Are we better off renting? (The Guardian)

Wookster

Are we better off renting?
For generations, we've aspired to be home owners. But evidence shows we'd be better off renting – both individually and as a nation. In Germany and Sweden, the rental market is credited with making people wealthier and happier, and with creating more attractive cities. So, is it time to sell up?

The woman's expression was one of mystification and mild disgust. "You're renting?" she said, lowering her voice as though uttering a swear word.

A few hours before, I had met this woman at a friend's birthday party. We had fallen into a polite sort of chit-chat and when she asked where I lived, I told her that my boyfriend and I had just moved into a new house. We were renting, I explained – taking a step off the property ladder to see what would happen to the housing market before committing to anything more long term.

http://www.guardian.co.uk/money/2010/nov/14/home-ownership-renting

Interesting article with some quite valid points on flexibility in the Labour market.

des_cartes

Wookster wrote: »

http://www.guardian.co.uk/money/2010/nov/14/home-ownership-renting

Interesting article with some quite valid points on flexibility in the Labour market.

Europeans have much greater security of tenure than renters in the UK. As more and more people in the UK rent political pressure will come to improve tenancy law in the UK as well. Landlords would say that introducing legislation to give tenants more security would lead to a sell off of rental property and they could well be right. Of course that would then lead to a glut of ex-rental properties on the market bringing the cost of buying down again.

PasturesNew

Tenants here used to have more security, until 1996/97 legislation changed so that the AST was used and lenders could repossess the property knowing there was a fixed date when they might get their hands on the places.

Because it was then possible to get mortgages on places for BTL purposes, everybody and his dog piled in, pushing the prices up.

Before, you'd need a full, proper, commercial loan - and a big deposit. Any place with tenants was worth about half what it would be if it were empty, because tenants had rights to stay and it was difficult to get them out in cases of repossession.

BitterAndTwisted

It was interesting but what was of most interest to me was the writer's own circumstances in particular rather than the article in general. She bought a one-bed flat on a 90% interest-only mortgage but rather than live in it with her partner she chooses to let it and rent a larger place elsewhere. Since when was a one-bed property inadequately sized for two people to live in comfortably? I hope she's started to save to pay off the capital while interest-rates are so very low or she may never be shot of it.

THE_GHOULS_PARADISE

If you're too poor to own then of course you are better off renting. Those individuals who return to mummy and daddy because they refuse to stand on their own two feet are a class below renters imo.gl

PasturesNew

THE_GHOULS_PARADISE wrote: »

If you're too poor to own then of course you are better off renting. Those individuals who return to mummy and daddy because they refuse to stand on their own two feet are a class below renters imo.gl

Thank you for your opinion, but I don't see why I should fork out 80% of my income to live in a small 1-bed flat, in a converted house where the other residents are bongo-playing weed smokers.

fimonkey

THE_GHOULS_PARADISE wrote: »

If you're too poor to own then of course you are better off renting. Those individuals who return to mummy and daddy because they refuse to stand on their own two feet are a class below renters imo.gl

I have enough money (salary and deposit) to buy but I am FAR better off by renting than buying at the moment. For what I pay in rent for a huge 3 bed flat with garden would buy me a 1 bed box-room flat in a block in my area.

Horses for courses

Cleaver

THE_GHOULS_PARADISE wrote: »

If you're too poor to own then of course you are better off renting.

And you're also better off renting if:

• You're a student
• You're in a transitional period of your life
• New to an area and want to get a feel before buying
• You're getting a property for a rental price that is far below what a mortgage would be

Or...

...just maybe...

...because you don't want to own a house for what could be one of a million other reasons?

I know you're a bit of a troll, but you seem to have a real insecurity about something. Have you recently bought a house and are worried about an aspect of that purchase? Perhaps some regret? It's okay to share this in a nice way rather than covering it up with these types of strange, hate-filled posts against 'renters' who aren't really listening anyway.

BitterAndTwisted

THE_GHOULS_PARADISE wrote: »

Those individuals who return to mummy and daddy because they refuse to stand on their own two feet are a class below renters imo.

They might be a class below renters in your estimation but they're probably hundreds of pounds a month better off and quite possibly saving up for their deposits while enjoying lovely home-cooked meals into the bargain. I sort of envy them

amcluesent

Anything being bigged-up in the national press is well into bubble phase as the punters pile-in.

Daddy-Spendless

were are a family of 6 living in a prety large 3 bed semi for less than 270 quid a month. unless i came into a wad of cash, enough to buy outright i just wouldnt be interested in buying. owning a house is so low down on my list of what i want from life i cant see i would ever saddle my self with 25+ years of debt to be a home owner.