mortgage or rent?

Question

why are people obsessed with mortgages i am far better off renting opinions welcome

Answer 1

I totally agree.

People prefer to pay rent to their mortgage providers instead, because it makes them believe that THEY somehow own the property they live in (and not their mortgage providers).

If you can buy cheap, get a cheap mortgage and sell at a huge (and I mean huge) profit, buying makes sense.

In south UK at the moment, prices are SO over-inflated and mortgages set to rise that repossessions are the biggest growth area. Buy a house in south UK today and you risk a very large deposit of your own money against a house that will be worth half what you pay for it when the bubble bursts.

Rent maybe money down the toilet, but nobody thinks about the thousands of pounds that can be lost when the market devalues (currently more than 20% over-valued over time) and your home is reprocessed, let alone the trauma.

If you fall on hard times in UK, benefits system will NOT pay your mortgage, but if necessary WILL pay ALL of your rent.

Then there is the ease at which you can move and the fact that the property in which you live is someone else's responsibility.

I note that previous answers focus on PAST experience, if you buy at the right time it makes sense. You have to know what you are doing, and be fairly sure you know where the market is going. A few years from now (if you invest your deposit money), you could have your pick of the homes of most of the other answerers here. I saw this happen in late eighties/ early nineties!

Just my opinion, but I would not buy in UK at moment, I'd rent, and if I had to rent, I'd rent from a housing association.

Answer 2

If you can afford it, a mortgage is much better because you are putting money into something that is yours, instead of into something that will never be yours. But mortgages do carry a certain risk - if for what ever reason you find you can't meet the payments at a certain point, the bank can repossess your house, and then it's no longer yours. If you're going to get a mortgage, just made sure you leave enough room for manoeuvre, don't stretch your finances to the limit right from the start.

Answer 3

People feel they are more in control with a mortgage.

Also, paying rent is dead money. Once its gone you have nothing to show for it, other than you are a month onder.

Paying a mortgage, which is normally a similar amount to rent, menas you are buying the property. Often the increase in house prices means you get all your money back in the end:

EG: I lived in my last house for 9 years. Mortgage was £500/month. rent would have been about £1000 / month

So, if I rented I'd have paid £108,000 over 9 years.

With the mortgage I paid £54,000 over 9 years.

BUT the house went from £87,000 to £250,000. So I made £163,000 in 9 years.

So, with rent I would pay out £108 K, with mortage I MADE £109K

No brainer for me.

Answer 4

I guess cos when you rent you pay out money but dont get anything at the end of it. At least when you have a mortgage you have the house that it yours at the end of the mortgage.
I personally rent too, cos houses are so expensive I couldnt get a mortgage high enough for me to buy

Answer 5

In Belgium and Holland most ppl rent houses or apartments because of prohibitive demands on a deceased estate by the state usually around 40% so whats the point in buying and working all your life when the state takes so much,Hope this helps.

Answer 6

well the obvious one is that when you are finished paying your mortgage you actually have a house to show at the end of it! If you are happy paying rent then good for you.

Answer 7

If you can get a mortgage it is best to buy. I just finished paying mine off and can now live with no payment to the bank and no landlord making money off me. Even if you buy with no intent to stay forever, you can always sell and as long as you can make enough to pay off any balance you have your ahead of the game. Your house increases in value every year. Money you pay to a landlord goes down the drain.

Answer 8

The best amswer I can give you is that I purchased a house for $17,500 years ago. My mortgage and deposit cost me a total of @ $40,000. I put in about $75,000 in repairs and improvements. It sold last year for $425,000. Profit --- $310,000. I bought another house for $194,000, from an estate, in perfect condition. I did put in $10,000 in improvements. That left me with $106,000 in my pocket with $0 mortgage Renting for $115,000 leaves me with a negative $115,000 and more rent or a mortgage, I hope that helps.

Answer 9

Mortgage is far better if you can get it.. you are paying for something that is your property and not paying dead money like renting.

Answer 10

Do you have, or want kids? That is the bottem line, if you want them to have a great start in life, get a mortgage. Plus-why make some other stupid f*cker rich, when you could eventually own what you are paying for.