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Would you rather rent or buy a house? Watch

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    (Original post by ChaoticButterfly)
    Do you not think these landlords are scum?

    I'd like to think if I was a landlord and I had a renter like that I would at least drop my rent to breaking even prices...
    Parents are landlords, and they just about break even - but I think tbf, this house is meant as a long term investment for us any how, which is nice.
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    (Original post by ChaoticButterfly)
    Do you not think these landlords are scum?

    I'd like to think if I was a landlord and I had a renter like that I would at least drop my rent to breaking even prices...
    I agree there's a lot of greed now amongst landlords. Renting out a property in the UK is relatively unregulated which is why especially in London it has become seen as free money. If you own a property in London, it doesn't really matter if it's in poor condition, you can get a tenant in it and on recent years' evidence you can increase the rent about 10% per year. Often this means the tenant can't afford it so will move out and want to rent somewhere else, but there is always someone else coming in. The constant supply of people searching for a place to stay means they just see it as an asset with a high yield and basically they are just drawing away their tenant's salary that they are working hard for.

    I am like you, if I was renting something out it would be a matter of personal principle that I provided the person with a comfortable place to live at an affordable price but increased selfishness is a byproduct of housing scarcity. I had this conversation a while ago with a guy I know who rents out property in London, and his argument was, look, I've got 2 daughters and I want them to have a decent chance in life for a place to live. Realistically both of them might need a deposit of £60k to £80k to have a chance of getting somewhere, he can't afford to save that from his income so renting out his property is basically his way of doing that. He's trying to increase rents as much every year because he's got this target of £150k or so to bring in in the next 6 or so years. When I pointed out that that's someone else's sons/daughters who are paying for it while he makes them live in basic conditions his view was basically sorry but that's their parents problems.
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    (Original post by MagicNMedicine)
    I agree there's a lot of greed now amongst landlords. Renting out a property in the UK is relatively unregulated which is why especially in London it has become seen as free money. If you own a property in London, it doesn't really matter if it's in poor condition, you can get a tenant in it and on recent years' evidence you can increase the rent about 10% per year. Often this means the tenant can't afford it so will move out and want to rent somewhere else, but there is always someone else coming in. The constant supply of people searching for a place to stay means they just see it as an asset with a high yield and basically they are just drawing away their tenant's salary that they are working hard for.

    I am like you, if I was renting something out it would be a matter of personal principle that I provided the person with a comfortable place to live at an affordable price but increased selfishness is a byproduct of housing scarcity. I had this conversation a while ago with a guy I know who rents out property in London, and his argument was, look, I've got 2 daughters and I want them to have a decent chance in life for a place to live. Realistically both of them might need a deposit of £60k to £80k to have a chance of getting somewhere, he can't afford to save that from his income so renting out his property is basically his way of doing that. He's trying to increase rents as much every year because he's got this target of £150k or so to bring in in the next 6 or so years. When I pointed out that that's someone else's sons/daughters who are paying for it while he makes them live in basic conditions his view was basically sorry but that's their parents problems.
    All of the financial dies are cast in favour of those with property in London - that's just a sad reality now. TBH, unless you are on a really promising career track with very high potential earnings, it's probably a mistake to come and work and rent in London, because it's like a treadmill that you will probably never get off - you are effectively working for your landlord as much as, or in some cases even more, than yourself.

    London probably needs at least another 1m rental flats to balance things up and this is extremely unlikely to occur.
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    Definitely buy. The idea of having a place that is completely your own is a nice one. With rent, you have less privacy and less freedom.
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    The thing with renting is there's absolutely no real long term security. Your fate is in the hands of your landlord.
    How can a person really build a stable life on such an insecure foundation?
    I think people get lulled into thinking that they're building some sort of goodwill repository when they pay the rent on time and keep the place tidy. It's all a false sense of security - you can be a fantastic tenant for years and the landlord can suddenly pull the rug from under your feet.

    A landlord only truly cares about his own personal circumstances and interests.
    There's also the grating fact that as a renter, you're giving away thousands of pounds a year to help someone else preserve their asset. You'll have nothing at the end, despite working hard for years and parting with vast amounts of money. I have no idea how people can be comfortable with doing that especially in a country with no rent controls.
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    (Original post by RivalPlayer)
    I have no idea how people can be comfortable with doing that especially in a country with no rent controls.
    The reality is most people know this.

    "Generation Rent" aren't renting by choice, especially in an era with low long term interest rates which mean mortgage payments are relatively low. It's often cheaper to pay a mortgage than a rent.

