RE: Oil16 Jun 2022 13:48
My Dad always told me as a kid; never borrow money for anything other than a house or a car, if you need one. Many people live just the other way around though, renting it all because it feels cheaper in the short term and gives you that instant gratification;
Moaning about not being able to afford to get a mortgaged place and so supposedly 'have' to rent, rather than choosing to buy a house in a cheaper/worse area than they can afford to rent in, whilst happily dropping £400 a month on that PCP/aka rented 3 Series or A4, having a sun holiday every year as if its essential, and having kids without financial thought/before you're equipped, etc etc etc.
A mate yesterday asked if know of any houses for rent in my area. His mate has a budget of £1100 a month to get a place worth about £250k. To put that into context; if you drive 20 mins from where I live, you can buy a 2 bed terrace for £75k in a less that posh area, with no Instagram kudos. What's that a month though? £300 to mortgage/pay off super early if you have £1100 to spend? Absolute lunacy/throwing money away on paying 6% a year to rent a place and then wondering why you're broke. Sure, housing is genuinely unaffordable in many areas, but in most of the country, its just not, especially if you're prepared to live cheap for a few years. I got my first house when I was 25. It was on a council estate, but it was mine, whilst all my colleagues were living in a posh area up the road. Then you sell and move up the ladder. But you've first got to be prepared to live on that council estate/put in the less than ideal graft, instead of going for the shiny 3 bed new build early doors. And that's the issue. People want it now, we live in a Klarna world, and don't want to put the effort in BEFORE getting things. They prefer to buy now and pay later, which is a sure fire way of clearing you out before you get anywhere in the long term as ultimately it costs you more.
The powers that be have no interest in putting money management into the GCSE curriculum, as they don't want you to manage your money. They want you to spend it all.
And what about in 20 years, when all those people who've not managed to buy a house retire/have no income other than the state pension which they will moan about being too small after earning an average income all their life. Whos going to pay their rent then? Benefits? The oil companies? Housing companies who've 'profiteered'?
It's plain stupid if you think about it logically.
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