Why do people think they are entitled to home ownership?

[apelike]

See edit post 157

Edited August 19, 2016 by apelike

[Cyclone]

If I may chime in on this topic - I have VERY heated views about the whole renting/tenant situation.

 

I absolutely detest private landlords. I view them as the scourge of modern living...utter parasites. If I had my way 2nd home ownership would be so heavily taxed up would be unviable for all the leeches to carry on.

 

Why do I feel like this....?

My parents inherited my grandmothers house and let it out, the tenants would love to buy it but my parents refuse to sell...it came for nothing so they're onto a good thing...capital is sat there, plus a big fat cheque each month. My brothers GF bought her council house within a few months of meeting my brother....she'd never had a job, he did. Got the house for absolute peanuts then moved out within a month. They now rent out the ex-council house and the poor desperate sod living there is unwittingly paying for their new much bigger house mortgage. Plus ofcourse my brother and GF are not married meaning ofcourse she claims full benefits for both her kids plus child maintenance by the kids fathers.

Another inherited his mothers house, kept it quiet, got a huge council house in what must be regarded as one of the best locations on the outskirts of Sheffield, the council house has a massive back garden. After being a tenant in a small 1 bedroom flat for the last 20yrs, his patience has paid off, he has aquired instant right to buy...which he has done so, his mothers house is now rented out and the sudden extra monthly income has seen the arrival of a prestige 4x4 (no guesses what make).

 

My whole argument here is that all these seem to consider second homes as a easy way to make extra money. I feel so sorry for work colleagues who are trapped in this renting cycle. The landlords charge so much (often more than the mortgage) which then leaves the tenants unable to save to buy their own.

 

I utterly despise this. I think no-one except local councils should have the right to profit from 2nd home ownership. Landlords now have a massive captive audience, stuck between living at home or renting.

 

And if you had your way and destroyed the BTL market, where would all the people who WANT to rent live?

[mafya]

If I may chime in on this topic - I have VERY heated views about the whole renting/tenant situation.

 

I absolutely detest private landlords. I view them as the scourge of modern living...utter parasites. If I had my way 2nd home ownership would be so heavily taxed up would be unviable for all the leeches to carry on.

 

Why do I feel like this....?

My parents inherited my grandmothers house and let it out, the tenants would love to buy it but my parents refuse to sell...it came for nothing so they're onto a good thing...capital is sat there, plus a big fat cheque each month. My brothers GF bought her council house within a few months of meeting my brother....she'd never had a job, he did. Got the house for absolute peanuts then moved out within a month. They now rent out the ex-council house and the poor desperate sod living there is unwittingly paying for their new much bigger house mortgage. Plus ofcourse my brother and GF are not married meaning ofcourse she claims full benefits for both her kids plus child maintenance by the kids fathers.

Another inherited his mothers house, kept it quiet, got a huge council house in what must be regarded as one of the best locations on the outskirts of Sheffield, the council house has a massive back garden. After being a tenant in a small 1 bedroom flat for the last 20yrs, his patience has paid off, he has aquired instant right to buy...which he has done so, his mothers house is now rented out and the sudden extra monthly income has seen the arrival of a prestige 4x4 (no guesses what make).

 

My whole argument here is that all these seem to consider second homes as a easy way to make extra money. I feel so sorry for work colleagues who are trapped in this renting cycle. The landlords charge so much (often more than the mortgage) which then leaves the tenants unable to save to buy their own.

 

I utterly despise this. I think no-one except local councils should have the right to profit from 2nd home ownership. Landlords now have a massive captive audience, stuck between living at home or renting.

 

I own 15 properties, a mix of houses and commercial and only one is an ex council house that I didn't buy off the council.

Only have mortgage on one of them and the rest paid for by my dads and my hard graft.

Your brother and girlfriend are the ones who are parasites so don't go tarring us all as the same as them.

[Jeffrey Shaw]

"Parasites" insulting of members' relatives is not going to be permitted. So stop it.

[Cyclone]

Presumably calling all landlords names, which includes forum members, not just forum members relatives, is also not going to be permitted?

[L00b]

Going back to the original question, I don't think that people generally feel entitled to home ownership as such. I think they feel entitled (sooner or later in life) to a decent, secure, stable, permanent place to live, and I think they're right to feel that way, especially here in one of the richest countries in the world. What's the alternative? People living rough, or whole families in bedsits/B&Bs? In one of the richest countries in the world? Merely pour encourager les autres? The thought sickens me.

You're in danger of steering the scope of the discussion sharply onto social inequality territory

 

For people who believe that the British generally feel 'entitled' to home ownership, they should spend a bit of time in Ireland, wherein that particular sentiment is -positively- orders of magnitude higher than here, and was arguably one of the prime factors behind the mass taking up of 110 to 125% interest-only mortgages pre-2008 and the (inevitable and most spectacular) Irish banking debacle that followed.

[Cyclone]

I suspect that the younger generation of potential home owners, rather than feeling entitled, feel rather miffed that house prices from 2000 to 2007 went up by approximately 3 times. By not owning at that point (because they were perhaps 15 years old or younger) they became disenfranchised, or at least the cost of buying into the game went up massively.

It probably strikes them as pretty unfair.

[I1L2T3]

I suspect that the younger generation of potential home owners, rather than feeling entitled, feel rather miffed that house prices from 2000 to 2007 went up by approximately 3 times. By not owning at that point (because they were perhaps 15 years old or younger) they became disenfranchised, or at least the cost of buying into the game went up massively.

It probably strikes them as pretty unfair.

 

This is spot on. Not everybody bought before 2003 which was the year when price rises became explosive. Not everybody wanted to buy but it was very common for younger people to step onto the housing ladder. It wasn't easy to do because of stringent lending criteria but people could comfortably buy starter homes in their early 20s, some even in their teens.

 

In 1991 we looked at a terraced house in S4 that was £16,500. I was a student then but my wife was on £14k at that time. We eventually bought for £35,000 in S8 and that house is now valued at approaching £150,000. If my wife had stayed in the same job shed be on about £29k now. So while wages have doubled house prices have quadrupled.

 

It's the idea I guess of options being taken away that people will feel frustrated with.

[apelike]

In 1991 we looked at a terraced house in S4 that was £16,500. I was a student then but my wife was on £14k at that time. We eventually bought for £35,000 in S8 and that house is now valued at approaching £150,000.

 

But how much did that house eventually cost you? On top of the initial price of £35,000 you will have also paid compound interest on the mortgage with interest rates much higher than now.

[I1L2T3]

But how much did that house eventually cost you? On top of the initial price of £35,000 you will have also paid compound interest on the mortgage with interest rates much higher than now.

 

I've never worked it out but the interest rate thing is a red herring. We paid high rates, and enjoyed low rates at times.

 

Arguing that it's OK now for house prices to be high because interest rates are low is extremely dangerous. A mortgage is a 25, 30 or even 35 year commitment now. You don't know what rates will be in 5 years or 20 years or whenever. Assuming they will stay low is not sensible.