Non football financial question relating to housing in the UK.

I read the following article today.

User Posted Link

I dont know what the current housing situation is in the UK but going by that article it sounds crazy.

The claims in that article that renting is far superior seems like bollocks.

In the US where I live the average monthly rent is around ~1% of property value

Meaning its much cheaper to buy than to rent.

What is the average in say Norwich? (monthly rent vs property value)

The claims about the interest you pay are silly.

If you rented over the same time span you would have nothing to show for it but paid the landlord more than the 350K you paid the bank.

The lanlord repairs thing is way over blown.

Stuff just doesnt go wrong that often.

It may equate at worst to an average cost of less than 1 months rent per year to the landlord

Even assuming your house doesnt go up in value you are building equity when you buy.

If you needed money in an emergency, most lenders will loan you money based on the equity you have in the house.

In the US you also get nice tax breaks on mortgage payments.
The biggest problem I see with the UK market is the huge gap between house prices and average salary.

Its pretty shocking how its remained so large?

Posted By: usacanary on May 18th 2011 at 20:38:51

Message Thread

Non football financial question relating to housing in the UK. (General Chat) - usacanary, May 18, 20:38:51
- One needs a deposit to get a mortgage to be able to buy though. (General Chat) - Graham Br15tol, May 18, 22:08:59
- in USA (General Chat) - dr fanta, May 18, 21:22:09
  - Its much harder now. Far from impossible though. (General Chat) - usacanary, May 18, 22:06:03
    - Huge Bubbles (General Chat) - dr fanta, May 18, 23:20:51
- Renting is cheaper per month (General Chat) - Kangol Canary, May 18, 21:10:24
  - It really depends on the mortgage that you are able to get. (General Chat) - Vivid Data Shark, May 18, 21:34:53
    - based on the rent vs value figures below. (General Chat) - usacanary, May 18, 21:55:26
      - unless you live near a uni and cram it full (n/m) (General Chat) - Jumbo1, May 18, 21:57:25
        
        But then you are geting more than 0.5% per month....... (n/m) (General Chat) - usacanary, May 18, 22:06:53
  - wow, its much cheaper to buy here than rent. (General Chat) - usacanary, May 18, 21:34:31
    - Rough idea here (General Chat) - Kangol Canary, May 18, 21:41:07
      - Thats exactly what I was looking for. (General Chat) - usacanary, May 18, 21:51:19
- I've just bought a house, I move in in July (General Chat) - conker, May 18, 20:59:22
- The UK market is considered to be on the brink of a crash (General Chat) - LowestoftBoy, May 18, 20:45:49
  - Isn't the problem (General Chat) - Steve, May 18, 20:55:04
    - Thats strange? Is nobody building new houses for first time buyers? (General Chat) - usacanary, May 18, 21:12:30
      - It's planning (General Chat) - Kangol Canary, May 18, 21:18:46
      - UK Builders have "Landbanks" (General Chat) - LowestoftBoy, May 18, 21:17:36
        
        Rubbish (General Chat) - Kangol Canary, May 18, 21:22:00
        
        Did you title this "rubbish" because you knew what you were about to write? (n/m) (General Chat) - grumpy, May 19, 00:08:30
        
        maybe, but (General Chat) - LowestoftBoy, May 18, 21:27:12
        
        I didn't say they didn't have land (General Chat) - Kangol Canary, May 18, 21:30:02
        
        you're shitting me (General Chat) - Worzel Scrimmage, May 18, 21:19:32
      - The US is cheaper than many parts of the world (General Chat) - Worzel Scrimmage, May 18, 21:17:16
      - it`s the banks not lending money to first time buyers (General Chat) - emmaroyds, May 18, 21:14:56
        
        Yep , its getting much tougher in the US. No that tough though. (General Chat) - usacanary, May 18, 21:42:03
    - renting considered the better short term option (General Chat) - LowestoftBoy, May 18, 21:04:03
      - My "affordable" rent is ?600pcm (General Chat) - Steve, May 18, 21:15:10
        
        I'm in Royston - paying ?475pcm for a room in a house (General Chat) - Karnivore, May 18, 21:25:05
        
        60k! Ridiculous! (n/m) (General Chat) - Dr5ub1in, May 18, 21:17:29
        
        exactly - couldn't afford the pay cut (General Chat) - Jumbo1, May 18, 21:18:19

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