Beginning of the end

[DaveB]

So, if I buy a semi, which consists of 2 different houses, then I will be able to connect them internally into one big house, though on paper they will remain as two houses? I suppose if I own both I can redisignate them to be one big house?

Thats a different issue to planningpermission and doesnt involve the council afaik. You would need to update the Land Registry records to show the new status and ownership of the property(s). For a govt agency they are actually pretty efficient at what they do. I've dealt with them a few times over property ownership issues.

[AtW]

Sounds good thanks Dave. There is a new house for sale here - just build pretty big on it's own, but if whole thing (2 houses in semi) are bought then it would make actually a seriously good big house worthy of my presense.

Problem is that both of them would definately cost way above £500k

[wonderwaif]

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.

I don't know about other peoples situation, but we are paying around £600.00 for 15 years at a total outlay of £108,000.00.
We previously rented at £450.00 per month, which over 15 years would be £81,000.00. The difference being a princely £27,000.00.
So, either pay a £600.00 a month mortgage and after 15 years live rent free in a property worth, at an extremely conservative estimate, £200,000.00, or rent for fifteen years, have the princely sum of £27,000.00 plus whatever meagre interest it has accrued, and then carry on renting.
Tough choice.
The miss-spent youth must have caused the recreational drugs to addle my brain as I'm obviously missing something here.
If it really was as good as I thought it was, home ownership would be banned.
I'm sure one of the rent junkies will explain.

[tim123]

But look at it another way: multiple buyers, interest-only, multi-generational mortgages, key-worker boosts, parents releasing equity to fund offspring's mortgages.... with all this, why should the boom run out of steam? It could go on for ever. Of course, those on their own will find it harder and harder to buy.... is an SKA-developer a "key worker"?

Because they are going to run out of things to invent to keep things moving.

tim

[AtW]

So, either pay a £600.00 a month mortgage and after 15 years live rent free in a property worth, at an extremely conservative estimate, £200,000.00

Would you have bought the same house now for £200,000 with payment £1200 per month and risk that in a few years your house can actually be worth £100,000?

I am not against house ownership, in fact I'd love to own rather than rent, but I ain't a mug to enter house market at prices like that - even if I was not sure they would crash down sooner or later.

[AtW]

Because they are going to run out of things to invent to keep things moving.

Maybe someone will invent how to build lots of houses on the cheap: say on the ocean bed, imagine the view while you are falling asleep looking up? Priceless.

[Pondlife]

Maybe someone will invent how to build lots of houses on the cheap: say on the ocean bed, imagine the view while you are falling asleep looking up? Priceless.

Well NL are talking about bringing back prison ships. The perfect answer to the housing shortage. HTH.

[wonderwaif]

Would you have bought the same house now for £200,000 with payment £1200 per month and risk that in a few years your house can actually be worth £100,000?

I am not against house ownership, in fact I'd love to own rather than rent, but I ain't a mug to enter house market at prices like that - even if I was not sure they would crash down sooner or later.

That's what property investment is all about. The right property at the right price. It can still be done, and is still being done.
You keep renting if it works for you, just don't keep trying to justify it by saying it doesn't make sense to buy.
It clearly does.

[AtW]

That's what property investment is all about. The right property at the right price. It can still be done, and is still being done.

We would know if it can be done now until few years later - prices can't grow up exponentially - we live in a finite universe, the only question now if prices reached peak or very close, or there is a long way to go.

If .COM 2.0 bubble pops again, then it would depress shares big time, people will lose jobs and houses will be taken over: it will lead to property bubble collapse, and this would hit a lot of people very hard indeed, better save some money - you will need it.

[wonderwaif]

We would know if it can be done now until few years later - prices can't grow up exponentially - we live in a finite universe, the only question now if prices reached peak or very close, or there is a long way to go.

If .COM 2.0 bubble pops again, then it would depress shares big time, people will lose jobs and houses will be taken over: it will lead to property bubble collapse, and this would hit a lot of people very hard indeed, better save some money - you will need it.

Yeah right. Face? bothered?
For the relatively small difference in mortgage/rent, I think it's a better risk than putting it in a pension for Gordo to dip into whenever he feels like it.
(Although I do realise that property is theft and, under our glorious socialist leaders, home owners could be thrown in jail at any time - if there was any room of course).