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Is renting when you're young REALLY a waste of money? Watch

  • View Poll Results: Do you think renting is a waste of money?
    Yes, I'm saving for a mortgage
    366
    62.46%
    No, I prefer it
    220
    37.54%

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    An opinion piece on Huffington Post today talks about the benefits of renting while you're young!

    Some positive reasons include:

    You become financially and socially independent without the long-term commitment,

    You get to move out of your parents sooner, rather than nesting until you can afford a (usually very high) deposit,

    You don't have to invest your own money if/when things go wrong e.g. a broken roof,

    You're not tied down to the partner you may have bought the property with, if you decide to part ways...

    The list goes on!


    Many people argue that renting is just 'throwing money away', but what do you think?

    Would you rather scrimp and save to have a deposit for a mortgage by your early/mid 20s?

    OR would you rather have a bit more freedom, and rent until you're older (and possibly more wiser)?
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    I don't really have a choice whether to rent or not. I am banned from moving back home once I graduate, so I will be renting for quite some time. But, yes, I'd rather have the freedom, because I have no clue where I want to settle. I like the idea of perhaps travelling around the UK and Ireland with whatever work I end up doing.
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    (Original post by Airmed)
    I don't really have a choice whether to rent or not. I am banned from moving back home once I graduate, so I will be renting for quite some time. But, yes, I'd rather have the freedom, because I have no clue where I want to settle. I like the idea of perhaps travelling around the UK and Ireland with whatever work I end up doing.
    I agree

    I've been renting on & off since I was 18, and wouldn't want it to change! (unless I come into a laaaarge amount of money, of course )
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    (Original post by discobish)
    I agree

    I've been renting on & off since I was 18, and wouldn't want it to change! (unless I come into a laaaarge amount of money, of course )
    Of course

    And I don't mind that I couldn't do decorating etc. As long as I have space for my books, I'm happy Oh, and my Ireland tricolour. Gotta hang that up somewhere :smug:
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    Yeah, it might not be completely financially efficient, but the benefit of moving out from home is much more important to me tbh.
    It's a good stepping stone between living at home and moving out imo too.
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    There are definitely benefits of renting so it is not a waste of money. Everyone is different and has different preferences. It makes sense for some but not others.

    Obviously, you will save money by not paying rent but you can say that about anything. At the end of the day, money is for spending and some people would rather spend on rent than other things.

    I don't agree with the article that your 20s have to be a period of instability. You are more likely to have not sorted your life out yet when you are young but it is quite possible for people to settle down with a stable partner and job in their mid 20s. People seem to think adulthood doesn't start until your 30s.
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    Personally, I obviously have to rent while at uni since my uni is 3 hours drive from home. The nearest uni to my home is still about 45 mins away and it doesn't offer my subject, so I was always going to have to move out.

    Once I graduate though, I do hope to be able to move out (my parents are kinda restrictive and we just live miles away from any friends/ jobs) so again will probably end up renting. Tbh, I think it's fine to rent initially - often graduate jobs want you to be more mobile and move around to different offices/ counties during the first few years, so you don't want to be tied down by a house. Only once you've settled down in your job should you really invest in a house...
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    (Original post by Airmed)
    I am banned from moving back home once I graduate.
    what, why?
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    Renting is entirely appropriate for lot of groups of people. It gives you freedom to be only tied to somewhere for 6-9 months, gives you choices of accommodation to suit your needs at that point and is perfect for those who at a stage in their lives when they simply aren't ready to buy a house yet. I think the problem is those who dearly do not want to rent but for financial reasons have to.
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    It's possible to rent and save for a mortgage (we are). I think renting is good for young people, I think it gives you the skills that you can't get living with your parents and I m a big advocate that you should live with someone before committing to owning a house together (or married).
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    (Original post by Sternumator)
    I don't agree with the article that your 20s have to be a period of instability. You are more likely to have not sorted your life out yet when you are young but it is quite possible for people to settle down with a stable partner and job in their mid 20s. People seem to think adulthood doesn't start until your 30s.
    Completely with you there, I'll be married and a (hopefully) home owner at 23, I find it strange when people don't think you can be settled in your 20s.
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    Renting is dead money - most often it's paying for someone else's 'buy-to-let' mortgage for them to profit out of ever increasing equity and they get tax relief on that mortgage to boot!

