Renting in your 40's and staring into the abyss

remorseless

silverwhistle wrote: »

But she doesn't want to live in London as she doesn't work there, but they haven't been able to build up a suitable deposit. The Guardian article points out they aren't unique in this respect of having decent jobs but unable to generate a deposit. I don't recall the percentage of people who have help from parents these days but the fact that it is appallingly large doesn't help those for whom the resource is not available.

I have to say I find this part of the board to be the most deeply unpleasant and unempathic of the whole site with a level of smugness and 'if I can do it..' that doesn't actually address the issue at all.

And it is an issue and will become an increasingly large one in the future if nothing is done.

I think it depends on her expectations, the story says they both work at uni so salary is around £40k+ each, though they have 3 kids (11, 8, 6) say they bring net a month around £4k+, a 3 bedroom detached around there is £1k+ taxes, utilities, blah blah

in say 5 years (she was not born 40) she couldn't save £25k? (£400/month)

To save money it takes time, sacrifices and lifestyle choices. Maybe she prefers to have 2 cars, maybe she prefers to send kids to expensive schools, maybe she works part time, maybe maybe - we don't know but reality is, money for a deposit don't just magically appear!

Graham_Devon

remorseless wrote: »

in Italy for example, yes you may get a 4+4 contract (4 years + 4 years vacation notice) though a lot of the dues fall on the tenant... this goes from fixing most minor repair (Mould, installing fans, electric) to decorate and keep the place in good shape, paining the walls, ceiling, clearing chimney, gutters, water pipes, etc.

I think most would prefer that to be honest.

The key thing above all else though is that renting in on the continent seems to be cheaper all round in terms of value for money in most places.

Having a quick look now, a 2 bed apartment (with the addition of a cellar) in the centre of Voiron in France is up for €560 a month. That's £390.

You'd struggle in most of the UK to get a property of the same standard for that money. It would be impossible in the South of the UK. In my own areas you'd be paying 80% more than the person in France. I dread to think how much more you'd be paying in, say, Kent.

Value for money is very important.

lisyloo

I take trains, Tubes and buses during the rush hour. Most are always jam packed and very unpleasant to travel on.

Have you considered using a Boris bike?As fash as tubes and faster than buses during the rush hour. I've found a quiet route on residential streets.

remorseless

Graham_Devon wrote: »

Having a quick look now, a 2 bed apartment (with the addition of a cellar) in the centre of Voiron in France is up for €560 a month. That's £390.

You'd struggle in most of the UK to get a property of the same standard for that money. It would be impossible in the South of the UK. In my own areas you'd be paying 80% more than the person in France. I dread to think how much more you'd be paying in, say, Kent.

Tout ce qui brille n'est pas or...

Voiron is 30km from Grenoble (155.000 people), you'd find comparable properties in the UK in a similar setting (Blackpool?), then what would be the job prospects and salaries...maybe £1000 a month net?

You should compare South E/Kent with around Paris and see what you get for your buck...hmmm Euro

wotsthat

Graham_Devon wrote: »

So why do you hang on to it?

I see this sort of "poor me" line on the house buying forum quite a lot, with landlords suggesting they don't make much at all from their properties. But when questioned, the key thing for them isn't the profit on the rent, it's the capital growth and the fact someone else is paying all the costs of that capital growth for them.

I'd be interested to know the logic for keeping a BTL that only provides a positive cash flow of £50/ month. If you'd asked nicely we might have found out and learnt something.

I have a family member from NI who moved to the mainland and are still in negative equity to the tune of around £50k. Their tenant just about covers the costs. Luckily they have decent jobs so are chipping away - the key thing for them isn't capital growth (although it would help short term) but just to be able to save up enough to sell up and be in the clear.

Either way you can see why a landlord making £600/ year is hardly going to be in a rush to repair the windows.

Maybe interest rate rises will force the issue for some although in my example it would mean their margin decreases as they'll still be able to meet their monthly liabilities.

Graham_Devon

remorseless wrote: »

Tout ce qui brille n'est pas or...

Voiron is 30km from Grenoble (155.000 people), you'd find comparable properties in the UK in a similar setting (Blackpool?), then what would be the job prospects and salaries...maybe £1000 a month net?

No, nothing like Blackpool.

wotsthat

Graham_Devon wrote: »

Having a quick look now, a 2 bed apartment (with the addition of a cellar) in the centre of Voiron in France is up for €560 a month. That's £390.

http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=France&country2=United+Kingdom&city1=Grenoble&city2=Plymouth

Consumer Prices in Plymouth are 2.80% higher than in Grenoble
Consumer Prices Including Rent in Plymouth are 6.37% higher than in Grenoble
Rent Prices in Plymouth are 18.09% higher than in Grenoble
Restaurant Prices in Plymouth are 4.60% lower than in Grenoble
Groceries Prices in Plymouth are 4.31% higher than in Grenoble
Local Purchasing Power in Plymouth is 5.15% higher than in Grenoble

You would need around 2,540.35£ (3,616.64€) in Plymouth to maintain the same standard of life that you can have with 3,400.00€ in Grenoble (assuming you rent in both cities). This calculation uses our Consumer Prices Including Rent Index. This comparison assumes net earnings (after income tax).

80% more 'round your way for rent seems unlikely.

mayonnaise

Graham_Devon wrote: »

Having a quick look now, a 2 bed apartment (with the addition of a cellar) in the centre of Voiron in France is up for €560 a month. That's £390.

Expensive.
I'm sure you can rent a similar flat in Drăgăşani, Romania for much less.

chucknorris

mayonnaise wrote: »

Expensive.
I'm sure you can rent a similar flat in Drăgăşani, Romania for much less.

I reckon there are even cheaper places in Afghanistan, you even get a complimentary mine detector too, what could possibly go wrong?

remorseless

chucknorris wrote: »

I reckon there are even cheaper places in Afghanistan, you even get a complimentary mine detector too, what could possibly go wrong?

coming from Sydney, the prices in the UK are pretty affordable... it is easier to moan and say that it's expensive, unaffordable, blah blah but the floodgate is open now, like in Oz, not sure what can be done [really] to ever bring it back to a level comparable to say Europe.
NZ tried, and didn't really work that well, prices are still pretty high.

I don't believe prices will always go up, but I doubt that they will go down to what people think it's fair anytime soon.

How much do you think a 3 bed house for Fiona should cost?