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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to think owning a house isn't necessary?

82 replies

manicinsomniac · 27/04/2015 16:02

About 6 months ago I started saving up for a house deposit. It will take me a long time because I'm a single parent and have three children and I live in the South East.

But this week I've decided to stop. It's affecting our lifestyle and I don't like it (yes, I know how petulant that sounds Grin ) I like taking my children travelling in the long Summers (I'm a teacher) and love taking them to the theatre regularly. I also spend a vast amount on extra curriculars. I don't buy much in the way of stuff but I really want to be able to spend my money on experiences and opportunities for all of us, not save it up to buy a house when we already have a house to live in (even if it doesn't belong to us!)

So, AIBU to think that, in the grand scheme of things, being a life long renter won't matter all that much and that it's okay to spend what you have on enriching your life instead?

OP posts:
Velvetbee · 27/04/2015 16:57

Home ownership is vastly overrated but on the other hand privately renting is stupidly expensive. Our mortgage is £800 a month for a four bed, the tiny 2 beds on the same road are £1200 to rent, which is insane.

museumum · 27/04/2015 16:59

In a lot of countries with a renting culture there will be a "family home" in a rural area or a holiday or summer home which is owned outright and can be lived in in retirement. They're just not in the cities where the jobs are.

EponasWildDaughter · 27/04/2015 17:00

I was a homeowner at 21 years old, for 16 years. Divorced 1st DH, sold up and have been renting since then. (re married now)

I can really honestly say i had more sleepless nights worrying about money and a roof over my head when i had a mortgage! And we didn't even have a big mortgage.

2nd DH and i could NEVER afford to own the size of house we rent at present. In a beautiful village. Right now, with 3 teens/20 somethings and a baby plus us two (and pets) we need loads of room and love having the massive house and garden. We have a long term tenancy with a lovely landlord who appreciates tenants who look after his place as if it were our own.

When something breaks we email him and a tradesman arrives next day to fix it. We don't even contemplate the cost of the repair. It's bliss. When i was a homeowner i went months without heating at one point as i couldn't afford to get the boiler fixed.

Yes i'd like it to be my own - but i couldn't afford to own this place anyway! Catch 22. Swings and roundabouts.

Psipsina · 27/04/2015 17:05

Sorry to hijack but Laurie do you mind if I PM you? Nothing to do with this topic!

Micah · 27/04/2015 17:05

For me it's far cheaper living in a mortgaged house than in a rental-saves me about £1k a month.

We couldn't afford to rent.

Psipsina · 27/04/2015 17:11

This is it...renting round here is probably twice as much as mortgage payments.

Fluffyears · 27/04/2015 17:20

I have a repayment mortgage and all going well we should own our home by the time we are 50 (possibly earlier as both sets of parents have their own homes held under our names so they can never be sold from under them, they have worked damn hard for them). It's not for everyone but I am happier owning my home at the end of the day.

twofingerstoGideon · 27/04/2015 17:24

Thank you for patronising me, blue421. I am, of course, quite aware of the debt issue, but in the vast majority of cases having a mortgage is as cheap/cheaper than renting (certainly in my part of the south east) and over the lifetime of a mortgage most people do accrue equity.

Renting in my street would cost approx 40% more than my current mortgage payments and when I die my daughter will have a bit of cash, which I hope will help her.

I'm not saying everyone should buy and am fully aware of the difficulties of saving for deposits etc, but I really don't think you can argue that buying is more secure, unless you are renting social housing.

I was lucky to get my mortgage about 12-13 years ago when mortgage lenders were willing to look at what you were paying in rent and lend on an 'affordability' basis. Also, very lucky to get a 100% mortgage.

Truly, I feel sorry for people who want to buy now and are stuck paying inflated rents to private landlords.

Akire · 27/04/2015 17:25

Housing benefit will not cover 100% of your rent. It used to be set as 50% of market value but now is around 30%. I wanted to move area on housing benefit the standard rate for a one bed was £85 per week. The average private rent was £110. Many many landlords will not rent to people on benefits full stop so to assume when you retire it will be easy to find keep and pay rent without a decent private pension or living in low cost social housing is deluded!

LaurieFairyCake · 27/04/2015 17:26

Psipsina - course you canSmile

twofingerstoGideon · 27/04/2015 17:26

That should say '...buying is not more secure' obviously!

blue42 · 27/04/2015 17:33

twofingerstoGideon, there was no intent to patronise in that post, apologies if it came across that way. I appreciate it was a little short, although I stand by the thrust of it.

