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Of course. But if you are able to get a long term lease with known % rent increases and aren't in a hyper competitive market like London, then it's different.
I'd be surprised if there is anyone in this thread who's UK mortgage (even with costs inc.) is greater or equal to the cost of renting their UK home.
The state of the UK market doesn't apply everywhere - in NYC for eg, dispite competition and amazing mortgage rates, the cost of property taxes (and probably building MGMT charges) mean buying isn't the same no-brainer it is in London.
I guess my overall thinking was based on what hippy has said here previously, he owns or is close to owning his UK property outright. Renting that out would likely net a better return than selling and buying in Spain. Even if that's the plan and in addition he has the cash to purchase most of a residential property in Spain, I'd still buy in another country and rent in Spain.
hugo7-
I'd be surprised if there is anyone in this thread who's UK mortgage (even with costs inc.) is greater or equal to the cost of renting their UK home.
Yes, but that's only because I have a significant chunk of equity in the place to lessen the monthly mortgage payments.
If I was starting from scratch with no equity then there's no way I could afford to buy the flat (except with an enormous deposit), but I could afford to rent it.
(Rebasing the figures to a nominal £1k/month rent that £1k/month would stretch to a £236k mortgage at 2% and 25 years. Last valuation of the flat was (rebased) ~£370k.)
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I'm not so sure, I think I'm probably around the even mark if not paying more for mortgage.
Mortgage is slightly over 1300, and I don't think a 1 bedroom flat in Dulwich rents for that much (1100-1300 on a quick look at Rightmove).
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I guess my overall thinking was based on what hippy has said here previously, he owns or is close to owning his UK property outright. Renting that out would likely net a better return than selling and buying in Spain. Even if that's the plan and in addition he has the cash to purchase most of a residential property in Spain, I'd still buy in another country and rent in Spain.
Paid in full.
Probably. No chance I'm selling the UK place to fund the Spanish place. I'll do what I did here and buy conservatively. It'd make much more sense to rent this place out and move to Spain. If Spain goes tits up I could return or move elsewhere and still have rental income if I need to change jobs.
I think mortgage on this was around 650/month, I was overpaying to 1100 month plus some big lump sums to get it paid off quickly. Rental from this place would probably be 1100+ but I live here so don't really pay attention to rental market.
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I'd be surprised if there is anyone in this thread who's UK mortgage (even with costs inc.) is greater or equal to the cost of renting their UK home.
Just wrote a longer post but deleted it accidentally. Ran the sums on my purchase in Oval 5 years ago.
Flat today is worth probably what I paid plus stamp duty (so net zero). Mortgage interest and service charges of £1k / month versus rent of £1.5k / month. So there’s a £30k gap over 5 years.
I could well believe that the foregone investment income on my deposit (say 5-6% a year equity risk for 5 years) plus maintenance costs are equal to the £30k I saved in rent.
Greenbank
rogan
hippy
NickCJ
At this rent Vs buy discussion.
The point of buying is some cunt of a landlord in their jeansandsheux and £1400 a month rent and increase it when the fuck they like and turf you out you oik, can't turf you out. It's generally cheaper than renting, and not having to move every 6-12 months, and allows (probably) the option of planning a life rather than living some weird existence.