Why do people prefer to rent rather than buying a house?

[Cocktailglass]

Genuine question, AIBU to not get that in the long run you pay off mortgage, own your home to pass on to your DC and rent, especially with the high rates now, is dead money?

I do of course understand getting a mortgage is harder now and house prices, I'm talking about people who have been renting all their lives.

Unless having rent paid for on benefits, I don't get why anyone working hasn't got on the property ladder, less to pay every month with a long term mortgage, eventually nothing to pay unlike rent.

As I said, not talking about now, but decades ago. You showed your earnings, were offered the best deal of what you could borrow, bought your first home within these means, a starter home with the intention of paying far less for payments than rent, property goes up in value, you buy your next home without too much of an increase, still less than renting. So the upgrading continues and initially you just get what you can afford to get on the ladder.

Renting does give you the benefit of any problems being the responsibility of the landlord but all depends on how good they are! With council properties in a much better position as houses are upgraded and issues dealt with (hopefully) more quickly.

Plainly speaking, you work, give a significant part of your income to someone else just to live in their house, pay bills and CT. What's the benefit of this rather than knowing you're paying straight into a loan for your own property, a financial asset, it's yours? Xxx

This is just to illustrate to you why some people are happy with renting a council house - it is a house for life. Not about morals or what else

Now, I have not seen much council houses stock abroad....unless I am wrong. The UK is highly specific case

My brother could afford to buy from early on in his career, but chose not to- he was very mobile and lived abroad, which I am sure informed this decision.
Finally aged about 55 he decided to buy- if you don't like the hassle of homeownership, and like to move often it might be for you. I am sure given the opportunity about 95% of people would prefer to buy though- retirement is very difficult if you continue to have a large outgoing like rent.

1 It's quite hard to do it on one wage, even for those with well-paid jobs, and it stopped being a given that you could expect to find a partner ready to settle down at 20 odd decades ago.
2 Some people like the fact the landlord will sort out any property issues, rather than struggling to find money/a tradesperson to fix issues at short notice.
3 Many people don't want to work all their lives just to have the government take their house when they need care in their old age.

As i said, when support with rent of course this is the best option, council is covering rent and help with UC.

My question was when able to show earnings to prove you get that first step on the property ladder, pay a deposit which at that time was a lot less, why choose to rent.

I think it’s similar to why people get a lease car instead of buying outright. With a lease car you can have a top of the range car, brand new, no servicing or MOT costs. But ultimately it doesn’t belong to you and you’re paying every month for something that you don’t own. But buying a car outright means you have to save up, get a second or third hand car that isn’t top of the range and have to pay for its upkeep. It makes financial sense in the long term to buy but not everyone wants (or can do) that.

If you’re only talking about decades ago, why do you use the present tense in your thread title?

Are you thinking about a particular person? Because it seems odd to start a thread about 60 year olds who rent places to live. I say 60 because I know some people eg 30 years ago who didn’t manage to save enough for a house deposit then despite being sensible, or one person who just about managed, was about to buy when house fell through, but was pregnant and then couldn’t manage to get a mortgage during expensive childcare years (despite it being cheaper than their rent). If you didn’t buy before kids, then suddenly it was a lot less affordable.

A couple I know, both mid 40's have rented the whole time they've been together, and have told me they will continue to private rent until they get to retirement age and then the government can take over paying for everything for them........

Not everyone has the same sense of job security that you seem to have enjoyed, and not everyone can halve their monthly payments by buying.

Also, you don't mention how much of your income was spent on nursery fees. There are people spending the equivalent of a down payment on childcare.

Bit hard of thinking aren't you.

I do have acquaintances, former colleagues that said to me “why are you buying?” As they went off on yet another mini break on the new budget airlines then moaned 10/15 years later they couldn’t afford to buy so for some their lifestyle choice impacted there position later but for anyone under 30 it hard in some areas that said my dsd has bought a house with her dp, but had to trade off where it is, 45 minutes from work

I didn't know people prefer to rent.