You and others make the point that renting is more expensive than your current mortgage payments, which I completely understand. However, I would point out that current mortgage payments are based on emergency interest rates which have not been so low in over 300 years, and that comparison will shift significantly when interest rates eventually rise. My firm belief is that no present or future government has control over this as they like to pretend they do; it will be external events that force rate rises, and although I have no concrete view on when that may be, it will happen.

This is why it disgusts me when I see politicians on the campaign trail trying to frighten voters by saying "if you vote for xxxx, tehn interest rates may rise", as if the 300 year low emergency rates are somehow a sign of a healthy economy and something we should be trying to maintain.

ilovechristmas1 · 27/04/2015 17:36

Does housing allowance really cover your rent when you retire?'

If your income is low enough, yes.

the problem with renting when retired and HB is that if you have paid into a pension (non state) then you may well be over the limit for HB and will have to pay full rent out of your private pension

those that dont/cant afford a private pension would get maximum HB

some say it does not encourage people to save/make provision as what ever they put buy penalises them

SoonToBeSix · 27/04/2015 17:38

Reup yes many pensioners receive HB.

thehumanjam · 27/04/2015 17:46

It's completely up to you and what suits your situation. I personally couldn't afford to rent, a 1 bedroom flat is out of my price range, because we bought before we had children it was cheaper to buy. My property is my nest egg we will sell at retirement move somewhere cheaper and live off the equity. My pension is worthless.

I feel for people who don't live in social housing because I don't understand how private renting is possible for the majority of people.

Fluffyears · 27/04/2015 17:46

I will also still be working for 15-20 years after mortgage is paid so will be able to put aside a good chunk of money for my retirement if I put away the same as I was paying on my mortgage £6000 x15=£90,000, although in 2044 God knows how far that'll go possibly not far at all! X

Feminine · 27/04/2015 17:46

If you are a pensioner on a limited income, your rent will be covered.
In 2015.
None of us know what will happen decades from now.
Pensioners with limited funds are a protected group. It is an easiergroup to house, when reliant on the housing allowance.
Sheltered, and independent living homes accept it without question.
There are many people who will never own, it pointless trying to scaremonger people in to buying... if they really can't afford it

shewept · 27/04/2015 17:52

Yanbu....and I own my own home. But I certainly don't think everyone should. I couldn't cope with the having to move because your ll is selling up and would never have got a HA house.

I owning my own house. I hated paying the mortgage. But its mine now, so no rent or mortgage to pay. Its what I wanted. But its not everyone's choice. As long as you are happy, carry on. That's what's important.

SoonToBeSix · 27/04/2015 18:01

Feminine I very much doubt pensioners of the future will be living on the streets.

Fluffyears · 27/04/2015 18:01

Owning had its advantages but it isn't for everyone. DP and I were born in the late 70's so we grew up when buying a home was what most people aspired to and the right to buy scheme came about. My parents first mortgage was £9k and they later sold the property for £125k as they needed to buy a single level home for my dads wherlchair. We have grown up with the belief that you should own your home.

buntingbingo · 27/04/2015 18:08

The reality of renting though is that is is unaffordable to many working families. You are at the mercy of a landlord who can ask you to leave at any time, charge extortionate fees and put rent up as and when they like. It's all very well saying that the rest of Europe don't have the same obsession with house buying as we do buy they have a totally different renting system. I'd be more than happy to rent if it were the same as Germany for example but sadly it's just designed to line the pockets of the already wealthy.

DameDiazepamTheDramaQueen · 27/04/2015 18:08

I rented for umpteen years before buying, there's no way given the choice would I go back to renting. I hated that uncertain feeling and not knowing whether the LL would want to sell up. Mind you no way could we afford to buy these days, I'm not sure how anyone does tbh! We only had to get 4k deposit together which was doable at the time.

TiggieBoo · 27/04/2015 18:37

I work in the private sector, shit pension. For me, owning a house is the best way of making sure I'll still have a roof over my head when I retire. The way I see it, if I live for 20 years after retirement that's 240 months. Even if I paid just £500/month on rent in today's money, that's £120k I would need to save just to cover my rent in retirement. This is money I see as guaranteed return when owning a house, regardless of whether the house value goes up or down.

chiefbrody · 27/04/2015 19:02

Each to their own but I bought my first house when i was 19, moved three times [with oh] and at 44 no longer had a mortgage all paid off.

Son is thirteen now and we do a lot of what you talk about.

If you dont mind paying a rent until you pop your clogs carry on.........It is not the be all and end all......

but my parents have no mortgage and no rent and live a nice life.

oh parents have rented all their lives and do nothing but moan about the rent.

MrsTedCrilly · 27/04/2015 19:20

Yanbu at all, a childhood filled with lovely memories and experiences is what I'd remember over an owned house! I doubt kids notice the difference anyway with rentals and bought houses Smile