Re: Renting a Home

AB - There are many reasons why people rent homes, I know you are talking about individuals not companies but in the industrial field it has become common to sell a property the firm owns and then immediately rent it back But of course that's differnt.

On an individual basis there have been some reasons given above, on Dogsey there's someone, her OH is moving to Scotland for a job, they tried to sell their house in England but got no takers so they are going to rent it and they will rent in Scotland at least for a year until they decide if they want to stay up there.

The rental market is growing faster than any other part of the housing scene at the moment, if you look on Right Move you'll see fairly modest 3 bedroom properties renting for £1,300 per month and that's not unusual.

Bear in mind that (in my opinion) house prices are going to 'flat line' on average over the next five years (Except in London but that's different) so while investing in a house has always been a long term thing, it just got longer

Like you I would still urge people to put up with a bit of pain now, cut out the luxories for a few years, in order to make a good life for themselves latter, BUT have you noticed that we are living in the age of "I want it and I want it NOW" mentality.

In 30 or 40 years there's going to be one hell of a problem in UK, especially within the housing market, I'm thankful I won't be around to have to face it

Re: Renting a Home

I actually considered selling my house and renting a property .
There is a big country estate nearby with lots of little Victorian cottages which were originally used for the estate workers. They are quite tiny but would be fine for me as I live alone and I would enjoy living in one of the isolated ones.

My house has three bedrooms and it seems a bit of a waste for one person . The money from the sale of my house could be invested to pay the rent . It would also be nice to have access to a little capital .

I have looked at smaller properties which are for sale. There is nothing in my price range in a similar position to this on eg in a tiny rural community on a no through lane away from main roads.

The only thing which deterred me from going ahead was lack of security if say the estate was sold.

Re: Renting a Home

Meg, have you considered renting out your three bedroom property and renting one of the little cottages on the estate

I am guessing but you might be on a winner because:-
a) you might get more rental income from your house than the cottages would cost to rent (If they are small)
b) If the estate was sold you could always move back to your house, you would be bound to have plenty of notice
c) If you put your house in the hands of a rental agency on a 'full managerial' basis you would have no worries about collecting rent, references, repairs etc. but they do charge a commission between 7% and 10% plus VAT but you might be able to cover this with the difference in rentals on the two properties.

Just an idea

ETA:-
Oh I nearly forgot, there is tax to pay on rental, the nasty Inland Revenue call it 'unearned income' but you only pay after all expenses, a good accountant could help you minimise this, but it is a pain because it can make a difference.

Re: Renting a Home

Hi Losos thank you for the useful input but I decided a while back not to go ahead. Being a worrier I would be concerned about losing my tenancy for some obscure reason then having to move to somewhere I didn't want to be I couldn't be bothered with all the hassle of renting out my existing house and doing so wouldn't free up any capitol.

I don't like my modern little house at all but it's position is unrivalled for me being off the beaten track with views across fields to the Malverns.

Re: Renting a Home

I am sure that is worth loads, I was in Hanley Swann last month looking at some Park Homes and the view across to those hills was wonderful, the person I was visiting said she was there for that very reason

Re: Renting a Home

There are a few downsides to buying a home as opposed to renting one. I've lost two homes in my life because I was laid off from my job. I couldn't find a job in time to save the homes so I not only lost my home but my credit was ruined through no fault of my own. If you rent you don't lose your credit rating and can still apply elsewhere for living accommodations.

If you buy a house you are committed for a much longer period to living there. Unsavory people can become your neighbors and yet you're committed to that mortgage.

I've been quite happy just renting my tiny apartment that saves me the money necessary for me to live in retirement. I'm not burdened by the higher mortgage payments, taxes and upkeep of owning a home. My lease is yearly and should they raise that rent too high or my neighbors are from hell, I can always move.

Re: Renting a Home

Renting now after owing last 2 homes, I am happy to do this, less worries for myself and daughter and you get to move again if you so wish. I am happy and so is the landlord.

Re: Renting a Home

I sometimes wonder if the culture of buying your own home is for me. Yes I own the house, will do soon I have hardly anything left on the mortgage but the upkeep etc could be expensive as the house ages. In fact I do think that but for my parents being here I would sell up and rent somewhere Bob's pluses are mine. I would be a good tennant. I think there is a lot to be said for renting....somewhere with a balcony would suit me fine somewhere to sit out as well as a place to put a pot, hang a hanging basket or two.

Re: Renting a Home

We intend to rent when we get to the point we wish to `downsize`. I have no children and Linda`s are well grown up and working so nobody needs our assets.

Selling up and then renting realises our assets so we can get even older knowing we have no property to maintain and a few quid in the bank.

Renting as a younger person is more problematic-when I bought my first house the repayments were high but no higher than renting an equivalent property and my cash was working for me not a landlord.

Re: Renting a Home

Because I have 2 children it is my wish to leave something for them when we are both gone, so I probably will never realise the capital in our house (even though its a tempting idea ).
My mum and dad worked so hard to own a house of their own and this has influenced how I feel. When they both died my sister and I inherited their house, which came too late in our lifetimes really, so I passed my inheritance onto my children with the proviso that they used it for buying a property. It gives me great pleasure to see Mum and Dad's money being used this way and to know that my children are secure in their own homes and bringing up their own children in decent living accommodation. None of this would have been as easy without my own parents believing that owning a property was the best thing to do - so thank you Mum and Dad.