Mortgage Rate Rises

TheOracle said:
If you rent all your life, what happens when you retire? Does your pension have to cover your rent payments :confused: with the way things are going, how can you afford to eat?
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You dont retire.

I guess at the moment you get enough benefits to get by?
 
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TheOracle said:
If you rent all your life, what happens when you retire? Does your pension have to cover your rent payments :confused: with the way things are going, how can you afford to eat?
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You can claim housing benefit or go into social housing.

So even though I mentioned the issue of renting into retirment and it can be done, but you then have the insecurities that go along with it into your old age. Plus, not having a store of wealth (your appreciating asset with now no liability) to be able to tap into to help fund your retirement, by downsizing or equity release.
 
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413x said:
Having a mortgage has been significantly cheaper than renting.

I'm paying 570 to myself every month on a monthly cost of 900
Maintenance is not that much. Certainly not enough to make owning more expensive than renting. That argument doesn't wash with me.
Renting is dead money. And it isn't like a cruise. You need a home. A cruise is optional.


If you're stuck renting for life, you are probably not going to have a great pension, or a big savings pot.

You're going to either have a sad retirement, sorry, no retirement. Or be a massive burden on the state... Which of those depends on how the future pans out.

My sole reason for owning my own home is that I don't want to be paying rent when I'm 60.as it would mean I'd have to work until I drop.
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Lets face it in this country buying a property is just about the best investment someone will ever make, renting long term just doesn't make any sense in this market.
 
200sols said:
Lets face it in this country buying a property is just about the best investment someone will ever make, renting long term just doesn't make any sense in this market.
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No, especially with the rising pension age, lack.of welfare and gradual destruction of the nhs.

I dread to think what's its going to be like in 30 years if you have the burden of rent and all the other hassles in life in the future.
Who knows how bad it will be if you rely on the state.
 
I was just reading this article about the differences with the UK and German housing markets, since Germany is an example of a high rental society

www.theguardian.com

Brits buy homes, the Germans rent – which of us has got it right?

Germany seems to offer cheaper rents and more choice than the UK. But is the grass really grüner?
www.theguardian.com www.theguardian.com

Tax incentives have certainly fashioned that situation in Germany, with punative ownership taxes and beneficial rental ones coupled with strong social protections for renters. So as always it's not as simple as pointing to another country and saying "they do it"

Also, the wealth divide that results between owners and renters is vast.
 
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Freakbro said:
I was just reading this article about the differences with the UK and German housing markets, since Germany is an example of a high rental society

www.theguardian.com

Brits buy homes, the Germans rent – which of us has got it right?

Germany seems to offer cheaper rents and more choice than the UK. But is the grass really grüner?
www.theguardian.com www.theguardian.com

Tax incentives have certainly fashioned that situation in Germany, with punative ownership taxes and beneficial rental ones coupled with strong social protections for renters. So as always it's not as simple as pointing to another country and saying "they do it"

Also, the wealth divide that results between owners and renters is vast.
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Doesn't really say what happens in retirement.
My purpose to buy wasn't too gain from house price gains. It is too not have to pay for rent when I no longer can or want to.

Is renting in Germany more popular as you know you're can have a retirement and still rent?
 
413x said:
No, especially with the rising pension age, lack.of welfare and gradual destruction of the nhs.

I dread to think what's its going to be like in 30 years if you have the burden of rent and all the other hassles in life in the future.
Who knows how bad it will be if you rely on the state.
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I’ve eluded to this in past posts , it’s a massive ticking time bomb.

Even the guys who have been lucky enough to got on the ladder will have paid through the nose in costs of a mortgage through their lives and put very little into a Pension pot . They will inevitably be working till they drop or looking at equity release and leaving northing to inherit - if you have no kids it’s a no brainier.

Are you better off having nothing and letting the state provide ! Now you probably are , in 30 years time I doubt it very much.
 
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Hedge said:
I wish I was a landlord.

