Originally Posted by XRTypeRS
Originally Posted by Westy
Anyway Im just going to keep renting until the madness ends its cheaper and no risk of negative equity, "buying" with a mortgage is just renting off the bank anyway!
fair comment, but at least with a morgage you are actually paying something that you will eventually own, whereas renting is dead money
This is what most people think, including myself until recently, but think about it a bit more for a second.
Of the mortgage payment you make how much is going to paying off your debt??, if you actually work it out its a very small proportion, the rest is going straight into the banks profits, and if you have an interest only mortgage your not paying it off at all - it is just renting off the bank.
A good test is to look on a rental site and see how much rent on a place would be and then find a very similar house in quality / location and work out the interest only mortgage cost. In most cases you will find the difference is not very much. Then factor in all the costs of repairs and maintainance you have to make on your own house in a year (which, when renting the landlord will have to pay) and you will probably find that renting is a fair bit cheaper.
I'd love to buy my own place, renting doesnt feel as good for sure, but theres no way Im saddling myself with a lifetime of dept to hand the seller a 150% profit just for sitting tight for the last 5 years!.
All just IMO
but this makes compelling reading!
http://www.firsttimebuyerhelp.co.uk/.../ftbbeware.pdf
fury muff
But at the end of your 25 years renting what do you have to show for it apart from buying your landlord another house ....fook all
at least after my 25 years i will own my house