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This is okay as long as you are in one of the locations where mortgage is roughly equal to rent. In some places it’s closer to double, unless you want a 100 yea

This is okay as long as you are in one of the locations where mortgage is roughly equal to rent. In some places it’s closer to double, unless you want a 100 year mortgage.

brightball 8y ago
If you live in a place where a mortgage is double rent, you're basically a temporary resident.
- pixelbash 8y ago
  Our rent: 700NZD pw Our calculated repayment on a 20 year mortgage with a 300k down payment on the estimated CV of this house: $1370 NZD pw Yep!
seanmcdirmid 8y ago
Also, interest-only loans are a thing in some parts of the world. Beijing is a good example of a place where rents are way lower than sale prices, so you can totally wind up paying $1000/month to rent something that is on the market for $1 million.
- pmwhite 8y ago
  That only makes sense for absurdly aggressive speculators or people with the political connections to borrow money for 1% or less. I have a fixed 15 year loan at 2.75%, which seems like a pretty good deal to me. Know where I can borrow a few hundred thou at 1%?
  - seanmcdirmid 8y ago
    The interest rate isn’t only important, so is the principal. Yes, sometimes buying makes sense, but sometimes renting makes sense as well.
gambiting 8y ago
In UK mortgage usually works out a lot lot cheaper than renting. I could cut my rent by about 25% by buying a place, the only issue is I need a deposit in the first place.
- bootcode 8y ago
  I didn't do the math, but know people who did and got that the initial deposit is a real game changer. Assuming we pay the same for mortgage and rent, who wouldn't want to pay rather mortgage? But remember, to pay the same, there was a huge downpayment. If you were to invest that rationally, long term returns could be worth it, even while paying rent. OTOH, rational investing (in a balanced fund portfolio) is hard, and mortgage forces you to save. YMMV, do your math.
  - gambiting 8y ago
    There's lots of other factors to take into account though. I guess I was really unlucky, and had to move relatively frequently in the last 8 years(on average once a year) - the cost of moving is easily £1500-2000, just in agency fees and moving fees and everything else. That makes renting even more expensive. And then I definitely want to own my house before brexit, as an immigrant I will not risk not being able to rent if things go tits up.
- deleted 8y ago
  [deleted]

This is okay as long as you are in one of the locations where mortgage is roughly equal to rent. In some places it’s closer to double, unless you want a 100 year mortgage.

brightball 8y ago

If you live in a place where a mortgage is double rent, you're basically a temporary resident.

pixelbash 8y ago
Our rent: 700NZD pw Our calculated repayment on a 20 year mortgage with a 300k down payment on the estimated CV of this house: $1370 NZD pw Yep!

seanmcdirmid 8y ago

Also, interest-only loans are a thing in some parts of the world. Beijing is a good example of a place where rents are way lower than sale prices, so you can totally wind up paying $1000/month to rent something that is on the market for $1 million.

pmwhite 8y ago
That only makes sense for absurdly aggressive speculators or people with the political connections to borrow money for 1% or less. I have a fixed 15 year loan at 2.75%, which seems like a pretty good deal to me. Know where I can borrow a few hundred thou at 1%?
- seanmcdirmid 8y ago
  The interest rate isn’t only important, so is the principal. Yes, sometimes buying makes sense, but sometimes renting makes sense as well.

gambiting 8y ago

In UK mortgage usually works out a lot lot cheaper than renting. I could cut my rent by about 25% by buying a place, the only issue is I need a deposit in the first place.

bootcode 8y ago
I didn't do the math, but know people who did and got that the initial deposit is a real game changer. Assuming we pay the same for mortgage and rent, who wouldn't want to pay rather mortgage? But remember, to pay the same, there was a huge downpayment. If you were to invest that rationally, long term returns could be worth it, even while paying rent. OTOH, rational investing (in a balanced fund portfolio) is hard, and mortgage forces you to save. YMMV, do your math.
- gambiting 8y ago
  There's lots of other factors to take into account though. I guess I was really unlucky, and had to move relatively frequently in the last 8 years(on average once a year) - the cost of moving is easily £1500-2000, just in agency fees and moving fees and everything else. That makes renting even more expensive. And then I definitely want to own my house before brexit, as an immigrant I will not risk not being able to rent if things go tits up.
deleted 8y ago
[deleted]