AIBU to be upset about renting?

[desperatehousehunter]

I've always rented. It's not that I don't love my house (and the previous places I've rented), and there are lots of positives to renting that I really appreciate, it's just that I'm getting bummed out about the fact it's not mine.

If we want to decorate we have to seek permission or change it back before we leave. If we want a pet it's up to the landlord. The standard tenancy seems to be 6months-1year so we constantly feel like there's a chance we'd have to leave our home (not to mention each time the tenancy is renewed we have to pay a £60 admin fee and the rent usually goes up).

I know that the solution to this problem is to buy a place - but that's easier said than done! I've got a good job and it's not that I couldn't afford a mortgage (in fact after meeting with the bank I've discovered that my mortgage repayments would be about 2/3 the amount I'm spending on rent, so I'd be better off to buy somewhere) it's the deposit that's the problem. I've been saving for 4 years and so far I don't have enough for a deposit and fees. The bank suggested I borrow money from my family, but it's just me and my siblings and they're saving for a house of their own too.

Should I just suck it up and accept that renting is the new normal? Or do I have a right to be feeling down about how difficult it is to buy a house?

Any advice? WWYD?

[PinkHamster]

YANBU if that's how you feel.

I do feel renting is the new norm however. I rent and I don't think I'll ever get to buy my own place. I think I'm okay with that though.

[cailindana]

How far from a deposit are you? Could you really step up the saving, go for it, and get it sorted in a couple of years?

[EatDessertFirst]

We are in the same position. We earn enough between us (DP full time, me part time) for amortgage payment that would be way lower than our current rent but just can't save a large enough amount for a mortgage. If I work full time, childcare would wipe out the difference so its pointless at the moment.

People say that renting is 'wasted money' which to some extent is true I suppose, but I think Britain as a whole is far too hung up on owning your own pad. There are advantages to renting (can move at relatively short notice if you want, don't have to find money for boiler repairs etc) and a lot of landlords are very reasonable about decorating, pets etc. We have been in the same house for five years and are intending on staying another five years. Our financial situation and the economic situation may be totally different in a few years

YANBU to feel this way. If I think about it too much it frustrates me too.

[BettySwollocksandaCrustyRack]

I think you just need to remember that us in the UK are one of the few countries who are so fixed on owning their own house - in a lot of countries renting is the norm.

It is easier said than done to buy a place so for now, whilst you are renting just enjoy the freedom, enjoy the fact that if the place has serious structural problems it's not down to you blah blah blah - being a property owner isn't plain sailing all the time.

Just work towards a deposit if that's what you feel you need to do but try not to be down about renting - loads of people do it. I am a LL and I appreciate the fact that whilst it is technically my property my tenants are living in, it is actually their home. As long as you have a nice decent LL then just try and enjoy it.

[QuacksLikeADuck]

Yes it's shit. And successive governments don't seem to care one iota about it. Not everyone should need to buy to feel secure in their home. The whole rental market needs re-jigging from the ground up to be on the side of the tenant.

[ballinacup]

Have you looked at help to buy? You would only need a 5% deposit, you'd get a 20% equity loan that is interest free for five years.

If your housing costs dropped by 1/3 could you save the 20% in that time and pay off the equity loan? Even if not, you get 25 years to save your deposit whilst owning your home in the meantime!

[MrsWinnibago]

I feel your pain. We're in our early 40s with 2 DC and we rent. We were lucky enough to get a Housing Association place recently...a flat not a house. While it's small, I do feel more secure about not suddenly having to leave at the whim of a LL.

Have you got DC? Would you consider something like a barge? If we'd not got this place that would have been our next step in all probability. It's a horrible feeling...not having proper roots.

[Ninetysixpercent]

There are advantages to renting OP. I love the house I've been renting for the last 4 years, however as of today building work has started on a new housing development on the lovely green space behind my house where all the children played. Having lived next to a development being built before I know I can't go through it again so am looking to move. My house owning neighbours don't have that luxury.
Then there's the fact that all property repairs/maintenance is someone else's responsibility.
I just try to see the positives though and have been very lucky with landlords.

[desperatehousehunter]

You're right, I've been thinking about it too much lately I guess. Especially the lack of security - renting feels too unstable; the rent could be increased, the LL could want their property back or to sell it on. But I should focus on the positives more.

Saving enough for a deposit is an option for the future, it just feels very far away!

[desperatehousehunter]

ballinacup it's the 5% deposit that I'm aiming for. But the bank were very clear about also needing another couple of grand upfront for fees (surveys etc).

The 5% is still quite a lot as it's terribly expensive here. Although that is another option available to me I suppose; if I 'm that set on owning a property I should move to a cheaper area...

[cailindana]

If moving is an option then that could solve a lot of problems for you. We moved to a very cheap area and have a lovely house with a ridiculously low mortgage. The security it's given us is great, I wouldn't trade it for anything.

[BitterAndOnlySlightlyTwisted]

Well, OF COURSE renting is more expensive than paying a mortgage. Landlords have their own mortgages to pay on their rental properties. You can't have a business charging less than the actual costs. That's not the way to run any business.

The only way to buy a property is to save, save, save. Even if that means living in a much less desirable area or making do with a smaller property that you'd like in an ideal world and for much longer than you would like. It's never been any different. The only difference is that some couples decide to live outside their parents' homes and have a family together before they've saved up a deposit for their own home. But that's a choice people make. And that has consequences.

