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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.
hugo7
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’