Buy or Rent ? Whats best ?

Better to own or rent a house ?

  • Buy

  • Rent

  • Other , see my response.


Results are only viewable after voting.
#1
Trying to help a nephew buy his first house , had a look back at prices in the south west and many who bought in the noughties are still in negative equity , is renting a more savvy move ?
 
#2
House prices are still relatively low, buying is what I'd go for again if I was young.

If you're renting, at the end of the day you are just paying off some other bugger's mortgage.
 
#3
Historically property rises, that simple. Minor slump in areas however owning far outweighs rental.
 
#4
Historically property rises, that simple. Minor slump in areas however owning far outweighs rental.
Explain how come ? , in many areas terraced houses are selling for less today than 10-14 years ago , rent is around 20-30% less than a mortgage and of course the landlord is responsible for most of the maintenance.
 

StBob072

LE
Book Reviewer
#5
House prices are still relatively low, buying is what I'd go for again if I was young.

If you're renting, at the end of the day you are just paying off some other bugger's mortgage.

Same here. Unfortunately lots of young people find it impossible to get a mortgage, so have no option but to rent, so are throwing money down the drain without any hope of owning their own property. Get on the mortgage ladder as soon as possible, particularly if it's a freehold house you have more options to do what you like with it, can rent it out if you shack up with someone else and it is your property.

Of course this is easy to say, not knowing your nephew's circumstances, but even a tiny flat is worth having if at the end of the day it's his to sell.
 

StBob072

LE
Book Reviewer
#6
Explain how come ? , in many areas terraced houses are selling for less today than 10-14 years ago , rent is around 20-30% less than a mortgage and of course the landlord is responsible for most of the maintenance.

I'm surprised that renting is cheaper than mortgage - however, the rent is likely to go up, whilst the mortgage will almost certainly go down!
 

StBob072

LE
Book Reviewer
#9
It depends on circumstances too. If you're renting, you can up and leave whenever you want.
Depending on the contract - I let out a property and the tenants were bound to pay for six months minimum, so whilst you can leave you would probably still have to pay the full six months/year or whatever.
 
#10
, but even a tiny flat is worth having if at the end of the day it's his to sell.
Ditto, a mate of mine was on the bones of his arrse after a very messy divorce. He couldn't afford owt, but eventually got a mortgage on a wee maisonette (and I do mean wee (combined livingroom/diningroom/kitchenette and separate bathroom)) out the back of Central Milton Keynes library. It was nothing special to look at, but after a few years, things stabilised and he's now got a mortgage on a nice wee 3 bed semi in Stony Stratford.
 
#11
Same here. Unfortunately lots of young people find it impossible to get a mortgage, so have no option but to rent, so are throwing money down the drain without any hope of owning their own property. Get on the mortgage ladder as soon as possible, particularly if it's a freehold house you have more options to do what you like with it, can rent it out if you shack up with someone else and it is your property.

Of course this is easy to say, not knowing your nephew's circumstances, but even a tiny flat is worth having if at the end of the day it's his to sell.
It may be his in 25 years but it will have cost him dearly in the long run even at today's low interest rates , will prices drop after Brexit? who knows , the real killer could be 1989 interest rates , 15% !
 
#12
Depending on the contract - I let out a property and the tenants were bound to pay for six months minimum, so whilst you can leave you would probably still have to pay the full six months/year or whatever.
I think it normally goes to a rolling monthly contract after the first 6 months.
 

jarrod248

LE
Gallery Guru
#13
It may be his in 25 years but it will have cost him dearly in the long run even at today's low interest rates , will prices drop after Brexit? who knows , the real killer could be 1989 interest rates , 15% !
They can't afford to let interest rates hit that high or when reposessions start asylum seekers sitting pretty would be meeting pitchforks.
 

StBob072

LE
Book Reviewer
#14
It may be his in 25 years but it will have cost him dearly in the long run even at today's low interest rates , will prices drop after Brexit? who knows , the real killer could be 1989 interest rates , 15% !
It's always a gamble unfortunately, and depends how much he can pay up front, type of mortgage etc. The old adage "the first five years are worst" generally holds true, most mortgages are paid off way before the full term, and even if not, the property can still be sold the mortgage will be carried over.
 
#16
Buy.

My one regret in life is not buying property in my early 20s when I had a few options.

Three on the go at the minute, costing me bugger all

Some one paying my mortgage on one, second rent pays for third mortgage.

Not sure why you wouldn't buy a house given the opportunity

All mine in the southwest and not had a void since 2005
 

jarrod248

LE
Gallery Guru
#17
When you buy with a mortgage you line the banks pockets ...eg

Arrangement fee (1.5%) £2,250

Total loan £152,250

Interest rate 6% fixed for 25 years

Monthly repayments £966.45 x 300

Total amount repaid £289,935
Also bare in mind if he gets married and divorced he'll be paying it for fcuk all.
 
#18
When you buy with a mortgage you line the banks pockets ...eg

Arrangement fee (1.5%) £2,250

Total loan £152,250

Interest rate 6% fixed for 25 years

Monthly repayments £966.45 x 300

Total amount repaid £289,935
Rent then, take away someone else's pain.
 

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