Do you rent your home?

[Hazell B]

I honestly had no idea so many people rented their houses rather than owning!

According to something I heard on TV the other day, about half of the UK's households rent and half own (via a mortgage of course). It seems about a third of the people I've spoken to recently own at least one house they rent out, too. It's big business!

While I don't expect anyone to tell us how much they pay for their rented home, but I am interested in what you get for your money. Does a rented house usually contain all the kitchen's white goods? Which bills do you pay on top of rent? Is your gas or electric meter extra costly?

I know what we're putting in one we will soon rent out, but don't know what everyone else has .... and I'm curious :p :

[billiaml]

My wife & I "own" the house that we live in (mortgaged, of course) and I rent out the duplex that I lived in before I got married.

The rental property pays for itself -- i.e. the rent covers utilities, taxes & insurance -- and requires minimal effort on my part. And, last I checked, is worth more than my 401(k).

[Jag_Warrior]

I offer houses and apartments FOR rent. As for what you get, you typically get a stove, refrigerator, a microwave, if it's built into the rangehood, and maybe a dishwasher, depending on the property. If a house had a washer & dryer when I bought it, they stay. But once those items break, I seldom replace them - the tenants need to get their own.

As best I recall, the home ownership rate in the U.S. is about 67%, down slightly since the recession started and foreclosures have soared.

[billiaml]

I'm too nice. I furnish a washer & a dryer -- and replace them as needed. :p :

[GridGirl]

I own my own home but quite a few people I work with rent. You either rent furnished or unfurnished and obviously unfurnished usually costs less. The owner of the property would still probably get the renter in either instance to insure the contents to some degree on behalf of the owner for carpets or kitchen fittings etc. People who rent are usually left to pay their own utility bills and council tax.

A girl at work moved into a rented place the other week. She got everything in her kitchen apart from the fridge. Well excluding small white appliances obviously. I think when she was insuring the contents they asked questions about the fridge too. I'm guessing there may be some rules or regulations about it but I never bothered asking.

[Hazell B]

She got everything in her kitchen apart from the fridge.

That's exactly what I expected to need to put in the one we're letting out, but the tennant has already said she's bringing cooker, fridge, freezer, washer and everything herself. It seems in this area it's normal to get a totally bare house with no curtains, carpets anywhere and just a few kitchen cupboards. I'm honestly shocked at that.

Besides the carbon monoxide alarm you don't even get lightbulbs in some houses, I'm told :(

[Eki]

I'm a little bit of this and a little bit of that. I neither own or rent my home. Instead I've bought the right to live in it as long as I wish. Nobody can throw me out until I'm ready to leave, dead or alive.

[gloomyDAY]

I'm a little bit of this and a little bit of that. I neither own or rent my home. Instead I've bought the right to live in it as long as I wish. Nobody can throw me out until I'm ready to leave, dead or alive.You're going to have to elaborate on that one Eki.

What's the catch?

[Eki]

You're going to have to elaborate on that one Eki.

What's the catch?
Well, the "utility payments" are a little higher than if I owned it all but it's cheaper than a rent would be. The "right to live in" cost about 10% of the value of the home and I'm guaranteed to get the same sum I paid (+ Consumer Price Index increase) if I decide to leave.

[Easy Drifter]

I own my house but live on leased land. I pay heat, electricity, phone and partial taxes. Water and sewage included. Came furnished except for TV and computer. I pay for satellite and if my server ever figures it out will pay for internet. After 10 years I doubt it. :)

[slinkster]

We've always rented and we probably will for a looong looong time.

Our last place was furnished and we got a bargain at £495 in a good area. This place we negotiated and got it for £500 a month unfurnished two bed maisonette but it's far bigger than our last apartment- we've got stairs and everything :) . You usually get white goods with rentals as we have with our last three flats but it all depends on the landlord. We've only ever rented through an agent who have managed the property for any repairs and it's a bit of a drag because they're stupidly slow at fixing anything.

[Malbec]

Well, the "utility payments" are a little higher than if I owned it all but it's cheaper than a rent would be. The "right to live in" cost about 10% of the value of the home and I'm guaranteed to get the same sum I paid (+ Consumer Price Index increase) if I decide to leave.

I'm curious, how old are you? Why is the cost to buy the right to live in it so much lower than the value of the property unless you're expected to have a short life expectancy? Do you pay any kind of rent in the meantime? And finally, is the property owned by a private owner or the state?

Sounds like an interesting idea.

[Eki]

I'm curious, how old are you? Why is the cost to buy the right to live in it so much lower than the value of the property unless you're expected to have a short life expectancy? Do you pay any kind of rent in the meantime? And finally, is the property owned by a private owner or the state?

