dead money but so is buying a hosue that then loses £30k etc
Ive rented for nearly 2 years now, had I bought a house then it would have lost a fair amount also!
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Cosmo
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Registered: 29th Mar 01
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time and a place for them all tbh.
If you cant afford to buy then renting is better than being in a cardboard box. Where as people consider buying to be an investment for the future where you end up owning a property outright and it then being a bit of financial security for you.
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Robbo
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Registered: 6th Aug 02
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Yep, good point cosmo.
The other reaosn I rent as well is the freedom it gives you to move around,e sp the wya the housing market is right now.
Rememebr continental europe 80% rents rather than buying. Will be like that here soon too IMO, only gain property through inheritance or by beimng very well off
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Colin
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Registered: 4th Apr 02
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I would 99% of the time buy over renting.
Unless it was only a short term proposal. Like for 6 months - 1yr.
800 a month is a fair bit of cash to see no return on if its a long term thing. On a short term you've not got the initial expense of buying a house.
For example if you buy then youve got legal fees, stamp duty, decorating etc on top of the mortgage, then when you start paying off the mortgage your mostly paying interest, to to sell quickly without any market growth you'll probably come off worse than if you had rented.
Renting however you move in, tied by usually 6 or 12 months, and 9 times out of 10 its going to be in good condition and not need you to do any work. Or i'll rephrase that, you'll not get ideas in your head (her head whatever) about ripping out the kitchen or doing any major work. If something brakes then the landlord fixes it, its more simple living. If you & Mrs split up then she cant demand half 
I guess it depends on how you live & where you see yourself in 5yrs time.
If the answers :- in the same job, in the same town, basically as now then i'd buy.
I see myself married with a dog (4 leged friend...im not saying jades a dog!!) possibly children. I dont think i'll ever move far away from here. I think its best for me to buy.
Bachelor pad lad like Robbo, probably see's himself not being in the same place in a few years...........so renting works for him.
Its all about your lifestyle.
If to you its about getting the best house for your buck then I would think again personally. Take something lesser to start out, Ive had to wait 4yrs to get my drive & garage. If I had rented, then I cant see how I would have saved up a deposit to move up & i'd probably still be renting..........
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J da Silva
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Registered: 10th Apr 03
Location: The FACTory
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Renting isn't frowned upon in my eyes, if you can't afford to buy and want your own space, then go for it, it is much simpler to manage and if you want to move then you don't have the hassle of estate agents and solicitors fees etc....
Although on the flipside, it's less secure as the landlord can just get you out when his offspring want the house, and you tend to pay more rent than what a mortgage would cost anyway, it's just this deposit malarky what's making people rent.
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J da Silva
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Registered: 10th Apr 03
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can I also add though, when you take these mortgages that last 40 years or so, normally a good chunk of the people wouldn't make the mortgage last 40 years, they just take it over that period to keep the payments down, enabling them to save more up per year to pay a big chunk of it off, just a little thought for you.
[Edited on 06-10-2009 by J da Silva]
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a_j_mair
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Registered: 23rd Jan 04
Location: Scotland
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it depends whether you view the house as a home or an investment
obviously a mortgage is a good investment if you can afford it as 25/30years down the line you own the house
problem buying just now is the size of the deposits
It all depends if you have means to keep saving for a deposit or have a suitable pension plan that will allow you to afford to live when you retire and no longer have a regular income from a job
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Colin
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Registered: 4th Apr 02
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Its just whatever means more to you at the end of the day.
Fill the banks/mortgage lenders pockets with their daft daily accrewing interest rates & have a modest home for a while that will in time go up in vaue. The prospect of moving up to where you want to be is always there as/when you can afford it.
or
Fill some randoms pockets & have the home you want, now (in person but not on paper) & maybe hope that some day you'll have enough savings to buy something similar.
I just couldnt face having spent I dunno 10k a year on someone elses house & know it will never be mine. If you stayed there 10yrs then thats 100k!! Believe me its quick when it comes around, I was in my wee boxy flat with no off street parking for 4 years (didnt feel like it!!) & now can move into something bigger.
My modest 1st home gave me the 20% deposit I needed.
