To think rent is so bloody unfair

[Tar19891]

My rent is 800 per month. A mortgage on the same value flat would be 450 per month. Not in London obviously. It’s not fair is it?

Forgot to add, both of mine had a savings payout around £5k each from when we saved from they were born.
Therefore their driving lessons and first car were paid for so they had/have very little outgoings.
My daughter (23) and her boyfriend (25) intend to buy an apartment on the outskirts of London for about £200k. They earn £70k between them and will have saved a 10% deposit.

Well my rent is 320 a month and I don't have to be liable for the debt to live here forever.

@Nothappyatwork

You haven’t said how your kids are servicing their mortgage debt whilst at university. Does the student loan cover it, or are they lucky enough to have parental help?

Because if the latter, there is also a psychological factor to consider - for people who know they have a safety net to catch them should they fall, taking on tens / hundreds of thousands in debt is easier than those without.

It may be logical and financially sensible to buy if able, but it also takes the courage that comes from privilege.

@Bingbangbongbash - given I also stated that I required tax credits to support them when they were living at home, again I kind of thought that was self explanatory. The security comes from the fact that the alternative to owning their own house is worse. As I’ve said many times on this thread lots of things in life are hard, choose your hard.

Mine have the lifetime ISA’a opened the moment they turned 18 it happens they haven’t needed to use it for the deposit, they took proper jobs during the holidays between A levels and university and with three months wage slips were given a mortgage at 95% in a reasonable area by their uni
My eldest also took a lifetime isa and puts a bit in every month. Amazing how it builds up.

Mu youngest got a supermarket job as soon as he finished his gcses. He continued to work 20h a week throughout and more during Xmas. By the time he finished his a levels, he had saved £15k, just like that

[quote Nothappyatwork]@SmolCat i’ll keep saying it and everybody can keep ignoring it because it doesn’t suit their narrative if you are working and you are early and Ava would say 25,000 a year you can save and buy a property. It might not be where you want to live and it might be a difficult 2 to 3 years in the lead up to the purchase of it and processed purchase but you’ve only got a jump on TikTok and there are kids all over the country the buying renovation properties sprucing them up and selling them at 10% profit do that 10 times and you’ve got a very decent deposit to put towards the real house in the south-east if that’s what you want[/quote]
Where do they get the money for the renovation project to “spruce up”? If they can get a mortgage for that, why wouldn’t they just live in it? Like I said to you before: if you’re going to make stuff up, at least make it credible.

@vivainsomnia - I personally had a fantastic sales job and was earning more than both my parents by the age of 17 and could’ve probably bought their house out right by the age of 21 at the same time as studying for an English degree.

Unfortunately I blew every penny, another friend owned property in Richmond which she sold to go travelling for a year 🙄
Our kids will reap the benefits of our mistakes isn’t that what it’s all about ? And luckily we now have Mumsnet so in addition to discussing the benefits of breast versus bottle hopefully we can help some people secure their financial futures as well. But you have to do as we say not as we did.

@Blossomtoes hop onto TiK ToK right now and do a little search and you’ll see it there before your own eyes. Where the money comes from actually isn’t the point. The fact that all you can be bothered to do is try and imply people are lying on Internet forums rather than go and do the research yourself is an enormous part of your problem negative mindset.

they gave them for the baby bonus back in the 2000s

But they didn’t even arrive here until 2018 - or so you said the other day. 🤷‍♀️

@Blossomtoes

they gave them for the baby bonus back in the 2000s

But they didn’t even arrive here until 2018 - or so you said the other day. 🤷‍♀️

No I said we got back to the UK in 2018 we’ve been somewhere else shock horror

@Blossomtoes - keep picking or start learning from the many people on this thread a loan that I’ve given financial advice, it’s no skin off my nose I need people to be renting, I need people to be at the bottom of the pile to make sure that I’m at the top.

No I said we got back to the UK in 2018 we’ve been somewhere else shock horror

You also said when you arrived back it was with just four suitcases, were on the bones of your arse and then went to uni. I can find your post if you like.

@Tar19891 if there is such a huge difference, it means that your area has a very high yield. There isn't much of a difference between rent and mortgage in my area in London. My mortgage is £1k, service charges are £150 and rent is £1400. Still cheaper but much less of a difference..if i get a new boiler it would be £1k to 2k including installation. And I had a 15% deposit. And this is in suburban London.

In more central parts of London, it is cheaper to rent than to buy. The landlords are in it for the capital appreciation but there is no guarantee of that and indeed London house prices have been falling in real terms.

I think the bad thing about this isn't that rent is more expensive than mortgage or anything like that or that as there are separate issues but that people can't buy without moving miles away from work/family or they need to scrimp/save /beg from Bank of mum and dad even if they work full time. Like I bought but I was lucky I think.

[quote Bingbangbongbash]**@DietOrDie

The calculation isn’t correct.

1. You can’t get BTL mortgages with a 10% deposit - 25% is the usual minimum, although some places allow 20% (at a higher rate)

1. BTL mortgages have higher interest rates than residential ones, so 1.7% is very unlikely.

There is also a formula the banks use to specify the minimum rent acceptable for a BTL mortgage. It’s something along the lines of 150% of the mortgage amount x stress interest rate (5.5%) / 12

So for a £100,000 mortgage the bank would need you to prove you can get at least £690 pm rent. These stipulations also feed into the rent charged.[/quote]
I was comparing the cost of me buying somewhere to live vs me renting an equivalent property

£500 given to them in 2000 and invested in an ISA was not going to be £500 when it was cashed in 18 years later was it …. I assumed that didn’t need saying …. I’m starting to see where the problem is @DietOrDie**

It wasn't stated that it was £500 invested. I have no idea how much the child trust funds were worth at the start and much less at the end because it just didn't apply to people of my age. You stated £500 without further explanation and it sounded a lot like that was how much they had to put towards the deposit.