    The reason "Generation Rent" are renting is because they can't afford to buy.

    Now the older generation will always tell us, "it's always been difficult to buy a house, this is nothing new" but the difference was, in the past it was a much lower multiple between salary and the amount needed to buy your first house.

    The housing market has increased in value so much in the past 20 years that its been a huge source of (unearned) wealth increase for those who were lucky enough to own property at the right time, but has now meant its too far away from those that don't already own property, to get on the ladder.
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    I guess I kind of inherit this characteristic from my pops, but I would rent. I just love moving, and I usually get sick of a house after 3 or 4 years. Investment wise, buying.
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    buy ofc
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    (Original post by MagicNMedicine)
    The reality is most people know this.

    "Generation Rent" aren't renting by choice, especially in an era with low long term interest rates which mean mortgage payments are relatively low. It's often cheaper to pay a mortgage than a rent.

    The reason "Generation Rent" are renting is because they can't afford to buy.

    Now the older generation will always tell us, "it's always been difficult to buy a house, this is nothing new" but the difference was, in the past it was a much lower multiple between salary and the amount needed to buy your first house.

    The housing market has increased in value so much in the past 20 years that its been a huge source of (unearned) wealth increase for those who were lucky enough to own property at the right time, but has now meant its too far away from those that don't already own property, to get on the ladder.
    Why aren't people angry about it then? Where's the mass social unrest? Affordable long term shelter is important yet I don't sense any kind of urgency or panic among Generation Rent. Instead they just shrug their shoulders and pay up.
    There's all these new build luxury flats going up everywhere in London and none of them are aimed at average people. Yet people don't seem very bothered it.
    The reaction to this "crisis" is typically British - be polite, bend over and just accept it.
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    Buy, so I can have it for my retirement fund in the future!
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    (Original post by RivalPlayer)
    Why aren't people angry about it then? Where's the mass social unrest? Affordable long term shelter is important yet I don't sense any kind of urgency or panic among Generation Rent. Instead they just shrug their shoulders and pay up. There's all these new build luxury flats going up everywhere in London and none of them are aimed at average people. Yet people don't seem very bothered it.
    The reaction to this "crisis" is typically British - be polite. bend over and just accept it.
    They are angry about it but I think a lot of Generation Rent are probably not politically active, they don't vote etc. And many of them are probably in a bit of denial, they think "well in a few years I'll get a good job and have a big salary and then I'll be able to afford one".

    What will be interesting though, is when a lot of these young people are in their mid thirties/forties and still forced to house share, and are now more interested in voting. If the Conservatives are still in power, it will be difficult for them to placate these voters by blaming Labour.
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    There are pros and cons to both, and if you're a fresh graduate or apprentice who will be moving between sites/locations early on in your career, or want the option to work in different cities, it makes more sense to rent, but in the current environment with rapidly rising house prices and rents you could argue that it generally makes more sense to buy, if you can afford it.

    But that mightn't always be the case. I think (hope!) that people are slowly beginning to see that successive governments have repeatedly shown themselves inept when it comes to managing the provision of the supply of new homes, and pressure may come from two groups of people in the future to open it to the market.

    The first is Middle England, who will be fed up with having their children staying at home well into their twenties and maybe into their thirties too, as they are increasingly being priced out of their own property, or have to receive help from the bank of mum and dad.

    The second are professionals who are growing increasingly discontented with flat-sharing and house-sharing into their thirties and beyond. These are people with skills, qualifications and jobs, who yesteryear would have been on the path to owning a fairly decent sized property but now are increasingly facing the prospect of their living standards more closely resembling their student lives than what their professional parents would have experienced at their age.

    Lower earners will probably continue to have their housing rents subsidised, to increasing amounts, which may also trigger taxpayers alliance types, too, as increasingly large amounts of government spending goes into the pockets of landlords.

    You'll notice I have conflated house prices with rent prices, but these are both rising due to the same cause: an artificial scarcity of homes.
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    (Original post by Smack)
    There are pros and cons to both, and if you're a fresh graduate or apprentice who will be moving between sites/locations early on in your career, or want the option to work in different cities, it makes more sense to rent, but in the current environment with rapidly rising house prices and rents you could argue that it generally makes more sense to buy, if you can afford it.

    But that mightn't always be the case. I think (hope!) that people are slowly beginning to see that successive governments have repeatedly shown themselves inept when it comes to managing the provision of the supply of new homes, and pressure may come from two groups of people in the future to open it to the market.

