Soldato
I guess I'll pay the extra £380 a month just for that.
Who doesn't own a property?
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Soldato
And some mortgages are cheaper than renting... Perhaps, rather than suggesting mortgaging for everyone not having kids is daft, you'd consider that it is better than renting for some?
It was yourself that suggested that anyone mortgaging that doesn't plan to have kids is daft. Do you stand by this for every circumstance where no kids are involved?
Lay off of the bloke chaps. A lot of folks game the system and have no intention of living to the max in their later years (or any of their years frankly). They'd rather earn just under the various thresholds and get by, which is totally fine and admirable - but these folk moan about it along the way as well. Then when they are decrepit, they'll jump on the social and get us to fund their lifestyle (and cover their rent).
Soldato
Also a bit of a reach... Some people just have different living costs and are comfortable renting.
No coasting about it, I will be spending considerably less money once we stop renting this year. Just the ****ed nature of the market in cities and the South. Presumably this is not the market he exists in.
Soldato
Yes I stand by it otherwise I wouldn't have said it, are you really this upset about a stranger on the Internet calling you daft?
Soldato
I am in the south but I do not see a house being worth the value they are and I wouldn't want to be one of those people who see a home as an investment.
I don't doubt this - being comfortable renting is fine, but I highly doubt the poster is financially secure as well. Seeing renting as "saving £380" is daft as the £380 should be going into other mechanisms to provide financial security in the future.
Soldato
If they've paid into the system for 30+ years aren't they funding their own lifestyle and covering their rent when jumping on the social?
Soldato
At the moment it saves £380 I don't have.
My point stands then. You can't call buying daft just because you've planned on living on the social.
Soldato
Do you mean your rent is cheaper than the interest portion of a mortgage payment or the full mortgage payment?
In my area, rent payments are roughly the same as mortgage payments for a similar property. You might be paying £1000 monthly rent and somebody else in the same house next door is paying £1000 monthly for their mortgage.
But the rent payment costs you £1000 per month. The mortgage effectively costs around £300 per month because that's the interest portion and the rest of the monthly payment goes against the capital so you'll get that back when you sell the house.
Soldato
I'm not planning on living on the social but I don't see that as a negative.
Sisters house is under £400 mortgage payments, my rent for one bed flat exceeds that.
All the landlords I know including my own charge more for the rent than their mortgage costs except one guy.
Although rents are very unfavourable for one bed flats as the supply and demand is horrific for them.
BTL landlords are almost always on interest only mortgages though, so that isn't unsurprising.
Soldato
Mortgage is rarely lower than rent these days. Equal at best.
e.g. of my upcoming mortgage V rent.
mortgage £1700/m V rent £1250/m
both houses similar size and same number of beds and 2 minutes away from each other.
Soldato
To me, renting is only viable if you know it's a temporary arrangement. Giving some greedy landlord all my money for the rest of my life is definitely not a good idea.
My mortgage is only £335 a month now and probably will have it paid off in 6 years time. Will be 55 and no mortgage to worry about. So extra money to spend on other things
My mortgage is only £335 a month now and probably will have it paid off in 6 years time. Will be 55 and no mortgage to worry about. So extra money to spend on other things
Soldato
Despite the 175 posts so far discussing how rent is more than mortgage in most people's experience?
Hard facts: I pay very low rent as I found a good deal in 2011 and dug my heels in. My portion of rent is 630. My partner's is 550. Our mortgage will be 510.
£1700 presumably is a capital repayment though. Most landlords will just be servicing the debt to make a modest return (3-7%) and then taking the equity from house price growth out at some point to finance the BTL deposit on another BTL - rinse and repeat and the model pays for itself.
Soldato
Thing is, mortgage monthly payments will only ever go down as you pay it off. Renting on the other hand....
Soldato
That's not always true. My mortgage payments are going up in a few months. I've been on a 2 year fix and during that time I've paid off enough of the capital to move into a lower LTV band but the higher interest rate now means that overall my payments will be going up.
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