It's not secure that you can stay, that the rent will stay the same. My friend rents and her rent goes up disproportionatly every time the initial period is over.

Even if you don't pay the mortgage off, you always have your equity.

What's back in your day got to do with people who can't afford a deposit now? Of course this is a a goady post - unless you are exceptional thick??

I like the lack of responsibility. I can spend weekends having fun, not doing maintenance, gardening etc.

He invented some disability and left work and said to the job centre he cannot find work anymore and they are homeless

Yes, the job center are known for logging someone's made up disability and asking the council to hand them a house...

Whilst a mortgage is often (but not always) cheaper than rent, you also need a sinking fund for emergencies - boiler goes, roof leaks, a window is smashed. And for minor repairs, dodgy electrics, a sink leaks etc. A survey won't pick up most of that stuff, even a new boiler can fail.

Owning a house is a lot of responsibility and not everyone feels up to it. Renting is stressful and so is owning. Different stresses and people pick the stress they feel comfortable with.

I rented for 20 years whilst saving up a deposit and I was lucky to have good private landlords. The pro's of renting for me were:

• having oven, fridge, shower fixed or replaced if they broke
• having the garden cleared if I asked
• boiler servicing every year, new boiler when it was needed
• any repairs to roof, walls, pipes fixed
• no responsibility for any building repairs or major maintenance
• freedom to move whenever and wherever I wanted

It's more long term security now that I've bought - but there was no way I could have afforded all that white goods, boiler and building maintenance when I was starting out.

Equity can go up and down as well. My friend never had any equity the whole time she owned her house.

Such a ridiculous post. I've just bought my first house at 45. Ive always rented because I didn't have the money for a deposit and it took me a long time to save for one.

How jolly lovely for you that you live in an area that is 'nice' and you can get a 'nice property' in a 'decent area' for £50K to 100K. 🙄

However, many people in most parts of the UK CANNOT get a property so cheap, and certainly not in a nice area. The cheapest property within 10 miles of me is £195K, and that is a 1 bed flat. Houses, (even small, terraced 2 beds) start at £250 to £270K! Why the hell should someone have to move MILES away from family and friends to be able to buy a property?

Ridiculous attitude. Bet you're a fan of Norman Tebbit eh? Got no jobs in your town? Get on your bike and ride to another town for one! Can't afford to buy in your town or village? Move 100 miles away to the North East! Or to Jaywick! Plenty of cheap 'properties' in Jaywick. Roll up, roll up!

Good grief!

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Not true. The majority of renter's are in private rentals.

1. I'm childless so no one to inherit my property anyway
2. I'm single
3. You need a deposit to buy a place. And it's harder to get one together if you're single and not a high earner. I'm surprised this isn't something you've ever considered before.
4. The size of my rented flat and the city centre location is out of my reach in terms of a mortgage, but not if I rent. I could get a mortgage and buy but would have to live somewhere smaller and on the outskirts of the city, away from work and public transport. (I am aware that is not the set up in every city but it is how it works in mine.)

I said some of them are in shit holes. People live in them, so what? You haven't pointed out anything groundbreaking.

I literally don’t know anyone who ‘prefers’ to rent. I’m sure those people exist and have good reasons for their preference. Most people would much prefer to be able to buy. It’s not as straightforward nowadays, much larger deposits for even basic starter homes are required in many areas of the country and if you have children that affects your affordability. If you’re buying on your own, you’re in an even more difficult position.

In the end it’s non of your business really but I think you know that.

What I’m paying in rent would be more than what I would pay in a mortgage for the same value house but I can’t get a mortgage because of my income, single person and number of dependants. As a couple we did have mortgage approval but rubbish timing in the housing market meant we kept just missing out on houses by being outbid. So for me and many like me while in theory I could afford mortgage repayments, no institution will lend to me due to the aforementioned issues so I will be renting forever, not by choice.