Why do people feel so strongly about buying a house?

[JButts 10]

Hi all,

 

I'm sure this topic will go on and on!

 

My house was built in 1735 and is the best and least expensive I have ever owned. A bad house is a bad house regardless of age. That's what you pay a good surveyor for, to find hidden horrors!

 

Just a few posts have touched on the old age thing and those renting appear to be ignoring it! What will you do at 65 when you want to retire and are paying exorbitant rent! Where will the rent money come from?

 

The national rent average today is £594 per month and is rising at around 3% a year (http://blog.rentindex.co.uk). A £100k mortgage over 25 years at 5% interest will cost £591.27p!!!! (http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml)

 

Sorry to those that cannot get a mortgage, but to those that can and choose not to is madness!

 

I also have a mate who's mum has developed dementia. Very sad, but the best care available is within her reach due to the house she has to sell. Think of the future, it creeps up faster than you think!

 

PS: I have just read the above blog about average rent costs and it was out of date... It's actually worse now than when this blog was written. Average rent costs are now £764 per month and increasing at about 6% PA!!!!!!! http://www.ipinglobal.com/ipin-live/406371/average-uk-rents-increase

Edited August 28, 2012 by JButts
Adding additional information

[virgoen18 10]

Hi all,

 

I'm sure this topic will go on and on!

 

My house was built in 1735 and is the best and least expensive I have ever owned. A bad house is a bad house regardless of age. That's what you pay a good surveyor for, to find hidden horrors!

 

Just a few posts have touched on the old age thing and those renting appear to be ignoring it! What will you do at 65 when you want to retire and are paying exorbitant rent! Where will the rent money come from?

 

The national rent average today is £594 per month and is rising at around 3% a year (http://blog.rentindex.co.uk). A £100k mortgage over 25 years at 5% interest will cost £591.27p!!!! (http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml)

 

Sorry to those that cannot get a mortgage, but to those that can and choose not to is madness!

 

I had a good surveyor when I bought my house but that still doesn't stop problems arising and workmen charging extortionate prices! As a single person I don't have the luxury of relying on someone else's wages as well which can make funding repairs and improvements a lot more difficult.

 

I have no choice but to move for my own sanity after years of problems with my neighbour. Unfortunately due to the difficulties getting a mortgage I wouldn't be able to buy another property at this time. Therefore renting is my only option for the time being. I am looking forward to be being free from the financial upkeep of a house for a while.

 

I think you've picked a good point regarding the cost of renting and paying a mortgage. However the banks don't lend that way. I could pay rent at £550 for an £100,000 mortgage but on my salary I wouldn't be able to get a mortgage for this amount or anywhere near. This is the problem. The 3.5 times your salary calculation is so out of date with the prices of property. Affordability is the way to go but they won't do it. So people are stuck.

[ccit 10]

What will you do at 65 when you want to retire and are paying exorbitant rent! Where will the rent money come from?

No problem - you just fill in the forms and get housing benefit.

Sorry to those that cannot get a mortgage, but to those that can and choose not to is madness!

It is not madness at all - it is free choice and happily we all have it. Virgoen18 has made some excellent points in her posts. Home ownership is not for everyone and there is a freedom with renting that us home owners do not have. Without doubt having a mortgage and owning property can be (for some) a millstone around their neck and I can understand this, even though I am a home owner. Consider all those millions of people who have found themselves in negative equity and ask them how they feel about the matter. Also those who need to move for various reasons and are prevented because they cannot sell their home. Properties where I live used to sell within weeks - now it is months and even years before a purchaser comes along. Then there are all the extra costs associated with buying and selling such as solicitors fees, surveyor, stamp duty etc.

The only problem with renting is the greed of the landlords. Rents are just stupidly high in comparison to average earnings.

Edited August 28, 2012 by ccit

[Jeffrey Shaw 90]

On that last point, maybe rents rose when HM Government allowed HB/LHA-claiming tenants of expensive properties to claim commensurately greater amounts? Landlords then knew that greater amounts were forthcoming so (to the surprise of no-one except HMG) rents there went up a lot.

[rad 10]

I'm saving up for a deposit and moving costs and am finally earning enough that I should be able to get a mortgage - but I am very nervous about buying a house - deciding the area to move to is scary, feeling like it's committing me to live in Sheffield/an area of the city for potentially a very long time is scary, the thought of maintenance costs and increased insurance/bills is scary (unlike for some, a mortgage is likely to be more monthly than I pay in rent never mind the bills), the thought of wanting to move in the future and not being able to sell it is scary...

 

I know it's probably not as bad in reality as it is in my head...

[JButts 10]

No problem - you just fill in the forms and get housing benefit.

 

Currently, the government is paying £22 billion a year in housing benefits alone http://www.dailymail.co.uk/news/article-2107036/Housing-benefit-caps-100-families-receiving-1MILLION-mortgage.html If every home owner in the country had this attitude, those that really need it would probably stop receiving it. Already capping is taking place within many authorities and this is having a massive impact on families in Sheffield, I know this because I work with many of these families. Your 'no problem' attitude is one of the largest causes!

