You are better off renting now

[sasguru]

I think it takes more than drooling over Sara to become an expert.

Eh?

[sasguru]

Any fool (you included) can make money under massive expansion of the money supply, they cannot under a contraction, which is now happening.

True, but it takes a real idiot NOT to exploit the situation.

[DimPrawn]

Sarah (Beeney)?

[Bagpuss]

I think it takes more than drooling over Sara to become an expert.

Indeed, her show will be fooked soon, I consider myself more of a common sense expert armed with factual evidence and humility, among the likes of SAS (wasn't I clever guru) who is always right even when he's blatantly wrong. In a moment he will tell us the BTL model still works in current conditions, he will however provide no evidence other than abusive anecdotal posts about his financial brilliance

[sasguru]

Sarah (Beeney)?

Ah. Lovely word we're not allowed to say, that begins with n, ends with s and has "ork" in the middle.

[Francko]

What a load of bollocks. The difference is that after the 25 years you have a paid-for property that will almost certainly have a much higher value than 25 years ago.

You can easily make this calculation. Assume I have 100k cash and want to buy a house for 400k which if I rented would cost me 1500 pounds a month. If had to get a mortgage on that for 25 years at 6.5 % it would cost me 2025.62 a month plus 100 pounds a month for maintenance plus 100 pounds a month for service charge and ground lease and all expenses that you only have as a owner. This would mean 725.62 pounds a month saved that if I invest for 25 years at a rate of 4% with the initial 100k that I didn't put down as a deposit would give me a final amount 644445.85. If your house 25 years later will be more than that then you made a profit.

[sasguru]

You can easily make this calculation. Assume I have 100k cash and want to buy a house for 400k which if I rented would cost me 1500 pounds a month. If had to get a mortgage on that for 25 years at 6.5 % it would cost me 2025.62 a month plus 100 pounds a month for maintenance plus 100 pounds a month for service charge and ground lease and all expenses that you only have as a owner. This would mean 725.62 pounds a month saved that if I invest for 25 years at a rate of 4% with the initial 100k that I didn't put down as a deposit would give me a final amount 644445.85. If your house 25 years later will be more than that then you made a profit.

Over 25 years almost certainly ....

[AtW]

Assume I have 100k cash and want to buy a house for 400k which if I rented would cost me 1500 pounds a month.

The house I am in rents out £600 per month (unfurnished), it's current value is probably around £250k, 6.5% pa interest on such a loan would be 1354 (double the rest it brings). My old house had same rent (slightly higher actually), and the guy who bought it after we left put in new kitchen and tried to sell is for £375k, then dropped to £350k, now it is apparently £325k and the house is still unsold - loss of rent at least 18 months, the house stays empty and he pays morgage on it - he bought it for at least £250k

[DimPrawn]

Over 25 years almost certainly ....

That's what the article is saying. Over 25 years at todays prices (vs rents) you are better off renting.

AtW is therefore the only true property expert here.

[Bagpuss]

The point is many people can't afford to buy and hence for the first time renting is not just the only option, it's also the most affordable, and short term the most sensible. Some people forget the median wage in this country is circa 25k, it's easy for a 100k a year contractor to scoff