Up to a third of millennials 'face renting their entire life'

[MadMike]

We're renting out our place from early November if anyone's looking for a two bed in London.

Gimme a good price, so I can sublet it for a profit.

You white texting motherfecker

Poor effort from me really, went over the top with it and made it obvious.

 

[nimic]

Poor effort from me really, went over the top with it and made it obvious.

Wouldn't look out of place in a Daily Mail comment section.

 

[VorZakone]

I find such videos to be really odd. It seems to completely ignore the fact of having paid off your mortgage and therefore more income available to invest.

 

[adexkola]

I find such videos to be really odd. It seems to completely ignore the fact of having paid off your mortgage and therefore more income available to invest.

They really aren't odd! It's a simple calculation one can do with Google excel (maybe this weekend I'll upload one I have done)

Plus you're ignoring compound interest, money invested earlier is much better than money invested after a long ass mortgage is paid.

 

[VorZakone]

They really aren't odd! It's a simple calculation one can do with Google excel (maybe this weekend I'll upload one I have done)

Plus you're ignoring compound interest, money invested earlier is much better than money invested after a long ass mortgage is paid.

Having a mortgage doesn't mean you can't invest though? You can still invest in stocks, ETFs whatever. And you can invest even more after your mortgage is paid off.

 

[adexkola]

Having a mortgage doesn't mean you can't invest though? You can still invest in stocks, ETFs whatever. And you can invest even more after your mortgage is paid off.

Yes, but there are unrecoverable costs that come with a mortgage (opportunity cost of the down payment, interest on the mortgage, property taxes, increased utilities, maintenance) that may limit your ability to invest.

Have you heard of "house poor"? A good amount of people plow crazy amounts of money into their house, leaving them with barely enough to get by, talk less of investing.

I'm not saying you're wrong by the way. I'm saying everyone should run the numbers for their situation, not default to real estate/renting cliches

 

[VorZakone]

Yes, but there are unrecoverable costs that come with a mortgage (opportunity cost of the down payment, interest on the mortgage, property taxes, increased utilities, maintenance) that may limit your ability to invest.

Have you heard of "house poor"? A good amount of people plow crazy amounts of money into their house, leaving them with barely enough to get by, talk less of investing.

I'm not saying you're wrong by the way. I'm saying everyone should run the numbers for their situation, not default to real estate/renting cliches

I get that, but rent will always be unrecoverable (where I live anyway). Your mortgage expense will go down after it's paid off, your rent won't disappear. And maintenance is a funny one, won't your rent go up if a renting company has to do more maintenance? As in, won't they just price that into your monthly rent?

 

[Bebe]

USA house prices are up 20% (!!!) Over the last year. Absolutely mad.

I'm 27 and I know barely anyone my age who's thinking of buying a house (grew up in London). I've given up personally, might be possible if I meet someone that has a high paying job but otherwise it's the renting wheel for me.

I fully support protests like the ones in Berlin. If a similar thing happens in London I think there'll be a lot of support amongst those under 35. Constant 10%+ rises supported by moronic government policies (no doubt influenced by all the donor money) and the endless money printing.. eventually the madness has to end.

Western Canada here, age 30, exact same boat. Average price of a single family home here is roughly $1million. I'll support any protest, measure, or pretty much anything else that curbs the current absurdity. Older generations have chosen to wage economic war on the young and I'm in favour of any and all retaliatory measures at this point.

 

[calodo2003]

Came to terms with this years ago.

 

[Sied]

I get the financial argument, but I'd always look to own the property I live in personally. The risk of your landlord evicting you because they've decided to sell, are moving abroad, passed away, etc. would worry me. Especially as I get older. The unplanned upheaval is a problem with a family or if you're elderly.

 

[The Corinthian]

I find such videos to be really odd. It seems to completely ignore the fact of having paid off your mortgage and therefore more income available to invest.

It doesn’t make financial sense to pay off your mortgage. Moreso if you want the income to invest.

 

[Vidyoyo]

WFH really should have been an opportunity for the government to address the problem but instead we ended up with a situation two years down the line where we've created a split between people who own their houses and can turn a bedroom into a proper office space, and (mostly) younger people who rent and just have to make do. Not much equality there but hey-ho.

P.s. I'm aware this benefit doesn't extend to all homeowners and also that some renters do rent decent houses.

 

[Revan]

I find such videos to be really odd. It seems to completely ignore the fact of having paid off your mortgage and therefore more income available to invest.

But it depends when, doesn't it? $1 invested today in a boring index fund, would probably be worth around $16-20 in 30 years (the time it takes to pay off a mortgage). However, that some dollar invested 23 years from now, would be worth only $2, at the end of the original 30 years. $1 in a home invested today, it won't be $20 by the time you pay off the mortgage.

Of course, the counterargument is that you buy the home with the bank's money, not with yours, and as long as the home's value increases more than the interest rate and inflation combined, you get a lot of money. And as appealing as it sounds to go to a bank and ask for a 30 year loan (size of a mortgage) to put in a total market index fund, I think they won't give it to me.

 

[Trequarista10]

I'm lucky enough to be a millennial property owner, but I will likely never own as nice a home as my parents, despite having a more 'professional' qualification and career (until my parents...you know).

