Why do Brits buy instead of rent?
May 31st 2010, 8:15 am
#31
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Re: Why do Brits buy instead of rent?
You've hit the nail on the head, my thoughts exactly! Who wants to pay to live in somebody else's house forever?! And rent always goes up, whereas mortgages "tend" to stay the same (notwithstanding interest but then you have to make sure you don't buy beyond your means from the start, easier said than done during these times but still possible).
May 31st 2010, 10:35 am
#32
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Re: Why do Brits buy instead of rent?
You've hit the nail on the head, my thoughts exactly! Who wants to pay to live in somebody else's house forever?! And rent always goes up, whereas mortgages "tend" to stay the same (notwithstanding interest but then you have to make sure you don't buy beyond your means from the start, easier said than done during these times but still possible).
The flat I live in was rented out at 1200 euros a month in 2006-7, I negotiated it down to 800, and if we decide to stay another I might have a pop at 700 euros per month.
It always depends on the market. The rental market on the CDS is terrible so anyone who wants to rent long-term is in a great position.
Btw, my cooker, dishwasher, shower, and aircon have all broken since we've been living here and the landlord has repaired them with no problems and no expense on our part. The outside of the flat could do with a paint now, if we decide to stay another year I will be talking to the landlord about that.
May 31st 2010, 11:36 am
#33
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Re: Why do Brits buy instead of rent?
I would think that one main reason most Brits buy their own home is so they don't have to pay rent when they retire on a limited income. Although more expensive in the early days, home-owners benefit more in the long term. Long term, rent money is dead money.
I started paying a mortgage in my mid 20s (working 2 jobs) and now in my late 40s I am mortgage-free. I became mortgage-free when I moved to Canada 3 years ago but had I stayed in the UK I would now be mortgage-free anyway. After 20 years it feels great not to pay a mortgage or rent every month.
PS my first mortgage interest rate was 12.75% back in 1988 eeeeeekkkkk
I started paying a mortgage in my mid 20s (working 2 jobs) and now in my late 40s I am mortgage-free. I became mortgage-free when I moved to Canada 3 years ago but had I stayed in the UK I would now be mortgage-free anyway. After 20 years it feels great not to pay a mortgage or rent every month.
PS my first mortgage interest rate was 12.75% back in 1988 eeeeeekkkkk
May 31st 2010, 12:06 pm
#34
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Re: Why do Brits buy instead of rent?
Yes, completely agree. By the time I retire I plan (hope!) to have the mortgage completely paid off. It will make a huge difference to my standard of living. I wouldn't like to be stuck paying rent/mortgage until the day I die. It's also nice to have something that the kids can inherit and enjoy (or sell).
Seriously, people have the right to buy at anytime, and those who bought more than 5 years ago in any country will have done quite well, but there are other ways to provide for your future, nobody has to or needs to buy a house.
May 31st 2010, 12:15 pm
#35
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Re: Why do Brits buy instead of rent?
The thought of still paying rent when I am 70 haunts me, that's why I am glad I bought when I did at a low, distressed price and paying less for my mortgage than I was paying in rent before! It is mine all mine, at least till I finish paying the bank, which everyone always mentions, but that argument is a "no-brainer" as I either have to pay rent or mortgage every month whatever...
People have mentioned here that when you rent you don't have to pay to repair the property but unfortunately for renters in Spain you do have to pay. When we were renting we were told that if the water heater/boiler broke down we would have to pay to repair it, I checked with officialdom and they confirmed this to be true, as it is considered wear and tear. Lethal if you ask me, as a landlord is not obliged to look after gas installations and if the tenant can't be bothered, booooommm!!!
People have mentioned here that when you rent you don't have to pay to repair the property but unfortunately for renters in Spain you do have to pay. When we were renting we were told that if the water heater/boiler broke down we would have to pay to repair it, I checked with officialdom and they confirmed this to be true, as it is considered wear and tear. Lethal if you ask me, as a landlord is not obliged to look after gas installations and if the tenant can't be bothered, booooommm!!!
We rent the place seen on inspection day and all appliances in a working condition, you pay for the wear and tear in your rent.
If the landlords name is on the gas contract then he is liable for the upkeep and safety side of it.
May 31st 2010, 12:18 pm
#36
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Re: Why do Brits buy instead of rent?
You've hit the nail on the head, my thoughts exactly! Who wants to pay to live in somebody else's house forever?! And rent always goes up, whereas mortgages "tend" to stay the same (notwithstanding interest but then you have to make sure you don't buy beyond your means from the start, easier said than done during these times but still possible).
May 31st 2010, 12:28 pm
#37
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Re: Why do Brits buy instead of rent?
"mortgages usually stay the same"!
I have my fingers crossed for you saritacostadelsol!
May 31st 2010, 12:29 pm
#38
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Re: Why do Brits buy instead of rent?
I bought my current house in Spain around 11 years ago, but recently decided that I would like to sell. It’s impossible to sell at a profit because I’m going to buy another house in Spain, but I’ve found that it’s impossible to sell anyway – nothing is selling where I live.
In my short little street of 14 houses, four have been completely abandoned by the owners who had to move on and couldn’t sell. At least two other couples have become prisoners in their own homes, with Se Vende signs stuck to their gates for years.
The remaining owners, me included, regularly remove the sale signs from abandoned homes, it makes the street look bad.
Now, if I was renting . . .
