I'd rent for 15% of my salary instead of 40%. Yes, I'll get a house if I manage to survive with 60% of my salary. But, in reality I'll be extremely miserable if I take the loan path. Who knows, I'll be sick and die in vain before I get the house certificate.
I don't have a problem with loan, just trying to be realistic. Also, wise man says "don't spend over 20%/month for a loan."
Topic: Own a house or rent one? Quick survey! - page 5. (Read 694 times)
Can you confirm the length of mortgage because mortgages are normally half of rent costs in the UK over a 24-26 year term.
If renting is cheaper than a mortgage it might make sense to work out how much you're paying on a mortgage compared to rent.
For a mortgage at 4%, the 15$ rent and saving/investing in stocks or a local company with $25/month might be better
That being said, you'd probably put in for a 26 year mortgage and pay it off much earlier, but imo you're better off saving at least 12 months of mortgage payments as a rainy day fund before paying of the rest (even if everything is insured).
Based on the UK metrics, if you're staying somewhere for up to 3 years, renting is the best choicee to make unless you're buying with cash from an online estate agent.
Mortgages are good if you're staying somewhere for more than 3 years as you should build enough equity in that time.
Getting approved for a mortgage is normally the hardest bit though as it's normally 3x-5x earnings + a 5% deposit.
Individually, the average salary gets you a mortgage of £185k, while the average house is worth £350k...
If renting is cheaper than a mortgage it might make sense to work out how much you're paying on a mortgage compared to rent.
For a mortgage at 4%, the 15$ rent and saving/investing in stocks or a local company with $25/month might be better
That being said, you'd probably put in for a 26 year mortgage and pay it off much earlier, but imo you're better off saving at least 12 months of mortgage payments as a rainy day fund before paying of the rest (even if everything is insured).
Based on the UK metrics, if you're staying somewhere for up to 3 years, renting is the best choicee to make unless you're buying with cash from an online estate agent.
Mortgages are good if you're staying somewhere for more than 3 years as you should build enough equity in that time.
Getting approved for a mortgage is normally the hardest bit though as it's normally 3x-5x earnings + a 5% deposit.
Individually, the average salary gets you a mortgage of £185k, while the average house is worth £350k...
Hi guys, I am trying to understand certain psychological parameters of young tech savvy generation when it comes finance with responsibility. The question is simple,
Let's assume you make 100 USD salary every month. You can buy a house through mortgage loan and your monthly payment will be 40 USD and that is a long term commitment.
But you can also take a house on rent where your monthly outgoing will be 15 USD. You are free to leave and move to another house anytime you want.
What would you do? Explain your reason.
Imp: I need your answers based on your current location, socio economic scenario, job security, financial backup etc. You don't need to share these details but consider this real life details while making decision.
Let's assume you make 100 USD salary every month. You can buy a house through mortgage loan and your monthly payment will be 40 USD and that is a long term commitment.
But you can also take a house on rent where your monthly outgoing will be 15 USD. You are free to leave and move to another house anytime you want.
What would you do? Explain your reason.
Imp: I need your answers based on your current location, socio economic scenario, job security, financial backup etc. You don't need to share these details but consider this real life details while making decision.
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