[pauljohncleary]

>I wonder how many renters are actually aware of this difference, versus just spending their extra disposable income on fancy clothes, booze, and gadgets.

Where I live (London), rent is more expensive than mortgage repayments.

[briandear]

Does that take into consideration the amount of down payment necessary to get a mortgage? If you pay 20,000 pounds to get a mortgage that saves you 200 pounds a month; you're looking at a bit of time before that starts paying a return. Unless the value is increasing and you're able to cash out equity through a refinance.

[cowls]

Compared to the interest only part, the savings are significant. Way more than 200 per month.

The capital repayments are not money lost in the same way that rent would be (assuming your house price doesnt plummet and you are forced to sell at that time).

So in the UK (outside London at least) at the moment there is little argument for renting, assuming you can afford the down payment.

London is a slightly different beast mind as prices have skyrocketed and down payments can be huge

[vetinari]

The time value of expected rent (minus future maintenance costs, minus the value of expected vacancy periods) has to cover at least current sales price . Otherwise, it would make no sense to rent your property instead of selling it.

So, if it makes economic sense to rent it, someone is making money on it. After all, the flexibility of renting has to have a price tag too.