Do you save money every month?

Soldato
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His point of view is based on renting somewhere for a rental cost of 100 where a mortgage cost would be 300. And where the capital growth over 30 years would be low. I.e. not many markets in the world.
 
Soldato
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This thread has made me think about my finances. At the moment i put 250 into a cash savings account and 130 a month into a stocks and shares isa.

I’ve had a shared ownership mortgage with my gf worth 95k for 5 years. Its a 35 year term though so i’ll be 63 by the time its paid off so i could end up part renting into retirement, which is a scary thought.
 
Soldato
Joined
21 Jan 2010
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21,947
This thread has made me think about my finances. At the moment i put 250 into a cash savings account and 130 a month into a stocks and shares isa.

I’ve had a shared ownership mortgage with my gf worth 95k for 5 years. Its a 35 year term though so i’ll be 63 by the time its paid off so i could end up part renting into retirement, which is a scary thought.
Wait for the mythical crash and see if you can buy the bit you're renting ASAP. Even if you pay more than you'd like, it's a time thing...
 
Associate
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Interesting thread. My situation is a bit different so I was hesitant to post.

I've been following FIRE for about 6 years, I invest about 70%-80% of my salary each month. My partner invests about 50%-60% of her salary. We are due to retire in our mid to late 30's.

Of course this timeline can be delayed due to unforseen circumstances but that's out current aim anyway if all goes to plan.

This journey hasn't been easy it's taken a lot of sacrifice and planning. We aren't on super high salaries either.
 
Soldato
Joined
22 Nov 2007
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4,091
Interesting thread. My situation is a bit different so I was hesitant to post.

I've been following FIRE for about 6 years, I invest about 70%-80% of my salary each month. My partner invests about 50%-60% of her salary. We are due to retire in our mid to late 30's.

Of course this timeline can be delayed due to unforseen circumstances but that's out current aim anyway if all goes to plan.

This journey hasn't been easy it's taken a lot of sacrifice and planning. We aren't on super high salaries either.

Wow, you can’t have much left once all your bills are paid. a lot of sacrifice as you say.
 
Soldato
OP
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I also don't see renting as an option personally, I see it like this at retirement my house will be paid for and I'll just have the running costs. If I were renting I'd still have those running costs plus rent.
Obviously with renting you don't have the expense of things like boilers and plumbing, bit those are a fraction of the extra it costs to rent. Round my way renting typically is at least double a mortgage for the same property.

That's assuming renting isn't a choice. I can't afford to buy, at least anywhere I'd want to live. I could probably buy a scummy flat above a kebab shop but what is the point of that?
 
Soldato
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That's assuming renting isn't a choice. I can't afford to buy, at least anywhere I'd want to live. I could probably buy a scummy flat above a kebab shop but what is the point of that?
Why not if the monthly payments are half what renting in the same area is, were paying about 450 a month mortgage, same size house at the bottom of the street is renting for £700+ a month.
 
Soldato
Joined
21 Jan 2010
Posts
21,947
Interesting thread. My situation is a bit different so I was hesitant to post.

I've been following FIRE for about 6 years, I invest about 70%-80% of my salary each month. My partner invests about 50%-60% of her salary. We are due to retire in our mid to late 30's.

Of course this timeline can be delayed due to unforseen circumstances but that's out current aim anyway if all goes to plan.

This journey hasn't been easy it's taken a lot of sacrifice and planning. We aren't on super high salaries either.
Well done man! Definitely should be a more mainstream idea.
 
Soldato
OP
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Why not if the monthly payments are half what renting in the same area is, were paying about 450 a month mortgage, same size house at the bottom of the street is renting for £700+ a month.

Gee why didn't I think of that. Just the small matter of the huge deposit and house prices way over my mortgage lending rate to over come.
 
Caporegime
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18 Oct 2002
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His point of view is based on renting somewhere for a rental cost of 100 where a mortgage cost would be 300. And where the capital growth over 30 years would be low. I.e. not many markets in the world.

not at all, it is very common for renting to be cheaper than buying, e.g. in the US.



ATTOM Data Solutions, the self-described “curator of the nation’s premier property database,” suggests that 2019 began badly for aspiring homeowners. Only 41 percent of the counties surveyed were more affordable for homeowners than renters.



Renting carries certain intrinsic advantages over ownership, for individuals as well as society.
flexibility, and the access to opportunity that accompanies it. Think of a woman who buys a home in one part of town, takes a new job in another area a few years later, and is then stuck with a 90-minute commute, or of a man who turns down the better job because he doesn’t want to sell his home or be saddled with a long commute. Now multiply that by millions of households across the country. Homeownership locks people in place, in large part because of the high transaction costs of buying and selling property.


Renting offers diversification of risk. Renters are able to invest their resources in a wider array of assets, and they aren’t stuck holding the bag if their regional economy dries up and home prices fall. Mutual funds would not be seen as a worthy investment if they had a 10 percent chance of permanently losing much of their value at some unspecified date, yet that’s very similar to how our housing-as-retirement-vehicle system currently works. The investments renters might make, moreover—stocks, bonds, mutual funds, etc.—support the growth and innovation that strengthen the economy, whereas buying a home takes that money out of circulation.

This is also pretty common across Europe.
People just tend to ignore the costs of ownership in the UK.

