Is it really THAT important to own your own home?

lieutenant_dan

In the States and many other parts of Europe, renting is no big deal at all. Having said that, also far more affordable than here, where the rents as well as house prices are sky high. Also seen experiments in some European countries where the long term rentor is eventually better off than the person who has a mortgage, as the surplus cash saved from renting instead of buying is invested instead.

But what are the alternatives if you choose not to buy? To stay renting and throwing away "dead money", and then face a search for accomodation into retirement?

Briefly explain my situation. 32 years old and never owned a property. Currently renting a flat which is expensive, which also means I am saving less towards a deposit, another thing is I'm self employed so would have to do a self cert mortgage so would need a higher deposit and would end up paying more for a mortgage anyway. Do feel quite anxious in terms of advancing years and lack of long term security about not getting onto the property ladder, and because it is supposedly something which has to be done, but does it really matter that much? Or put another way, should I stress out and overextend just to get onto the ladder when these prices are unrealistic and may well come down gradually anyway?

Doozergirl

I think it's important to end up with a permanent home by the time you get older for security of tenure, but I don't think that renting is a bad thing at all if it helps you achieve a long term goal.

Perhaps if security of tenure existed in places other than social housing, then it would be easier to rent.

If you have money/equity then it may well work harder and faster for you if it were invested somewhere else, at the moment, but at least forking out on a repayment mortgage means you'll get there in the end.

epz_2

problem is there woulnt be a state pension by the time i retire so i would like to have no outgoings on rent by that time.

Generali

With home ownership you get security of tenure and a great inflation hedge.

Renting gives you freedom to move as your needs dictate and predictable costs (in theory) as you don't have to pay the cost of the roof caving in/boiler exploding etc.

You pays your money and you takes your choice.

(BTW anyone know where that line comes from. Is it a quote?).

PasturesNew

Just being settled. With your own house, you can make changes, decorate and even buy furniture that you know you won't have to be carting about every 2 years because the landlord puts the rent up too much or wants to sell or is just an awkward landlord.

If you factor in the cost of moving a full household every 2 years, say, with credit checks, deposit (that you may or may not see again), then the cost of removals, not to mention wear and tear on your goods, it can add up to quite a lot.

I am renting at the moment. Can't smoke in here, which isn't a problem, but I do feel "guilty" every time I pop outside to smoke in case the landlord sees me. And even though my flatlet on the deeds owns the garden, I am not allowed to hang washing out outside. I also can't redesign the kitchen to fit a freezer in. Things like this are annoying. If I owned it, I could smoke outside without guilt, I could buy a shed and put a chair or two and washing line in it, I could hang my washing outside instead of having the airer just 3 feet in front of me for 3 days at a time while it's drying. I could even buy/own a freezer!

PasturesNew

Generali wrote: »

You pays your money and you takes your choice.

(BTW anyone know where that line comes from. Is it a quote?).

Try this: http://www.phrases.org.uk/bulletin_board/37/messages/256.html

Pumpkin_Pie_5

Generali wrote: »

You pays your money and you takes your choice.

(BTW anyone know where that line comes from. Is it a quote?).

Its in Huckleberry Finn :A

Pumpkin xx

Turnbull2000

In this country, yes.

If you're renting, it's not just our culture that goes against you, but also our economic model, regulations and laws.

As has already been mentioned, there's no security of tenure in the UK and rent costs are quite extortionate compared to the continent.

And then there's retirement. Final salary/defined benefit schemes are largely inaccessible to anybody under 30 - a double whammy to the generation currently priced out of the property market. Most are lumped with poorer defined contribution schemes, if anything.

For myself to achieve a mere half of my salary upon retirement, I'd have to set aside a considerable sum each month which I simply cannot afford. Even then there is no guarantee of this - the nature of defined contribution means I'm at the mercy of the markets.

And the law of demographics say that there'll be very little state support once I reach retirement age. So even though I'm a graduate (thanks for the student debt, Labour) and above average earner, I could be facing poverty in old age unless I own a home outright.

lieutenant_dan

thoroughly depressing picture of modern day Britain in that post.

Overextend yourself to get onto the ladder (if you can in the first place that is) to stave off poverty in retirement.

It's a frightening prospect what lies ahead for this young generation if these house prices never mind don't correct and come down a bit, but come down considerably.

Massive gulf developing between the haves (multi property owners) and have nots too.

SquatNow

We have an obsession with home ownership partly because we have some of the worst tennants rights in the world.

However we also have a problem where you have a choice... your are either and home debtor (rather than an owner), a landlord or a serf.

lieutenant_dan

countries like Germany and the US, where many people rent (albeit for more reasonable amounts), how do people in these countries have long term security, if they don't own a property?

Tends to be in Britain now that more people are forced into renting because they can't afford to buy, not through choice, yet in other countries people actually choose not to buy, interested to know what the benefits of this may be? (and how accomodation rental costs are met into retirement)