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...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.
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.
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.
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.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?
Well done man! Definitely should be a more mainstream idea.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.
Because you are forgetting the large deposit required.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.
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.
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.
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.
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.
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.
Some 0% deposit and a fair few 5% available.Because you are forgetting the large deposit required.
Renting in Europe is far less common in the real world versus people bringing it up on online forums.not at all, it is very common for renting to be cheaper than buying, e.g. in the US.
The cost of homeownership vs. renting over 3, 5 and 10 years | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports
There's no definitive answer to the great renting vs. homeowning debate. But we explore the cost of homeownership against renting, run the figures for each and dig into the detail.themortgagereports.com
Renting Is Terrible. Owning Is Worse.
A third option is necessary: a way to rent without making someone else rich.www.theatlantic.com
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.
3 bed semi, we had a 30% deposit as well but went for a long term so we had money to enjoy ourselves.£450 a month mortgage is that for a garage ?
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.
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.
Wow, you can’t have much left once all your bills are paid. a lot of sacrifice as you say.