realistic target to get back on the property ladder post BR??

Ineedaname

kepar wrote: »

Until your landlord says he wants you out because he is going to sell

...and the risk of losing 'your' (the bank's) property if your financial circumstances change are?

Out of 5 rentals I've lived in over the past 17 years only one landlord has 'pushed' me out and that was because the market had increased significantly so they gave me notice in order to remarket the property. I only wanted to stay another 6 months anyway so agreed a new tenancy at the higher rent for that period.

Everywhere else, it was me who gave notice because I needed to move for various different reasons.

kepar

Ineedaname wrote: »

...and the risk of losing 'your' (the bank's) property if your financial circumstances change are?

Out of 5 rentals I've lived in over the past 17 years only one landlord has 'pushed' me out and that was because the market had increased significantly so they gave me notice in order to remarket the property. I only wanted to stay another 6 months anyway so agreed a new tenancy at the higher rent for that period.

Everywhere else, it was me who gave notice because I needed to move for various different reasons.

So you have never owned your own property.

kepar

Ineedaname wrote: »

My thoughts too Alistair. By the time you've added up mortgage repayment, buildings insurance and all repairs/maintenance over the lifetime of a mortgage, it would probably total a similar percentage of income.

Plus, during that time the householder never owns the property until it's all paid off, so is maintaining the property on behalf of the mortgage company.

I know which route I'm happy with!:D

But the difference is that if you stayed in that house for the term of the mortgage say 25 years then the house is yours and if you sold it the money is yours. Whereas if you rented the same property for the 25 years then you have nothing.

These are arguments put forward by renters to justify to themselves why they do not want to buy. I was buying my property when I lost it, but now I am in rented doesn't stop me wanting to own again.
I agree that there are benefits in that you are flexible to move anywhere, but with a poor credit rating that does limit the amount of properties you can apply for. We are using this time to get together a big £30k+ deposit and hope someone will give us a mortgage.

Renting is okay but you cannot put your mark down, I would like a new driveway, put in double glazing where it hasn't been done. Move the shed, knock the garage down or convert it. Things you could do if it was yours but cant if you are renting,

Waspeze

I've been making enquires into this and the general consensus from what i've been told is there is no real point in applying for one until 36 months after discharge and you'll need more than a 20% deposit.

dojoman

If the OP wants to own a property then surely it is up to them, I would think they know the pros and cons of having a mortgage against renting. Personally I am with Kepar on this one. OP have a look here:)


https://forums.moneysavingexpert.com/discussion/2918012

alastairq

I have to say...having owned my own houses..[as in, had mortgages for them, and lived in them....the reality is they belonged to Building Societies] since 1975 [rented flats, etc beforehand]...there are attractions to owning one's own home....but I believe it's all an illusion really.

There are too many situations that can arise within a lifetime to make a nonsense of the idea of 'owning' one's own home.

If everything works out according to plan, one gets the desired early retirement, one can downsize when one's 2.4 kids leave home...then fine..whooptidoo.


but....I wonder what the percentages are, of those whose plans get set awry by all of life's hiccups?

Many years ago, I bought a Co-op insurance agency......many of my clients were retired....and all too many would complain about how unfair it was that, having scrimped through life, putting aside for old age, paying off the mortgage,etc...they then had to find huge sums to repair the roof, replace the boiler, etc....when down the road, a pensioner living in a Council flat..[who, they assumed, never bothered to set aside for old age]....appeared to receive all sorts of benefits, never had to find the money for repairs, and could afford the bingo 5 nights a week.

Although I kept such thoughts to myself, I did wonder ''who was the mug?''

Nowadays, I 'have' to rent.

It is unlikely I will ever amass sufficient for a deposit, never mind buying outright...[although a colleague has 'had' to re-mortgage, and is faced with the prospect of paying it until he's 74! He therefore cannot afford to 'retire'....luckily, as things stand, in my job we can keep going forever....]


It is unfair to denigrate renting compared to buying of property....each has their own advantages,each their own drawbacks....and many in Europe [France especially] find renting to be far superior.....

But...paying off a mortgage [after 25 or so years, perhaps?]...., to finally 'own' one's own house is a dream for far too many...and this forum is full of those folk whose 'dreams' were shattered by life's tribulations.....too many to warrant ignoring the pitfalls of life....to many to say ''it wont happen to me?''


ANd..you can't take it with you.....

kepar

But there are many who do complete, both my parents who remarried, my in laws to name just a few. Maybe it is because as you say you will never get a deposit together that you feel like this. There is going to be a shortage of rentable property over the next few years and rents will increase. What happens if you are priced out of the rental market. Of course if you were on benefits and the rent less than £2000 a month no worries yo will have it paid for you.

I can see your reasons but if others want to buy that is their choice. The more who rent, the higher the rents will be.

Ineedaname

alastairq wrote: »

AND..you can't take it with you.....

You beat me to it. :T
Only humans set such store in material things, all other species are happy just to be alive.

alastairq

kepar wrote: »

But there are many who do complete, both my parents who remarried, my in laws to name just a few. Maybe it is because as you say you will never get a deposit together that you feel like this. There is going to be a shortage of rentable property over the next few years and rents will increase. What happens if you are priced out of the rental market. Of course if you were on benefits and the rent less than £2000 a month no worries yo will have it paid for you.

I can see your reasons but if others want to buy that is their choice. The more who rent, the higher the rents will be.

On the contrary.

My opinion is one shared by some at the very highest levels of the housing industry.....

What this country really needs is the political will to support and encourage stability within the rental market.

The private housing market being too volatile...too insecure as it stands...[look at the amount of negative equity out there?]

My point is simply, so-called property ownership really needs putting into perspective....the influences on us over the past 30 years to place property ownership as the highest personal aspiration really need better scrutiny.

Personally, over the years I got complacent about home ownership....and it wasn't until I had close experience of the long-term rental side of things [local authority housing especially] that I began to question the real wisdom of being a home owner.

I have no intentions of persuading any individual to avoid one path or another.

Equally I have no intention of letting [blind?] influence have sway.

alastairq

however, having read Kepar's recent post on another thread, with regards to the pitfalls of property ownership, BR, etc....I get the impression there is a sort of equanimity of viewpoints on the subject?


One point concerning renting, as distinct from property ownership, that is often missed...probably due to the way renting is viewed in this country..and that is....when renting, the tenant is actually paying for a service.

Much like one does in a hotel, or when leasing or whatever, a car?

In ownership, one is providing that service to oneself.

Putting a price on that service is much like putting a price on the contribution one's partner makes [financially as well] within a relationship?

Could we, for example, actually afford to pay our partners for what they do?