Beginning of the end

[expat]

The difference you continually fail to grasp AtW, is that the end of the mortgage period you have a saleable asset. Renting for 25 years gives you nothing but the opportunity to carry on renting.
I don't know why you are so terrified of buying, but you don't need to keep trying to justify it.
We all have our fears, most of us learn to live with them.
hth.

That's not comparing like costs for like. A better comparison would be not just "Buy or Rent", but:
Buy, or
Rent for up to the interest you would have been paying, and invest the rest up to the total mortgage payments.

E.g. I'm renting (because I won't be where I am for very long) at 780/month. Property value at least 220k, would cost 1137/m in interest. Total 1444/month. (6.2%APR, Nationwide's headlinbe rate).

The proper comparison is:
Buy at 1444/m, or
Rent at 780/m and invest 664/m.

Renting (on a correct comparison) would give you something: 25 years of investment at 664/m is not to be scoffed at.

DYOR but I'd say if you invest the (grossed-up) equivalent of that in a company-provided pension, you will be able to retire comfortably.

[expat]

Yes. Now write out that cheque to your landlord. And while you're at it, flush down a few hundred pounds down the loo.

If rent is money down the loo, so is interest. I prefer to see both as money you pay to get something you want.

PS it's buyers who keep flushing money down the loo. When you've paid the rent, the other bills are the landlord's problem.

[sasguru]

That's not comparing like costs for like. A better comparison would be not just "Buy or Rent", but:
Buy, or
Rent for up to the interest you would have been paying, and invest the rest up to the total mortgage payments.

E.g. I'm renting (because I won't be where I am for very long) at 780/month. Property value at least 220k, would cost 1137/m in interest. Total 1444/month. (6.2%APR, Nationwide's headlinbe rate).

The proper comparison is:
Buy at 1444/m, or
Rent at 780/m and invest 664/m.

Renting (on a correct comparison) would give you something: 25 years of investment at 664/m is not to be scoffed at.

DYOR but I'd say if you invest the (grossed-up) equivalent of that in a company-provided pension, you will be able to retire comfortably.

Well if you're disciplined enough, that may work. But most of us are not and property is a kind of enforced saving. If I had not invested in property I would have nothing now. Because I put a 2 or 3 small deposits down at the right time, I am now mortgage free AND can spend that money investing

[Forumbore]

[----

Just when will lenders learn how to say no? Polling friends' resources together to get single morgage to share house is the biggest load of threaded ever.[/QUOTE]

Some people plan to meet members of the opposite sex and one day get married and have children (Difficult to comprehend I know) and many of the same people distrust other forms of investment or the entire pension system per se. It is therefore entirely narrow minded of people like you to deny them the right to try and get onto the property ladder.

[Shimano105]

Truly sad story Premier and one that should be told to potential buyers.

Although I own outright (i.e. no mortgage) if I were looking now I wouldn't hesitate to rent.

We know the big drawback of renting versus buying but there are 2 major advantages: no huge financial burden (deposit, interest, upkeep) and mobility - not tied down to 1 area for 25 years.

How many contracts have I not considered because they are too far away? It would mean renting anyway!

This obssession with bricks & mortar fuelled by dubious TV programmes is just that - an obssession.

[Forumbore]

Truly sad story Premier and one that should be told to potential buyers.

Although I own outright (i.e. no mortgage) if I were looking now I wouldn't hesitate to rent.

We know the big drawback of renting versus buying but there are 2 major advantages: no huge financial burden (deposit, interest, upkeep) and mobility - not tied down to 1 area for 25 years.

How many contracts have I not considered because they are too far away? It would mean renting anyway!

This obssession with bricks & mortar fuelled by dubious TV programmes is just that - an obssession.

You are a true fully paid up member of the mobile workforce within the EU shimano.

[TwoWolves]

All said is true however the main reason people feel they need to buy property is because it is a hedging strategy against house price inflation, which outstrips every other kind in our economy.

This does expose you to deflationary risk (as has been said in this thread) but if you buy at the right phase in the market cycle you cannot loose.

The sorry state of affairs is that this is a giant poker game which if you intend to settle-down and start a family with someone one day you cannot afford not to play. Of all the economic pyramid schemes successive UK governments have foisted upon us this is the worst because it is only maintainable because the lending sector is so weakly regulated and sooner or later pay-day at "the bank" will come around sparing only the fortunate few, we are fed the lie that interest-rates control borrowing in order to keep us compliant.

Ultimately its the largest expense that any family faces in their lives and is the primary moderator of family size - that is the government and banks are selling the future of this country in order to line their pockets.

Traitors, the lot of them.

[Forumbore]

All said is true however the main reason people feel they need to buy property is because it is a hedging strategy against house price inflation, which outstrips every other kind in our economy.

This does expose you to deflationary risk (as has been said in this thread) but if you buy at the right phase in the market cycle you cannot loose.

The sorry state of affairs is that this is a giant poker game which if you intend to settle-down and start a family with someone one day you cannot afford not to play. Of all the economic pyramid schemes successive UK governments have foisted upon us this is the worst because it is only maintainable because the lending sector is so weakly regulated and sooner or later pay-day at "the bank" will come around sparing only the fortunate few, we are fed the lie that interest-rates control borrowing in order to keep us compliant.

Ultimately its the largest expense that any family faces in their lives and is the primary moderator of family size - that is the government and banks are selling the future of this country in order to line their pockets.

Traitors, the lot of them.

And your alternative is precisely what?

[sasguru]

And your alternative is precisely what?

I think he would prefer a National Socialist economy where everything is regulated for the benefit of the stupid.

[Forumbore]

I think he would prefer a National Socialist economy where everything is regulated for the benefit of the stupid.

the great thing about property ownership is that it keeps you away from the control of the state. One of the criteria for becoming a member of the EU is that all people should have access to buy property. Once they let you in though they will find new ways to control you, but that is another story.