Property : rent vs buy?

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cyxstudio
Posts: 297
Joined: Sun Mar 23, 2014 11:18 pm

This is the million dollar debate again, i want to know what people on here thinks. Should you buy a property early or rent first?

The upside of buying is you can lock down a house before it appreciates its value and ends up being twice as expensive. But on the other hand the interest rates means you are probably going to pay twice its value anyway. You can rent out your newly bought home and let the tenant pay your mortgage meanwhile you live elsewhere cheaper. When your mortgage ends you own a house, compare to the renter who will own nothing.

Meanwhile if you rent you would be paying to someone else while you own nothing at the end of it. But the upside is you have spare cash and could invest in something that outperforms the real estate and become wealthier, and then buy your property later with cash or with very little mortgage. Also you would have a ton of freedom, one of the biggest problem with buying is once you tie yourself down to a 30 year mortgage, you lose your freedom, and freedom itself can be an important asset. Say if you hate your job and want to quit or if you want to take some risk and go further study or if you want to seek better opportunities, you would think twice as you need to keep the money coming in to pay your monthly fees.

Discuss.
katchit12
Posts: 2
Joined: Sun Oct 22, 2017 4:13 pm

Sounds like you've watched this video... https://www.youtube.com/watch?v=4a51wQAOGR4 (42.33)

If not it is a must watch. Not usually swayed by bulls**t videos like this but I have met this guy and he makes a lot of sense.
cyxstudio
Posts: 297
Joined: Sun Mar 23, 2014 11:18 pm

katchit12 wrote:
Sun Oct 22, 2017 4:18 pm
Sounds like you've watched this video... https://www.youtube.com/watch?v=4a51wQAOGR4 (42.33)

If not it is a must watch. Not usually swayed by bulls**t videos like this but I have met this guy and he makes a lot of sense.
Joined:Sun Oct 22, 2017 4:13 pmLast active:Sun Oct 22, 2017 4:18 pmTotal posts:1 | Search user’s posts

you signed up just to reply to this thread??? :shock: :shock: :shock:
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ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

Don't forget to include the fact that most landlords are absolute swines who won't fix your heating or let you drill a hole to hang a picture. It's not fun living with other people's idea of decorating and if they want to sell anytime they can have you out in 4 weeks. 6 monthly inspections, no pets etc etc. It sucks if you've ever previously owned a property to compare it to.

Your choice of home should have nothing to do with economics and everything to do with your lifestyle and quality of life. An extra 50 quid in your pocket will do nothing to make a bad decision feel like a good one.

Choose what you envisage 'home' as being and if you can afford it do it. If not then you didn't have a choice anyway.
katchit12
Posts: 2
Joined: Sun Oct 22, 2017 4:13 pm

Nope, new account as old one 'compromised :cry:
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