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I honestly see this as a relatively simple calculation. You can calculate the rent you could have to pay over the course of a tenancy. You can calculate the c

by wlll 7y ago

I honestly see this as a relatively simple calculation. You can calculate the rent you could have to pay over the course of a tenancy. You can calculate the cost of your bought house/apartment over the same period (the estimated value of your property at the end of the period minus the rent payments and interest and any outstanding loan) You can calculate the estimated return on investments. It turns out for me that it makes sense to buy a house with a mortgage (it's pretty large, we're a family of 4, UK), pay the minimal amount off on our low interest mortgage (rather than over pay) and invest anything spare. Given that in the UK (the places I've looked) rent has always been more than the mortgage payment on an equivalent property buying has always made sense.

tomxor 7y ago
> Given that in the UK (the places I've looked) rent has always been more than the mortgage payment on an equivalent property buying has always made sense. What about fluctuations in house prices? I can imagine a small crash would easily make up for the difference between paying off a mortgage and renting, plus it gives you more options and freedom since it's far more costly to buy and sell than it is to rent and move. I know little about the housing market but from what I briefly read about the UK and a few graphs it does look like we are at a rather large and long peak right now. This also isn't merely about trying to save more money, but also what you can buy, inflated prices generally mean you are forced to buy something smaller, worse, in a less preferable area, and all for the same price.
- wlll 7y ago
  There has never been a fluctuation in my lifetime that has pushed house prices lower than the cost to rent (that I've noticed anyway)[0]. The prices certainly do go up and down, but we're operating from the basis of an island with minimal available space to build more, and seemingly never enough houses available for people to buy who want to. You defeinitely have more ability to move if you're renting, and I'm sure that's of concern to some people, but not all. In terms of buying in a more or less prefereable area, rental prices (IME) tend to track the cost to buy so if you can't afford £n00/month mortgage in a certain area then you are likely going to see £(n00 + y)/month rents you also can't afford. [0] edit Also, remember that when you finally finish paying off the house, it's yours, an asset. You can live in it or sell it. Rent has to go down quite a lot to 1. initially be lower than mortgage payments on an equivalent house and 2. to still end up costing less after you've factored in the sale price of your house at the end.

by wlll 7y ago

tomxor 7y ago

> Given that in the UK (the places I've looked) rent has always been more than the mortgage payment on an equivalent property buying has always made sense. What about fluctuations in house prices? I can imagine a small crash would easily make up for the difference between paying off a mortgage and renting, plus it gives you more options and freedom since it's far more costly to buy and sell than it is to rent and move. I know little about the housing market but from what I briefly read about the UK and a few graphs it does look like we are at a rather large and long peak right now. This also isn't merely about trying to save more money, but also what you can buy, inflated prices generally mean you are forced to buy something smaller, worse, in a less preferable area, and all for the same price.

wlll 7y ago
There has never been a fluctuation in my lifetime that has pushed house prices lower than the cost to rent (that I've noticed anyway)[0]. The prices certainly do go up and down, but we're operating from the basis of an island with minimal available space to build more, and seemingly never enough houses available for people to buy who want to. You defeinitely have more ability to move if you're renting, and I'm sure that's of concern to some people, but not all. In terms of buying in a more or less prefereable area, rental prices (IME) tend to track the cost to buy so if you can't afford £n00/month mortgage in a certain area then you are likely going to see £(n00 + y)/month rents you also can't afford. [0] edit Also, remember that when you finally finish paying off the house, it's yours, an asset. You can live in it or sell it. Rent has to go down quite a lot to 1. initially be lower than mortgage payments on an equivalent house and 2. to still end up costing less after you've factored in the sale price of your house at the end.