    The first is Middle England, who will be fed up with having their children staying at home well into their twenties and maybe into their thirties too, as they are increasingly being priced out of their own property, or have to receive help from the bank of mum and dad.

    The second are professionals who are growing increasingly discontented with flat-sharing and house-sharing into their thirties and beyond. These are people with skills, qualifications and jobs, who yesteryear would have been on the path to owning a fairly decent sized property but now are increasingly facing the prospect of their living standards more closely resembling their student lives than what their professional parents would have experienced at their age.

    Lower earners will probably continue to have their housing rents subsidised, to increasing amounts, which may also trigger taxpayers alliance types, too, as increasingly large amounts of government spending goes into the pockets of landlords.

    You'll notice I have conflated house prices with rent prices, but these are both rising due to the same cause: an artificial scarcity of homes.
    To be honest the ideal thing would be to own your property mortgage free.... ie outright ownership.... because with a mortgage or rent you pay a monthly payment and that requires x income to afford whatever lifestyle you can rent or get a mortgage for...
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    (Original post by Emma:-))
    Would you rather rent or buy a house?
    And why?
    It depends, during uni and when first starting out as a graduate it is better to rent. It gives you a certain degree of mobility and it also frees up your financial resources to put into some interests that ideally you should do it while still young and have the energy for it.

    Definitely better to rent if you are a male and nearing a divorce

    Personally I believe one should start looking into buying their own place when they are between 30-33, should have been able to save up for a good deposit and by then you should have had enough time to live life to the fullest.
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    I'm planning on buying a double decker bus and converting it to live in. :rock:
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    (Original post by PobNotBob)
    I'm planning on buying a double decker bus and converting it to live in. :rock:
    Sounds cool.
    I wouldnt do it myself but bet it would be good to see.
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    To answer the title question, yes.
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    (Original post by MagicNMedicine)
    I agree there's a lot of greed now amongst landlords.
    But at the same time, it is a high risk game for landlords. I know a few people who rent out property and all have horror stories of tenants who either don't pay the rent or trash the property. If the property has a mortgage and the tenant doesn't pay, the mortgage must be paid by the landlord which can add up to thousands. There is then the situation where a tenant leaves and the property is empty for a month or so resulting in another loss.

    Personally, I don't think renting is worth the effort as an investment especially if it is mortgaged. You only need a month or so of empty property to wipe out any profit. There are certainly easier ways to make money IMO.
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    (Original post by ByEeek)
    But at the same time, it is a high risk game for landlords. I know a few people who rent out property and all have horror stories of tenants who either don't pay the rent or trash the property. If the property has a mortgage and the tenant doesn't pay, the mortgage must be paid by the landlord which can add up to thousands. There is then the situation where a tenant leaves and the property is empty for a month or so resulting in another loss.

    Personally, I don't think renting is worth the effort as an investment especially if it is mortgaged. You only need a month or so of empty property to wipe out any profit. There are certainly easier ways to make money IMO.
    Well this depends where you are and what the local housing market is like.

    In Leeds for instance the market is similar to what you say above. There are a lot of students around, but as housing is still relatively affordable a lot of young professionals will look to buy rather than rent. So there isn't the big supply of people wanting to rent, it's just students. They are a big risk for landlords as whilst most students will be OK, if a bit untidy, there are some who just see it as a bit of a laugh and will disappear and move around not leaving forwarding addresses and the landlord can be in trouble.

    In these kind of places, if you are a good tenant you can get yourself a good deal. When I had a graduate job I rented out a studio and the landlord kept the rent fixed for three years because he didn't want me to move out, he couldn't be bothered with the hassle of showing new people round and he knew I kept his property in top condition.

    In London though it's very different. If you own a property in London then you don't need to rely on students. If you put the rent high enough then students and those at the bottom end of society can't afford anyway - advertise your property and within a few days you will have 100 plus emails from young professionals and increasingly, not-so-young professionals.

    In Leeds you would never get 35 to 40 year old professionals willing to live 4 in a house in tiny rooms with leaking showers, it just wouldn't happen, they would either have bought or would be renting city centre studios. But in London you can charge each of them £1000 a month or more and have decent professionals who don't party all the time and trash property, they just need somewhere to live for their job.
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    definitely buy, you would be a fool not to. why pay someone elses mortgage and have nothing tangible at the end of the tenancy?
 
 
 
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