To ask who chooses to pay rent rather than buy?

[fluffiphlox]

I am laid up at the moment and resorting to watching Homes under the Hammer etc. My query is who the dickens is choosing to pay £500 plus per month (some rentals are £1200+). Isn't this more than a mortgage? I'd be interested to know who renters are and why? Most of the properties are family homes rather than student lets etc so why would a 'grown up' choose to give their money to a landlord rather than service a mortgage?

We rented a flat which was £1200 per month because our commute was about £500 each and mortgage was £700, so it was cheaper (and nicer) to live in Canary Wharf and rent our house (and still have to subsidise it by £100) and be able to walk to work rather than commute 4 hrs each day. We could never afford to buy there tho. Also prices are prohibitive - 75k income and 50k deposit and only able to get 350k mortgage - Which doesn't touch the sides where DH works.

Also had a flat on the market for 3yrs. it's on for 20k less than paid for it but we can't afford to go any lower.

We choose to rent, as we are only temporarily in London. But even if we weren't, the financials don't make sense to us:

To buy the house we rent, it would be (conservatively) £3,000pm in interest for the mortgage - this is dead money, it doesn't pay off the loan, just the interest only payment to the bank's coffers. We pay far less than this per month in rental, with no risk of interest rate rises pinning us to the wall (at 12% interest rate it would be £12,500pm in interest only payments).

If the property skyrockets, perhaps (and big perhaps) we've missed some opportunity for capital growth, but realistically the potential for this place is small (worst house on best street, so will sell for block value only).

Plus, when we move the hassle factor is nil. And if property prices slump, stay same etc, it isn't our problem.

i really, really hate this snobbery and judginess around renting, i see it all the time, from my family, friends, in the media, on here

i rent, because i was too young to buy the last time houses were a realistic price (ie pre late 90's)

and the only way i would ever buy now is if property prices fell to an affordable, realistic level, (ie 3x average salary again), or if i won a shit load of money to buy a place outright.

lots of people just want an affordable home, not a fucking "investment" ...makes my blood boil

(endless unannounced visits, keeping of deposits, landlord's mates kipping on your sofa without asking permission ...).

why on earth were you letting LL mates into the house?

We choose to rent because when we moved to Ireland in 2003 we thought houses were wayyyyyy over priced. We were offered a mortgage for 475k, we said no, we could only afford 320k, which at the time bought a very average 3 bed semi d. We were right not to buy, the market here has crashed by almost 60%, and we would now be in over 100k negative equity.Instead we our taking the cash we saved renting (our rent was 900pm, mortgage would have been 1500 plus pm for a similar house., and getting the hell out of this bankrupt country. Sadly most of our friends and family cannot, as they can't sell their homes for anything like what they paid for them. So, everyone is now telling us how lucky we are to be renting and free, after looking down their noses at us poor renters (and boy did some of them sneer, they are the ones now up to their eyes in buy to lets on 100% mortgages). So, yay for renting and freedom!

For me, buying was the 'ideal' choice because at some point (hopefully in 16 years) I won't have a mortgage to pay whereas if I rent I will be paying rent until the day I die.

I don't plan on working until I die (though I'm sure the government have other ideas!) and, I'm asking out of genuine curiosity, how do those of you choose to rent rather than buy, plan to pay your rent when you're retired?

Its a shame when people who could afford to become home owners drift through life and stay rent-forever losers. Sad for them and their children.

"rent-forever losers"... yup, that makes me feel so much better!

"and stay rent-forever losers"
wtf? How can you suggest someone who rents is a 'loser'?

Most people who own now only do as they were the right age when mortgages for cheap housing was being handed out like sweets. The rest are in the shit as much as people who rent.

Parents being "rent-forever losers" is sad for their children?

Well, I pity yours having a parent with an attitude like that. It must be awful having zero empathy.

That is a bit greedy actually. You obviously feel that SOMEONE else needs to cough up for your lifestyle choices by buying your overpriced house. It's quite entitled if you ask

Not sure wtf you are on about.

Took us 10 years pre -DC to save 40 K and our 30's till we could buy a small 3 bed semi in a crappy area that has needed 14 K work needing doing - and it been basic work couldn?t afford needing none.

We will make a loss that is part of the risk of owing a house - we'll lose about 30 K but we've had the stability.

