mac456

anyone with knowledge on this, as me and the gf are really confused and not sure on what to do! we really want to move out, but with the way the uk is at the moment we are finding it impossible to get a mortgage.

So is renting the next best thing? what does everyone think?

pa_sjo

Well if you can't buy, then renting is the only other option! Easy choice..

ANDYRACER

I moved out last week and im currently renting.
My circumstances were that i just couldnt bare to live at home anymore, looked at getting a mortgage but it wouldnt of bought me anything half decent and with the way job security is recently i decided to take a year out renting and get used to living on my own and paying bills.
I feel i made the right choice personally.

m_nettleship

good man, but dead money, wud it have been better to maybe try and save 4 another year to chuck a deposit down 4 ur own place?

but only u no ur own circumstances so good on ya makin that decsion!

Dicko&Vacant

iTrader: (3)

We are renting off my parents, so we are in a win win situation, as we know that we will end up buying it off them once we are in a financially secure position. And its good knowing that even though we are decorating, it will be ours to keep eventually.

Our rent is low compared to the value of the house and the price a mortgage would cost us, but when we buy it, will be massively under the value of it anyway.

Sarah

gingeRS

i dont really see renting as 'dead money' as such alot of people have ineterest only mortgages, and if the value of their property doesnt increase it can effectively be seen as renting. (worse if the value decreases )

in major cities across the world (paris/new york/tokyo) it is VERY common for people to rent their entire lives.....and never even consider buying property

due to house prices i have no other option than renting, as i am single and live in london, so couldnt get a mortgage on my own. as long as you can budget for it, i dont see it as a bad thing, after living away for for 3 years, i moved back in with my folks just over 12 months ago....got out Dec 2008, never again

clarke5700

i cant see the point in renting tbh you can rent for years yet not one bit of it will be yours.

It's Czech Mate

Renting is a waste of cash unless you cant afford a mortgage.

As the dude above pointed out, people have interest only mortgages which is like rent, but they stand to make capital gains as the property prices rise. However, a lot of people have taken IO because its all they can afford......and thats why we're in the mess we're in, the people shouldnt have borrowed it and the banks shouldnt have lent it

JokerDisco

iTrader: (4)

Renting is a good idea, I've lost count of the amount of friends who have moved in with their missus only to find out that 3 months down the line they hate each others guts and are left with a mortgage neither can afford.

Put it this way - if your looking at Ł900 a month mortgage - set yourself a rent limit of Ł450-Ł500 and then save say another Ł200-Ł300, that way your living in your own place but also putting aside money to be able to afford a mortgage in the future.


As gingeRS said [QUOTE=gingeRS;3910344]i dont really see renting as 'dead money' as such alot of people have ineterest only mortgages, and if the value of their property doesnt increase it can effectively be seen as renting. (worse if the value decreases )

in major cities across the world (paris/new york/tokyo) it is VERY common for people to rent their entire lives.....and never even consider buying property

QUOTE]

It is effectivley renting. Best option IMO

Pete frst

Its a tough one mate,do you NEED to move out?if you get on well with your parents then stay at home,if your serious about your g/friend,both of you save up a few quid to put down for a deposit,im not saying its gonna be easy but why pay a landlord your hard earned if you dont have to,if you pay rent will you be able to save as well for your own place?my boy is doing the same thing,but its for the 'experience'........still got to come home afterwards and save up a despoit tho...........

Psycho Warren

iTrader: (5)

I disagree with the pro-renters. Renting is IMO only worth doing if you cant afford a mortgage. A house is a valauble long term investment. You dont want to be renting as an OAP as most social housing will be gone and greedy landlords mean the measly state pension will be eaten into by the portion of rent not covered by the state.

and with the boyfriend/girlfriend issue, dont move in with each other too early in relationship!!! Theres a big difference between moving the missus into your house and buying a mortgage together!!! Buying a mortgage together is something for secure long term relationships together. Oh and if you own a house and move the missus in be very careful how you manage finances or when she leaves you she'll take you to court to rob you loads of money off house

pa_sjo

To all those bashing rentee's..... It's simple maths. House prices have devalued by approx 15% in the last 12 months. That's on average around 25k. If you rented a place instead for the last 12 months at a cost of Ł8000 or so, then can someone please explain how person X is not better off?

