You can't go wrong with property investments You can't go wrong with property investments
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  1. #1

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    Default You can't go wrong with property investments

    The Buyer/Seller

    Average house price (1980): £23,348
    Average house price (2000): £81,202
    Deductions: Stamp duty £233, legal and other fees £700, maintenance £16,126, mortgage interest £41,091, capital repaid £14,942
    Overall loss: £15,238
    Sources: Nationwide, Savills, MoneyWeek

    The Renter

    Rental cost of average house (1980-2000): £80,630
    Gain from buyer deposit if invested in shares: £101,339
    Gain from other costs if invested in shares: £21,179
    Overall gain: £41,888
    Sources: Savills, Barclays Equity Gilt study, MoneyWeek


    Time to stop laughing at renters!
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

  2. #2

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    Quote Originally Posted by DimPrawn View Post
    The Buyer/Seller

    Average house price (1980): £23,348
    Average house price (2000): £81,202
    Deductions: Stamp duty £233, legal and other fees £700, maintenance £16,126, mortgage interest £41,091, capital repaid £14,942
    Overall loss: £15,238
    Sources: Nationwide, Savills, MoneyWeek

    The Renter

    Rental cost of average house (1980-2000): £80,630
    Gain from buyer deposit if invested in shares: £101,339
    Gain from other costs if invested in shares: £21,179
    Overall gain: £41,888
    Sources: Savills, Barclays Equity Gilt study, MoneyWeek


    Time to stop laughing at renters!
    Good article - I am sure there must be something wrong here. Is it the "Gain from buyer deposit if invested in shares"? Seems very large to me.....

  3. #3

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    Quote Originally Posted by BrilloPad View Post
    Good article - I am sure there must be something wrong here. Is it the "Gain from buyer deposit if invested in shares"? Seems very large to me.....
    Remember the shares are pre dot-com crash. They went through the roof (geddit!)

    http://news.bbc.co.uk/1/hi/business/7726389.stm
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

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    Time to start laughing at people duped by primary school level statistics.

    It forgets that the Buyer has an asset worth £76k in that example.

    Also, the Renter has turned their potential deposit (prob around £2k) into £100k in 20 years?? How so?

    Utter tosh!

  5. #5

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    Quote Originally Posted by DimPrawn View Post
    The Renter

    Rental cost of average house (1980-2000): £80,630
    Loss from buyer deposit if invested in shares:
    Loss from other costs if invested in shares:
    Overall loss:
    Sources: Savills, Barclays Equity Gilt study, MoneyWeek


    Time to stop laughing at renters!
    I've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.

  6. #6

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    Quote Originally Posted by DimPrawn View Post
    Remember the shares are pre dot-com crash. They went through the roof (geddit!)

    http://news.bbc.co.uk/1/hi/business/7726389.stm
    Conclusion: renting is a good idea if you can invest the deposit in a boom.

    IOW if you can foretell the future, you can get rich.

  7. #7

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    Quote Originally Posted by Alf W View Post
    Time to start laughing at people duped by primary school level statistics.

    It forgets that the Buyer has an asset worth £76k in that example.

    Also, the Renter has turned their potential deposit (prob around £2k) into £100k in 20 years?? How so?

    Utter tosh!
    capital repaid £14,942

    25 yr mortgage, 20 year (1980 - 2000) period hardly any capital is repaid, it's almost all interest paid.

    You should get a job in investment banking!
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

  8. #8

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    Quote Originally Posted by DimPrawn View Post
    Time to stop laughing at renters!
    Presumably their landlords did well during that period too? Renting is clearly a source of free money and we should base our whole economy on it.

  9. #9

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    Quote Originally Posted by TimberWolf View Post
    Presumably their landlords did well during that period too? Renting is clearly a source of free money and we should base our whole economy on it.
    Hey, I'm just reporting the "facts".

    The conclusion is simple.

    Sometimes it better to be a renter and sometimes it is better to have a mortgage and pay interest.

    But I prefer to own property outright and pay neither.
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

  10. #10

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    Quote Originally Posted by DimPrawn View Post
    Hey, I'm just reporting the "facts".

    The conclusion is simple.

    Sometimes it better to be a renter and sometimes it is better to have a mortgage and pay interest.

    But I prefer to own property outright and pay neither.
    It's better to be a renter if your rent is much less than a mortgage payment, in the short term. I have doubts about their figures and one day I might even write an app. to run through this numerically, taking inflation etc into account.

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