If we lose anymore we can't buy the smaller house, DH work is in the south so we have no choice despite us earning more but to go smaller, that we need. We still have to put a roof over the DC heads.

We spent 10 year saving to get on the property ladder and five clinging very preciously to it.

If we can?t afford to move to where DH because we lost to much on this house ? then we can?t afford to move and will wait till something changes.

Not sure how that is asking anyone to subsidise our ?lifestyle? it?s not like I?m forcing people to buy from us.

I don't plan on working until I die (though I'm sure the government have other ideas!) and, I'm asking out of genuine curiosity, how do those of you choose to rent rather than buy, plan to pay your rent when you're retired?

With my pension, we won't need to rent a three bedroom when the kids leave home (and if they don't, hopefully they'll be contributing towards rental costs) so can downsize to a smaller/cheaper property.

Also we can move away from London to a cheaper area as we won't be working so won't need to be close to London.

I love the freedom of renting, but we do have a good landlady so I think that helps.

We rent through choice.

The amount we spend on rent (£1000 PCM) is less than the interest would be on a house of a similar value. So if we bought something similarly priced, the interest would be approx £1200, based on a 20% deposit. It therefore makes more financial sense to rent.

The house we live in is one that suits us now, we love it, but it is not a long-term house. In a few years we are likely to want to live somewhere else, and at that point we won't have to go through the hell of trying to sell in this market.

It had its drawbacks - I would love a little cat but we are not allowed pets - but the upsides are enormous for us at the moment.

theplodder do fuck off.

I can't see the point of trying to buy too soon. It costs a fortune to buy, then you are paying interest, it ties up your capital and you can't move elsewhere for work easily.

If I had my time again I would not have bought when I did. It was not a wise investment. I will not be encouraging my DCs to rush into buying.

what is a rent free loser ?

fwiw I rented from the council for nearly 18 yrs before I could afford to buy

I don't plan on working until I die (though I'm sure the government have other ideas!) and, I'm asking out of genuine curiosity, how do those of you choose to rent rather than buy, plan to pay your rent when you're retired?

It's very short sighted of the government to not get the housing/house price situation under control because the majority of people who will never be able to buy will ultimately end up claiming Housing Benefit, or whatever is in place by then.

theplodder sounds like a nice sensible person ignore the idiot.

It's very short sighted of the government to not get the housing/house price situation under control because the majority of people who will never be able to buy will ultimately end up claiming Housing Benefit

i agree, have thought this for ages.

Folkgirl I wrote to the government asking exactly that. How will I fund my retirement - no idea!!!
There answer 'we are building new houses'
No that's not really the answer is it?! What we need is attainable mortgages. There was a time it was done on affordability, how about we return to that?

Cantbelieve, was that in the recent call for submissions to the Parliamentary enquiry?

The Communities and Local Government Committee has decided to conduct an inquiry into the private rented housing sector

Unfortunately, the deadline has already gone, but it will be interesting to see it when it takes place.

People rent for loads of different reasons. Personally I can't afford to save a deposit because I have to pay rent to have somewhere to live. Would be nice if I could afford to but it's just not possible at the moment.
As for people who rent long term being called 'rent forever losers' - renting does not make anyone a loser! Everybody's circumstances are different. If you can afford to buy your own place then great but don't be so quick to label others. Even those who can afford it and chose to rent instead are not 'losers'. Each to their own!

I have enough of a deposit to buy, having just sold my house following a marriage breakdown. I am renting a large, comfortable house with amazing views for the equivalent of half my mortgage. I look on it as respite after a terrible year.

I have been a home owner for 13 years or something. I don't miss it. One day I may buy again but I am in no rush. In the meantime, I have realised liquid assets and I am free to move when I wish.

OP back again. I looked at our early mortgage payments (years ago) we were paying 12% at one point. Money is much cheaper now, 4% perhaps? So just another way in which things don't add up. Big deposit, more reasonable repayments or small/ no deposit and extortionate repayments. In the long run isn't it the same?

I rent-500pcm for a frickin freezing one bed flat. I'm in the trap of having to pay rent and not being able to save up for a deposit for house. It's rubbish. I'm 32 now so doubt ill ever be able to buy-I've moved at least once a year since I was 18. It's quite destabilising, but plenty have it a lot worse and I am fortunate to live in a nice area and be able to keep myself warm