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?

Interest rates are cheaper now, but houses are a lot more expensive compared to salaries now. And interest rates aren't going to stay low for ever.

I would love to buy but a mortgage on 3 times my (full time) annual salary would be £81,000 I would the need a deposit of £65,000 to buy a 3 bed house where I live (and that is a cheap house)

My rent is £595 a month so it looks like I will be renting for a while yet.

Omg 40,000 for a deposit ! Yes that's y we rent we would never be able to save that we can't even save £100 a month these days !

Haven't read all the posts, so forgive me if this is a repeat.

Who chooses to rent not buy?

Perhaps people who have the common sense to spend 5 mins weighing up what the cost of renting a property is, compared with an interest only mortgage on a similar property in the same area... and finding the former is cheaper??

Gosh, OP, foot in mouth eh?

I have a genuine question though. Long term renters and those never going to buy...how will you retire if you are still having to pay high rents? Do you have fabulous investments that are going to generate enough income to pay your rent until your 70's, 80's and beyond ?

Genuine question.

Oops, in my anxiety to not cause offence, I overstated the "genuine" bit.

Because

a) I can afford a much nicer house renting
b) I don't have a deposit
c) I watched my parents cripple themselve by re-mortgaging over and over afain in the 80s, then fall into negative equity
d) If my boiler breaks, its not my problem
e) I can move any time I like
f) I don't feel this "need" to own a house that actually the bank owns anyway
g) I have issues with comittment

etc

I'd like to see a complete change in attitude about renting and suspect we are moving towards it. For too long there's been an obsession with "getting onto the property ladder" in the UK. Regardless of the practicality or affordability. Which has undoubtedly helped to create the boom and bust conditions so far as property prices are concerned

Yes I agree with the caveat that renters are given proper rights and long term contracts and rent controls are introduced. I am 33 (tomorrow!) and whilst I don't mind renting, I don't like the idea that I can be booted out of my home in a month's time (as happened when previous land lady decided to sell and then changed her mind when no one in their right mind would buy the bodged up shiteheap for the silly money she was asking for ) or be fobbed off waiting for repairs and then a cowboy turns up and makes it worse or to be ripped offf by greedy letting agents making spurious claims on the deposit or pay spurious charges for renewing the contract, changing gas suppliers or any other damm thing the letting agent can dream up.

The private rental sector isn't set up for people to stay there long term as me and my generation will be doing. I am more than happy to keep on renting if the rental sector was properly regulated and with proper security for the renter.

Why foot in mouth? I was shocked by the level of rent demanded for a modest house. I have since been taken aback by the level of deposit required to buy.
I am ancient and out of touch.
I think those renting will struggle in retirement as you imply.

But are you genuine AF? Genuinely?

sorry

it is a valid question though, no ?

I'm a grown-up (marginally) & I rent for a number of reasons. I sold a property two years ago overseas (hadn't lived there for five years though) & was happy in my rented house at the time.

Subsequently have moved from that rented house to another one where we're also very happy. I love the flexibility of renting, I like the fact I have options in my life, the fact I could move to another country at the drop of a hat without a major headache.

I like the fact I don't have to worry about my roof or my boiler. I actually quite enjoy moving & living in different houses.

I keep my eye on the market but haven't seen anything I'm mad about & won't buy until I will.

Anyway - most people don't own their houses - the bank does, & even if you've paid of your mortgage - you'll die one day - the house will still be there. The last house I rented was 700 years old, we were all just passing through.

Plus - the money I save on my mortgage I invest elsewhere, so swings & roundabouts there really.

Finally DH & I are in the process of starting a new business - I like the fact it's not dependent upon where we live, if we need to relocate or downsize - we can.

Enough reasons OP?

FWIW it's a five bed-roomed farmhouse & costs 1200 a month so we fit your 'you're a fuckwit' criteria quite well.

Oh & forgot to say - I might never buy again - have you seen the properties the National Trust rent on a life-time tenancy?

If I could get me one of those...

cba with the faff of saving a deposit and then having to then pay the mortgage on top every month. I have exactly the same end result - somewhere to live, but without having to fork out 40 odd K for a deposit.
Plus my landlord fixes everything and buys me biscuits at christmas

OP here. Well, I only asked. I wonder if you've read the whole thread?

lots of people in mainland Europe.

two sets of my tenants; plenty of cash but preferred to rent my house at roughly half what the mortgage repayments would have been. That was the going rate, fair enough, all parties content.

it isn't really a sign of insanity.

Anyway, I'm an hour ahead of you here so need to go to bed. Night all. PS I've never used the term fuckwit, ever.

Boo: I had no choice whether to let them in or not. The landlord gave them his keys; I would come home from work to find strangers in my (rented) flat.

I moved out pretty bloody quick, naturally.

I am renting and have a mortgage on another property which I own (along with the bank!) in a different area.
Reasons for renting? DP and I are renting the home we live in - just recently moved in together (after 3 years) and as both have divorces behind us, we are not committing to buy anywhere just yet. Also the area we have moved to has really great state schools so this was a factor in the move. We could not afford to buy here without my house selling. Landlord family has moved abroad for 5 years so we hopefully have some stability if we want to stay here.
Also, where I own my house, properties are taking ages to sell - they are all 4 bed family homes and people just cannot sell their smaller homes to move into them in our area (lots of negative equity on 5/6 year old starter homes and flats).
Fortunately I have managed to rent out the house I own/mortgage. My tenants have relocated from working overseas and are renting whilst they decide where to retire to.
I am hoping to sell my home in a couple of years but may then buy a property to rent out in an area of the city which has a lot of mobile professionals/students whilst still renting ourselves. Having been through a nasty divorce, I'm not convinced I want to tie up my assets with someone else again. Also - the property I intend to buy would then be sold to fund a new place for me to live in retirement or I may just keep it for the income and rent somewhere...Fortunately I have managed to keep pension contributions going and am very fortunate to be in a final salary scheme so looking to that to fund non-housing costs in retirement.

We're in our mid 40's and own a house because my (now) husband bought one on his mid 20's. It would be much more expensive for us to rent, our costs would double to rent somewhere of the same size in the same area. Our house probably didn't cost much more than many deposits for a 3 bed house today. I can see why renting is the only choice for many people.

If renting was the same, or, cheaper, than our mortgage part of me would love to rent. It'd be great to only give notice, pay removal costs and you're in another house, in another place. It would be great to not be responsible for the bricks, roof, plumbing, wiring ....

Final salary scheme ?

good luck with that one

I'm astonished by the frankly stupid questions the OP is asking. Do you never watch the news, read the papers, talk to anyone under the age of 50? Show any interest in the economy?

Hobble off indeed.

fucking hell cally that is mad! i would have had them arrested!

No Fluff, I have to 'fess up & say I haven't. In the interests of parity I will give it a quick scan, my original post still stands though, for all the reasons mentioned. I may recant the 'fuckwit' bit.

Justreadthefuckingwords we got one - they are listed on the website!!

I'm in the loser fuckwit category - Oh dear I feel so bad paying £1300 for the most stunning property, views across a valley, lovely landlord, amazing area and location - We are the happiest couple I know sick inducing laid back no House stress about what kitchen to buy next we work our bums off for the lifestyle we have, could we afford to buy a house like this NO! can we afford to live in it now -YES

I like a poster earlier up said we are just passing through this life, houses are just that until you make them a home, we have rented for 10 years, we can afford to buy something and when we have the need or desire to get involved with mortgages, banks and all that crap we will, but for now I'll pop my feet up next to the log fire.

This nation is obsessed with houses, and I for one can't wait for the market to go tits up so there.