Asking Prices Have Risen More Than It Will Cost Me To Rent Till I Retire

[TheCountOfNowhere]

Looking at asking prices round northants, asking prices for a 4 bed detached house like the one I was renting have gone up from approx 250K to 450K in the apace of 2 years now,

So that's 200K. So add on interest to that over 25 years give about £300K, say.

My annual rent for similar houses was = £11K per year ( plus the savings to cover this is gaining interest ).

So that's approx 25 years worth of renting covered by the a 2 year period of asking price rises.

My rent went up approx £50 per month in 5 years

Crazy !!!!

But true.

Edited February 18, 2016 by TheCountOfNowhere

[frederico]

Hmm... Not good

[The12YearWait]

Cost someone their retirement.

Hopefully.

[TheCountOfNowhere]

You can see how silly this has become.

I think this is called....perspective

[thewig]

[The12YearWait]

The son has got man boobs.

[zugzwang]

The government have bent us over and they are going in dry!

Not the govt but the banksters. Took over and subverted the Conservative Party in the 1970s and the Labour Party in the 1990s.

Know your enemy.

[Eddie_George]

The son has got man boobs.

Bitty.

[canbuywontbuy]

Even looking at the most modest of increases - an average 3-bed semi in Northampton has gone up by £30,000 since 2013 (this is the most modest of rises I'm using as an example) - basically going up by nearly £1000 a month. That's more than I pay in rent currently, and that's just an INCREASE I'm talking about on top of a bubble price in 2013. Another perspective is I can buy a visa for Thailand (5 years) for £2000 a year and work from there remotely and save a ton of money in rent. Modern life is crazy. There's no "normal" any more.

[Nabby81]

I'm fortunate my landlord has risen the rent once in 4 years and thats only 25 quid so im not doing too bad still.

Rest of Luton rent wise has followed housing , so seems if your already renting your fine but new entrancement or people moving are in as bad a position as buying.

This is 350 more than I pay for a 2 bed apartment

http://www.zoopla.co.uk/to-rent/details/39540834?t#J2ZPxKhDW4VwsUB2.97

[TheCountOfNowhere]

Even looking at the most modest of increases - an average 3-bed semi in Northampton has gone up by £30,000 since 2013 (this is the most modest of rises I'm using as an example) - basically going up by nearly £1000 a month. That's more than I pay in rent currently, and that's just an INCREASE I'm talking about on top of a bubble price in 2013. Another perspective is I can buy a visa for Thailand (5 years) for £2000 a year and work from there remotely and save a ton of money in rent. Modern life is crazy. There's no "normal" any more.

Some of the 4/5 bed detached I look at have gone up £200K+

More "desirable" places have gone up £400K, from £600K mark to £1M.

[Fairyland]

Two questions though:

1. Where to live after retirement and this is the one that scares/worries me most.

2. Rents can go up by any amount, at least in London/south east.

A friend recently bough in the southeast paying same amount as rent per month. Will pay off her mortgage in 20 years. But the property does need work and has a bedroom less to be fair. Point is, renting in London/South east is very expensive as well.

God knows when this non sense will end. IMHO, the only way out of this crisis is BTL should be banned, second homes should be taxed heavily. Say, 3 times normal council tax, 3 times normal utility bills.

Edited February 18, 2016 by Fairyland

[Assume The Opposite]

Not the govt but the banksters. Took over and subverted the Conservative Party in the 1970s and the Labour Party in the 1990s.

Know your enemy.

This should be on billboards everywhere.

[TheCountOfNowhere]

Two questions though:

1. Where to live after retirement and this is the one that scares/worries me most.

2. Rents can go up by any amount, at least in London/south east.

A friend recently bough in the southeast paying same amount as rent per month. Will pay off her mortgage in 20 years. But the property does need work and has a bedroom less to be fair. Point is, renting in London/South east is very expensive as well.

God knows when this non sense will end. IMHO, the only way out of this crisis is BTL should be banned, second homes should be taxed heavily. Say, 3 times normal council tax, 3 times normal utility bills.

You are asking for Turkeys to re-introduce Christmas ?

[canbuywontbuy]

Some of the 4/5 bed detached I look at have gone up £200K+

More "desirable" places have gone up £400K, from £600K mark to £1M.

Oh for sure. I was just seeing it from the most "modest" of properties - even they are increasing faster than the rent I pay.

As for rent, yep - paying the same kind of rent I was paying in 2010. No rises at all. Well, we don't pay rent from ever-easier access to ever-cheaper credit - we pay from our wages.

Edited February 18, 2016 by canbuywontbuy

[canbuywontbuy]

Two questions though:

1. Where to live after retirement and this is the one that scares/worries me most.

2. Rents can go up by any amount, at least in London/south east.

A friend recently bough in the southeast paying same amount as rent per month. Will pay off her mortgage in 20 years. But the property does need work and has a bedroom less to be fair. Point is, renting in London/South east is very expensive as well.

God knows when this non sense will end. IMHO, the only way out of this crisis is BTL should be banned, second homes should be taxed heavily. Say, 3 times normal council tax, 3 times normal utility bills.

"Retirement? What's that?" - said everyone in 2036.

Anyway, why not emigrate? What's so good about living alone in a big boxy house in the UK like boomers are doing? Looks like a miserable existence to me. I'd rather emigrate to a warmer country that has a cheaper cost of living and access to a good social life/lifestyle. You might say that's possible in the UK, but a lot of retired people in the UK are simply.....POOR. They might have property, but they are miserable and poor.

[crashmonitor]

"Retirement? What's that?" - said everyone in 2036.

