Inheritance tax ...

[motorbiking]

Wrong.

Is a person lucky enough to own a million pound house (or a half million, or a quarter million) likely to be wealthier than a young family doomed to live out their days in rented accommodation? Paying rent to help the landlord buy a house, but unable ever to buy one of their own? And with nothing to show for a lifetime of paying rent?

There's something wrong with a country where a family can't buy a house.

But they can buy one for somebody else.

Here is a comparison.

A 1 bed flat owned by me - value £250k
Monthly Rent £900 pm

Mortgage for a 250k loan £1,461 p/m

I could probably get £1,100

On top if they are the leaseholder, they have to pay
Landlords rip off building insurance £600 per year (paid by me)
Ground rend £100 per year
Management fee £1,100 per year.

Tell me how my tenants are better off owning rather than renting? Particularly if they took the money they save from not owning and ISA'd it in a nice stock ISA that returned a modest 9% a year. tax free.

They could buy this with what they saved after 15 years

 

[noseall]

They could buy this with what they saved after 15 years

Is that a Greek Island?

 

[JohnD]

A 1 bed flat owned by me - value £250k

I wonder what you paid for it.

 

[JohnD]

Monthly Rent £900 pm

Mortgage for a 250k loan £1,461 p/m

I wonder if at any time in the next 25 years the rent will go up

If they move out after paying rent for 25 years, what will they have to show for it?

 

[JohnD]

Motorbiking tries to tell us that renting is a better deal than buying.

Is he sincere?

If he really believed that, he'd be a renter not an owner.

No, he isn't.

He owns multiple homes, some of them rented out to people who can't buy a home of their own.

Does he think buying houses is a poor investment?

If he did, he wouldn't do it.

He is dishonest and says things that he knows aren't true.

 

[carmanmemoranda]

Cities and accommodation are pretty much the same all over the world. Is what you said.

Yes and that FACT. holds true. There are slums too. It doesn't say Every city is the same, but proves that city space is expensive wherever you choose.

You do understand you were trying to tell us we live better than Europe and had to go to India for your point.

You enjoy misleading ? I chose that word carefully. But there are others that could be used

 

[Notch7]

Tell me how my tenants are better off owning rather than renting

At the end of the mortgage period:

You the landlord will own an asset worth say £400,000
The tenant will have an asset worth = £0.00


Oh and by the way, if it’s a repayment mortgage, the monthly repayments fall over the period as the principal sum starts to be paid off

Whereas rent keeps on increasing.


It’s obvious you are FOS otherwise you wouldn’t own houses but rent them

 

[carmanmemoranda]

I find it strange that mbk thinks it's better to rent than own .

And can "prove" it with figures.

And expects people to believe him

 

[JohnD]

I find it strange that mbk thinks it's better to rent than own .

He doesn't really think that.

He's just trying it on.

 

[noseall]

Mortgage for a 250k loan £1,461 p/m

At what rate?

 

[JohnD]

At what rate?

A 1 bed flat owned by me - value £250k

5% deposit required.

They wouldn't get a 250 loan on a 250 flat.

 

[JohnD]

...A 1 bed flat owned by me - value £250k
Monthly Rent £900 pm

....if they took the money they save from not owning and ISA'd it in a nice stock ISA that returned a modest 9% a year. tax free.

If motorbiking sincerely believed that twaddle (he doesn't) he'd sell the flat and invest the £250,000

His 9% projected return on investment is £1875 a month before tax. No ground rent, no insurance, no agents fees, no repairs, no need for a new boiler or roof repair. If he has taxable earnings he could wedge it into a pension scheme over time and get other tax benefits, including tax rebate, tax free cash, and potentially avoidance of Inheritance Tax (the original subject of this thread).

He is temporarily pretending houses do not get Asset Price Inflation.

 

[JohnD]

Wrong.

Is a person lucky enough to own a million pound house (or a half million, or a quarter million) likely to be wealthier than a young family doomed to live out their days in rented accommodation? Paying rent to help the landlord buy a house, but unable ever to buy one of their own? And with nothing to show for a lifetime of paying rent?

There's something wrong with a country where a family can't buy a house.

But they can buy one for somebody else.

Points that motorbiking was quick to avoid.

 

[gas112]

Oh and by the way, if it’s a repayment mortgage, the monthly repayments fall over the period as the principal sum starts to be paid off

do you actually understand how a repayment mortgage works ?

 

[Murdochcat]

I wonder if at any time in the next 25 years the rent will go up

If they move out after paying rent for 25 years, what will they have to show for it?

What is your solution then ?