In my short little street of 14 houses, four have been completely abandoned by the owners who had to move on and couldn’t sell. At least two other couples have become prisoners in their own homes, with Se Vende signs stuck to their gates for years.
The remaining owners, me included, regularly remove the sale signs from abandoned homes, it makes the street look bad.
Now, if I was renting . . .
May 31st 2010, 12:37 pm
#39
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Re: Why do Brits buy instead of rent?
I bought my current house in Spain around 11 years ago, but recently decided that I would like to sell. It’s impossible to sell at a profit because I’m going to buy another house in Spain, but I’ve found that it’s impossible to sell anyway – nothing is selling where I live.
In my short little street of 14 houses, four have been completely abandoned by the owners who had to move on and couldn’t sell. At least two other couples have become prisoners in their own homes, with Se Vende signs stuck to their gates for years.
The remaining owners, me included, regularly remove the sale signs from abandoned homes, it makes the street look bad.
Now, if I was renting . . .
In my short little street of 14 houses, four have been completely abandoned by the owners who had to move on and couldn’t sell. At least two other couples have become prisoners in their own homes, with Se Vende signs stuck to their gates for years.
The remaining owners, me included, regularly remove the sale signs from abandoned homes, it makes the street look bad.
Now, if I was renting . . .
Now if they were sensible they should have sold it at half price to start with. in its current state it is virtually worthless
May 31st 2010, 12:42 pm
#40
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Re: Why do Brits buy instead of rent?
I bought my current house in Spain around 11 years ago, but recently decided that I would like to sell. It’s impossible to sell at a profit because I’m going to buy another house in Spain, but I’ve found that it’s impossible to sell anyway – nothing is selling where I live.
In my short little street of 14 houses, four have been completely abandoned by the owners who had to move on and couldn’t sell. At least two other couples have become prisoners in their own homes, with Se Vende signs stuck to their gates for years.
The remaining owners, me included, regularly remove the sale signs from abandoned homes, it makes the street look bad.
Now, if I was renting . . .
In my short little street of 14 houses, four have been completely abandoned by the owners who had to move on and couldn’t sell. At least two other couples have become prisoners in their own homes, with Se Vende signs stuck to their gates for years.
The remaining owners, me included, regularly remove the sale signs from abandoned homes, it makes the street look bad.
Now, if I was renting . . .
Of course in the past there was the obvious appeal of the house value constantly rising in value, but that's no longer the case (if in fact it ever was). As another poster has pointed out we don't have crystal balls, so it's very hard to make a decision based on the rise (or fall) of property values. There again, suppose you had decided to sell your house and put the proceeds in a high interest bank account with an Icelandic bank? There's a reason (I think) for the expression "safe as houses"
May 31st 2010, 2:31 pm
#41
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Re: Why do Brits buy instead of rent?
Anyone who bought in spain 10 or more years ago should be able to reduce 40% (at least) and still make a decent profit if converting into sterling. Some say sales are picking up others say they are not selling at even massive reduced prices...who knows
May 31st 2010, 2:35 pm
#42
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Re: Why do Brits buy instead of rent?
As long as renting is half the price of a mortgage, just stick the other half in a savings account. After 25 years that'll be a good investment too!
Seriously, people have the right to buy at anytime, and those who bought more than 5 years ago in any country will have done quite well, but there are other ways to provide for your future, nobody has to or needs to buy a house.
Seriously, people have the right to buy at anytime, and those who bought more than 5 years ago in any country will have done quite well, but there are other ways to provide for your future, nobody has to or needs to buy a house.
May 31st 2010, 3:08 pm
#43
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Re: Why do Brits buy instead of rent?
Just curious, is there anyone apart from us that bought cash? we simply could not have afforded to rent, we did years of homework , many trips over, stayed in various places, then we sold in UK in 2002 and bought here at a very much lower price than property is now, and yes if the price is right they are selling here.
The whole idea for us was to buy cash and invest what was left to see us to retirement and after pensions, which it has. But if we had rented, for us at least it would have been like burning money, as it is everything we have is ours.
Just my side of things and though I would share it
The whole idea for us was to buy cash and invest what was left to see us to retirement and after pensions, which it has. But if we had rented, for us at least it would have been like burning money, as it is everything we have is ours.
Just my side of things and though I would share it
May 31st 2010, 3:20 pm
#44
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Re: Why do Brits buy instead of rent?
Just curious, is there anyone apart from us that bought cash? we simply could not have afforded to rent, we did years of homework , many trips over, stayed in various places, then we sold in UK in 2002 and bought here at a very much lower price than property is now, and yes if the price is right they are selling here.
The whole idea for us was to buy cash and invest what was left to see us to retirement and after pensions, which it has. But if we had rented, for us at least it would have been like burning money, as it is everything we have is ours.
Just my side of things and though I would share it
The whole idea for us was to buy cash and invest what was left to see us to retirement and after pensions, which it has. But if we had rented, for us at least it would have been like burning money, as it is everything we have is ours.
Just my side of things and though I would share it
A friend has just bought a 3 bed run down 1960s flat in Barcelona for half a million euros, and then spent another 100k renovating it.
So you are talking about a 4k a month mortgage - or she could have rented one for around 1500 euros a month. I know what I would have done!
As I've already said there are similar situations like this all over the country
May 31st 2010, 3:41 pm
#45
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Re: Why do Brits buy instead of rent?
Very true, if your next house is a tent.