I'm really not sure how buying property when the market is still dropping faster than what it costs to rent is somehow a better idea.


edit: however, of course, if you have the choice of free living at parents for the next 12 months, then take advantage of it and SAVE (as some people mentioned) so when the housing market levels off or starts to pick up again you can BUY a bargain!! Only rent if you have no other free/cheap accomodation.

It's Czech Mate

By your simple maths i'd have missed out on Ł100k in the last 6 years

matts1

Ideally buy if you can, and buy a tatty house in a good area and do it up over time. This way you will be adding value while you make it your own.

If it is long term, then the market is not such a factor as in time house will go up again in price, and as you bought cheap and fixed it up as you personalise it, you will be ok, hopefully do well as you will end up with a nice house in a nice area.

The key is a decent deposit, allowing a decent rate that you can fix for say 5 years and KNOW what your going to be paying - often equal to rent for that property.

However, if you have job uncertainty, or can't get a decent deposit, then either stay at home (and save like mad) or rent and should the worst happen, you wont have a large debt (the mortage) or issues like negative equitly to deal with.

There are some REAL bargain to be had at the moment, and while the temptation is to buy a new or neat house, imo, the money will be made from buying a property that needs a bit of modernising, but that sits in a nice area - remember, you can make the house nice, you don't control the area.

Just be realistic, DONT go to or over your budget, this will lead to you getting caught out and in the shizzer, I waited while the misses nagged until I had the deposit and glad I did, am now just buying another place for renting (old lady house, but a 3 bed semi with 250' garden - 90k !!!) I haggled 15k off the asking price, that was already reduced by 15k due to needing a kitchen, bathroom overhaul and some paint.

Rax

iTrader: (1)

Longterm, buying somewhere is always going to win hands down but if needs be renting is the only other option.I currently rent the house I used to own.Purchased in 02 sold in 07 bit of profit and still get to keep my garage .A bit tittsed with the idea of it in case I never manage to buy again because of low wage in my area and increase of property prices but needs must.If you can afford to buy personally I would do that.

pa_sjo

Perhaps you didn't understand what I wrote or perhaps I didn't understand your reply, but feel free to clarify.

Daviet

his maths were over the last 12 months not 6 years.
i agree with him also even tho i own my house but luckily like you i got mine years ago.i still dont think its the right time to be buying just yet.i just cant see the shit we are in changing over the next 12 months so theres a high possiblity that if you buy now you will be much worse of in a years time than if you were just to rent for time being.
lots of folk saying theres bargain houses out there just now.ie 150k flats for 100k etc,but wont be a bargain if it worth 75 in a years time

kellyalfie

if you cannot get a mortgage you have to rent simple as that mortgage lenders wont 20% depoist now days

matts1

house price wont go back up until the banks are willing to lend at decent rates to first time buyers.

I know plenty of people waiting in the wings, they can afford a 600 a month mortgage and are paying that in rent, but can't afford the deals being offered, or get a huge deposit to get the rate down.

The time to buy is when the bansk do start to lend to these people at good rates, as all the people waiting in the wings will start to snap places up and eventually you get to a point that demand will once again outstrip supply and prices rise. Could be a few years yet though.

Was easy for me, as my misses dad wants a place to rent for life, so the market means little, i had the big deposit, the house was ideal and mortgage deal perfect and so now what he pays in rent will be paying the mortage on the property for the next 30 years. He never wants to buy a place, and can't really, besides, why bother, he will only leave it to his only daughter - my misses, so in a way, that is all he is doing.

mac456

thanks for the info guys and girls. We have been together for almost 3 years now and just sick of not being able to see much of each other in the week!

As said though for me and her there is no problem with us living at home. no problems with parents etc.... So its a tough decision. 1/2 of me wants to sit back and save for the mortgage and the other half wants to get out now (which probably in the long run would be a bad idea.)

