AIBU to think owning a house isn't necessary?

[manicinsomniac]

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 ) 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?

Indeed the lovely memories will be nice, but my oh constantly hearing about his parents struggling with the rent is not nice...

If you are sure that as a O.A.P you will have enough pension to pay all your bills then great...... If not think how your kids will feel if you need extra money.

I am living this and refuse to help oh parents in any way..

oh dads favorite expression is ''you pays your money you take your choice''
so I tell him to jog on, he spent all his money on other stuff while others were paying a mortgage.

Due to a weird set of circumstances the mortgage on our frankly cheap and nasty terrace per month is less than half the fucking awful landlord who rents out next door charges for a week.

I think it depends on a lot of different circumstances

Could you afford a mortgage on a small buy to let? Then at least you will have something of your own? Once it's rented out it should cover the costs. Buying a house enough for 3 kids is one thing, but a small flat might be more achievable.

Chief are you saying your oh dad is elderly and struggling to pay rent but you refuses to help?

What happens when you get to pension age and you're still paying rent?

Housing benefit only covers up to the max level in your area this is now set at 30% of market average. It will not just cover all your rent. When being assessed for housing benefit they will take all income into consideration so you may find even on a basic state pension you will have to make up the difference. And unlike someone who's paid off their mortgage you will have to keep paying out of savings until lower.

I'm lucky in that I'm in social housing now because of disability but I really do think when I retire it will be norm for pensioners to rent rooms in student type houses as finding decent place to rent will be very hard. Considering most people will be generation of renters.

Just look up the maximum you can claim on housing benefit in area then try and find a one bed for that amount, it's very scarey

Akire, I too am in social housing so I have no worries that HB wouldn't make up the difference if necessary.

It's not a great financial decision for many reasons, incl no secure home when you retire and nothing to pass on to your children. Besides, rent can be higher than mortgage.

Psychologically too, chn like to know that they are settled and don't have to move.

No pain no gain! But if saving is really making you miserable then make sure you you spend on things that would give you great memories and really enrich the children's lives in a long lasting way.

If you can't afford to buy, then you can't afford it- but personally I think buying makes more financial sense than ever for those who can.

Over the course of a lifetime you pay enough in private rent to buy two or three houses. Certainly true round here anyway. You may as well chuck ten pound notes in a pile in the back yard and set fire to them.

We're cahncil, so it makes financial sense for us to rent.

I could cry reading this. We are so lucky. Our LL aren't greedy and they are good to us.. and we rent a home we could never afford.

But I long to own. But it's just not possible. . Even with decent wages our rent is still high (despite being about 350 less than market value pm)

By the time we own.. if ever... the chances of us ever being mortgage free and enjoying retirement is about zero.

Being mortgage free and rent free is the goal for me. Couldn't get there if we didn't buy. I don't want to pay rent in my seventies, with the risk of being ousted from my home. I feel for those who want to buy but can't. If you like the idea of life long renting, then fair play to you.

The housing market has forced some very interesting decisions out of me. Personally, I think it's totally unsustainable, so have gone a different way.

Pensions are a tremendous way to save for all of those priced out.

Whack everything you possibly can in there, and get the tax relief. I'm talking very large percentages of salary - 50, 60, 70%, and minimize the income tax take. We still pay council tax, vat etc so still paying plenty.

Live frugally on the rest.*

If you invest it wisely - diversely and mechanically, even with an average income you'll hit the lifetime allowance easily. There we go. No state aid in retirement, just saving for the future.

You can take the 25% tax free lump sum at that point, and buy a house, and then draw on the 75% for a comfortable income.

The politicians, banks and others have rigged the housing market. Play them at their own game. The young need to take the power back. This is one possible method.

Note - if you really feel as shafted as you probably are by all this, consider this. If you have little cash savings outside of the system, you will qualify for benefits, as pension contributions are disregarded. This is advised* by peers in the house of lords! I have plenty of cash savings, so don't, but if I was a young person who had seen the beneficiaries of fantasy final salary pensions, and borrow to let landlords exploit there position, I might well say stuff it and do this!

www.labourlords.org.uk/credit-where-its-due

For anyone who finds the above statements unbelievable :-)

My mum (73) lives in a desirable London Borough.
All her rent is covered by the housing allowance granted.
Her income is modest, just her state pension and pension credit.
This probably wasn't her choice years ago,but it is her reality now.

Sorry I didn't come back to this, I forgot I posted it!

Thanks for all the replies. Glad that many think this is an okay life plan!

At the moment I think I'll have a decent enough pension (and probably won't get to stop work till I'm dead anyway...!)

A small buy to let might be a good plan though.

I rented for 12 years before we bought.
I wouldn’t go back to renting now. It is partly the money but it’s having the autonomy over our home that is important to us. For example, where we first lived, we had a great place for a dog. We both desperately wanted a dog, approached the ll who thought about it and said yes. We traced the perfect dog through a friend. He lived in France so a pet passport was bought, jabs done, and then the week before the dog was due to come over, tickets booked etc, she changed her mind and said no. (Dog went to a close friend of mine as she was also looking so I got to see him loads – but I never got the thought out of my head that he should have been mine!)

