Tenacious Sloth
Guru
- Location
- Huntingdon, UK
This is a question that’s been bothering me for some time.
There seems to be a lot more people having to rent nowadays due to the lack of 100% mortgages and the increased difficulty in getting any mortgage.
Talking to some friends recently it become apparent that it’s quite often more expensive to rent than pay the interest on a mortgage, but it’s the difficulty in saving a deposit that’s preventing them from escaping the rent trap.
Quite often, those people with mortgages will have paid them off by the time they retire and be living ‘rent free’ so to speak. Meanwhile, those who have rented all their lives still have to pay the rent into retirement. The standard UK pension is not going to cover it so how do they pay? Benefits? I would imagine that if you have any kind of savings for retirement then benefits won’t be available.
I’ve heard that renting is a lot more common in some European countries. How do they manage this problem?
Are we heading for a crisis when the current renting generation retire, or am I missing something?
I’d prefer it if people didn’t use this as an opportunity to gloat about paying off their mortgages or to have a rant about people’s inability to save for a deposit.
There seems to be a lot more people having to rent nowadays due to the lack of 100% mortgages and the increased difficulty in getting any mortgage.
Talking to some friends recently it become apparent that it’s quite often more expensive to rent than pay the interest on a mortgage, but it’s the difficulty in saving a deposit that’s preventing them from escaping the rent trap.
Quite often, those people with mortgages will have paid them off by the time they retire and be living ‘rent free’ so to speak. Meanwhile, those who have rented all their lives still have to pay the rent into retirement. The standard UK pension is not going to cover it so how do they pay? Benefits? I would imagine that if you have any kind of savings for retirement then benefits won’t be available.
I’ve heard that renting is a lot more common in some European countries. How do they manage this problem?
Are we heading for a crisis when the current renting generation retire, or am I missing something?
I’d prefer it if people didn’t use this as an opportunity to gloat about paying off their mortgages or to have a rant about people’s inability to save for a deposit.
Hopefully I will have sufficient in my pension to see me right in retirement, & moving to a smaller house in the coming years will see the mortgage drastically reduced, so won't have to worry about paying rent, but for those in the renting system, I do wonder if a 'private' pension is worthwhile???