That said, I was naive/stupid/desperate enough to get on the property ladder that I bought a lease hold flat. At some point I'll have to worry about about extending the leasehold, which will feel like being screwed over. Unless I just run it down, I'll be dead before it expires anyway, and I'm not having any sprogs to pass it on to, and fully intend on dieing with an empty bank account.

 

[Vidyoyo]

I'm lucky enough to be a millennial property owner, but I will likely never own as nice a home as my parents, despite having a more 'professional' qualification and career (until my parents...you know).

That said, I was naive/stupid/desperate enough to get on the property ladder that I bought a lease hold flat. At some point I'll have to worry about about extending the leasehold, which will feel like being screwed over. Unless I just run it down, I'll be dead before it expires anyway, and I'm not having any sprogs to pass it on to, and fully intend on dieing with an empty bank account.

Yeah my mum's an estate agent and she's always said don't buy a flat as apparently they're a bit of a nightmare to deal with. Ground rent, leasehold, finding a buyer, etc.

 

[BeforeKeanetherewasRobson]

I'm lucky enough to be a millennial property owner, but I will likely never own as nice a home as my parents, despite having a more 'professional' qualification and career (until my parents...you know).

That said, I was naive/stupid/desperate enough to get on the property ladder that I bought a lease hold flat. At some point I'll have to worry about about extending the leasehold, which will feel like being screwed over. Unless I just run it down, I'll be dead before it expires anyway, and I'm not having any sprogs to pass it on to, and fully intend on dieing with an empty bank account.

Not an expert (any may have misunderstood exact nature of your deal) but have you been a tenant for more than two years? Don’t you have the right to extend after that?

 

[Trequarista10]

Not an expert (any may have misunderstood exact nature of your deal) but have you been a tenant for more than two years? Don’t you have the right to extend after that?

My lease has like 87 years or so left on it, i can extend it anytime I think but it's recommended to be most cost efficient to extend it when that's down 80 years but it can cost thousands.There's also potentially going to be changes at some point to extend for longer (990 years). Feck knows how much that would cost. But, I struggle at this point in time to see the value in extending the lease, with no prospect of selling and upgrading in the meantime. I expect at some point in life I will, but I find it too depressing to think about right now. I don't even know if I'm better off than renting, I assume so, but maybe that's wishful thinking.

 

[BeforeKeanetherewasRobson]

My lease has like 87 years or so left on it, i can extend it anytime I think but it's recommended to be most cost efficient to extend it when that's down 80 years but it can cost thousands.There's also potentially going to be changes at some point to extend for longer (990 years). Feck knows how much that would cost. But, I struggle at this point in time to see the value in extending the lease, with no prospect of selling and upgrading in the meantime. I expect at some point in life I will, but I find it too depressing to think about right now. I don't even know if I'm better off than renting, I assume so, but maybe that's wishful thinking.

You can’t be thrown out with a couple of months notice?

 

[Trequarista10]

You can’t be thrown out with a couple of months notice?

No I don't think so, I'd have to check the small print, but I'm pretty sure it would be a a lengthy and pain in the arse process for them to get me out, which would be by a process forfeiture I believe, and essentially if I don't paid ground rent which is not very much.

 

[Jippy]

I'm lucky enough to be a millennial property owner, but I will likely never own as nice a home as my parents, despite having a more 'professional' qualification and career (until my parents...you know).

That said, I was naive/stupid/desperate enough to get on the property ladder that I bought a lease hold flat. At some point I'll have to worry about about extending the leasehold, which will feel like being screwed over. Unless I just run it down, I'll be dead before it expires anyway, and I'm not having any sprogs to pass it on to, and fully intend on dieing with an empty bank account.

The crazy thing about this property market is that our two bed flat has gone up in value by about a third more than my mum's entire three bed semi is worth, purely down to location.

 

[Mihai]

No I don't think so, I'd have to check the small print, but I'm pretty sure it would be a a lengthy and pain in the arse process for them to get me out, which would be by a process forfeiture I believe, and essentially if I don't paid ground rent which is not very much.

AFAIK, there was only one lease forfeited since the adoption of leasehold in England. And even then the freeholders got the property back after the leaseholder passed away. This is made even harder when there is a mortgage in place. The mortgage company might repay lessee's debt to the freeholder in order to avoid forfeiture (in case grounds for forfeiture are rent, service charge or administrative charge breaches).

 

[Trequarista10]

The crazy thing about this property market is that our two bed flat has gone up in value by about a third more than my mum's entire three bed semi is worth, purely down to location.

True that. I picked my flat because its a 20 minute walk from work. Thankfully my work is not a city centre location, so my flat was a good 20-30% cheaper than similiar flats a closer to, or in the city centre. But then I suppose its potential to grow in value is lower. But the benefits of being walking distance to work outweigh that, IMO. I gain like an extra hour a day, have a nice walk through a park on the way to work, no hassle of traffic or public transport.

 

[owlo]

I own a hut. I feel that if your your priority is owning a property and you aren't location locked, you can easily purchase one. If you want one in the places your parents got them cheap.... good luck.

However, it's often not the most efficient way to do things.

Imagine I bought a cask of whisky this month for 97k~. Had I bought a house/flat instead I'd be looking at maximum 5k rental income yearly (or a place to live which saves around that). And a whole bunch of hassle in maintenance, tax, etc etc. If I could sell my cask of 95 Bowmore for 150k in 10 years, I've circumvented all that hassle yet still protected myself from inflation blablabla.