The fixing of stuff done to ll’s convenience not ours – can’t just ring a plumber but have to track down ll who then rings the plumber of their choice who comes when you’re not expecting it because ll hasn’t managed to get back in touch (!) to let you know when they are coming.

Can’t paint a wall the colour you want it without having to paint it a second time to go back to cream. Stress every time something gets spilt in case it doesn’t come out and your deposit takes the hit. Not worth paying out loads on garden plants because you don’t know if you’ll be there all that long (we love gardening). Thinking of things you could do to massively improve the house – not necessarily expensive things but tweaking it to suit you better – you can’t because it’s not yours and if you ask the ll and they agree you pay for it, do the work but if it adds a bit of value to the house it’s not your money you’ve affected.

I just prefer our house being ours – we can paint it what we like, we’ve altered the garden since we’ve been here and it looks stunning, hasn’t cost much but it’s a selling point now if we choose to move, we’ve finally got a dog and we did it on our terms.....
I always felt a bit like a teenager living at home when renting: ‘Please may I...’ Now I feel like I’m organising my own life without having to get permission for anything.

That’s aside from the fact that we live in the arse end of nowhere where the houses aren’t that expensive and there are no rentals to be had...!!!!!!

I like renting at the current time, but my worry would be that I don't want to be trying when I'm a pensioner.

I think buying a 1 bed flat and renting it out, is a good 'investment' for your retirement as at least you'll have a flat you own and can live in (or get an income from) when you're no longer working.

Buying a lovely 5 bed house with garden might well be out of reach. Saving and buying a 1 bed with balcony could we'll be achievable.

I've thought about this and think it depends a lot on your situation and where you live and cost of buying.

I live in the SE where property is extortionate.

If you're on a low income and saving a deposit / guaranteeing future mortgage payments is going to seriously impact your quality of life for a long time it's not worth it. I'd rather live my life and prime years with a reasonable quality of life in rented accommodation than buy and be forever overworked or stressed where my money is coming from.

I'm a LP and would love to buy but it simply isn't an option. I work part time and have some savings but to get a mortgage I would probably stress myself out massively.

I think time is more precious than money. So if you have to work your arse off all the time just to afford your mortgage (to the detriment of family relationships and other interests) I'm not sure it's worth it. I'd rather have time and pursue my life and career at a pace I want to.

If you're in a situation whereby you have a decent income and means of getting a deposit together it's a no brainer - I would do it in an instant.

That said you may as well lead a life whereby you're not overstretching and if you can save then great; maybe not towards a mortgage but there may be a time it becomes viable for you. If not you have some savings and can do something fun with it.

Also you could pass it on to your kids so they can afford a mortgage where you couldn't, which will help them out.

I've thought about doing the shared part buy / part rent ownership; that's probably as close as I will get to a mortgage in the near - mid term future.

And the reasons I like my current private rental are:
Enables me to live in an awesome area (busy, bars, lively) that I wouldn't really see myself living in with children.
Can live in a flat I wouldn't love in long term, and not have to worry about transaction costs.
Could love or relocate easily and I'm not tied here.
Get to live in a way nicer flat than I could buy (both location, size and niceness)
Minimal hassle - not my job to phone plumber
Set monthly payment - not my problem when the boiler breaks

Things I don't like - area is gentrifying at a RAPID rate and I worry we'll be 'forced out' when landlord realised how trendy the area has become! I say that half in jest, but half serious. Every week a new bike and juice cafe or other hipster establishment opens up.

current downsides to renting my place:

• woodchip wallpaper. i hate it.
• hideous carpets
• needs a repaint in certain rooms

otherwise I can cope. it has many positives as well!

• bright, airy, sunny
• cheap for what it is
• quiet, lovely area
• large rooms
• convenient location
• period features, character
• great kitchen
• unusual yet mysterious celebrity lives opposite!

sadly I wouldn't get most of these with my budget if I was buying, not least of all the celebrity!! (I do get to spy on them when I walk past).

I'm happy renting, a mortgage would be double the rent.

I don't care what happens when I'm an OAP, just stick me in a home and just visit now and again.

soontobesix................... yes he is 86 and is always moaning about the price of the rent.....

And yes I will not help.

Reason........... In the last 12 years he has bought 7 new cars and changes his tv for the latest model about every six months....and expects his children to help him out.........

He does not need help but moans that he has rent to pay when my parents are mortgage free......

He took his choice now he has to live with it.

Renting wouldn't be my personal choice. I would worry about paying the rent on retirement.
Lord only knows what will happen with housing benefit in 35 years time. For me it's too much of a gamble I am very risk adverse on the whole money front though and lived frugally for 6 years saving for a deposit

We're hoping to buy in a year or two and have moved to the north-east to make that possible (obviously not an option for everyone I know). For me its about having a secure roof over our head when we retire and something to sell to pay for our care in old age (I've no idea what kind of care the state will be willing or able to fund in forty years time). I'm very relieved that the older generation in my family own houses, so there will be money there to see they're well cared for if necessary. If we lived in a country with lots of secure quality social housing and the prospect of decent state-funded care in old age I'd feel differently.