:-(

danneth

think of the long term i know who's losing out the most,

gingeRS

wish i could get a mortgage for Ł600 a month

It's Czech Mate

Am talking Longterm

I thought you were advocating renting as a lifestyle choice as opposed to buying

Psycho Warren

iTrader: (5)

BUt if your buying a house to make money in next few years then your a fucking idiot Look further ahead 10 plus years and things will be back on track and hopefully with realistic price increases rather then the silly ones the last few years.

exactly, look at all the recessions in the past and eventually things recover. Unless we decend into total anarchy and the country collapses in which case staying alive will be the priority and financial debt will have no meaning

Mr S1

iTrader: (2)

If you can afford to and can get a mortgage - buy. I know at the moment the property market is in disarray, but long term there is no better investment than bricks and mortar.

pa_sjo

Really? I'm not so sure you do know. If you buy a Ł200k house today and you lose Ł20k on it in the first year then i'm not sure how that's in any way advantageous to someone who spends that same year renting for half the cost and then buys a similar "Ł200k" house, for Ł180k. My sums say that house just cost him/her Ł190k, not the 200k you paid. That IS 'the longterm'.

kosman

i rent because i dont see the need to wake up every day and have to go to work to pay a mortgate and worry about it,i see it as let some1 else worry about it,i got no kids,not intresed in having any,so dont give a fook bout leaving any1 anything

Psycho Warren

iTrader: (5)

No thats short term thinking.

10 years down the road the house will be worth more than 200k so its irrelevant.

What i think you mean is over the next couple of years it may work out cheaper to rent, then buy just before the market picks up, but renting for 25 years versus mortgage, buying a home is better choice. the difference between rent and mortgage is not that different in most places in the country.

mcst

I rent my house. I accept its dead money but i'm just not driven by money and the need to have my own home. We bought our own place when we left home, the area was nice good neighbours etc.....then in just a few houses the kids grew up and the parents were around less the area went to shit. We had our window smashed twice in 9 months. We went to court against people because we were prepared to face the scumbags and stand up for ourselves. The Mrs was pregnant with our 2nd and i managed a busy city centre bar so i couldn't just get away when we had trouble.

We had the chance to rent off a member of the family so sold up. We made a lot of money out of the sale but even if we put all of it down we still couldn't afford to buy somewhere in an area we really want.
The immediate area was ok but was bordered by dumps so you wouldn't walk to the shops at night etc.

We now rent in a good area with a nice house, we pay a fraction of what our friends with mortgages do! As a reasonable example we live in a 4 bed detached extended bungalow with room for six cars in the front and 2 at the back big garage and garden our friends mortgage is about Ł1050pm on a 3 bed semi bungalow with room for 2 cars and a standard garage and a lot smaller house generally. They pay a third over a month more than us. Ok so we get no return or security for the future but you can't put a price on happiness. As long as we have enough money to go out and do things we enjoy without worrying about paying for my house( i had 2 jobs 90% of the time to pay a mortgage) then we are happy. Would love to buy the house we rent but thats a way off and we will buy again but right now nothing drives me to own my own home. People also overlook that owning your own home involves more than just paying the mortgage, what about repairs or servicing? IMHO find a nice place in a nice area you are happy with through a good agent and enjoy your time. If theres a problem the agent fixes it. Just moving out with your girlfriend you may not want to have a mortgage round your neck.

In this country we have the balance wrong we live to work not work to live. Look to the continent and in some countries the greater majority rent. We are fixated in the UK with owning our own homes.

Sorry for the long post, its just my experience of it. Financially its a no brainer and anyone should buy if they can but don't write off renting. At least you and the gf will have your own space.

neilm

Well.. someone once said to me Renting and having a mortgage are basically the same thing, if you dont pay either you will be homeless pretty quick.

SO

I would stick it with the parents for a bit longer and save like crazy people for the next 6 months, in that time your deposit has gone up and the house prices have gone down.

Mortgages are only hard to get if you have a small deposit or a bad credit history.

So as your deposit goes up and the house prices fall, the percentage of mortgage required goes in your favour and you are more likely to get one.

One of the key factors of the recovery will be the fact that houses become affordable to first time buyers again and people will be clamouring for first time buyers to kick start the housing market.

Sometimes its worth loosing a battle to win a war if you see what I mean

Aaroncast

your the only person who doesnt see this as dead money!!!!!!!!!!!!
whats tokyo-japan got to do with the uk???
there told what to do -ha-ha
credit score is crap on rented property m8-
whos going to lend money on a person who rents-???
not me!-you could f-off at any point-
no roots-------------------

pacwest

When you are renting you are paying someone else's mortgage. They are getting their investment paid for by YOU. What is the better option?

