If you are buying your home do you wish you had just rented? Or on the other had if you are renting would you rather be able to buy? I have a couple of things I want to talk about here...
We have bought our home and now thank goodness our mortgage is paid. BUT now I am rather wishing I had just rented, in fact so much so we are thinking about selling and going into rented property. Reasons being as you get older you realise that you could have peace of mind if things go wrong i.e. heating or such like that you can just call the council or landlord and things will be sorted, then there is the other BIG reason for selling, heaven forbid either of us should ever be ill and need to go into care, the house we struggled to buy, I mean struggled so that we could leave our only son something would just be taken away by the council on fees. We are now seriously thinking the only way to avoid such a horror is to sell and go into rented now, hiding the profit under the darn bed!
We are finished our mortgage but really upset about the fact that five years ago we gave our son real bad advice and encouraged him to buy his council home, but when he did, he was living with his girlfriend and talk then was to buy his home from the council relatively cheap and now five years on to be able to sell it and make a little profit to buy something better together. Huh, fairy stories are great in dreams...no longer with his girlfriend and now living in his x dropping to bits council house. Yes he does have a roof over his head but with one thing and another it is costing him far more than if he just rented. His fixed rate tie in has just finished and the cost of getting another mortgage is a rip off, also his roof needs doing, he has had to pay for a decent bathroom as the one in was disgusting, his heating went kaputt and his electrics all need rewiring, oh the story goes on and on and yet right next door in the (rented house) the council are in there, rewiring, new heating, new kitchens, you name it, the rent is a lot less than my sons mortgage Weighing everything up we feel sick thinking of the years he will be paying out on this property. Thing is the way things are now I dont think he will ever sell it so I see it as a huge noose around his neck and you can only do so much to improve a council house but location will mean it will never really go up in order to move up the ladder so to speak.
Another reason we are going to sell our home is that by doing so we can then hopefully help him financially with his mortgage. Oh and something else I forgot, IF, he could not work he does not get any help towards his mortgage for months, if he were renting it gets paid straight away, shocking state of affairs.
I am not sitting around waiting for the Government to STEAL our home when it took so much hard work and going without to get to this stage. :035:
Hello Jeannie,
I often used to regret not buying but like you quite rightly say when something goes wrong it's not your problem when renting, this is a huge bonus I could live to be 101 and would never be 'grown up' enough to get over having to buy something as boring as a central heating boiler.
I can easily see the point in buying years ago especially here in the north when it was so easy to get a decent house for 10k or less which is now worth over 100K but those days are over and nothing is a sure thing anymore, even in 'good' areas, I got friends who have sold at a loss this last couple of years.
Yep I'd sell up and bung it under the mattress like you said, no doubt this may cause a bit of controversey on the boards lol but you can't stop folk thinking or having their POV.
Let us know what you decide.
Love
Rebecca x
I'm glad I bought my flat. It's the best thing I've ever done. I'd always thoroughly recommend buying a home. I prefer to think positively, rather than negatively - you can always find negative reasons to not do things. Life is about looking for the positive, and enhancing your life - not moaning about what might go wrong.
Ava x
I've always preferred to buy than rent. I bought my first house at age 18 but only to turn it around quickly and make a profit (during the big property boom in the South, I bought it 50/50 with a friend of mine and neither of us ever actually lived in it). My first proper house purchase was when I was 23 and even when I lived in USA, I always kept a property in the UK. Although properties can go down in value as well as up, you should always average a profit as long as you don't panic sell.
If I rented my house out now, the rent would be twice what my mortgage payments are! Hence, no I wouldn't rent unless for some reason I needed the equity from my property as capital for something. One of the first businesses I owned was purchased by remortgaging my house, in other words the capital came from the profit I had made by buying instead of renting. Owning a property also increases your credit rating compared to renting.
Yes, you do have to pay for things that you wouldn't pay for if you rented but there are some awful landlords out there who won't fix things and a lot of work you do will enhance the value of your property so you don't lose the full cost (I'm about to spend a fairly large sum of money on home improvements myself). The more disaster based problems are often covered by home insurance anyway.
In short, I haven't rented a property for years I wouldn't go back to it again apart from fairly extreme circumstances. I did look at it many years ago but when I looked at rents compared to my mortgage payments, I couldn't see the point. Since then my home has more than tripled in value so I'm really glad I didn't do it!
If I rented my house out now, the rent would be twice what my mortgage payments are! Hence, no I wouldn't rent unless for some reason I needed the equity from my property as capital for something. One of the first businesses I owned was purchased by remortgaging my house, in other words the capital came from the profit I had made by buying instead of renting. Owning a property also increases your credit rating compared to renting.
I totally agree, although to rent this house would be 4 times what I'm paying on my mortgage.
I never appreciated how much owning my own home made to my credit rating until I went into business. I am able to get preferable rates because I own my home home, and therefore enabling the business to do things I wouldn't be able to do otherwise.
Myarka.
The way my wife and I have always viewed it is that renting is throwing money down a rat hole. Buying is at least an investment.
Since then my home has more than tripled in value so I'm really glad I didn't do it!
Scott...Buying is at least an investment
.
Looking at some of the replies such as the two here, I am not sure if my Post has actually been read properly. Bannick there is no chance my son's council house will ever raise in value by the sums you are quoting, he is continually paying money to put things right and as mentioned it is an x council house. Scott I truly believe that this comment was the downfall of house buying, when we bought our first house it was to be a home for always, it never entered our heads that it was an investment, then in the early 70s Estate Agents started putting crazy prices on property and like everyone we were swept away with this making quick money from the property boom, it is really sad because it has back fired so much now. Secondly with regards to my situation I talked about selling our home now we are older and going in to rented, primarily because the Government is literally stealing property from families to pay for care. I would ask kindly if my first Post could be re-read rather than repeat myself here. :033:
not moaning about what might go wrong.
