Any long term renters in? Do you worry about your future?

strawb_shortcake

MovingForwards said:

annabanana82 said:

Not a renter but I'm amazed by how many of my renting friends haven't even considered how or where they are going to live post retirement, mostly aged late 30's to 50, and all bar one they don't even have much of a pension in place either. 
Lots of people I know are dependent on either an inheritance or benefits in their old age

Same as my eldest sibling. Turning 52, never left the family home, less than £1k savings and a pension that wouldn't cover a months council tax. Has spent the last couple of years talking of owning their own home, but has unrealistic expectations and won't scale back / compromise on what they will live in. 

Potential inheritance would give 10% deposit, but don't know where the rest would come from as income doesn't come anywhere near the multiple required.

Almost feels like they're sabotaging their own future.

I have two siblings both in a similar position, one has owned but now in alternative housing having got off the property ladder. 

The other currently on the property ladder been iffy for a long time, lots of debt and no money skills. They want to sell their home and go abroad on  the equity with no long term plan for when the money runs out.

Due to part time working and working off the books I don't think either will qualify for full SP either 

MovingForwards

annabanana82 said:

MovingForwards said:

annabanana82 said:

Not a renter but I'm amazed by how many of my renting friends haven't even considered how or where they are going to live post retirement, mostly aged late 30's to 50, and all bar one they don't even have much of a pension in place either. 
Lots of people I know are dependent on either an inheritance or benefits in their old age

Same as my eldest sibling. Turning 52, never left the family home, less than £1k savings and a pension that wouldn't cover a months council tax. Has spent the last couple of years talking of owning their own home, but has unrealistic expectations and won't scale back / compromise on what they will live in. 

Potential inheritance would give 10% deposit, but don't know where the rest would come from as income doesn't come anywhere near the multiple required.

Almost feels like they're sabotaging their own future.

I have two siblings both in a similar position, one has owned but now in alternative housing having got off the property ladder. 

The other currently on the property ladder been iffy for a long time, lots of debt and no money skills. They want to sell their home and go abroad on  the equity with no long term plan for when the money runs out.

Due to part time working and working off the books I don't think either will qualify for full SP either 

The middle sibling is going to be in a lot of trouble when retired. Has possibly 3 years of employment history, was on benefits, then met and married her husband. Hasn't worked since, but he has off and on. They're in rental. 

Some people only think of the now, rather than long-term.

Peter999_2

I rented for 6 months when I was 21 and then bought a flat with a staff mortgage (it's such a shame they don't seem to be offered anymore).

I wa warned by so many people that buying a house was daft and I should keep on renting as the maintenance of the house would be very expensive.

In 27 years of owning properties the only maintenance I have done is :

Two boilers

One post on my front porch that had rotted

Fixed a pipe on the side of the house that had come away from the guttering

Painted several times

Bought 3 washing machines

Bought 2 cookers

Painted fences once every three years

Maybe I've been very lucky but my mortgage stayed the same price while all my renting friends rent has gone up and up.

Even today I'll be advising my daughter to buy a house instead of renting unless she could get a council house.  I would always try and point her away from private renting as you have no security and pay through the nose for it.

FBaby

[This is the problem with Government policies. On the surface some seem OK but the reality can cause serious issues]
The biggest mistake the gov has introduced is taxing in capital. All well for those owing multitude properties but those with 1 or maybe even 2 properties, many also work FT in decently paid jobs and are now taxed 40% on all income from rental. Add the added cost of checks that are legally expected to be carried out, increasing  agency costs, insurance, repairs and maintenance, making any form of profit is proving much more difficult. 

Add the risk of no rental income for up to a month, to never see it even after the tenant is evicted, the whole cost of the eviction process and suddenly there is little to gain for any landlord but stress and risk.

With house prices going mental it's no surprise many have taken the jump and sold.  

Brie

FBaby said:

All well for those owing multitude properties but those with 1 or maybe even 2 properties, many also work FT in decently paid jobs and are now taxed 40% on all income from rental. Add the added cost of checks that are legally expected to be carried out, increasing  agency costs, insurance, repairs and maintenance, making any form of profit is proving much more difficult. 

