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Author Topic: Cost of rent in the private rented sector.  (Read 17433 times)

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Mister Rog

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Re: Cost of rent in the private rented sector.
« Reply #60 on: 10 September 2018, 22:52:34 »

I bought my flat in London not long after starting with Sky, best thing I've ever done. My mortgage payments, were less than equivalent rent by a considerable amount.

I now have 4 bed detached place in Surrey, less than 18 years to go, sub £1k payments and it currently represents ~35% of the value of the house.

If I don't extend the term to move for next house, which is possible on some options out there, I'll be mortgage free before I'm 52.  8)
If its a smugness competition, I might win ;)


Excuse me . . . . what's a mortgage ? I've forgotten   ::)

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aaronjb

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Re: Cost of rent in the private rented sector.
« Reply #61 on: 11 September 2018, 08:38:54 »

She is on PAYE which is even worse.  ::)

So am I, but she should be self assessed at her income level - if she isn't, it's going to bite her on the arse in the future (ask me how I know!) ;)
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aaronjb

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Re: Cost of rent in the private rented sector.
« Reply #62 on: 11 September 2018, 08:39:22 »

I bought my flat in London not long after starting with Sky, best thing I've ever done. My mortgage payments, were less than equivalent rent by a considerable amount.

I now have 4 bed detached place in Surrey, less than 18 years to go, sub £1k payments and it currently represents ~35% of the value of the house.

If I don't extend the term to move for next house, which is possible on some options out there, I'll be mortgage free before I'm 52.  8)
If its a smugness competition, I might win ;)


Excuse me . . . . what's a mortgage ? I've forgotten   ::)

Yes but aren't you all 300 years old? Unlike Tunnie who is still 14. :D
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Marks DTM Calib

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Re: Cost of rent in the private rented sector.
« Reply #63 on: 11 September 2018, 08:51:25 »

[Devils Advocate]

We both earn decent money and could quite easily buy a house if we wanted to, but we like the fact that our outgoings are never likely to change.  [/Devils Advocate]

But that's the issue with renting......the outgoings are always going to change as rent increases in line with (or above) inflation.

Where as a Mortgage will only fluctuate in line with interest rate changes (and if they were to be big then its pretty much guaranteed this would push the rental prices up in a similar way)
« Last Edit: 11 September 2018, 08:53:01 by Fuse 19 »
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tunnie

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Re: Cost of rent in the private rented sector.
« Reply #64 on: 11 September 2018, 09:15:40 »

I bought my flat in London not long after starting with Sky, best thing I've ever done. My mortgage payments, were less than equivalent rent by a considerable amount.

I now have 4 bed detached place in Surrey, less than 18 years to go, sub £1k payments and it currently represents ~35% of the value of the house.

If I don't extend the term to move for next house, which is possible on some options out there, I'll be mortgage free before I'm 52.  8)
If its a smugness competition, I might win ;)


Excuse me . . . . what's a mortgage ? I've forgotten   ::)

Yes but aren't you all 300 years old? Unlike Tunnie who is still 14. :D

 :D :D :D :D
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tunnie

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Re: Cost of rent in the private rented sector.
« Reply #65 on: 11 September 2018, 09:18:14 »

[Devils Advocate]

We both earn decent money and could quite easily buy a house if we wanted to, but we like the fact that our outgoings are never likely to change.  [/Devils Advocate]

But that's the issue with renting......the outgoings are always going to change as rent increases in line with (or above) inflation.

Where as a Mortgage will only fluctuate in line with interest rate changes (and if they were to be big then its pretty much guaranteed this would push the rental prices up in a similar way)

Plus at retirement, you still need to fund rent, which would be a large proportion of income. Fine now earning good bucks, but on pension I want to only buy things I need.

If I look at my mortgage payments over past 5 years, add them up. I'm still in profit by what the house has gone up in, by about 6 figures.  :o

I could now downsize and be mortgage free, but MrsT would not be keen on that.  ::)  ;D
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aaronjb

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Re: Cost of rent in the private rented sector.
« Reply #66 on: 11 September 2018, 09:31:22 »

Plus at retirement, you still need to fund rent, which would be a large proportion of income. Fine now earning good bucks, but on pension I want to only buy things I need.

That's not my plan for retirement.. my plan for retirement is to be in a position to buy the things I want, not just the things I need! Otherwise, you can ship me off to Dignitas as that's no way to live ;D

Quote
I could now downsize and be mortgage free, but MrsT would not be keen on that.  ::)  ;D

Who wears the trousers here, you or .. ok, back in the real world, best keep working then! ;D But I was actually thinking about this yesterday after a really stressful day at the office* - if I sell the rental next year then, after capital gains etc I think I can reduce our mortgage here to about ~£150k which, when I think about it, is "only" £10k p/a to pay it off in 15 years.

Suddenly, retirement at 55 seemed like it might actually be within reach.

I mean, assuming dealing with the Outsourcing Continent doesn't drive me into an early grave before then.

*home office which, let me tell you, can be very lonely and isolating some days.
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Field Marshal Dr. Opti

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Re: Cost of rent in the private rented sector.
« Reply #67 on: 11 September 2018, 12:42:51 »

[Devils Advocate]

We both earn decent money and could quite easily buy a house if we wanted to, but we like the fact that our outgoings are never likely to change.  [/Devils Advocate]

But that's the issue with renting......the outgoings are always going to change as rent increases in line with (or above) inflation.



