A UKRM retreat

Erm maybe. I'm now working in Worcester. A combination of that, plus
Anya and I wanting a house rather than a flat, and Solihull being
fucking expensive has lead to us looking further south.

Shorter commute to work for me, bigger house for our money, etc.

 

The patter of tiny feet...

 

Ah, right - I knew you had a new job, but missed the location.

Sure. Obviously, I like this part of the world, and it's all good
between here and Worcester, on both sides of the M5, as far as I'm
concerned.
--
Please add "imo" to above post.
Champ
GSX-R 1000, GPz 750 turbo, ZX7RR Endurance Racer x 2
GYASB#0 BotToS#2 BOTAFO(T|F)#35 WG*#1 DFV#8
Team UKRM Racing : www.team-ukrm.com

 

Weird. I can only give figures in my own area, but, say for the sake of
argument, we consider a 2 bedroom non-purpose-built flat in Enfield. To
buy, you'd be looking about 200K. A 90% mortgage would cost you about
1000 quid/month. To rent one in the same area, you'd be looking at 1250
or so/month.

A three bedroom house will cost between 220 and 280K depending on area
around here, but you'd be looking at 1500-1600 quid to rent it.

My earlier figures were slightly skewed by the fact that my mortgage is
~60% of the value of my house, but I don't think comparing a 90%
mortgage against the rental value is unreasonable.

 

I think a £180,000 mortgage would be a bit more than £1000 pm. Probably
more like the £1250 for the rent. Either way your point still stands.

 

stands.

I have a £190,000 mortgage; it's only a bit over 1K/month.

 

What's your interest rate and repayment period though?

 

According to a quickly knocked-up Excel sheet £180,000 over 300 months @
4.7% is £1,025 pm.

--
AndrewR, D.Bot (Celeritas)
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The speccy Geordie twat.

 

dunno - I let Angie sort that out - I just pay it.

Well, it's a 25 year mortgage - think it's somewhere just under 5%.

 

there you go, then.

So, I'd maintain that in Enfield, renting is at least 25% more
expensive than buying.

 

Yeah but when the property market crashes all the renters will be laughing.

Or at least that's what I've seen said here before by those not buying

 

laughing.

how's that work, then?

If the market "crashes", at best those renting will be unaffected.

A small crash would probably suit me, as in the mid-term I'm going to
be looking at acquiring a 2nd property as a buy-to-rent.

 

I spent 3 years saying that - the 'reason' to laugh was that I would
buy on a down, not an up. But I gave up waiting and bought anyway,
probably near the top of the market. In fact, the guy I bought off
was desparate to sell, and could see that the market was about to
flatten out, so I think I got a reasonable price.
--
Please add "imo" to above post.
Champ
GSX-R 1000, GPz 750 turbo, ZX7RR Endurance Racer x 2
GYASB#0 BotToS#2 BOTAFO(T|F)#35 WG*#1 DFV#8
Team UKRM Racing : www.team-ukrm.com

 

The three bed house I was renting cost me 750 a month, and would have
sold for about 220~240.

No, 90% is probably about right - unfortunately, it's the size of my
mortgage.
--
Please add "imo" to above post.
Champ
GSX-R 1000, GPz 750 turbo, ZX7RR Endurance Racer x 2
GYASB#0 BotToS#2 BOTAFO(T|F)#35 WG*#1 DFV#8
Team UKRM Racing : www.team-ukrm.com

 

I've heard otherwise reasonably sane people talking about selling their
houses now, and moving to rental accomodation until the crash happens
and then buying a house again.

For the above to be even remotely worth doing in my case, the market
would have to crash at least 20% + 0.5% per month I had to rent. I
don't think it's going to happen.

By the way,

is really fucking irritating.

 

It was tongue in cheek.

 

Up 1% in February apparently.

 

In Enfield, certainly, but not in Harrow where the rental market
doesn't seem quite as buoyant.

My situation is very close to your original example:
200K non-purpose built flat, mortgage of 170K costs
<1K/month but rental is only 850/month.

 

weird. Presumably the owner of the property bought it a long time
ago/only had a small % mortgage.

ah, so you're the sort of fucker who'll be fucking fucked if we go into
a deeper recession, with no job and negative equity...

 

Enfield, whilst not "trendy" has recently (within the past 5 years,
say) become popular with young-ish single people - I guess a lot of
these people just can't get a mortgage of 180K, but can still
reasonably easily afford 850-1250/month rent.

wibble flip etc.

It does however sound as if Enfield is a good place to do a
buy-to-rent.