Owning your own home

Weird... 25.3%

69%

8%

96%

where did the love go...

30% really

30% for me too.

Is this the 'What's your favourite gear ratio" thread?

merge?

Done. Cheers.

26% Worked out on round pay figures.

Accountant's answer: "What % would you like it to be?"

House prices have consistently outpaced the stock market in the mid- to long-term, particularly in the South East, for decades.

Wrong.. only in the short term (last 15 years) and only in London

And all that means is whats gone up is gonna come down. Everything reverts to the mean in the end.

http://www.affinity-consulting.com/Graphs/UK-Property-Returns-v-Indices-in-GBP.pdf

Home Ownership thread. Investment thread >>>

To confirm - you are all giving as percentage of net rather than gross pay?

Netto. Always netto.

In my opinion you should buy a house -

Because you have found a long term home for a price that is not much more than renting or ideally cheaper.

Isn't this the most significant point though? In making the comparision between buying a house and investing elsewhere, you are making the assumption that you have equal amounts to invest in each, which is not true. If you are paying into a mortgage you are effectively investing that money. Yes you are taking a hit on interest and there are costs associated with owning your own house but you hope to offset these against a rise in the value of your house. If you are choosing to pay rent (that is less than the cost of a mortgage an an equivalent property) then the amount available for you to invest (for the purposes of this comparison) is the difference between your rent and the equivalent mortgage.

So what I'd like to see is the calculation of how much the value of a house could drop by to give you the same overall loss of paying rent for the same period.

net

As Andy says; always net.

Say you're buying a house and it'll be your only house. How many people first and foremost think of an investment over a place to live?

For me it was a decision between lining someone else's pockets whilst being blamed for everything wrong with the house.

Or
owning my own house that if I never had to move from I'd still be happy living there.

Easy decision for me.

Thanks for this graph. I'd also like to see the proportion of salary that people paid for housing in London over the period (rental or mortgage repayment). I'd be interested to know from any recent buyers (if they are willing to share), their monthly repayment as percentage of monthly after tax pay?

31% if I don't include my lodger

23% if I do?

36%.

#winning

31% if I don't include my lodger
23% if I do?

I read that as todger.

Consistently lowering the tone since 2010

~12% if I pay bare minimum but usually ~28% with overpayments

Is there a recommended % against salary? I always thought it was 4x salary for your mortgage but those figures seem to always change.