    Sure, you get to live away from your parents and some do not get the choice. But most peoples income when they are young and earnings are lower, will then struggle indefinitely to raise the capital for a deposit, so that privilege comes at a high price of using up your disposable income and making it much harder and longer to make the jump to home ownership and security of tenure. In other words, once you rent, it pretty much traps you into renting for a long time - perhaps indefinitely.

    The landlords (with your money), will take out another 'buy-to-let' mortgage and hence will often own multiple houses. All of this takes more and more homes out of the buying sector and places it in the rental sector for speculators to buy off plan and often overseas investors at that!

    Together with the financial incentive for more house builders to build exclusively for rent (it's a good return on investment with appreciating capital far outstripping current interest rates and stocks etc), means the double whammy of less supply and ever increasing rents. All of this equates to far fewer homes for sale and is the primary reason why supply cannot keep up with demand.

    The choice of moving around loses it's appeal also when you have no choice; because the landlord kicks you out after 6 months whether you like it or not - coz they want to hike the rent for the next set of eager tenants.

    Renting in the current financial climate, makes no medium and longer term financial sense whatsoever.
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    (Original post by 0to100)
    what, why?
    Because being away from home, away from my interfering extended family is the best thing for my mental health. I also come from a city with little opportunities for young people, and I hate it. My daddy was born there, grew up there, and even he thinks it's not a place to live and have a career.
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    (Original post by uberteknik)
    Renting is dead money - most often it's paying for someone else's 'buy-to-let' mortgage for them to profit out of ever increasing equity and they get tax relief on that mortgage to boot!
    House prices can go down. If they do significantly, and it has happened before, then you're losing borrowed money - a double whammy.

    Bad investment decisions often come from thinking that prices only go up.
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    I'm surprised so many people think renting is a positive, life affirming thing. I don't think spending half your income on rent (and paying someone else's mortgage), having to deal with landlords, not being able to decorate your home and having no security is a good thing, not if it can be in anyway avoided.

    I would rather spend my 20s living at home and saving for a deposit than still be renting in my late 30s.
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    (Original post by Snufkin)
    I'm surprised so many people think renting is a positive, life affirming thing. I don't think spending half your income on rent (and paying someone else's mortgage), having to deal with landlords, not being able to decorate your home and having no security is a good thing, not if it can be in anyway avoided.
    You have no capital risk, no maintenance (which also takes time), and no costs if you decide to move (depending upon your lease).

    Once you are settled, buying does makes sense, but not at any price. Some feel freer without knowing that they've borrowed several years' salary and might lose it.

    I first bought at 25, and have owned something ever since. I've always been conservative on how much I borrowed, except for my current (3rd and most expensive) house. I've seen people make a lot of money from buying right at the limit of what they can afford, but there are many that lose too - they just don't shout about it.
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    (Original post by RogerOxon)
    You have no capital risk, no maintenance (which also takes time), and no costs if you decide to move (depending upon your lease).

    Once you are settled, buying does makes sense, but not at any price. Some feel freer without knowing that they've borrowed several years' salary and might lose it.

    I first bought at 25, and have owned something ever since. I've always been conservative on how much I borrowed, except for my current (3rd and most expensive) house. I've seen people make a lot of money from buying right at the limit of what they can afford, but there are many the lose too - they just don't shout about it.
    Those are not benefits in my opinion. No risk, sure, but you have no security either. I'd rather own my own property that could (but in the long-term, almost certainly won't) depreciate in value than line the pockets of landlords.

    It's a fools game trying to time the housing market. If you're going to defer buying until the market drops, you risk being priced out of the market altogether.
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    Well no choice. Rent or on the streets

    But if you have the choice, dont rent IMO. You dont understand where the money goes It disapears like pouf :rolleyes:
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    Depends what your circumstances are and where you live.

    Lets assume someone is fresh out of uni and wants to start their career in say, Finance. If their parents live in or around London then the obvious thing to do is to move back home and save up, as renting would be throwing money away. However if the family home is from some random village in Devon, they're going to have to move if they want to get anywhere. Moving to the city will give them a base to start their career, so renting is not a waste of money.

    Personally i've rented for 6 years and have no regrets. I now live up north so i'll easily own a property by age 30.
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    Hmm, I answered with the "Yes" option but I'm not thinking of saving for a mortgage at the moment. The whole housing market sickens me, it is horrendously expensive. Speaks to a wider ailment of society. I'm using some money a passed relative left over to do up a boat he also left, and I'll live on that. Like a floating caravan, basically. Although until that's done I'll be either at University or at my parent's house.
 
 
 
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