Renting v Mortage

rachaelf750

Hi I'm just wondering what everone thinks.
I don't have a mortage (yet) and I have the benifit of renting a social house.
Should I be considering buying my house,and paying a mortage for the next 30 or so years and having something to leave to my children,when I'm gone or should I continue renting and have no substantial equity to leave them and enjoy family life with no stress of being in debt to the bank(gods).??;);):D

bonerm

Banks automatically put you on the secret high rate if you write to them asking for a mortage.

Dravokivich

What you've got to ask yourself is... "Can I afford the mortgage and do I consider the property to be worth it?"

prinz

If you are single/ with partner and no kids I'd say rent all the way. If you have kids I would say an affordable mortgage tbh.

Or rent until the balance in law between tenants and landlords in this country has been redressed, then rent all the way.

skywalker_208

rachaelf750 wrote: »

substantial equity to leave them and enjoy family life with no stress of being in debt to the bank(gods).??;);):D[/COLOR]

ehh - you forgot the stress of living in a house thats not yours so you have to think of possibility of eviction, landlord selling house, problems if you damage something, problems getting stuff fixed that breaks etc etc

Dravokivich

skywalker_208 wrote: »

ehh - you forgot the stress of living in a house thats not yours so you have to think of possibility of eviction, landlord selling house, problems if you damage something, problems getting stuff fixed that breaks etc etc

If you are renting a property there should be no problem getting something fixed...

_feedback_

skywalker_208 wrote: »

getting stuff fixed that breaks etc etc

Waiting a couple of days for the boiler to be fixed is more stressful than the bank having a firm grip of your balls for a large chunk of your life?

Nah, I know which I'd choose.

karlos11

Dravokivich wrote: »

What you've got to ask yourself is... "Can I afford the mortgage and do I consider the property to be worth it?"

That's exactly what you need to ask yourself. Do you want to own the house or the house to own you?! I've been renting since i left home - i'm 31 now - and the business i'm in doesn't really lend me to being able to afford to buy a house. (i'm a struggling actor!) But i don't mind renting.

Just be sure you can afford it. A friend of mine bought a house with his Mrs for €425,000 a few years back. They broke up. The house is now worth in the region of €260,000 - who would i prefer to be? Someone renting or in a situation like my mate? Of course this doesn't reflect on everybody who owns a house, it's just a 'for instance.'

I guess if i had the money, i'd be looking to buy - especially now.

thebigbiffo

the housing market is rock bottom (or very close it) at the moment. if you get an affordable mortgage (.ie at most what you are paying in rent at the moment) then it's a no-brainer. regardless of what the naysayers will blab on about in here, rent is 'dead' money. after 30 years you'll have an asset and it's pretty much bound to be worth more than what you'd pay for it now.

prinz

karlos11 wrote: »

That's exactly what you need to ask yourself. Do you want to own the house or the house to own you?! I've been renting since i left home - i'm 31 now - and the business i'm in doesn't really lend me to being able to afford to buy a house. (i'm a struggling actor!)

I thought Bank of Ireland sorted you out?

ScumLord

prinz wrote: »

If you are single/ with partner and no kids I'd say rent all the way. If you have kids I would say an affordable mortgage tbh.

Why though, it's not rally like you own the house with a mortgage, if you don't pay your mortgage are you not in more or less the same position as if you couldn't pay your rent? Having a mortgage will buy you some time but ultimately if you can't pay you lose your home.

Bill2673

thebigbiffo wrote: »

the housing market is rock bottom (or very close it) at the moment.

You might be right....

.....you might be wrong.....

We will know five or ten years time which it is...but we don't know now.

prinz

ScumLord wrote: »

Why though, it's not rally like you own the house with a mortgage, if you don't pay your mortgage are you not in more or less the same position as if you couldn't pay your rent? Having a mortgage will buy you some time but ultimately if you can't pay you lose your home.

If you have kids it offers a lot more stability IMO. You have more rights with a mortgage on a property than renting atm.

Like I said an affordable mortgage is key. Better off renting than taking out a mortgage that stretches you.

Dravokivich

prinz wrote: »

I thought Bank of Ireland sorted you out?

er... wasn't it the whole "Be with AIB," thing?

skywalker_208

Dravokivich wrote: »

If you are renting a property there should be no problem getting something fixed...

yes - there SHOULD be no problem.
But in my experience there is.

Whereas if you own the house yourself - there is no problem as you get it fixed yourself

bonerm

Dravokivich wrote: »

er... wasn't it the whole "Be with AIB," thing?

It probably was. I'm with BOI and i think I'd be taking my money out of there asap if I thought they were giving loans to actors (especially ones without carpentry skills).

Fergus

Run an amortisation calculator online for a 30 year mortgage and look how much interest and how little principle you will have paid after the first 5 or even 10 years.

If you have to move or sell before getting half way through the mortgage term, I think it's pretty financially disastrous compared to renting (unless there is very substantial property value appreciation - that's your risk to take).

Better to rent and save the difference in what should be a significantly less monthly payment, until you have enough cash to put down a sizeable % on buying a house.

prinz

Dravokivich wrote: »

er... wasn't it the whole "Be with AIB," thing?

So it was.

karlos11

Dravokivich wrote: »

er... wasn't it the whole "Be with AIB," thing?

It was! That add made me laugh!

McTigs

thebigbiffo wrote: »

the housing market is rock bottom (or very close it) at the moment. if you get an affordable mortgage (.ie at most what you are paying in rent at the moment) then it's a no-brainer. regardless of what the naysayers will blab on about in here, rent is 'dead' money. after 30 years you'll have an asset and it's pretty much bound to be worth more than what you'd pay for it now.

Sorry but this is utter codswallop.

Number 1, The housing market is nowhere near rock bottom. Rental yeilds are about half what they should be for normal market conditions, the banks are insolvent and there are 450,000 people on the dole who won't be going back to work anytime soon. A good 35% off current asking prices to go (and that's being conservative)

Number 2, social housing rent is about 500 a month yeah?) For mortgage repayments of 500 you are talking about a 100,000 mortgage at normal interest rates (the tiny rates we have now will go up). There is nothing you can buy at the moment for 100,000.... yet.

Number 3, Rent is not dead money. If average house prices drop this year by say 10,000 (which they will and more) and you pay 6,000 in rent, well then you are 4000 better off no? The "Rent is dead money" cliche has no revevence in a deflating market.

When house prices are dropping by less than the rent you are paying, then it is time to buy. It will be a about two years before that happens imho.

mickos

thebigbiffo wrote: »

the housing market is rock bottom (or very close it) at the moment. if you get an affordable mortgage (.ie at most what you are paying in rent at the moment) then it's a no-brainer. regardless of what the naysayers will blab on about in here, rent is 'dead' money. after 30 years you'll have an asset and it's pretty much bound to be worth more than what you'd pay for it now.

Biffo lol:D Sure no better time to buy Brian!

ShadowGal

i think there is another year or 2 of falling house prices ahead, im renting and im just going to keep saving for the time being