Anyway, why not emigrate? What's so good about living alone in a big boxy house in the UK like boomers are doing? Looks like a miserable existence to me. I'd rather emigrate to a warmer country that has a cheaper cost of living and access to a good social life/lifestyle. You might say that's possible in the UK, but a lot of retired people in the UK are simply.....POOR. They might have property, but they are miserable and poor.

I reckon the NHS, subsidised local property tax (more than half comes from general taxation) and all the other freebies on offer to the retired makes the UK the cheapest option. Think most working age people would take mortgage free or rent paid accommodation plus the minimum income guarantee and they are the poor pensioners, on average their disposable income is higher and their debt servicing nil.

The grandkid's think we're poor.....

http://blogs.telegraph.co.uk/finance/files/2012/11/LAUGHING-OLDER-PEOPLE.jpg

Edited February 18, 2016 by crashmonitor

[canbuywontbuy]

I reckon the NHS, subsidised local property tax (more than half comes from general taxation) and all the other freebies on offer to the retired makes the UK the cheapest option. Think most working age people would take mortgage free or rent paid accommodation plus the minimum income guarantee and they are the poor pensioners, on average their disposable income is higher and their debt servicing nil.

The grandkid's think we're poor.....

http://blogs.telegraph.co.uk/finance/files/2012/11/LAUGHING-OLDER-PEOPLE.jpg

Not sure how many in their 20s/30s/40s today will be either mortgage-free or have "rent paid accommodation" when (if!) they retire in the UK. Is it the case now that retired people have their rent fully paid for by the state? What happens when 70%+ of retired people require their rent paying by the state?

[iamnumerate]

Two questions though:

1. Where to live after retirement and this is the one that scares/worries me most.

2. Rents can go up by any amount, at least in London/south east.

A friend recently bough in the southeast paying same amount as rent per month. Will pay off her mortgage in 20 years. But the property does need work and has a bedroom less to be fair. Point is, renting in London/South east is very expensive as well.

God knows when this non sense will end. IMHO, the only way out of this crisis is BTL should be banned, second homes should be taxed heavily. Say, 3 times normal council tax, 3 times normal utility bills.

How about building more homes? It worked in Spain. I have family in Southern Spain 9 years ago prices there were 80% of prices where I live in London now, they are 15%!

[renting til I die]

Looking at asking prices round northants, asking prices for a 4 bed detached house like the one I was renting have gone up from approx 250K to 450K in the apace of 2 years now,

So that's 200K. So add on interest to that over 25 years give about £300K, say.

My annual rent for similar houses was = £11K per year ( plus the savings to cover this is gaining interest ).

So that's approx 25 years worth of renting covered by the a 2 year period of asking price rises.

My rent went up approx £50 per month in 5 years

Crazy !!!!

But true.

Yep but what you are forgetting is that if you had bought for £250k then you could now MEW and go on a really nice holiday!

[darwin]

Two questions though:

1. Where to live after retirement and this is the one that scares/worries me most.

2. Rents can go up by any amount, at least in London/south east.

A friend recently bough in the southeast paying same amount as rent per month. Will pay off her mortgage in 20 years. But the property does need work and has a bedroom less to be fair. Point is, renting in London/South east is very expensive as well.

God knows when this non sense will end. IMHO, the only way out of this crisis is BTL should be banned, second homes should be taxed heavily. Say, 3 times normal council tax, 3 times normal utility bills.

Perpetual renters - most people under 35, according to recent press - how are they gonna pay market rent when they're in their 70s?

[richc]

Two questions though:

1. Where to live after retirement and this is the one that scares/worries me most.

2. Rents can go up by any amount, at least in London/south east.

A friend recently bough in the southeast paying same amount as rent per month. Will pay off her mortgage in 20 years. But the property does need work and has a bedroom less to be fair. Point is, renting in London/South east is very expensive as well.

God knows when this non sense will end. IMHO, the only way out of this crisis is BTL should be banned, second homes should be taxed heavily. Say, 3 times normal council tax, 3 times normal utility bills.

1. In the chateau in France/villa in Spain/beachfront property in Thailand that you buy for the price of a one-bed flat in Luton.

2. Rents do not go up by any amount -- they are a function of local incomes. They do not go up or down according to the dictate of the BoE, Treasury, or other corrupt bureaucrats.

[The12YearWait]

1. In the chateau in France/villa in Spain/beachfront property in Thailand that you buy for the price of a one-bed flat in Luton.

2. Rents do not go up by any amount -- they are a function of local incomes. They do not go up or down according to the dictate of the BoE, Treasury, or other corrupt bureaucrats.

Prices in beach resorts and vast swathes of BKK are so more unaffordable to the average local wage than what London is to an average Londoner.

[Sandwiches33]

Perpetual renters - most people under 35, according to recent press - how are they gonna pay market rent when they're in their 70s?

haha its going to be fun isnt it?

How long do you see the UK lasting in its current form without massive social upheaval, bankruptcy or something else? I always laugh my ass off when these folk think they are gonna sell there house for x amount when all the kids are working in coffee shops, really who is going to pay?There are waaaaayy too many factors now weighing in on employment, automation outsourcing endless cost cutting. Im just waiting this bitch out now

[Fairyland]

1. In the chateau in France/villa in Spain/beachfront property in Thailand that you buy for the price of a one-bed flat in Luton.

2. Rents do not go up by any amount -- they are a function of local incomes. They do not go up or down according to the dictate of the BoE, Treasury, or other corrupt bureaucrats.

1. Don't know if Europe will be a retirement option if Brexit happens.

2. Rents do go up directly and indirectly even if you have a pay freeze. Rents usually try to follow LHA. Indirectly in the sense more and more family houses are being converted into flats and HMOs to maximise rental earning. If you have a family and are looking for a family home you face a stiff competition.... Survival of the fittest.