‘Generation Rent’ - since the recession we’ve heard this many times in the news. Supposedly, home ownership has plummeted in recent years, while renting properties is at an all time high. The generation in question? Young people. Those aged 25-34 renting from private landlords has soared in recent years, and the implications for society are worrying.
Owning a home encourages longer term security, prosperity and wellbeing. Paying your mortgage off ensures that the money goes towards a tangible end; a property that is yours, by right.
Symbolically, acquiring your own home is a reassuring pat on the back that your hard work has paid off. It’s not for everyone, but many aspire to their own land, their own garden and a safety net for family and retirement.
Renting per se is not a bad thing. Many people are perfectly happy renting long-term, and enjoy a wonderful quality of life and good relationship with their landlords. However, there is never a sense of complete calm. The landlord has the final say over what happens to the property, and it is not truly yours to convert, build upon or sell. You could receive a notice any time that they are selling, and that could interfere with whatever life plans you have coming up.
Financially speaking, renting a home could be interpreted as spending ‘dead money’. By this, we mean you’re investing in something that isn’t truly yours. It keeps a roof over your head, sure, but compared to a mortgage you cannot count down until the property becomes yours in name.
We hope that Generation Rent are saving well and making long-term plans that suit their individual needs. That being said, it can be a false standard to pin your hopes to; many young people worry needlessly that they don’t abide to the so-called standards of society. Make arrangements that suit your needs, and do not compare your life to those around you. If you manage to own a home then great. If not, there’s more to life than mortgages!
