House prices > Rent = Price fall

[Marina]

Also this crap about "no pets" - it should be possible to get a pet without any permission, however if this pet causes damage than obviously tenant should pay. Perhaps deposit should be doubled in case of pets but I don't like the idea of practically begging someone to be allowed a pet - it's none of landlords business if I have a pet or not. My landlord allowed me to have a pet though.

If your landlord knew you were making friends with all the local squirrels, and feeding them nuts by the bushel, you'd be out on your ear - That would definitely violate the no pets clause (or no pets claws?)

[bogeyman]

If you mean the greedy bankers who creamed off millions and sold our economy down the river I agree.... You don't mean those who had the sense to but some BTL houses with their spare wonga though?

You're forgetting the old maxim that:

Anyone who has more money or assets than you (even if only slightly) is a greedy, unprincipled bastard who needs to be stamped upon by the government until the pips squeek.

[AtW]

If you mean the greedy bankers who creamed off millions and sold our economy down the river I agree.... You don't mean those who had the sense to but some BTL houses with their spare wonga though?

Bankers and similar large scale speculants are the ones I meant - the small fish that followed the (temporary) current are more short-sighted (or foolish even) than malicious, even their actions helped to sustain this bubble.

I am not against BTL in principle - BTL is good because someone needs to own the houses that are available for rent. The issue I take with TV programs and such who encourage people to get into BTL when they really can't afford it and did not think it through (like that they won't get tenants whole year etc).

[AtW]

If your landlord knew you were making friends with all the local squirrels, and feeding them nuts by the bushel, you'd be out on your ear - That would definitely violate the no pets clause (or no pets claws?)

I feed squirrels in a local park - 1 mile away.

[expat]

_________________________________________
Steely blue eyes, BMW driver.

Strike two. But you probably have your good points too.

</personal insult>

[sasguru]

Yes and no. Your point is sound, as far as it goes, and is one that I make often. Rent is "money down the drain", but so is interest. Actually both could be regarded as the price you pay to get something that you want; and indeed the interest could be higher than the rent on a similar house.

But the good being purchased for the price, whether rent or interest, is not the same. Which is preferable depends on the desires of the buyer (/renter). When you rent, you have less responsibility; when you buy, you have more control. When you rent, you have more flexibility to change, and are more or less indifferent to house prices; when you buy, you only pay until the end of the mortgage, and you may hope and expect that the price you pay in interest will not only give you a roof over your head (as would the rent) but also the opportunity to invest (the capital repayments) in an appreciating asset not available to renters.

There are many more differences between the same house as rental and as owned. Personally, for example, I am buying, but not because I expect to profit from it. I'm more concerned about not being subject to landlords' and agents' whims. I buy because then it's mine, and I prefer my life to be mine.

Also assuming you start a mortgage or rent from age 25 and live to 75:
Mortgage payments will go on for 25 years, rental payments for 50 years.

[Moscow Mule]

Also assuming you start a mortgage or rent from age 25 and live to 75:
Mortgage payments will go on for 25 years, rental payments for 50 years.

BUT, if you don't spend the differential and invest it, you'll have a big pile of cash (assuming you don't put it all on Bear-Stearns stock).

[AtW]

Also assuming you start a mortgage or rent from age 25 and live to 75:
Mortgage payments will go on for 25 years, rental payments for 50 years.

The smart point of renting is to do so when house prices are already too high and buy when they are low.

[sasguru]

BUT, if you don't spend the differential and invest it, you'll have a big pile of cash (assuming you don't put it all on Bear-Stearns stock).

What differential? Are you saying the monthly rent is substantially less than the repayment payment on a particularly property? That may be true right now, but is not usually the case over 25 years.

[sasguru]

The smart point of renting is to do so when house prices are already too high and buy when they are low.

Yes but that is hard to judge, even for smart people, which you are not.
When will you buy, when properties have fallen 20%? Or do you hope they fall more to 50% e.g.? What if they start rising again after a 25% fall?
And it all assumes you have a sizeable deposit to have a small LTV.
So dream on, atw....