Help and advice please (Mortgage)

"Zoe Brown" wrote in news:cm2l08$hss$ snipped-for-privacy@hercules.btinternet.com:

And as I have said, I would get very little HB. I dont think there will be a need for me to rent, not if I can get a deposit from the sale of my current home and obtain a full time job.

John

"Zoe Brown" wrote in news:cm2l32$gas$ snipped-for-privacy@titan.btinternet.com:

I would be looking at houses in the price band of between 80,000 and

John

but is the cost of the mortgage and the loss of the return on your deposit invested elsewhere the same as the rent?

Jim.

"Jim Ley" wrote

Ah, but - is the cost of the mortgage and the loss of the return on the deposit, **offset by the increase in value of house over term to future sale**, the same as the rent??!

"Tim" wrote in news:cm2rs8$smd$ snipped-for-privacy@sparta.btinternet.com:

What are you all talking about here? I didnt know that mortgage companies kept your deposit. I have a feeling I have a lot to learn and not much time to learn it in.

John

Sure but you can always claim misrepresentation, in that case.

Daytona

Of course :-) I just wanted to make it clear that mortgage costing the same as renting generally only occurs if your deposit is reasonably substantial (depends on the area of course) So you've got to think about the fact you're moving your investment into property.

No, they don't but if you have 100,000 in the bank today, you'll be earning say 3000 a year in interest, by having that 100,000 in the property instead, whilst saving you some rent, you'll also be losing the 3,000 a year interest recieved.

Jim.

snipped-for-privacy@jibbering.com (Jim Ley) wrote in news:4185062e.16223788 @news.individual.net:

I see. So if I had say 70k in the bank, I would also receive 3%, which could pay some of a year rent?

But surely the property would increase in value and the capital would simply decrease due to inflation?

John

No, there's plenty of time. Start looking if they apply to court for an eviction order (it may take a month to come to court). I believe you have not had court notice yet, just a letter from the executor ? Only sign a rental contract if the judge grants the order. Given your circumstances and as long as the judge thinks you're behaving reasonably, the judge may well negotiate a suitable date with you.

btw a landlord I respect is in the process of selling up in the Cardiff area because he thinks it's a fair bet house prices are too high. Given this, you might think it's only rent payments that are money down the drain, but it's not, it could well be mortgage interest & repayments as well. Personally, I'd be happy renting until average house prices return to their long term average of 3.5 times the average salary. They're currently about 6 times (see the graphs at )

Daytona

Be aware that large numbers of new property developers have started using auctions and the prices are no longer as attractive. See the previous posts -

Buying property is a hassle, personally I think you'd be better trying to reduce hassle

Daytona

Hopefully you could do a better than 3%. but even that 3% gives you ~175 a month towards your rent.

If you had to use all the income from the 70,000 to pay your rent yes inflation would reduce the amount (at about 1.5% per year currently, so not that rapidly)

The assumption that house value would increase in value isn't really sustainable, it'll depend on your timeframe and more, but the last a couple months it's probable that any prospective house has decreased in value, and many people think that house prices are about to drop significantly, and just about everyone agrees they're considerably more expensive now than they've ever been before - something that's previously triggered significant reducations in house prices.

Currently for example, I'm renting rather than buying despite being able to afford it (although I've not sold an investment one, but that would be more complicated as it's not sole ownership)

Jim.

No you wouldn't. HB is means tested and you would get what you need.

Agreed, and from what I understand you are able to stay in your home now until the sale.

fish 4 will show the average prices of properties.

I am not buying because I think it is the cheapest option. Having rented for 10 years I am simply fedup with not being able to put up shelves (ect) !!!!

They don't keep your deposit - but you certainly can't keep it yourself !!! If you are buying a house you need to pay for it, generally part deposit and part mortgage !!!

The point being made is that if you don;t spend the deposit you can have it working for you in an investment.

Yes, that's the big problem with renting, the lack of long term security, and the inability to make the property more like how you want it, I hate renting, but I can't really justify the cost not to yet.

Jim.

"Tumbleweed" wrote

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