Anyone got a graph?

[andrewducker]

Looking for something comparing the cost of renting to buying over the last few years.

Something like this, but for the UK.

Anyone?

Comments

[call-waiting.livejournal.com]

"Price per rent"? What's 'price' in that analysis? Average mortgage repayments? Mortgage repayments for the average newly purchased property?

At the mortgages and flats we're looking at, the ratio is hanging round about two-and-a-bit, which is, amusingly, what we'd end up paying of a flat's worth on the mortgage: twice the purchase price.

When I had my flat in Cambridge, the ratio was damn close to one (I paid about £650 a month in mortgage; the same flat would probably have cost me about £600 to rent).

[channelpenguin.livejournal.com]

no graph but:

Current figures for my flat in Guildford.
rent 700
mortgage 1089

1994 Stoke on trent (identical 3 bed houses)
rent 250
mortgage 250

and it will depend where. House prices have not (yet) gone silly in the Northeast, Wales, NI or most of the midlands)

[channelpenguin.livejournal.com]

the houses in Stoke were going for about 40 then,IIRC, going for 70ish now.

[andrewducker]

Yeah, monthly price for a mortgage on the same property, or something like it, I think.

I'm currently seriously considering selling my flat, putting the cash into hgh-interest savings, and renting until the price of flats comes down.

[channelpenguin.livejournal.com]

I spent 13 years waiting for the prices to come down before concluding that they just weren't. People just don't seem to be put off by big mortgages any more - it's just a fact of life.

Plus savings rates were DIRE for such a long time. They are only barely better than dire now.

Make sure you do ALL the calculations properly.

I consider my flat to be 'a unit of housing' that will be swappable for whatever it is if and when I choose to do so. Prices are still rising so quickly that the cost of the loan for the year or so is much less then the price rise.

But I am planning on bogging off on a boat and renting it out. Only reason I'm buying at all is that I can afford to, I'm planning on a long period of not working, and I don't reckon house prices in 35 years time will be less than now and I need somewhere to live when I am old.

[surliminal.livejournal.com]

She's right. Tempting as it is , prices in Edinburgh simply won't go down - there is too much demand, too much buy to let and too little good property available or buildable. you'll be marooned paying rent, having a landlord and not gaining an asset for the rest of your days - or more accurately, till your parents die:(

[surliminal.livejournal.com]

I know - it's mad. Whereas in Soton/Winchester rents are higher than mortgages as far as I can see because of estate agenst and a lack of suitable letting property - sigh..

[meaningrequired.livejournal.com]

I know little about such things, except when the time comes I am going to throw myself into 25 year of debt with a smile on my face and a house under my feet.

My mums friend had a house, sold it, and now the money is in a savings account. Though, its a different situation in N.Ireland as their house prices are just about to skyrocket.... its a bad situatiion for my mum's friend, becuase she would probably have made more, keeping the money in the house, than putting it in the bank. However, becuase it IS in the bank, she can afford to pay for her daughter (who will be 18 in a few years) to go to uni. When thats done, she intends to get back on the ladder. But probably significantly lower and in a much smaller property than she was before.... but then, who cares, shes got rid of the kids :)

The flats in the area we're living in are worth something like £110,000. I really worry about the kind of property I'm going to be able to afford when the time comes. I expect my salary will be between 26K and 30K, perhaps going over that if I stay in academia for a while and manage to land a senior post. Even that, is not a lot of money, in comparison to the price of houses.

My ex-housemate and his GF had the deposit put down on a house by her parents (forcing them into an early, stable, commited relationhip). But its worked out for them. Neither of them are the DIY type, but they're paying off the mortgage slowly but surely and sitting on a house thats slowly going up in price. I'm very jealous.

[robhu.livejournal.com]

Slightly related to your comment about the house going up is whether the rising house price is good for home owners.

It's only good if you intend to sell your house and move somewhere smaller, or if you want to sell your house and move abroad.

Whatever profit you make when you come to sell your house will be much less than the amount a larger/better house that you might want to move to has increased by.