Mortgage cheaper than rent?

You are thinking about this backwards.

The landlord doesn't set their rent at whatever they need it to be to cover their costs.

The tenants collectively set the maximum rent for the market based on what they are able to pay.

Doesn;t matter what the cost to the landlrd is - landlords can't push it any higher if the money isn't there to pay it.

So potential landlords start by looking at the achieveable rent and decide whether it will cover their costs or not.

Yes once a landlord is in, if an additional cost comes up, the LL can try to pass the additional cost on by raising the rent. But they run the risk of losing their current tenant and not getting anther one - it's not a given their tenants can suddenly cover higher rents just because the landlord's costs have gone up.

Just as when food goes up, some people may pay more for the same food but others may already be at their limit so their only choice is to pay the same amount as before but get less for it. And some tenants, faced with a rent increase, will downsize/move areas instead.

In other words, the ultimate limiiting factor for both rentals and purchases is not what the LL or the seller wants to get, but whether any tenant/buyer is able and willing to pay it.

After all, landlords who bought years ago and so have very low costs don't go round charging less than the market rate, do they?

But you do not know what rents will do in the next 25 years. As I said there are too many variables. Rents in my area (SE) have trebled over 30 years. The base rate has moved between 7.5% and 0.25% in the same period- no one would have predicted that wide a range.

I live in a 2 bed flat in a medium sized Scottish city. Very similar to the rented one I just moved out of. Like for like area. Rented flat - £750 per month. Current mortgaged flat - £595 per month.

It depends on how much you borrow but if you buy a similar size house in the same area then your mortgage would be cheaper. My daughter is about to buy after renting for a few years and it's definitely the case for her.

I honestly give in
I'm out

Then finally you accept that when you have had costs you put the rent up.

It's really not hard

my Mortgage is £664 a month, 3 bed terrace. Neighbours all rent and average £1400pcm!

But surely if you made an improvement to a property you would increase rent as long as it was within the market rate.

The market rate is a window between £X and £Y
If you're not able to increase after an improvement then you must already be at the top of the rate. Or you'd be under market value

totally depends how much deposit you have. A lot of people move area when they buy as well so cannot make a fair comparison. Our mortgage is the same as our rent was but we own a 3 bed house in Sussex, and rented a 1 bed flat in zone 2 London!

I think it's true for London and the area. Our 3-bed flat rent was 1600 monthly and our mortgage on a 3-bed semi is 1300.

In one of your posts you say you've been a landlord for 29 years.
When and why have you put the rent up?
Did you just pluck a figure out of the air?
Or did you sit down with a calculator and work it out like a financially responsible person?
You are starting to sound deliberately obtuse

I have only owned two homes. If I had 100% mortgage on them, this would have been cheaper, though not by much, than paying rent on a similar property in my area. Of course I have additional costs as the owner, but I have considerable benefits from that that easily outweigh that cost.

Depends on how you look at it. Yes I know people who are renting that get all kinds of work done free & their rent paid etc. I even have a family member that has a beautiful council bungalow & large garden in a really nice area. They now only pay a small rent on it. BUT I own mine & never have to fear being given notice & for ME, that's priceless.

Yes much cheaper at first not at all ..now with 1?6% interest it's a couple of hundred bit that will go soon when we remortgage next year

There not but home owners especially mortgage free ones should be factoring in things like new boilers, new windows etc as these are essentials long term. I wont be mortgage free till about 62 but we had no alternative to part buy. I got told by my local council we had no chance of getting a house because we worked. At the time I was on maternity, dh had been made redundant and we had no spare money. I had to go back to work early and dh found a much lower paid job. I was appalled at my local councils attitude. They even commented about my lack of abusive language when I spoke to them. Thankfully now working families can get homes in my area again.

Of course i mean increase the rent
When costs of food etc go up this is passed on to the customer ie prices are raised.
Tell me what costs go up that do not cause a rent increase?

Yeah, of course you did

😂😂

Thing it, this all depends on SO many things that I don't think you can categorically say it is true or untrue. When we first bought our house, our mortgage was roughly the same as the rent we had previously been paying (we had been renting a 2 bed property in a very nice village, moved to a 3 bed house in the nearby town). We fixed our mortgage for 10 years, so our mortgage payments continued to be the same while rent will have, I assume gone up in those 10 years. We continued to fix long term, and moved a few years ago with a lot of equity. We have now paid off our mortgage, but before we did, we were paying £600 a month on a 3 bed detached house in a very nice part of town that I suspect would be close to £2000 a month to rent.

So in my experience, buying is much cheaper than renting in the long term. But you appear to be wanting to compare someone buying a near identical house to one they'd be renting, right now, with no deposit at all, and no consideration for what happens in the following years.