Sounds like an interesting idea.
Age or life expectancy doesn't have anything to do with the deal. I checked the percentage and it's 15% and not 10% like I first said. It's owned by a private company but I don't know if they get some perks from the state.

Yes, I pay kind of rent in the meantime but it's lower than traditional renting would be and nobody can throw me out like in renting if the landlord for example wants to sell the home. This way I don't have so much money tied in property and I can use it on something else. I mean, when I die, I can't take my home with me, and this way I'll have to leave only 15% behind when I die and can spend the rest while I'm still alive.

[Mark]

Is it not the case that tenants in "unfurnished" places have more rights?

[Eki]

Age or life expectancy doesn't have anything to do with the deal. I checked the percentage and it's 15% and not 10% like I first said. It's owned by a private company but I don't know if they get some perks from the state.

Yes, I pay kind of rent in the meantime but it's lower than traditional renting would be and nobody can throw me out like in renting if the landlord for example wants to sell the home. This way I don't have so much money tied in property and I can use it on something else. I mean, when I die, I can't take my home with me, and this way I'll have to leave only 15% behind when I die and can spend the rest while I'm still alive.
The company has web pages in English. Perhaps they explain the system better than I can:

http://www.asokodit.fi/english/


System

Loan provision for the right-of-occupancy homes is from the Housing Fund of Finland (ARA). ARA grants a loan for 85% of the total price. The purchaser of the right-of-occupancy pays a 15% of the total price of the right-of-occupancy home.

Guarantee fee equals two months charge. Resident pays a monthly charge like rent.

The right of occupancy payment is not subject to transfer tax.

Right-of-occupancy home can never be redeemed, it retains its right-of-occupancy status even when owned. In right-of-occupancy home inhabitant has the same security of tenure as in owner-occupied homes.

[Jag_Warrior]

Is it not the case that tenants in "unfurnished" places have more rights?

I'm not sure what you mean. In my state, the leasehold rights of the tenant would be the same, whether the dwellng is furnished or unfurnished. Off the top of my head, I can't really think of a situation where that would change things. But with that said, in places like New York City and certain parts of California (and likely many other places), there are some tenancy laws that HEAVILY favor the tenants.

[Hazell B]

Is it not the case that tenants in "unfurnished" places have more rights?


No, just different rights as far as far as I know. Can't remember what they are, but nothing major. I think (so don't quote me!) it's something to do with long term hotel renting being the same as renting a room or home furnished, so being asked to 'check out' is different in some cases.

Eki, I like your way of doing it. We've nothing like that here :down:

[Rollo]

While I don't expect anyone to tell us how much they pay for their rented home, but I am interested in what you get for your money. Does a rented house usually contain all the kitchen's white goods? Which bills do you pay on top of rent? Is your gas or electric meter extra costly?

I know what we're putting in one we will soon rent out, but don't know what everyone else has .... and I'm curious :p :

I currently pay 41% of my take home pay (after tax) in rent, and then pay for the electric, the water usage (but not the standing rates), the telephones and internet.
I don't pay any of the council rates or the garbage service rates.

Because there is a housing shortage and overall rental shortage in Sydney, we've had rents of average rise between 33% and 40% over the past two years.

And as for buying... just this weekend, there was a land release on the ex Oran Park Motor Racing Circuit site, and people had been camping for a fortnight to secure their place in the queue.

The single biggest owner of domestic dwellings in Australia, is currently the Royal Bank of Scotland.

http://northern-district-times.whereilive.com.au/real-estate/story/families-battle-it-out-for-affordable-homes-in-the-northern-districts/
There are 687 auctions scheduled for today just three less than the record set on the last weekend of September 2009 and up 75 per cent from the (approx) 400 listed each Saturday for the past three weeks according to Australian Property Monitors.

In September the median auction price in Sydney was $655,000 whereas today it is $770,000.

[Jag_Warrior]

I don't mean to take this off topic, but how do mortgages work there, Rollo? At that $770K, what would be the percentage downpayment and what would the term length and interest rate???

[Daniel]

daniel says no

[Eki]

Daniel squats at Caroline's.

[Rollo]

I don't mean to take this off topic, but how do mortgages work there, Rollo? At that $770K, what would be the percentage downpayment and what would the term length and interest rate???

The big four banks would prefer a deposit of 10% and above of the original value of the house, and most home loans are calculated over the term of 25 to 30 years. The current standard variable interest rates are hovering at about 6.75%.