And moreover, i never nade a strong statement that you should definitely rent instead of buy. The discussion started based on the fact that economically it doesn't make sense to overpay your mortgage, you should rather invest as you will see far higher returns. The discussion then mived to risk, where the poster completely ignored the risk of homeownership. If someone is absolutely risk adverse then they should definitely rent.
 
Caporegime
Joined
18 Oct 2002
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32,615
His point of view is based on renting somewhere for a rental cost of 100 where a mortgage cost would be 300. And where the capital growth over 30 years would be low. I.e. not many markets in the world.

not at all, it is very common for renting to be cheaper than buying, e.g. in the US.



ATTOM Data Solutions, the self-described “curator of the nation’s premier property database,” suggests that 2019 began badly for aspiring homeowners. Only 41 percent of the counties surveyed were more affordable for homeowners than renters.



Renting carries certain intrinsic advantages over ownership, for individuals as well as society.
flexibility, and the access to opportunity that accompanies it. Think of a woman who buys a home in one part of town, takes a new job in another area a few years later, and is then stuck with a 90-minute commute, or of a man who turns down the better job because he doesn’t want to sell his home or be saddled with a long commute. Now multiply that by millions of households across the country. Homeownership locks people in place, in large part because of the high transaction costs of buying and selling property.


Renting offers diversification of risk. Renters are able to invest their resources in a wider array of assets, and they aren’t stuck holding the bag if their regional economy dries up and home prices fall. Mutual funds would not be seen as a worthy investment if they had a 10 percent chance of permanently losing much of their value at some unspecified date, yet that’s very similar to how our housing-as-retirement-vehicle system currently works. The investments renters might make, moreover—stocks, bonds, mutual funds, etc.—support the growth and innovation that strengthen the economy, whereas buying a home takes that money out of circulation.

This is also pretty common across Europe.
People just tend to ignore the costs of ownership in the UK.

And moreover, i never nade a strong statement that you should definitely rent instead of buy. The discussion started based on the fact that economically it doesn't make sense to overpay your mortgage, you should rather invest as you will see far higher returns. The discussion then mived to risk, where the poster completely ignored the risk of homeownership. If someone is absolutely risk adverse then they should definitely rent.
 
Soldato
Joined
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21,947
not at all, it is very common for renting to be cheaper than buying, e.g. in the US.









This is also pretty common across Europe.
People just tend to ignore the costs of ownership in the UK.

And moreover, i never nade a strong statement that you should definitely rent instead of buy. The discussion started based on the fact that economically it doesn't make sense to overpay your mortgage, you should rather invest as you will see far higher returns. The discussion then mived to risk, where the poster completely ignored the risk of homeownership. If someone is absolutely risk adverse then they should definitely rent.
Renting in Europe is far less common in the real world versus people bringing it up on online forums.
 
Caporegime
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When Forbes looked at home maintenance and repair costs in 2018, they suggested that you should set aside 1 percent of the home’s purchase price for each of the first five years after it’s built.

Once your home’s five years old, begin to ramp up that amount. And, by the time your place is 25 years old, you should each year be setting aside 4 percent of the purchase price. So we’re looking here at a significant element in your overall cost of homeownership.
 
Associate
Joined
23 Nov 2018
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368
I've never understood why renting is the same, or in some cases, more expensive than buying!

But people still pay those prices because they have to, I guess!

If renting was half the price of buying then I can why it might be worthwhile but when it's the same price it just doesn't make sense.

I know it's difficult to get the deposit together if you're stuck in a renting hole but that should be a 100% focus instead of paying for Sky and holidays etc. Buy a second hand Nokia instead of a fancy iPhone etc and get your own place ASAP.
 
Caporegime
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Renting in Europe is far less common in the real world versus people bringing it up on online forums.



Only 36% of Swiss own their homes
23/04/2021 BY LE NEWS

Recently published statistics show that 36% of homes are owned by those who live in them, a rate that falls to 12% in municipalities with more than 100,000 residents.


12% ownership in cities
 
Associate
Joined
11 Jan 2011
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2,235
Wow, you can’t have much left once all your bills are paid. a lot of sacrifice as you say.

As I said we are in a fortnuate position compared to most which I am grateful for. Well the thing is, I guess the majority would say it's a lot to sacrifice but I am not sacrificing anything in my opinion. I just don't have expensive hobbies or tastes. The things we enjoy are simple/free. I like PC gaming, working out in my home gym, spending times with friends and family (luckily my friends are quite similiar so we have lots of game nights with console, pc and boardgames, did a retro gaming last night on my projector!). We go to restaurants but nothing fancy. We go for walks, do the usual media consumption. We travel every year to Asia. We don't buy expensive clothes. We do shop at Aldi but we don't limit our spending or eat beans/rice!

Basically we are naturally frugal and are aware of lifestyle creep and believe that our money is better spent investing in our future rather than short term enjoyment (expensive cars, clothes, takeaways every other day, spending lots on house items, drinking/smoking). Of course some people love buying those things and that's fine!

But the things we do enjoy (which are quite low £ wise) we don't limit ourselves on. I upgrade my PC every 2-3 years, I have a decent home cinema system, if we need something we buy it. Just different priorities I guess.
 
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