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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask who chooses to pay rent rather than buy?

226 replies

fluffiphlox · 24/01/2013 11:13

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?

OP posts:
Meikyo · 24/01/2013 23:01

AF - its a public sector scheme one of the UK's largest

AnyFucker · 24/01/2013 23:03

yes, I have one of those too, meikyo

But I won't have by the time I retire

AnyFucker · 24/01/2013 23:03

...and if this latest bunch of dipshits gets another term

goingupinfairylights · 24/01/2013 23:05

AnyFucker in answer to your question I think people in rented are much more savvy and do plan for that being a possibility - We have a large pension pot and pay 15% of DH salary into it - We have other investments that are secure and some high risk investments.

We do think that property is a good long term investment, but not at current inflated prices, so will buy something at some point in the future but my stay in our rented place.

I really think people who own just assume that they will be able to downsize and make cash for retirement? but what if your retirement clashes with a downturn and you can't sell? What is like many of our friends who talk about downsize live in 3 beds? I mean what are they going to downsize too?

AnyFucker · 24/01/2013 23:09

goingup, i applaud your forward planning

I have to admit, I know some people who are not doing the same and I have concerns for them

what the hell will happen when they stop working?

the state pension won't pay their rent

AnyFucker · 24/01/2013 23:11

fwiw, we have paid our pension off but don't look at our house as something to sell to release money

it is a family home

not paying mortgage or rent though is pretty good ...and makes retirement a more realistic proposition for the middle future

StinkyWicket · 24/01/2013 23:13

Our mortgage is £450 a month. Rent would be about £500, so not much of a saving. Especially when you consider we paid and had fitted the central heating, the new windows, guttering, kitchen and bathroom.

I like our house and where we live but I wish we had waited.

NannyPlumIsMyMum · 24/01/2013 23:14

I don't think a lot of people now get an option do they .

goingupinfairylights · 24/01/2013 23:18

AnyFucker My parents are them, they have a pot of cash that is running out, and they rent and they are retired, they plan was the interest on the pot of money would pay the rent - but 5 years and interest rates low on the pot is now being used for rent - they are buggered, as the money isn't enough to buy a house.

I asked what are they going to do and the answer was wait till the money runs out and then ask for help, so I have visions of my folks being in a council retirement place (if they exist?) who know what the future holds for them - or other renters who don't have a plan b.

Viviennemary · 24/01/2013 23:19

I don't understand why people would pay £1,500 a month in rent. I saw somebody on TV saying that was their rent and they couldn't afford to buy. But I see why people would pay £600 a month rent as they probably think house prices will come down. That probably doesn't sound logical. Somebody told me there are ways round the deposit. Like borrowing the deposit. Perhaps this isn't a good idea but I think it does go on.

AnyFucker · 24/01/2013 23:21

goingup and I completely sympathise, am not havign a dig

some of my friends/family are in this predicament

they have some investments/savings which years ago they thought would fund their retirement

but for a long time now, returns have been so abysmal...the money is running out...for rent (and what next...for food?)

I would be shitting myself, seriously

I don't know what the answer is, of course

LRDtheFeministDragon · 24/01/2013 23:23

I think people pay that much in rent because that's what the rental price is where they live, vivienne. If you have a good job, you probably can't risk walking away from that, which is what ties people to the areas of the country where you can't get a family home for 600 a month.

Bananapickle · 24/01/2013 23:23

No choice here!
We rent because we would need at least 15% deposit in order to get a mortgage we could afford. In our area, for a similar house we currently rent, we would need about £30k which is our entire income (gross) for a year...there is no hope for us but we actually have great landlords who fix things within days and it doesn't cost us anything!
There are pros and cons to both situations but I think the reality is an increasing number of people don't have a choice.

notsofrownieface · 24/01/2013 23:23

Its fine if you get a good landlord. I can't afford to rent or buy so at the age of 27 I am still living with my parents. If I was in the position I would buy.

MoreBeta · 24/01/2013 23:23

The rent on my house is less than the mortgage would be on it.

Also what people NEVER consider is the cost owning a house (eg repairs plus insurance). I pay nothing for repairs or insurance. I have rented for all my life. I have never ever decorated a house. I dont know how to piaint a house or put wallpaper up.

The truth is that unless house prices are rising, then renting is cheaper than a mortgage. My landlord has spent every penny of my rent and more on paying the mortgage and keeping my house repaired.

goingupinfairylights · 24/01/2013 23:25

anyFucker it's OK I know you weren't digging! i know your sound Wink

I'm thinking DH and I will have to bail out my folks at some point which is why I don't want to tie our money into a house, I would never tell them that but I wish I had a crystal ball, and that interest rates would go back to normal before our country goes broke.

goingupinfairylights · 24/01/2013 23:26

You're...sound.. not your.

Else I'll have the grammar police on me

Booyhoo · 24/01/2013 23:28

think about it vivienne. if someone is paying £1500pcm in rent every month (plus their living expenses) how do you expect they save a deposit? and taking a loan to put money down so that you can take a bigger loan when you can't even afford to save the amount of the first loan is mad! why on earth would anyone be desperate to be in that much debt and have their home secured against it? i know people have done it but i really do think it's incredibly risky.

ThePlEWhoLovedMe · 24/01/2013 23:28

I rent through choice. My rent is £500 a month - fab location with fantastic schools (In London) I have no idea how much a mortgage would be for a £250,000-£350,000 house in the same area but I would guess a lot more

sausagesandwich34 · 24/01/2013 23:30

My brother chooses to rent
He could afford a mortgage, has the deposit but prefers to rent so he has no surprise bills for property repairs, can move easily if he doesn't like the neighbours or if he changed jobs etc, he is single with no children so has no ties and no one to leave a house to so why should he?

AnyFucker · 24/01/2013 23:32

Sound as a (devalued) pound Grin

Yep, we need some interest rate rises, pronto. Why won't the Fucking Government do it ? I don't understand. I have never been richer than when I was paying 13% mortgage rate in 1991.

I say that with almost zero knowledge of economics, btw

Viviennemary · 24/01/2013 23:35

House prices need to come down. How can they be sustained at this rate. I certainly wouldn't understand how anyone can pay £1,500 rent and save or even pay £1,500 rent. Wages aren't rising for most people and the cost of living as everyone knows is going up and up. So something will have to give.

Justreadthefuckingwords · 24/01/2013 23:40

Goingup brilliant, I know, I look all the time - never any in our area though.

& I agree with you & AF - a house is a home, it's not an investment unless you sell it - NEVER see your home as an investment. Where are you going to live if you need to release funds?

Either in 'your' home with a higher mortgage, or somewhere else.

goingupinfairylights · 24/01/2013 23:41

Viviennemary fingers crossed, that way we can go back to people having a choice over going back to work after children, rather than being slaves to mortgages and rent.

Justreadthefuckingwords · 25/01/2013 00:08

What I'm trying to say is, your home should not be seen as an investment, which, in the years between 1998 & 2007 it was. Not only that, it was seen as a cash-cow, to milk, if you wanted holidays & cars & all the lovely stuff.

It's not real though.

None of it's real.

Your home, is, your home, whether bought or rented. The house I live in now, has been owned by the farmer's family since it was built about 300 years ago, he has no children, I guess it will go to his various nieces when he dies, they'll probably sell it.

What actually is ownership? What does it mean?