3 ms·

In the UK at least a mortgage tends to work out about half the price of renting in my experience. Also add in the extra security ownership provides which I woul

In the UK at least a mortgage tends to work out about half the price of renting in my experience. Also add in the extra security ownership provides which I would much prefer if I had a family. If I had a family, lost my job, and was renting instead of owning/paying a mortgage, I would be on the street much, much quicker. Also, outside of London I don't think commuting is as big of a thing here. At least when I lived in Northern Ireland I didn't know anyone who commuted more than 60 mins to work and these people also owned houses in the suburbs. Looking at it from the perspective of a well paid tech worker who can find a new job very easily renting isn't a big deal but for most people finding a new job can be a long and difficult process so renting can be a huge risk with a family.

shubb 11y ago
Additionally, as the price of houses in London increases, Landlords are much more likely to end / refuse to renew tenancies. Maybe they want to sell, and maybe they want to renovate first. Maybe they want to bank the gain in price, or convert a house they own 50% of into two houses they own 25% of. Either way, a lot of my friends who rent in London have been politely evicted every year or two for the past few years. Once evicted, they usually find they can no longer afford rent in that area and need to move. Getting your kid into a good school is difficult and based on where you live here, so moving is going to compromise your childs schooling unless it is planned in advance. Ideally, parents don't want to have to move at short notice every few years.
cpncrunch 11y ago
>In the UK at least a mortgage tends to work out about half the price of renting in my experience It depends where you live. It is only in London that house prices have risen to silly heights compared to income, so I assume that is what the article is referring to: http://moneystepper.com/property/rental-income-vs-house-prices-uk/ http://moneystepper.com/property/rental-income-vs-house-pric... If you look at rental yields in the above graph, they have been sharply dropping in London in recent years. This makes sense if people are buying houses as investments: unless they're going to be sitting empty, they will be rented out and that will increase supply and reduce demand. Essentially these London real-estate investors are subsidising cheap rents. So it's really a great way to save money by renting instead of buying, and investing your money in the stock market instead. >If I had a family, lost my job, and was renting instead of owning/paying a mortgage, I would be on the street much, much quicker Nope. If you were sensible you would put the money you saved by renting into investments, and you would have at least a year of runway before being on the streets. With a mortgage (assuming your mortgage is higher than rent, and you can't save much) you will have about 90 days before being kicked out. >At least when I lived in Northern Ireland I didn't know anyone who commuted more than 60 mins to work and these people also owned houses in the suburbs. Belfast is completely different to London in terms of commuting. Also, house prices haven't gone up the same way they have in London.
- k-mcgrady 11y ago
  >> "Nope. If you were sensible you would put the money you saved by renting into investments, and you would have at least a year of runway before being on the streets. With a mortgage (assuming your mortgage is higher than rent, and you can't save much) you will have about 90 days before being kicked out." That's assuming your rent would be cheaper than your mortgage. My impression is that it's the other way around and that's what my assumption was based on. Also, if you lose your job you can probably re-negotiate mortgage payments. That's not going to be possible when renting and if you have a family finding somewhere suitable (still close to schools/doctors etc.) and less expensive is going to be difficult - especially considering you'll need to come up with another deposit. >> "Belfast is completely different to London in terms of commuting. Also, house prices haven't gone up the same way they have in London." You must have missed the sentence before what you quoted: "Also, outside of London I don't think commuting is as big of a thing here."

shubb 11y ago

Additionally, as the price of houses in London increases, Landlords are much more likely to end / refuse to renew tenancies. Maybe they want to sell, and maybe they want to renovate first. Maybe they want to bank the gain in price, or convert a house they own 50% of into two houses they own 25% of. Either way, a lot of my friends who rent in London have been politely evicted every year or two for the past few years. Once evicted, they usually find they can no longer afford rent in that area and need to move. Getting your kid into a good school is difficult and based on where you live here, so moving is going to compromise your childs schooling unless it is planned in advance. Ideally, parents don't want to have to move at short notice every few years.

cpncrunch 11y ago

>In the UK at least a mortgage tends to work out about half the price of renting in my experience It depends where you live. It is only in London that house prices have risen to silly heights compared to income, so I assume that is what the article is referring to: http://moneystepper.com/property/rental-income-vs-house-prices-uk/ http://moneystepper.com/property/rental-income-vs-house-pric... If you look at rental yields in the above graph, they have been sharply dropping in London in recent years. This makes sense if people are buying houses as investments: unless they're going to be sitting empty, they will be rented out and that will increase supply and reduce demand. Essentially these London real-estate investors are subsidising cheap rents. So it's really a great way to save money by renting instead of buying, and investing your money in the stock market instead. >If I had a family, lost my job, and was renting instead of owning/paying a mortgage, I would be on the street much, much quicker Nope. If you were sensible you would put the money you saved by renting into investments, and you would have at least a year of runway before being on the streets. With a mortgage (assuming your mortgage is higher than rent, and you can't save much) you will have about 90 days before being kicked out. >At least when I lived in Northern Ireland I didn't know anyone who commuted more than 60 mins to work and these people also owned houses in the suburbs. Belfast is completely different to London in terms of commuting. Also, house prices haven't gone up the same way they have in London.

k-mcgrady 11y ago
>> "Nope. If you were sensible you would put the money you saved by renting into investments, and you would have at least a year of runway before being on the streets. With a mortgage (assuming your mortgage is higher than rent, and you can't save much) you will have about 90 days before being kicked out." That's assuming your rent would be cheaper than your mortgage. My impression is that it's the other way around and that's what my assumption was based on. Also, if you lose your job you can probably re-negotiate mortgage payments. That's not going to be possible when renting and if you have a family finding somewhere suitable (still close to schools/doctors etc.) and less expensive is going to be difficult - especially considering you'll need to come up with another deposit. >> "Belfast is completely different to London in terms of commuting. Also, house prices haven't gone up the same way they have in London." You must have missed the sentence before what you quoted: "Also, outside of London I don't think commuting is as big of a thing here."