Young people grow up with the notion that getting on the property ladder is the biggest mark of adulthood: the sign they’re a ‘real person’ now, they’ve finally put their roots down and stopped throwing money away by floating from rental to rental according to whim.
However, with the property market now sinking to an all-time low, mortgage deposits at an all-time high and thousands of home-owners sitting on negative equity (meaning they owe more than their property is worth), is renting property really such a bad thing?
If you consider all the additional costs that come with owning a house – the 7% stamp duty, the legal and conveyance fees, the routine structural and internal maintenance that stacks up to thousands every year – wouldn’t it be lovely if you had a person who would do and pay for all that for you? Someone like, say, a landlord?
In a recent survey by SpareRoom.com, almost half of those asked said they would be happy to rent long-term if there wasn’t so much pressure from society to own a property.
People who rent can move just about whenever they like. Property owners sitting on negative equity have no choice but to stay put. With a predicted property price drop of 10 to 15% in the near future, the idea of purchasing property as a rising asset is long dead.
Read urges us to revise our views of property as investment, and to consider more carefully how we risk our savings.
“Once you strip out the idea of a home being a financial investment, then you focus on finding the best home. And that could just as easily be a rented one,” he says.
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