How much was the £500 invested worth after 18 years?

Regardless, it was only ever available to those now aged between 11 and 20 (as google has just told me) so not much help to most FTBs who, like me, are currently older.

@Blossomtoes

No I said we got back to the UK in 2018 we’ve been somewhere else shock horror

You also said when you arrived back it was with just four suitcases, were on the bones of your arse and then went to uni. I can find your post if you like.

@Blossomtoes Absolutely I don’t need you to quote my circumstances I lived them, I know them word for word. and your point is what ? Also are you new around here because troll hunting isn’t the done thing … you’re not actually allowed to do this just so you know

Here you go @Nothappyatwork, this was Saturday.

So I arrived in this country in 2018 with nothing more than four suitcases and four children one in a buggy. I was a student and on benefits, I manage to save £6000 in a lifetime isa so I think the government contributed £1500 to that to help me to wards the costs. Whilst on a break from uni which started on 25 May I got a job I got three months wage slips and I bought a house for £120,000 on 1st September. None of this stuff is rocket science

@Blossomtoes

Here you go *@Nothappyatwork*, this was Saturday.

So I arrived in this country in 2018 with nothing more than four suitcases and four children one in a buggy. I was a student and on benefits, I manage to save £6000 in a lifetime isa so I think the government contributed £1500 to that to help me to wards the costs. Whilst on a break from uni which started on 25 May I got a job I got three months wage slips and I bought a house for £120,000 on 1st September. None of this stuff is rocket science

@Blossomtoes So again what’s your point ?

I thought this too. Then I bought and it cost me more money and more stress because I was responsible for things that went wrong, service charges, all the faff of maintenance... Basically with the right house over a long period of time you get loads of equity growth and virtually zero maintenance so yes you are better off but in the short term you can be much worse off which is a risk you don't have with renting.

Get a mortgage then or stop moaning

@CMZ2018

Get a mortgage then or stop moaning

And another - how many times has someone come up with this innovative solution now? Must be at least 20. 🙄

@Nothappyatwork

Your posts are so contradictory it’s extremely hard to keep up. When they lived at home you needed tax credits, but you’re also the top of the pile.

Confusing.

But you still haven’t acknowledged that your kids have had a lot of help getting to where they are - good for them; not everyone has the good fortune to have parents able to support them or guide them into sound financial planning.

@CMZ2018

Get a mortgage then or stop moaning

Shut up.

So I arrived in this country in 2018 with nothing more than four suitcases and four children one in a buggy. I was a student and on benefits, I manage to save £6000 in a lifetime isa so I think the government contributed £1500 to that to help me to wards the costs. Whilst on a break from uni which started on 25 May I got a job I got three months wage slips and I bought a house for £120,000 on 1st September. None of this stuff is rocket scienc

Did you not need childcare? What kind of job did you get that that paid for childcare, expenses for 4 kids, paid rent & allowed you to save? So you got a mortgage of 110k with a deposit of 10k?

I need people to be at the bottom of the pile to make sure that I’m at the top.

This doesn't make sense

[quote Bingbangbongbash]@DietOrDie

The calculation isn’t correct.

1. You can’t get BTL mortgages with a 10% deposit - 25% is the usual minimum, although some places allow 20% (at a higher rate)

1. BTL mortgages have higher interest rates than residential ones, so 1.7% is very unlikely.

There is also a formula the banks use to specify the minimum rent acceptable for a BTL mortgage. It’s something along the lines of 150% of the mortgage amount x stress interest rate (5.5%) / 12

So for a £100,000 mortgage the bank would need you to prove you can get at least £690 pm rent. These stipulations also feed into the rent charged.[/quote]
This is the problem right here.

Rents are being driven up by the BTL crowd in select areas due to that 150%

What then happens is other rentals (non-BTL) see those rents being charged, say those are "market rates) and also put their rates up.

This process feeds on itself over time, pushing rental prices higher and higher until you start negatively impacting affordability.

Covid + Brexit + Cost of living crisis is going to smash this to pieces. UK is in for a world of hurt in the next 12 months.

[quote Bingbangbongbash]@Nothappyatwork

Your posts are so contradictory it’s extremely hard to keep up. When they lived at home you needed tax credits, but you’re also the top of the pile.

Confusing.

But you still haven’t acknowledged that your kids have had a lot of help getting to where they are - good for them; not everyone has the good fortune to have parents able to support them or guide them into sound financial planning.[/quote]
@Bingbangbongbash no they are not contradictory at all, I appreciate without enclosing a timeline it’s difficult for you to as you say Keep up but life is very fluid, one doesn’t start in one place and remain in the same place even over a 12 month period Ideally. For example, Where I was financially at the beginning of the pandemic was extremely different versus the end with quite a few hick ups in the middle but I’m actually in a better financial position despite basically losing everything on 23 March 2020.

I have absolutely no intention of giving a breakdown of my budgeting and income around goings and obviously I do have a very good job however it’s extremely unfair to claim that my children have had any unfair advantage beyond having a mother, but not a father that was in their corner and passed on precisely the information that I’m passing on to you now.

What you choose to do with it is entirely up to you.

But there’s certainly no harm in exploring it, there’s lots of harm in just dismissing it out of hand and not at least finding out if some of it can work for you.