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That’s certainly true, although most people could invest their house deposit tax free using their ISA allowance, and landlords benefit from interest and expenses deductibility.
I suppose the broader point I’m making is that because UK property has been a magic money tree for 30+ years, people have stopped thinking critically about the rent vs buy dynamic in the rush to get on the ‘ladder’
NickCJ-
This is what I'm getting at.
The idea of:
Live in a place for 25 years, you own it.
Live in a place for 25 years, you dont own it.assumes a number of things, but most of it can be sumarised as;
the capital value of the property will always be greater than the total costs associated with purchasing and owning it.
Think about the cost of purchase, moving, decorating, repair, maintainance, replacement of white goods, insurance, etc. It is only an extraordinary property market which keeps prices inflating at such a level that all these cost are eaten up. In addition, you as the owner have to sort all that shit out.
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Agreed, to an extent.
I think the other UK issue though is the short tenancies and lack of security. I bought because I was sick of moving from place to place. The increase in value was a bonus.
hugo7
aggi
The main difference is that there are differences in if you're renting or owning. Generally the interest is higher and the rental income is taxed. As such, the two scenarios can't be compared without adjusting for that