 

Spiralling maintenance costs are a problem and negative equity must be a nightmare but the fact remains that landlords are making a massive amount from their tenants. They are not a charity, the single reason they choose to rent out their property is to make money. This may be to pay a but-to-let mortgage but the endgame is exactly the same, profit! To add to this, rented houses are often in the most poor state of repair because some landlords ignore the law. The last house I rented was damp with double glazing filled with condensation, it was horrible. After speaking to my landlady, she promised to have it checked out. If I was to stop paying rent until the repair was made, I would be breaking the law, not her! http://www.adviceguide.org.uk/england/housing_e/housing_renting_a_home_e/getting_repairs_done_while_renting.htm. The house remained damp for the entire time I lived there.

 

Like I have previously posted, I do feel for those that don't qualify for a mortgage and how single people get on the property ladder is nothing short of a miracle! But, if landlords were less greedy, everybody would be able to rent AND save for their retirement; simple...

[JButts 10]

I'm saving up for a deposit and moving costs and am finally earning enough that I should be able to get a mortgage - but I am very nervous about buying a house - deciding the area to move to is scary, feeling like it's committing me to live in Sheffield/an area of the city for potentially a very long time is scary, the thought of maintenance costs and increased insurance/bills is scary (unlike for some, a mortgage is likely to be more monthly than I pay in rent never mind the bills), the thought of wanting to move in the future and not being able to sell it is scary...

 

I know it's probably not as bad in reality as it is in my head...

 

Hey Rad, I am currently looking at a new house and honestly, your nervousness is completely normal. What's more, sorry, it never Disappears! Suppose it might as a lottery winner.

 

Good luck with your house search, I hope you find what you're looking for...

[Ms Macbeth 73]

I'm saving up for a deposit and moving costs and am finally earning enough that I should be able to get a mortgage - but I am very nervous about buying a house - deciding the area to move to is scary, feeling like it's committing me to live in Sheffield/an area of the city for potentially a very long time is scary, the thought of maintenance costs and increased insurance/bills is scary (unlike for some, a mortgage is likely to be more monthly than I pay in rent never mind the bills), the thought of wanting to move in the future and not being able to sell it is scary...

 

I know it's probably not as bad in reality as it is in my head...

 

We've moved several times and even last time we had similar concerns. Until you actually live in an area you won't know if you like it or not. Also, market forces have an impact on selling. It isn't so much if it will sell, as when and for how much! Buying new can reduce concerns about maintenance, our last home was bought brand new (as were a couple previously) and they did cost less in terms of replacements and upgrades.

 

Whatever you decide, good luck!

[JButts 10]

We've moved several times and even last time we had similar concerns. Until you actually live in an area you won't know if you like it or not. Also, market forces have an impact on selling. It isn't so much if it will sell, as when and for how much! Buying new can reduce concerns about maintenance, our last home was bought brand new (as were a couple previously) and they did cost less in terms of replacements and upgrades.

 

Whatever you decide, good luck!

 

Hi Ms Macbeth, we're thinking of buying brand new for our next house! Gotta be honest, the though of NHBC guarantees is lovely.......

[ccit 10]

Your 'no problem' attitude is one of the largest causes!

JButts - this is not my attitude at all. If you had read my previous post, you would have seen that I am a home owner. I have always worked and have never claimed housing benefit. The comment was merely a statement of fact, as you have seen via your work and the link that you provided. Successive governments undermine the efforts of people who have scrimped and saved to provide for themselves. In one of the earlier posts someone described the lifestyle of their relative who remained in rented accommodation, spent all their inherited money and may now qualify for such benefits. The 'reward' for people who provide for themselves is that they have their properties confiscated when/if they need care in their old age. Poverty can exist in home ownership. Small wonder that people sometimes have this attitude.

Edited August 29, 2012 by ccit

[JButts 10]

JButts - this is not my attitude at all. If you had read my previous post, you would have seen that I am a home owner. I have always worked and have never claimed housing benefit. The comment was merely a statement of fact, as you have seen via your work and the link that you provided. Successive governments undermine the efforts of people who have scrimped and saved to provide for themselves. In one of the earlier posts someone described the lifestyle of their relative who remained in rented accommodation, spent all their inherited money and may now qualify for such benefits. The 'reward' for people who provide for themselves is that they have their properties confiscated when/if they need care in their old age. Poverty can exist in home ownership. Small wonder that people sometimes have this attitude.

 

Well said, it does appear we are arguing for the same point! I did notice you were a home owner, i think I took your 'housing benefit' comment out of context.

 

Apologies:)

[perplexed 10]

If you own a house in old age, you have a certain amount of security. With rental, you simply don't. With a drop in income you may have to move, in old age, to a smaller property, possibly in a less desirable area.

 

Alternatively, one may become dependant on the state "topping up" your rental payments. I, for one, would not be very comfortable with this concept. There is no certainty that the state will not change the housing benefit levels, possibly several times between now and retirement.

 

The other option would to be housed by the state in social housing. I really wouldn't want to get into my 60's and 70's and beyond, having worked all my life, to then become dependant on where the council wanted to deposit me. No way.