Unlike the American home loan market, there isn't any such thing as a "subprime" mortgage market, by virture of the fact that Torrens Title exists (so this mean that anyone can in theory look at the mortgages, charges, liens and caveats that have been already lodged on any property); and couple with this, the mortgagee is still liable for the loan even if they hand in the keys - ie the debt isn't discharged.

[Daniel]

daniel says no
Hmmmm, a slightly sozzled Mark was in posession of my phone last night :mark:

Isn't posting under another username a bannable offence? :p

[J4MIE]

I still scrounge from my parents...

[Ghostwalker]

The company has web pages in English. Perhaps they explain the system better than I can:

http://www.asokodit.fi/english/

i guess this is what you mean?

http://en.wikipedia.org/wiki/Tenant-ownership#Nordic_countries

[Rollo]

This sounds a little like Strata Title (as used in Singapore, British Columbia, Australia, Malaysia and Dubai) where the owners of the various apartments own their bit of the building, and pay via a body corporate for things like building maintenance.

[gadjo_dilo]

Until last year the home I'm living in had a weird juridical status. Half of it was owned by my mum, half of it was confiscated by communists and we were allowed to stay for a rent. Until a few years ago the rent was very low but now has increased. The level is calculated according to surface, city, area, etc. Anyway the law states that the rent for a house owned by the state can't be higher than 25% of the family monthly income and may be 15% for those with an income lower than the lowest salary in the state.
Things are more complicated when the home has a landlord, other than state and the rent is established by the market. Due to a lack of new homes in recent years the rent for an apartment with a single room in a communist block in the periphery of Bucharest could reach about 300-350 euro ( which is huge when you think it is the average salary in our economy ). Besides the rent you have to pay all utilitues ( heat is very expensive despite state subsidies ), telephone, TV cable, internet, etc. They are usually rented with furniture and all electrical appliances.

Last year, after long ( more than 10 years) , tiring and expensive fights and trials with state institutions I managed to " rescue " the part of the house owned by the state. As only in romanian justice could happen, despite the fact I was the one who fought to get the documents, paid ( thousands of euro , I have to say ) for papers and lawyers and practically minced my nerves, the court decided that I don't deserve anything from the house and gave it to my brother who did nothing for it.

Now the house is owned half by my mum, half by my brother, I don't know my status in it because I don't pay any rent but pay all the utilities and taxes.

[Storm]

I live in my own apartment (and yes I own it now, no more mortgage/loan!)
Although when I lived in another city (Mumbai) I rented an apartment.

[Jag_Warrior]

The big four banks would prefer a deposit of 10% and above of the original value of the house, and most home loans are calculated over the term of 25 to 30 years. The current standard variable interest rates are hovering at about 6.75%.

Unlike the American home loan market, there isn't any such thing as a "subprime" mortgage market, by virture of the fact that Torrens Title exists (so this mean that anyone can in theory look at the mortgages, charges, liens and caveats that have been already lodged on any property); and couple with this, the mortgagee is still liable for the loan even if they hand in the keys - ie the debt isn't discharged.

Thanks for the info. I'm always curious about how the real estate market works in other countries. I didn't realize until a friend of mine told me that the mortgage market doesn't really exist in Argentina.

[Malbec]

Yes, I pay kind of rent in the meantime but it's lower than traditional renting would be and nobody can throw me out like in renting if the landlord for example wants to sell the home. This way I don't have so much money tied in property and I can use it on something else. I mean, when I die, I can't take my home with me, and this way I'll have to leave only 15% behind when I die and can spend the rest while I'm still alive.

Sounds like an interesting idea, I'm surprised the concept hasn't made its way here. I guess here landlords wouldn't like the idea because property prices used to rise quickly so they'd lose out by you only paying 15% of the property price in return for a cheaper rent forever.

It sort of reminds me of a famous flat somewhere in Kensington which is a VERY expensive part of London. A landlord and tenant back in the 1920s agreed to a contract whereby both of them would have to agree to any rises in the rent or to end the tenancy. Of course, when it came to raising the rent the tenant always vetoed it, and refused to move out too. The landlord could do nothing about it as it was all there in the contract. Eventually the tenant ended up living there for decades and paid a pittance for a fantastic flat.

[Rollo]

Rent Controlled apartments are a fact of life in New York City. Sometimes when the rent was arranged early last century and before, the actual apartments can change hands for amazing sums of cash.

It does sort of happen in places like Manchester to a degree where some people pay peppercorn amounts to the old landed gentry. Technically people living on the old estates don't "own" the land, but operate under a perpetual lease.
The de Trafford family extracts some miserly amount from lots of people living in the Trafford Park Estates etc. The de Traffords are probably one of the most famous family names in the world, but entirely separate reasons to them owning land.