Inheritance tax ...

JohnD said:
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.
Click to expand...
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
SMALL-0178.jpg
 
Last edited:
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.
 
motorbiking said:
Cities and accommodation are pretty much the same all over the world. Is what you said.
Click to expand...
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
 
motorbiking said:
Tell me how my tenants are better off owning rather than renting
Click to expand...
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
 
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
 
motorbiking said:
...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.
Click to expand...


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 said:
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.
Click to expand...

Points that motorbiking was quick to avoid.
 
Notch7 said:
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
Click to expand...
do you actually understand how a repayment mortgage works ?
 
You must log in or register to reply here.
Back
Top