Ava x
OOOOOOOOOOOOh er so sorry ava :010:
Ah yes, sorry Jeannie, I forgot about the mention of the ex-council house. The problem is, not many people want to pay to live on a council estate so although they do go up in value, it's not by much. I bought an ex council to rent out years ago but once the first tenant left, I had trouble letting it and then had repairs and then sold it at a break even just to get rid of the flipping thing. Admittedley I was particularly unlucky as the area took a dive after I bought it as the local council decided to build an apartment block for 18-21 yr olds who had come out of prison/young offenders and of course the crime rate soared when they did that and one of the few remaining properties that were still council owned on the estate had a family from hell move into it.
That said, some friends of mine purchased an ex-council house as they knew it was in an area that was earmarked for redevelopment and they made quite nicely on it when the council started buying them back and then bought a house in a nice area. Not sure I could have put up with the hassle they had for the few years they had to sit it out for though.
I focussed too much on your first two paragraphs which were about your own circumstances, although in reply to those paragraphs, and your initial questions, the opinions here do answer those.
Hi Jeannie
Your post pressed a few buttons for me as I have been thinking about things going on around me and questioning things a bit more so I thought I'd give you my thoughts.
In the world we live in, I feel for most, buying is the better option. Generally, it tends to be an investment, as you eventually end up with a property/home and are able to live rent free while if you rent, you will always be paying out. However, it is a long term investment and because we do not know what will happen in the long term, there could be unexpected events which turn it into a bad investment (for example, natural disasters, bad economy etc) For most, it tends to be a good one as long as they can afford to keep paying for the mortgage and upkeep of the property now. So eventually, your son will be able to live rent free. The issue seems to be that to get to that point, he may find it quite hard for the next x number of years when he could just rent maybe for the rest of his life, easier for right now, but never own an asset in the end.
Your home, I feel, is a different issue. It has probably been a good investment to this point. If you view it as such, now you can decide how to use this investment to your best advantage right now. Have you considered moving to a rented property while renting out your home. Obviously, you would still have to do all the things you do now as landlords, but if you were able to balance things right, you could end up getting more in rent than you pay.....and still be able to help your son. You could then put it on the market if you wanted at a later date. Of course, this would not necessarily be a hassle free option because you never know what the future may bring, but that doesn't mean it could not equally turn out to be a good one.
On the issue of the future, I do wonder why you seem to see it with a slightly negative outlook. Your post reads to me almost like you are expecting to become ill and have your home taken away by the government! What if you (both) live a long healthy life. What if.....you sold your home and were able to buy a cheaper home just as good and ended up with a nice profit to help your son with! Whatever happens, the future can never hurt you....until it gets here. But worrying about it in the now argueably could. I guess what I'm trying to say is don't make your decision out of fear of what might or might not happen, make it based on what is right for you now..........just my thoughts!
As your signature says....Positivity...
Love
Crystal elf
Hi Jeannie
On the issue of the future, I do wonder why you seem to see it with a slightly negative outlook. Your post reads to me almost like you are expecting to become ill and have your home taken away by the government! What if you (both) live a long healthy life. What if.....you sold your home and were able to buy a cheaper home just as good and ended up with a nice profit to help your son with! Whatever happens, the future can never hurt you....until it gets here. But worrying about it in the now argueably could. I guess what I'm trying to say is don't make your decision out of fear of what might or might not happen, make it based on what is right for you now..........just my thoughts!
Love
Crystal elf
Good advice Crystal elf, thank you, but you are right I live by What ifs...I have this philosophy of always feeling the need to 'be prepared', life is going by so quickly and I do have such terrible fears (all the time) I truly can't just sit and think that I can leave the future to take care of itself, society today has me paranoid, there are so many underhand things going on, so much injustice (taking a person's home from them for one) I also feel only having the one son it is important that I try to make sure that can never happen.
Best wishes
Hi again Jeannie
Yes, we do live in interesting times, don't we!
But we can try and choose our reactions to what goes on because really, at the end of the day, we can only control ourselves.
I suppose everyone feels fear (amongst other emotions), so we must have it for a reason. I choose to see it as a tool if I can. I see fire and I fear getting burnt so I don't put my hands in it. You go on a long journey and fear getting hungry, so you pack lunch. So fear serves us in this way. But if we suddenly start staying indoors because the sky may fall down, then the fear serves no purpose! So I think sometimes we need to examine the fear and make sure its doing its job properly......if not, sack it!!!
But yeh, I'm sure you've heard it all before especially on a forum like this and its all easier said than done. Even so (and don't tell anyone), I used to be afraid of the full moon (btw if anyone could explain that, I'd be greatful).....it hasn't hurt me yet so I figured maybe stop?
Hey, I just had an idea for you since you said you were afraid all the time. If you were afraid 100% of last week, then everything should be wrong this week. If things are only 50% wrong this week, your fear is only doing half a job, so give it half pay by paying it half attention this week (it should work for its pay afterall in this economic climate). If this works for you and your fear reduces, maybe I'll write a book or something! If not, don't beat yourself up.....just think of me being scared of the full moon!!!!
Love
Crystal elf
Hi again Jeannie
If not, don't beat yourself up.....just think of me being scared of the full moon!!!!Love
Crystal elf
Maybe you should be in the LOONY bin :eeeK: Thanks for your advice though.
Lol......now you're getting it.....maybe to be in fear is loony (however 'realistic' it may seem at the time)
Positivity back at ya!
Crystal elf
You're not the first to have said that!!
How can people afford to rent if they are on pensions?? Judging by rental costs in some areas, it would seem that all the pension would just go on renting. At least if your mortgage is paid off by the time you reach retirement age, it's one less cost to think about.