[LadySybilLikesCake]

You can buy a terraced or a starter home in a load of places for less than 100k. 5% of this is 5k so aim for that. Work extra if you need to. Start off small, do some improvements over time and sell. Then move somewhere bigger. It will take time but it will be yours.

[ballinacup]

Ah but bear in mind if you're buying a new build you can negotiate a LOT of costs from the builders. Ours are paying stamp duty and £500 towards solicitors fees. As it's a brand new house we don't need a structural survey, just a valuation by a surveyor. It may be closer than you think!

[gruffalocake2]

I don't think YABU. We rent and I hate it. We have just been turfed out so the landlord can sell at a cost to us of at least £1000 (new rental fees, exit fees, professional clean, removals, extra towards a bigger deposit)

People say other countries do it but their systems are completely different, they tend (like Germany) to have long term rentals with more tenant rights and more stable housing markets so if you do want to save for a deposit the goal is clearer and doesn't increase by £10/20k every year.

I think renting is a massive problem because it means we can't put down proper roots, children have to change schools/ make new friends at the drop of a hat. Your rent will always go up where as mortgage borrowing is stable (allbeit interest rates change). We are moving to a road where we will pay £1300 in rent, whilst people we know (not wealthy, just older) who bought a few years ago are paying £600 for the same house a few doors down. When we retire owners will have £0 per month housing costs, we will still have rent to pay which will likely be significantly more than it is currently. Of course we won't be able to afford it so the government will have to give us housing benefit. But lots of other pensioners will also be renters needing help so how on earth are the tax payers of 2050+ going to afford it?

I think it's massively frustrating that ordinary families can pay extortionate rents but aren't allowed to pay the same or less on a mortgage, it means wealth stays with those who are already fortunate enough to have it (to put down large deposits) and increasingly excludes those who don't, so the 'poor' (including the younger middle class) have to pay more than others (in increasing rents) to have less (no ownership,stability or future prospects).

Can you tell I don't like renting?!

[rpitchfo]

You would only need to move to a different area for a short while aswell. As soon as you own a house you are putting money INTO it. Much easier to move to a second house once you have some equity. I moved into my first home 4 years ago and decided to keep paying the same as i was when i was renting. I now have £22,000 pounds worth of equity that i wouldn't have had if i'd stayed in my slightly larger rented house.

[PeppermintInfusion]

If you are not too far off your goal amount could you really cut back for a set time, or look for ways to make money- massive clear out, part time work etc. or is there scope to find a job that pays more, either internally or externally? (You'll probably need to wait about 6 months before getting a mortgage). Could you downsize to a smaller house to save on rent?
Also cutting back on expenditure could stand you in good stead as some mortgage lenders look at your outgoings to see what you are spending it on and for affordability.

[LadySybilLikesCake]

I rent and I don't like it. There's things I'd love to do here (soundproofing for a start) but I'm not allowed. Ds leaves school in 3 years and my income will drop so I'm going to be stuck renting unless I move abroad (tempting).

[desperatehousehunter]

Gosh LadySybil I don't know where you live but there is certainly nowhere under 100k here!

I moved out when I went to University, then stayed in my University city after graduation as it's where I was offered a job. It's expensive to rent here but I had to be here for work so moving back in with my parents wasn't an option at the time. It was all a bit of a catch 22 - I earned more by being here but I also spent more on rent. And now of course I've built up my life here... you obviously don't think of the long term consequences when you're young!

I would have to move right out of the area, it would be terribly hard to leave my friends and my life here, but I'm certainly going to look into it before writing it off.

[desperatehousehunter]

I definitely agree about the soundproofing!

[desperatehousehunter]

Peppermint I could move into a studio flat to save an extra few hundred a month, I'm just not sure I could face it!

I work full time but I also sell online to make extra money.

It just makes me angry that it's so difficult for adults in full time, well paid jobs to own a house! It feels like its a privilege saved only for the elite or for those whose parents are willing to foot the bill.

[LadySybilLikesCake]

Nottingham. You need to move further North.

[PosingInManilla]

If it makes you unhappy to rent and it's actually more expensive then I think you need to properly commit to making buying happen.

We didn't have a deposit as we were paying sky high rent and couldn't save at the same time. We managed to buy a new build which had 5% deposit paid and legal fees paid. It wasn't our dream house but after a few years we'd built some equity and were able to use this as the deposit for our dream house. I appreciate the housing market has changed since 2000 but there are other schemes available. Definitely look at new builds as a way to get on to the ladder.

We've only got just over 10 years until we become mortgage free and I relish the freedom that will give us in terms of jobs, spending etc.

YANBU.

[desperatehousehunter]

I had no idea there were ways to get around the legal fees, that's really good advice! Thanks to everyone who's mentioned it

[thecuntureshow]

I feel your pain OP. I've thought about help to buy, but new builds where we are are very expensive - 350-500 for 2 bed places so a 5% deposit plus stamp duty is £30-50k. These are outer London boroughs. Yes we could move out of London but the nicer computer belt areas are still very expensive. DP and I already commute two hours a day.

Advice is always to suck it up and move and leave our friends, family and communities, which I guess we'll have to do at some point.

(Friends and family who were given/inherited tens of thousands in help a few years ago are now making £100k+ on their flats and buying houses, pricing us even further out)