I just accept that some people choose to rent and are effectively paying for a service. I often wish I didn't have to pay to maintain my house. Would be lovely having all your maintenance covered and the flexibility to move on when it suits.
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Well yeah but it's still dead money from an investment perspective. A roof over your head hasn't needed to be an expense for decades.
 
Freakbro said:
I was just reading this article about the differences with the UK and German housing markets, since Germany is an example of a high rental society

www.theguardian.com

Brits buy homes, the Germans rent – which of us has got it right?

Germany seems to offer cheaper rents and more choice than the UK. But is the grass really grüner?
www.theguardian.com www.theguardian.com

Tax incentives have certainly fashioned that situation in Germany, with punative ownership taxes and beneficial rental ones coupled with strong social protections for renters. So as always it's not as simple as pointing to another country and saying "they do it"

Also, the wealth divide that results between owners and renters is vast.
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UK is slowly moving in that direction...but the main difference is lack of rent control.

if there is rent control, then all the buy-to-let or build-to-rent enterprises will collapse and people will be able to afford to buy their own places. but no house builders will build anything as economically wont stack up. thus the burden will fall on local authority and government to build more social housing with real affordable rental.

this system means the established land owners and landlords (not just someone with 1 or 2 investment properties - but companies/social housing providers/charities/guardians etc etc) will loose their "wealth" also UK GDP will plummet...

high asset values help make people "feel" rich - a bit like a house of cards...
 
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413x said:
Is renting in Germany more popular as you know you're can have a retirement and still rent?
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As has been mentioned, rent control is the answer. My Aunt in Switzerland (similar outlook on property to Germany and a lot of mainland Europe) had a nice flat in the centre of a very expensive town. Rent control made sure she could afford the rent from the age of 35 (working) into retirement and right up until she was moved into a state run and paid for home for the elderly in her 80s (they have social care well sorted too) It was never a problem.
 
Bald-Eagle22 said:
I’ve eluded to this in past posts , it’s a massive ticking time bomb.

Even the guys who have been lucky enough to got on the ladder will have paid through the nose in costs of a mortgage through their lives and put very little into a Pension pot . They will inevitably be working till they drop or looking at equity release and leaving northing to inherit - if you have no kids it’s a no brainier.

Are you better off having nothing and letting the state provide ! Now you probably are , in 30 years time I doubt it very much.
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I've thought about the very last bit before.
I think if i was not too much more behind than I am now I'd seriously consider taking my chances on welfare state.

And this is the very issue coming up. If someone earning a decent but not amazing wage like myself. Is thinking... What's the point in saving... There's going to be a huge amount of others who follow it through.

Bang. In 30 years the burden of the state is so huge there isn't even enough to go round on a means tested way.


We are well on the way to this. Going to be very hard choices going forward on how to not incentivise the "**** saving" mentality vs "the UK is going to be bankrupt".


Not just the UK either.
 
BigT said:
As has been mentioned, rent control is the answer. My Aunt in Switzerland (similar outlook on property to Germany and a lot of mainland Europe) had a nice flat in the centre of a very expensive town. Rent control made sure she could afford the rent from the age of 35 (working) into retirement and right up until she was moved into a state run and paid for home for the elderly in her 80s (they have social care well sorted too) It was never a problem.
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Its the housing stock mainly owned by the state? Hard to balance being profitable for the owners and not too burdensome on Tennant.


Of course. The UK sells absolutely everything off. Housing, oil fields, essential services. It's a grim future for the majority.
 
No amount of tinkering around the edges will fix our property market until we fix the supply / demand issues

Charges for non doms to hold property here, lets say 10% of property value if they don't live in it for 3 months a year
Use it or lose it on approved building land. With provision for no sale to related parties to get round it, has to auctioned in public.
Scrap right to buy
Require local council housing to be built but commercial rents to be set based on persons income, so above a certain level its simply uneconomic to live in this housing

Those sorts of things are needed. None to zero chance of our governments being brave enough to do what they need to do.
 
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Just seen an interesting graphic, home ownership % in europe:
landgeist.com

Home Ownership in Europe

What percentage of European households own their home?
landgeist.com landgeist.com
RnOS3kW.png
 
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