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Your numbers don't add up. You live in a premium location, I guess a nice part of zone 2? So let's say 1mn GBP for a 3 bedroom house. You pay 20k/year in rent
by crispyporkbites 9y ago
Your numbers don't add up. You live in a premium location, I guess a nice part of zone 2? So let's say 1mn GBP for a 3 bedroom house.
You pay 20k/year in rent (2%) = 1666/month for a 1mn property?
Then you're getting an incredible bargain. You can only get a 1 bedroom flat for about that in a good part of London. A 3 bedroom house would be closer to 3k/month, so really you're looking at 4-5%/year. So the difference in performance is only 2-3%, which would be offset by the gains you'd make in house prices from owning your own place.
- zwischenzug 9y agoYes, exactly. Around 2% of purchase value. You'd be surprised what you can get renting, area depending.
- crispyporkbites 9y agoThat's not possible, you're not getting a place for 2% of purchase value on the open market. There are no £1mn properties available for £1,666/month, or £500,000 places for £833/month, it's more than double that everywhere in London
- zwischenzug 9y agoI can't respond to this without revealing my personal information. A neighbour paid 900K for a house similar to ours, and we pay less than 1666/month.
- zwischenzug 9y agoHere's an example (not mine): http://www.rightmove.co.uk/house-prices/SE21/Woodhall-Drive.html http://www.rightmove.co.uk/house-prices/SE21/Woodhall-Drive.... sold for 1.8m in 2014. At current prices that's around 2.5 mill. Asking rent is: 4k/month http://www.rightmove.co.uk/property-to-rent/property-72775817.html http://www.rightmove.co.uk/property-to-rent/property-7277581... suspect you'll get it for far less than that.