Add the risk of no rental income for up to a month, to never see it even after the tenant is evicted, the whole cost of the eviction process and suddenly there is little to gain for any landlord but stress and risk.

With house prices going mental it's no surprise many have taken the jump and sold.  

I know nothing about renting (have considered it vaguely should we ever have the ££) but don't you deduct all of your expenses from the rental income before it is taxes as profit?  Sorry if that's a really daft question.  

I certainly get why many don't want to own rental property with the possibility of shifty or destructive tenants.  Far away and a decade back my mom had rental property and her horror stories have just about put me off for life.

jimbog

JJC1956 said:

coffeehound said:

It seems there are a lot of retail properties lying empty now with no prospect of being reused in the same way — ex Debenhams shops for example. Maybe they could be converted into flats?

 there must be a lot of shopping centres dying on their feet because of online shopping, local councils need to run their eyes over these places and either convert them or knock them down and hopefully replace them with social housing.

not sure the council tax payers would take too kindly to footing the costs for councils to compulsory purchasing these

[Deleted User]

MovingForwards said:

annabanana82 said:

Not a renter but I'm amazed by how many of my renting friends haven't even considered how or where they are going to live post retirement, mostly aged late 30's to 50, and all bar one they don't even have much of a pension in place either. 
Lots of people I know are dependent on either an inheritance or benefits in their old age

Same as my eldest sibling. Turning 52, never left the family home, less than £1k savings and a pension that wouldn't cover a months council tax. Has spent the last couple of years talking of owning their own home, but has unrealistic expectations and won't scale back / compromise on what they will live in. 

Potential inheritance would give 10% deposit, but don't know where the rest would come from as income doesn't come anywhere near the multiple required.

Almost feels like they're sabotaging their own future.

What would you suggest they do?

[Deleted User]

FBaby said:

[This is the problem with Government policies. On the surface some seem OK but the reality can cause serious issues]
The biggest mistake the gov has introduced is taxing in capital. All well for those owing multitude properties but those with 1 or maybe even 2 properties, many also work FT in decently paid jobs and are now taxed 40% on all income from rental. Add the added cost of checks that are legally expected to be carried out, increasing  agency costs, insurance, repairs and maintenance, making any form of profit is proving much more difficult. 

Add the risk of no rental income for up to a month, to never see it even after the tenant is evicted, the whole cost of the eviction process and suddenly there is little to gain for any landlord but stress and risk.

With house prices going mental it's no surprise many have taken the jump and sold.  

Those taxes should go up massively until it's no longer worth owning property to let.

The only way to solve this is to make property a bad investment.

Cakeguts

A lot of landlords are selling up because of the abolition of section 21 and the need to bring rental houses up to EPC level C.  What happens when they sell is that there become fewer rental properties available to let. As laws and letting gets more difficult what will happen is that the decent houses will get sold off and you will be left with landlords who don't mind if they bend the law a bit and a lot of not very nice rentals in areas that people try not to live in and very expensive build to rent properties owned by big commercial landlords.  The small landlords with decent properties at reasonable rental prices in the middle will all disappear.  At this point if you have to rent you will have very little choice and it will all be quite expensive because of shortage of supply.

MovingForwards

[Deleted User] said:

MovingForwards said:

annabanana82 said:

Not a renter but I'm amazed by how many of my renting friends haven't even considered how or where they are going to live post retirement, mostly aged late 30's to 50, and all bar one they don't even have much of a pension in place either. 
Lots of people I know are dependent on either an inheritance or benefits in their old age

Same as my eldest sibling. Turning 52, never left the family home, less than £1k savings and a pension that wouldn't cover a months council tax. Has spent the last couple of years talking of owning their own home, but has unrealistic expectations and won't scale back / compromise on what they will live in. 

Potential inheritance would give 10% deposit, but don't know where the rest would come from as income doesn't come anywhere near the multiple required.

Almost feels like they're sabotaging their own future.

What would you suggest they do?

Same as I suggest to anyone:
adjust expections, save, stop unnecessary spending, look at other areas that are in budget.