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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think renting in old age is a wise move

144 replies

Forthelovagod · 21/06/2023 12:02

So I've had a mortgage since I was 21. My Dad drummed it into me that rent was dead money, that if I could afford to buy then do it.
My whole mindset since then is get mortgage free ASAP and this will help make things affordable in old age.

My parents are now elderly and my Dad has now changed his thinking. Feels the burden of his mortgage free home due to ongoing maintenance stuff and reluctance to trust tradesmen. He tells me now, rent, get a HA property if possible, that there will be less worries in my old age. His friend is in HA accom, think he wishes he was too

Is this crazy thinking? He is certainly not as sharp as he was but part of me sees his point.
Aibu to think that those in secure rented accommodation in old age may actually be in a better position.

Now considering that once my mortgage is paid maybe sell my house and give my dc some money for their futures and see them enjoy it rather than wait till I die..... Aibu to think my Dad may have a valid point

OP posts:
Passwordsarestressful · 21/06/2023 12:08

If you have paid off your mortgage by the time you retire, you only have to pay for maintenance and you can downsize, having a lump sum. If you rent, youre at the whims of the rental market. Eg friends are nearing end of their term, they have paid £750 monthly or thereabouts years, other friends rent has doubled in last 5 years, now at £1500.

flipflopfloop · 21/06/2023 12:09

It’s not crazy anymore, unfortunately. You would however be crazy as a first time buyer to try and do it now if you’ve got a cheaper rental. Negative equity risk for 5 and 10% deposit is huge at the moment which is an issue for all those who can’t afford to purchase their forever home immediately

ownworstnme · 21/06/2023 12:11

I firmly believe that the government pushes home ownership so that they can take all the equity when you need a care home.

Curtains70 · 21/06/2023 12:11

You don't just get a HA property though so that's a big gamble

wutheringkites · 21/06/2023 12:12

I agree that a decent HA property that is well managed and maintained is a great thing to have but you won't be eligible to get one so would end up in private rented.

I wouldn't choose to do that unless I had a lot of money to give me choice and control over where I could live.

paulmccartneysbagel · 21/06/2023 12:13

My mum has said similar, she purchased her council house back in the 90s.

But if you sell up and rent instead, the chances of getting a HA property are extremely slim, no?

I'm a long term renter and can't even get on the housing list.

PuttingDownRoots · 21/06/2023 12:13

Surely maintenance would be cheaper than rent?

AuntieDolly · 21/06/2023 12:14

You could spend all that lovely equity on cruises! I'd certainly consider it

AmandaHoldensLips · 21/06/2023 12:15

This is interesting.

We all know that the sale of retirement homes has become a racket. The developments are always leasehold and very difficult to sell on. So now a lot of these places are offering rental options instead.

I think once one gets to a certain age, say 80+, then renting is definitely an option worth considering. It simplifies the estate and frees up a bunch of money to be enjoyed or gifted away.

croft89 · 21/06/2023 12:15

I used to work with a guy who lived in a HA house with his teacher wife and two children in their late teens/early twenties

They were on a fair salary for the area. He said to me that he had no intention of ever trying to buy a house because if something goes wrong with his house it gets fixed for free

I'm not sure how the system works but he and his wife had been in the house a long time and had both got much better jobs compared to when they got the property. Once you get a HA property is it your's for life?

I always thought that it was a bit unfair to still be in it if your circumstances change and no doubt there's other people more in need on a waiting list?

Another colleague said that one downside is that when you die you won't have a property to leave to your children

greencheetah · 21/06/2023 12:15

You wouldn’t stand a chance of getting a HA property anywhere near where I live.

Yes, secure low rent might be attractive if you can cash in equity and use it for adult DC, holidays etc. For most people though, it would be a terrible gamble with regular moving house, which costs money, and high rent.

Hence the popularity of equity release plans, which have their own drawbacks.

tootrueblue · 21/06/2023 12:16

How are you going to fund rent when you stop working?

Kinneddar · 21/06/2023 12:17

How often are you going to need to pay for expensive jobs though. Surely it would make more sense to put the equivalent of monthly rent away every month for a year to give you a cushion.