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
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The idea in my head is to rent until the banks & building societys open up their 100% mortgages again, now people might see this a stupid decision but if we can get a 100% mortgage on the house that we want that has the space we require whereby we won't want to move then perfect.
We deffo don't want to do part rent part buy as it's a bit of a con and very expensive incomparison as we found out earlier in the year.
We want our own space and a nice house so we either stay put for another year to 2 years and see what happens with the economy or rent.
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Robbo
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Registered: 6th Aug 02
Location: London
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could be waiting a long time olly, likelihood is that 100% mortgages will be outlawed in future to rpevent this issue repeatign itself
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willay
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Registered: 10th Nov 02
Location: Roydon, Essex
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Is everyone counting on their property values going up then?
I mean its not a given thing is it?, for all we know we still have a while until we reach the bottom of this recession (thats another topic all together) and then you need to wait a good 10-15 years for the good old ecomical cycle to get back to where it was where houses were all overpriced.
I can see both sides of the argument for renting vs buying but I cant help but be in the mind set that I'd be lining someone elses pockets. :/
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Colin
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Registered: 4th Apr 02
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As per Orbob, the banks had their fingers burned serverally offering 100% & beyond. I think 90% LTV will be the best we will be able to expect in future.
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by willay
Is everyone counting on their property values going up then?
I mean its not a given thing is it?, for all we know we still have a while until we reach the bottom of this recession (thats another topic all together) and then you need to wait a good 10-15 years for the good old ecomical cycle to get back to where it was where houses were all overpriced.
I can see both sides of the argument for renting vs buying but I cant help but be in the mind set that I'd be lining someone elses pockets. :/
Not in the short term but its always been the case where houses are concerned, as Yazz once sang.....'The only way is up, baby' 
House prices must go up, there will be blips every now & then, usually due to unrealistic growth but they go up in general. Theres too many factors againt prices not going up.
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John
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Registered: 30th Jun 03
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As long as house prices go up long term, you've not lost any money unless you want out of the housing market completely before they go up and even then, you've only lost if they drop, which probably won't happen.
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J da Silva
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Registered: 10th Apr 03
Location: The FACTory
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quote:
Originally posted by willay
Is everyone counting on their property values going up then?
I mean its not a given thing is it?, for all we know we still have a while until we reach the bottom of this recession (thats another topic all together) and then you need to wait a good 10-15 years for the good old ecomical cycle to get back to where it was where houses were all overpriced.
I can see both sides of the argument for renting vs buying but I cant help but be in the mind set that I'd be lining someone elses pockets. :/
TBH Willay, I don't care if my house loses value, as I don't intend on selling up, I'm pretty sure I want to stay where I am for a while longer yet but cannot rule out the possibility of moving elsewhere in the future, so.... I have saved up for the difference in value/losses so that if I did decide to sell anytime soon then I'll be ok.
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Fad
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Registered: 1st Feb 01
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Renting is good at the moment there are so many properties availiable so tennants get the best deal. the fact you have no maintainence and general sexpesnes to deal with gives you an opportunity to save. You'll save money quicker renting than buying atm.
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
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Ok 90% I can deal with but house prices won't come down will they?
Who honestly can save £20,000 as a deposit and another £5k for fees and still lead a fairly decent lifestyle?
I'm not a good saver at the best of time and when I look at the savings pot and know my goal is 20k and it seems to never get any closer I just feel that to save that amount of money is unrealistic in this day and age.
If a 90% mortgage is avaliable that is more realistic but these seem to still be very few and fair between.
I'm looking at rental property and I see the houses in areas I would like to live, the houses we could afford to buy are in areas that we wouldn't be happy with living in and have off road parking and are generally SHIT.
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John
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Registered: 30th Jun 03
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A 90% mortgage on 200k means you need a 20k deposit.
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
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quote:
Originally posted by Fad
Renting is good at the moment there are so many properties availiable so tennants get the best deal. the fact you have no maintainence and general sexpesnes to deal with gives you an opportunity to save. You'll save money quicker renting than buying atm.
Your opinion counts as you deal with it day to day.
Rach isn't convinced but I am, if the boiler packs up that's the landlords issue not mine.
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John
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Registered: 30th Jun 03
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You get gas plans for boilers for 15 quid a month.
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