This is a myth.One of your first priorities should be to buy a house, if you are renting as you are paying someone elses mortgage.
Currently, if you buy, you are renting from the bank at more than you would rent from a private landlord for an equivalent property.
Yes, because the comparison is the interest you pay on your loan versus the rent you pay.Yoganmahew,
you may be "renting" from the bank at more than you would rent from a private landlord, but you also end up owning the property. Is this view incorrect?
I have not included the mortgage interest relief:
1. Because it is in the gift of the government
2. Because it will be balanced out by changes in interest rates over the term of the mortgage
3. Because it does not reflect the value of the property, as opposed to its affordability.
Well rent is down overall in the past few months, despite it's rising trend over the year!What happens if rent goes up by more than interest rates, which I believe is happening in alot of areas at the moment.
Yes, I've seen it.There's an interesing "when is buying better than renting" calculator in the New York times
http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=1&oref=slogin
Obviously, it predicts certain things in the future, but I think over the course of your lifetime, buying will always work out better than renting.
Er, this is what two of the previous posts are about?Here's an interesting site for those of you who want to argue the toss about which is better - renting or buying.
http://www.nytimes.com/2007/04/10/b...html?_r=3&oref=slogin&oref=slogin&oref=slogin
Put some real numbers around your assumptions and extrapolate.
Be interested to know if anyone has a change of mind based on hard analysis, rather than using cliche-laden verbal arguements.
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