Myth: Generation rent is worse off than home-owning parents.

mayonnaise

Fact: Freedom from the housing ladder offers the opportunity to live life a little more imaginatively

http://www.theguardian.com/education/2015/nov/03/myth-generation-rent-is-worse-off-than-home-owning-parents

Baby boomers love to wail and moan that those born in the 80s and 90s complain they can’t afford a house but they all have iPhones and laptops – and there’s some truth in that.
Once you accept that you’ll never own a home, money takes on a different hue. Where’s the harm instead in enjoying life a little more? An extra holiday, or deciding to eat out more, won’t affect your chances of getting on the housing ladder, because those chances stand at zero anyway.

Freedom from the housing ladder.
Instead, leading imaginative lives with iphones, laptops and extra holidays. Good stuff.

PasturesNew

Not owning a home, or owning a home, doesn't change your income/outgoings.

Indeed, rent can, for some, be more than a mortgage. It's certainly more than a mortgage 5-10 years down the line.

So there is no mythical "spare money" to do exciting things with.

Masomnia

PasturesNew wrote: »

Not owning a home, or owning a home, doesn't change your income/outgoings.

Indeed, rent can, for some, be more than a mortgage. It's certainly more than a mortgage 5-10 years down the line.

So there is no mythical "spare money" to do exciting things with.

Haven't read the article but I think the point they're trying to make is that because people have given up on home ownership they don't bother to save for a deposit. Maybe some truth in it I don't know.

cells

Masomnia wrote: »

Haven't read the article but I think the point they're trying to make is that because people have given up on home ownership they don't bother to save for a deposit. Maybe some truth in it I don't know.

with mortgages at 2% and rents at closer to 5% of the value of a home if the deposit is 10% the break even point is about 3-4 years

So a renter can spend more for 3-4 years instead of putting together a deposit. Or they can try to put together a deposit and buy a home and spend more for 50 years as their mortgage will be lower than the rent

PasturesNew

Masomnia wrote: »

Haven't read the article

Always the best approach when responding to a thread
Articles in links are often long/tedious and incomprehensible.

Masomnia wrote: »

I think the point they're trying to make is that because people have given up on home ownership they don't bother to save for a deposit. Maybe some truth in it I don't know.

And the point I am trying to make is that there's insufficient money to be able to save up for a deposit after you've paid the rent (don't get me started on short-term tenancies, insecurity and HUGE agent fees/moving costs when you're out on a whim)

Any deposit you MIGHT be able to save would soon be gobbled up after 2-3 moves have been thrust upon you.

beanie414

I was laughing at some of the comments below the article.:rotfl:Very sarcastic.

cadon

cells wrote: »

their mortgage will be lower than the rent

Not in London, for the very simple reason that the smallest property you can buy is a studio, and many professionals rent pokey rooms in houses because that's all they can afford.

Like for like rent v mortgage may well go in favour of mortgages, but in London, people are often looking at buying places bigger than what they currently rent!

Conrad

What's happened to all the voices calling for Brits to be more European in mindset, happy to rent, not obsessed with ownership?


This was a common refrain prior to the crash, but now the puritan preachers have moved their vocal pitch onto new ground, inability to buy.

kaya

My mortgage is £520pcm, to rent it would be £1500 which makes generation rent look a little worse off

Crashy_Time

PasturesNew wrote: »

Not owning a home, or owning a home, doesn't change your income/outgoings.

Indeed, rent can, for some, be more than a mortgage. It's certainly more than a mortgage 5-10 years down the line.

So there is no mythical "spare money" to do exciting things with.

And for the boomers who have missed the last selling exit point there will be no "free money" (not as much as they thought they deserved anyway) for holidays and retirement either, so tough titty either way really. Only the bankers win in the end in this casino.

Crashy_Time

kaya wrote: »

My mortgage is £520pcm, to rent it would be £1500 which makes generation rent look a little worse off

My rent is 400 p.m so I am not really bothered either way, are you hoping/needing to sell at a certain price to make it worthwhile?