Where as a Mortgage will only fluctuate in line with interest rate changes (and if they were to be big then its pretty much guaranteed this would push the rental prices up in a similar way)


Mark is correct.

I rented from age 18 to 24.

The initial rent was £69 PCM. By the time I left the rent had increased to £119 PCM......some 74%. ::) ::)

It was made worse by a 'Rigsby type' landlord who refused to take any responsibility for any repairs or defects. Utter shithead.

It's not written in tablets of stone but rents are generally far more inflationary over a 25 year year period than interest rates. :y

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Kevin Wood

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Re: Cost of rent in the private rented sector.
« Reply #68 on: 11 September 2018, 13:07:13 »

You also have to consider that private landlords have been targeted via the taxman whenever the government has wanted to raise some cash recently. That's only going to come out of the pockets of their tenants.
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LC0112G

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Re: Cost of rent in the private rented sector.
« Reply #69 on: 11 September 2018, 14:40:34 »

You also have to consider that private landlords have been targeted via the taxman whenever the government has wanted to raise some cash recently. That's only going to come out of the pockets of their tenants.

Not sure that's really true - or at least not yet. Proper "professional" landlords will be "Ltd" companies, and most of the tax changes don't really affect them.

The people that will get hammered are the so called accidental landlords who only own one or two properties, and don't keep a close eye on the effects of the Budget tax changes. That group of people will be on Self Assessment, and tax changes don't hit you in the pocket until 18 months after the start of the tax year - in other words about now (for the 2017-18 year). When the tax bill lands on the mat it's too late to charge the tenant for 18 months of extra tax, and you may also have to wait another 6-12 months to increase the rent depending on the tenants contract state.

And if the tax owing is large (> £2K IIRC) you can end up on "Payment on Account", which means you have to pay this years (predicted) tax owing up front as well. So if you owe (say) £5K for 2017-18 and they predict you'll owe the same for 2018-19, HMRC are going to want £7.5K now, and another £2.5K in Feb. If the tenant has just signed a new AST for 6 months from the start of Sept 2018, then you can't put the rent up till the end of Feb 2019.
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tunnie

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Re: Cost of rent in the private rented sector.
« Reply #70 on: 11 September 2018, 14:49:15 »

[Devils Advocate]

We both earn decent money and could quite easily buy a house if we wanted to, but we like the fact that our outgoings are never likely to change.  [/Devils Advocate]

But that's the issue with renting......the outgoings are always going to change as rent increases in line with (or above) inflation.



Where as a Mortgage will only fluctuate in line with interest rate changes (and if they were to be big then its pretty much guaranteed this would push the rental prices up in a similar way)


Mark is correct.

I rented from age 18 to 24.

The initial rent was £69 PCM. By the time I left the rent had increased to £119 PCM......some 74%. ::) ::)

It was made worse by a 'Rigsby type' landlord who refused to take any responsibility for any repairs or defects. Utter shithead.

It's not written in tablets of stone but rents are generally far more inflationary over a 25 year year period than interest rates. :y

I could rent a house locally, but to do that, it would cost me twice as much as my mortgage.  :)

..and that's like for like size.
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TheBoy

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Re: Cost of rent in the private rented sector.
« Reply #71 on: 11 September 2018, 17:01:42 »

Also @ TB you bought considerably earlier than I did, I only bought when I was 27.  :)
But you still lost in the Smugness battle ;D


Bought my first at 21, when interest rates were well into double figures. Its all swings and roundabouts.


In reality, mine was paid off years ago, I only keep it running because it pisses Barclays off - I have a £125k guaranteed loan at about 1.4% in I want it, that under new rules, they have to show on their books :D
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TheBoy

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Re: Cost of rent in the private rented sector.
« Reply #72 on: 11 September 2018, 17:04:50 »

I could now downsize and be mortgage free, but MrsT would not be keen on that.  ::)  ;D
Send her out to work, and you be house husband, then see what she says ;)
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tunnie

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Re: Cost of rent in the private rented sector.
« Reply #73 on: 11 September 2018, 17:06:14 »

Also @ TB you bought considerably earlier than I did, I only bought when I was 27.  :)
But you still lost in the Smugness battle ;D


Bought my first at 21, when interest rates were well into double figures. Its all swings and roundabouts.


In reality, mine was paid off years ago, I only keep it running because it pisses Barclays off - I have a £125k guaranteed loan at about 1.4% in I want it, that under new rules, they have to show on their books :D

Maybe  :P  :D  :P

But you do have dual incomes, MrsT is full time mummy. So again all in round-abouts.

Still agreed that buying is the way though and renting is utterly pointless.

Suspect a fair few of my team are planning to buy, once Sky is bought out.  :)
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Re: Cost of rent in the private rented sector.
« Reply #74 on: 11 September 2018, 18:17:21 »

Also @ TB you bought considerably earlier than I did, I only bought when I was 27.  :)
But you still lost in the Smugness battle ;D


Bought my first at 21, when interest rates were well into double figures. Its all swings and roundabouts.


In reality, mine was paid off years ago, I only keep it running because it pisses Barclays off - I have a £125k guaranteed loan at about 1.4% in I want it, that under new rules, they have to show on their books :D
I appreciate the sentiment, my opinion of Lloyd's is broadly similar, but to keep a mortgage hanging around is madness.

Get it paid off and get your mortgage payment invested in something like, I don't know, retirement  ::)
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