Your ongoing maintenance isn't going to be more than the cost of paying rent for ever more

Original poster
Forthelovagod · 21/06/2023 12:17

Thanks for replies. I don't have a HA property but my long term partner does.

We originally planned that we would buy together somewhere once our collective dc are grown but it means starting again with a mortgage in this climate and after my Dad's comments we are rethinking this.

His rent isn't cheap but with a new mortgage we would be at least the same. And the property was new when he moved in so it's lovely and fresh and easy to heat etc whereas mine is over 120 yrs old and heating bills are crippling.

OP posts:
greencheetah · 21/06/2023 12:18

tootrueblue · 21/06/2023 12:16

How are you going to fund rent when you stop working?

I think people who have sold property use savings and as these dwindle for whatever reason (holidays, cars, gifts) there comes a point where Housing Benefit kicks in.

I know a few people who have done this, but they all had really secure tenancies for various reasons.

2bazookas · 21/06/2023 12:19

Plenty of upmarket retirement complexes offer renting as well as sales. He'd still get all the maintenance, services, social activities AND have capital to enjoy for the rest of his life.

Original poster
Forthelovagod · 21/06/2023 12:21

My Dad is not considering moving @2bazookas
He is carer to my mum after a sudden decline in her health during the pandemic and a move would literally finish her off.

OP posts:
maddiemookins16mum · 21/06/2023 12:22

A friend of mine rented for a loooooong time, all her working life really.
She’s 67 now. Applied for a HA flat for over 55s. Waited 8 years.
Now retired and gets her rent paid by housing benefit, she’s happy as Larry.
Good on her I say, she lived in some right shit holes renting, could never afford to buy.

TheYearOfSmallThings · 21/06/2023 12:24

If you can get secure social housing and aren't worried about leaving a house to your children, then your father is not wrong.

I believe you can even remain in social housing and buy a second property to rent out, which you could later sell if the upkeep became problematic.

But where I live I wouldn't want to be trying to get social housing - it is almost impossible. They push people into private rental instead, which is insecure and expensive.

Rollercoaster1920 · 21/06/2023 12:25

I know a retired person, no children, who is actively spending down assets to enjoy life. House was sold a few years ago and is spending through the equity cash. I can see the point of view if there are no descendants.

2bazookas · 21/06/2023 12:26

AuntieDolly · 21/06/2023 12:14

You could spend all that lovely equity on cruises! I'd certainly consider it

I've met people on cruises (mostly old ladies) who spend their lives on back- to-back cruising. Some of them never leave the boat. Everything they want or need is on board (hairdressers, shopping, company, lovely food).

For people on a generous pension, it's an economic way to live in fully-serviced comfort with no housework, no cooking, no responsibilitiies.

elodiedie · 21/06/2023 12:27

If you don’t own a home then you’ll be eligible to move into an over 55s HA rental. These tend to be pretty nice and some have care available, cafes, social events etc. It’s a really good option for old age.

FarmGirl78 · 21/06/2023 12:39

ownworstnme · 21/06/2023 12:11

I firmly believe that the government pushes home ownership so that they can take all the equity when you need a care home.

You do know it's the care home that take it? Not the government?

I work in healthcare, visiting people in care homes. And seeing the "free" ones is the EXACT reason I'd choose to be a homeowner rather than rent. I want to be able to sell up and live in a very nice care facility, with nursing staff onsite, rather than some of the hellhole ones I've seen people get dumped in. Despite initially assuming our family home would eventually be inheritance for me and my brother, my Mum now realises it'll likely be spent on care home fees for herself, but it's mightily glad she will get somewhere plusher.

Willyoujustbequiet · 21/06/2023 12:48

Oh God no. Couldn't think of anything worse really.

Confusedmumannoyedson · 21/06/2023 12:49

I imagine if the burden of benefits in the form of housing benefit etc for people who don't pay rent increases too much there will be restrictions eg make people downsize, only pay x% towards rent, make people pay more from pensions etc.

Nothing is given and this assumption that some have that if you spend it all the state will support you is a bit of a gamble longer term. Nursing and residential homes for state funded are usually the worst ones and often long waiting lists, HA and LA housing is in short supply. Hopefully they will move people from blocking larger properties into smaller rentals for HA and LA housing to free up for families.