Right now prices are down, interest rates are WAY down. GREAT time t buy if you have some stability. Even if you are wary of your job status, you won't sell at a loss or get hit hard by interest.

It only takes one person to turn things around. You. Go spend your money and get this economy going mates. Buy some shiny bits!

Turbosystems

iTrader: (5)

no one has factored in a split up if you buy, this will seriously affect the long term investment if you buy and if you are male you will need kev sharps phone number as you will end up living in a caravan or a tent

pa_sjo

I think a lot of people on this thread are still thinking the same as when the housing market was at it's peak and just repeating what people were saying back then.

Buying a property when you know its value is going to drop over the next year or two is dead money. Yes renting is also dead money, but if you're wasting LESS then it's better to do it in the SHORT TERM.

Retro Al

iTrader: (1)

You could try and find a half buy half rent house

mrjenrst

WTF!

You really dont understand this do you?

Ginge !

having a morgage at 70% of your income is fucking stupid though,, why dont any of the people see this

rent a home for LESS than a morgage, ENJOY your life as you wont get a second chance at it,,,, all these muppets talking about " ive earned 100k in 6 years",,, yeah course you have mate,,, where is it,, what have you bought for it ??

oh right,, you cant touch it UNLESS you sell the house,,, then you NEED the cash to buy ANOTHER house PLUS the fees on selling and buying again, moving, redecorating ect ect,, yeah REALLY made 100k there aint ya

this is the problem, we all look at the value of our homes to show how "smart" we are

the REALITY is that the banks, government, estate agents, companies you work for earned the money and not you as you cant do fuck all with it apart from BORROW MORE MONEY BASED ON IT !!!!

a MUCH better idea is renting and buying a business,,, get someone to run that for you and you will be much richer, with actual money,, you can actually spend then SELL the business on for a profit and then you have EVEN MORE MONEY in a much smaller time scale

25 years investement,,, that you wont be able to have until you dead or too old to actually do anything you could due to the false limbs you have

hes a GOOD example i called JC yesturday,,, hes got hes own business and where in the middle of a recession,,, AND HES IN SWITZERLAND SKIING !!!, he will be at the ring 6 times this year, be at all the track days we attend aswell as the ones we wont and will still have 2 weeks in the sun

theres a bloke whos living hes life,, not working behind a desk for 60 hours a week to live in a large home in a nice area

FUCK ME YOU CANT EVEN BENIFIT FROM THE NICE AREA AS YOU WILL SPEND ALL YOUR FUCKING TIME WORKING !!!!

buying is only worth doing if its a DREAM home IMO,,, i wouldnt pay a 1000 quid a month morgage on a pokey flat, ok i own a pokey flat now but it was cause it worked out cheeper than renting , we keep looking selling to buy a big house but wont pay the prices asked

hell i leave the house at 7am and im back home after the gym at 10pm 3 days a week and the other 2 im home at 7:30

dojj

iTrader: (3)

forget the pro's aqnd cons of buying/renting

there are now offers by new build places tht will let you live in a property for up to 2 years to see if you want to stay in that area as a rental before you decide if you want to buy the place

this would be the avenue to research from my perspective if i were thinking of buying a house nowadays

Ginge !

doji takes longer than 2 years for a place to turn into a toilet though !!!!

just take a look at areas and look at there historys, things in the area changes over time

when i moved onto a council estate when i was a kid it was a nice area, honestly was clean, everybody new each other ect

then we all grew up and started fucking the place up,, then got worse and worse from then

heres a link for info on it now http://en.wikipedia.org/wiki/Market_Estate

trust me things can change and it takes alot longer than 2 years

Ginge !

http://www.building.co.uk/story.asp?...rycode=3095065

heres more history of when they rethought about the idea,,, it was actually in 1990 though and that also failed too !!!

the consierge is wrong too, he was tied up and beat the fuck out of by kids,,, and i mean kids as i was 15 at the time and one of em used to me my best mate in primary school !!, they only tied him up to steal the time lapse video machines that was worth LOADS of cash at the time and there was 30 of em in a rack !! the kids got carried away and kicked the fuck out of him for "shits and giggles" hence he never returned !!

also 2 years later there was a moped set on fire in the same hallway that made one hell of a bang,,, it burnt the hallway out totally and was never replaced

should see it now though its been knocked down with flash new yellow brick flats,, give it another 30 years