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Your thoughts on this rent or buy calculator

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  • 13-04-2012 11:55am
    #1
    dario28
    Registered Users Posts: 1,187 ✭✭✭


    What you all think of this

    http://www.myhome.ie/rentorbuy

    i have my reservations just looking for overall opinion


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    #2
    RATM
    Closed Accounts Posts: 3,591 ✭✭✭RATM


    It's from myhome.ie so you can automatically assume it will be skewed in favour of buying, those folks at the Irish Times are gagging to get the 2007 frenzy back as the paper itself is basically broke due to their own folly of spending €50 million buying myhome.ie.

    Best to do the calculations yourself OP.


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    #3
    Snakeblood
    Registered Users Posts: 4,466 ✭✭✭Snakeblood


    dario28 wrote: »
    What you all think of this

    http://www.myhome.ie/rentorbuy

    i have my reservations just looking for overall opinion

    Ignores property tax going up (the only way it's going), and ignores interest rates over 6%. Pfft.


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    #4
    nukin_futs
    Registered Users Posts: 63 ✭✭nukin_futs


    Hmmm, if I am a renter how do I have 'capital owing'? Not clear to me.

    Also I wonder what the assumptions are for the deposit paid when buying.

    Reading some of the information they state that they are using 35 years as the term of the mortgage "in reality 35 years is actually the most popular term for first time buyers". I thought this would be the case because people were borrowing such large amounts - in 2006 I may have needed to borrow 400k to buy the house. To keep repayments (somewhat) manageable the term needs to be 35 years. Today I can borrow 250k and making the same repayments as above would only require 20/25 years.
    Edit: 30 years is used

    Ignores household charge, property tax(es), any other rates/costs a home-owner may be liable for, costs of maintaining a property or management fees if applicable all of which a renter would not be subject to.

    Useful as a guide but, as said, do the sums yourself.

    [In 2006 estate agents told me I was mad to rent, that I should buy.
    Today, according to this, I should buy not rent.
    I wonder what this calculator would have suggested had it been available in 2006 :p]


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    #5
    Kaner2004
    Closed Accounts Posts: 143 ✭✭Kaner2004


    Id say that anyone in the last few years, or finished their mortgage now would know which is better.

    And people who own their own homes always think buying was better than renting. But renters always think renting is better than buying.

    mmmmm.


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    #6
    Villa05
    Registered Users Posts: 4,613 ✭✭✭Villa05


    This is a much better one from Ronan Lyons (Daft.ie economist)

    http://www.ronanlyons.com/2010/04/20/your-very-own-rent-or-buy-calculator/

    Good website also


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    #7
    Kaner2004
    Closed Accounts Posts: 143 ✭✭Kaner2004


    I love the way they always say "the life of the mortgage" as if the calculation should end once the mortgage is finished.
    Say you get a 25 year mortgage and live there for 50 years.
    Its not like you stop renting after 25 years or stop living in your house after the mortgage is paid off.


    I also love the way they dont take stamp duty or property taxes into account either. All of these calculators are flawed.


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