Originally Posted by bandrui

But you can borrow against equity which, if you buy at the right time, can be considerably more than the cash you invested in the property.

Why is everyone so quick to disregard the cost of rent which is basically money out the window?

Originally Posted by sallysimmons

I don't think you've understood what we're saying. We aren't 'disregarding' that cost. We're putting it into the spreadsheet with all the other factors, running a calculation and then seeing where we come out at the other end. By my calculations, I come out about the same in either scenario and possibly better as a renter depending on how wisely I invest. But as a renter none of my cash is tied up in an 'asset' (or millstone depending how you look at it) so I am free to use it whenever I want. Do the math for yourself and you'll get the same result.

As for borrowing against equity, I've never done that in my life and never would so its not a consideration for me. As we've seen over the last few years, that's a recipe for disaster when something bad happens and all of a sudden the equity you borrowed against is gone.

There are lots of valid reasons to want to own versus buying, but the canard about flushing your money down the toilet is just a sales pitch invented by the property industry to get people to hand their money over. It sounds like it makes sense, which is why it works so well.

Originally Posted by cheers

As some have seen on Bon Voyage, Loch Lomond is flying today with his family from Aus. having sold his house there.

This is the house he bought in Scotland. Really nice and expensive £368?

http://www.s1homes.com/property-for-....shtml?print=1

Originally Posted by Pistolpete2

Easier to see! Very nice too! I like that particular style of Scottish house very much.

http://www.rightmove.co.uk/property-...-32679329.html

Close by but less money:

http://www.rightmove.co.uk/property-...-30479960.html

Fixed price:

http://www.rightmove.co.uk/property-...-30945599.html

Handy for Tesco and Gas! LOL!

Originally Posted by cheers

I think the Scottish woman must be very clean and neat when it comes to their homes. The same maybe said for the gardens and the men.

Originally Posted by bandrui

Originally Posted by johnh009

Of course, sellers can hold out at the moment because interest rates are low but wait while they start to rise.

Originally Posted by sallysimmons

I don't think you've understood what we're saying. We aren't 'disregarding' that cost. We're putting it into the spreadsheet with all the other factors, running a calculation and then seeing where we come out at the other end. By my calculations, I come out about the same in either scenario and possibly better as a renter depending on how wisely I invest. But as a renter none of my cash is tied up in an 'asset' (or millstone depending how you look at it) so I am free to use it whenever I want. Do the math for yourself and you'll get the same result.

As for borrowing against equity, I've never done that in my life and never would so its not a consideration for me. As we've seen over the last few years, that's a recipe for disaster when something bad happens and all of a sudden the equity you borrowed against is gone.

There are lots of valid reasons to want to own versus buying, but the canard about flushing your money down the toilet is just a sales pitch invented by the property industry to get people to hand their money over. It sounds like it makes sense, which is why it works so well.

Originally Posted by bandrui

Anyone have any comments about the 3 properties I posted yesterday?

Originally Posted by Pistolpete2

I can get over 7% by investing in high quality dollar preferred shares. Equities are quite likely to be entering a bull market - though of course there are no guarantees on any stock purchases.

Since the decline in UK interest rates, the banks have introduced arrangement fees which can be up to 1% of the funds borrowed and these could be levied each and every time you renew mortgage terms as there is no such thing as a lifetime fixed, only a lifetime tracker which at this point is very risky and expensive in itself.

IF you are looking at a cash purchase then as has been described by myself, shirleysimmons and giantaxe, there is opportunity cost associated with the money being tied up in the house when it could instead be out there making a market return of a minimum of 4% with no downside risk which you do incur by buying a house.

Looking at it from the renter's viewpoint, as I mentioned, you can rent in certain parts of Cornwall at a 3% GROSS return to the landlord. If the landlord (which is YOU if you own that house) could make the assumed 4% by instead putting his cash in the bank the property has to appreciate by 1% per annum just to breakeven without even considering ANY of the other owner associated costs. Clearly the renter is well ahead of the game by renting in this instance. This is quite aside from all of the other reasons to consider renting. It really doesn't matter how big or small your deposit is as you are ending up having money tied up in a house which could be invested at a better return (with far more flexibility) elsewhere.

Typical estate agent's fees in the Uk are 2.5% plus 20% VAT. You can get these down by negotiation and by offering an exclusive, to say 1.75% plus 20% VAT.

Originally Posted by cheers

Linda, did you know there is a USAF-RAF Base at Burford so you would need to know if they fly bombers that carry any nuclear bombs. Look up/ google RAF Burford. It could be closed by now??

So you know.

OK it appears to be RAF Brize Norton which is RAF and they have heavy air traffic 24/7 out of there.