No point waiting for cheap houses....

[Peoplesoft bloke]

Indeed, but at the moment I'm saving close to £1500 a month by renting. Hard to argue with, but I'm sure you find some crappy stat to support your untenable position.

Not his MO, this (the point where he's found out, yet again) is where he moves on to post another daft thread about swine flu or air disasters.

[GreenerGrass]

If you rent a house you can save lots of money and buy a house outright in twenty years. In that time period if you're clever you can jump in and buy when the market is low.

I am about to rent a house. The (likely) rent is cheaper than the interest on a typical mortgage to buy.

Thats fair enough if rents are very low in your area, prices are going down, you have brilliant market timing, and great willpower not to spend the savings on fast cars, women and drink.
But in my area to rent a similar house would cost at least double the interest based on a 4% rate mortgage.
A repayment mortgage over 15 years is just a couple or few hundred quid a month more than renting, and paying down the capital at a much quicker rate than you could save by renting.

[expat]

Thats fair enough if rents are very low in your area, prices are going down, you have brilliant market timing, and great willpower not to spend the savings on fast cars, women and drink.
But in my area to rent a similar house would cost at least double the interest based on a 4% rate mortgage.
A repayment mortgage over 15 years is just a couple or few hundred quid a month more than renting, and paying down the capital at a much quicker rate than you could save by renting.

BBC mortgage calculator says a 200k mortgage over 15 years at 4% costs 1499.01 per month. Interest only is 666.66.

Are you really saying that a 3-bedroom house in your area rents for about £1300 a month?

[GreenerGrass]

Yes, about £1300 for a detached or nice decent sized semi with 3 bedrooms and a garage.

[Lockhouse]

It all depends how large your deposit is. Obviously if you have a big deposit, it's way cheaper than renting.

[GreenerGrass]

Yeah, you need a 25% deposit minimum obviously.

I could rent a crappy 3 bed terraced house cheaper, but I'm comparing like with like.

[Cyberman]

If you rent a house you can save lots of money and buy a house outright in twenty years. In that time period if you're clever you can jump in and buy when the market is low.

I am about to rent a house. The (likely) rent is cheaper than the interest on a typical mortgage to buy.

Bearing in mind that my house value is 3 times what I paid 20 years ago, given that scenario you would need to find a million pounds in cash to buy my house in 20 years time, instead of 330K now. You must be crazy !!

[sasguru]

would need to find a million pounds in cash to buy my house in 20 years time, instead of 330K now. You must be crazy !!

Is you house worth 330K after the rise it has experienced in the last 2 years?

[Bright Spark]

Is you house worth 330K after the rise it has experienced in the last 2 years?

My Garden shed is worth more than that!

Dim

[tim123]

If you buy a house you will eventually own it and then have about twenty years rent free and mortgage free in retirement. If you don't buy and you live to 100 it could indeed be very expensive renting !!!!

But as renting *is* cheaper you invest the monthy savings that you have made and after 25 years will have savbed more than the value of the house.

tim