Yes, but he is the one with the asset, and you are the one paying for it. You are paying for his pension – very generous of you.

Depends on how much his out goings are compared to the rent.

4% depreciation

??? what is depreciating?

??? what is depreciating?

The house, it’s in a row of similar ones, at the peak I think one sold for £120k, next door has now been on the market for almost 2 years at £100k and not sold, the one 4 doors down just sold for £55k (but requires a big chunk of renovation).

Yes, but he is the one with the asset, and you are the one paying for it. You are paying for his pension – very generous of you.

Actualy he’s paying mine, as the only person making money out of the whole bit of a mess att he moment is the bank, and odds are some of my pension fund is invested in their shares 😛 At some point they’ll have a house worth something and it’ll start making money, but untill then my rent doesnt even cover the depreciation and interest payments on that ‘asset’.

What’s the depreciation on a tank?

Woah – molgrips and me agree on something – whats next tj being wrong about something 🙂

The house, it’s in a row of similar ones, at the peak I think one sold for £120k, next door has now been on the market for almost 2 years at £100k and not sold, the one 4 doors down just sold for £55k (but requires a big chunk of renovation).

That’s only part of it’s life though. What if it had been bought in 2003 for £50K?
To say that a property will depreciate over the term of a mortgage (20+ years) is not correct.

To say that a property will depreciate over the term of a mortgage (20+ years) is not correct.

I didn’t say it would, and historicaly house prices have generaly always gone up. So yes, at some point it’s reasnoble to assume that baring a zombie apocolypse* or Greece defaulting** house prices will rise in the long term.

*leading to rampant inflation of the price of binners tank

**let’s create a straw man argument here; causing a banking crisis and they’ll need money from somewhere, my landlords ‘asset’ for example, leading to higher rates and lower prices as houses get re-possessed………..

Funnily enough I am in the Daily Mail today in a feature on mortgages and house buying. We’ve made provision for the end of our fixed term but definitely thought it was a good time to buy given good deals that were around and wouldn’t be for long(proved right I think).

http://www.thisismoney.co.uk/money/mortgageshome/article-2143091/New-mortgage-rates-rise-lenders-seek-shore-battered-finaances.html

So what’s the mail’s conclusion? Buy now and save on the repayments for the fixed period with a low intrest rate. Or not buy now and save on the repayments as the house will be cheeper to start with?

I want a tank.

🙁 moving in delayed by another week again. Solicitors 🙁

Thisisnotaspoon – For the landlord figures you need to subtract £2000 for payment off capital (I.e. He’s payed off a portion of the mortgage). Eventually the landlord will stop paying the mortgage whereas you will continue paying rent and he/she will have a 100k asset (even assuming no growth in house price).

Short term rental ‘view’ against long term houseowner view. That’s probably the difference, and depends on your outlook.