hahha well I also was happy to just talk about it in general so those who are feeling the same can feel less alone !! Thanks so much for watching Kells.
My youngest daughter (I have 4 more! ) , moved to London about a year and one half ago. Living in London was her goal. To make ends meet, she had to rent half of a flat. She moved in with a male roommate that she had never met. He is a Londoner and had the flat. It has worked out great. They are fast friends and through him she has made more friends. London was her goal and she did what she had to to make it work. Proud dad. Good luck with your new place, it sounds wonderful.
Renting a room can be an amazing experience and saves a lot of money! So many people do this here well into their 30's and 40's. Glad she's had such a good time. Thanks so much for commenting and watching Larry!
my parents are over 60 and they have been renters all their life. i grew up moving at least 15 times. maybe because of that i've always wanted to buy my own place - i was so sick of moving. everyone has their own reasons to buy or rent - there's no right or wrong.
“You don’t have to own a property to feel like an adult or feel like you are not making sound financial decisions.” I am gonna print this and put it up my bedroom. 😄
My husband and I (ages 49 & 47) just, two weeks ago, started owning our first house. We have rented this house for ten years after having owned a condo and loosing it, and had to rent to heal ourselves and our finances. All we heard from our parents was "oh! You're going on a vacation? Maybe you should save that money to buy a house!" We live outside of Seattle. It's is NOT CHEAP to buy a house. Skipping a weekend away wasn't going to make a house purchase possible! But! Our landlords neglected this house in a neighborhood we love and when we finally had the chance to buy it, luckily we were ready. Doesn't mean it's completely awesome. First thing we get to do is replace the roof. Fun times. 😒 So, I totally understand, especially in London, as a single woman from the US, wanting the flexibility of renting WHERE YOU WANT TO LIVE! London? I mean, how cool is that?? And we benefit from you being there, too! ☺️❤️
That's great news, congrats! Sounds like fantastic timing and that's great that it's a place you have lived in for so long already! Thank you so much for sharing your story and for your kind comment Anna ♥️
I needed this video right now - thank you! I'm 30 and have been living in London for almost 10 years now. I'm about to move to my first 1 bedroom flat where I'll be living on my own after years of renting rooms with strangers. It feels amazing and I can't wait! Sadly most of my income will be spent on rent, but I'm at the point of my life when I choose and want to pay this money just to live on my own.
after renting for 15 years in 3 different countries having 34 different housemates, im also going to move and have my large studio / 1 bedroom flat in a few weeks (still looking tho). it hurts to pay that much money, but hey... my life, my decisions.
As both a renter and homeowner in a high-cost city my take is that there is no right or wrong answer. Lots of people would like to own but unfortunately it's unattainable for all the reasons you lay out. But once you do become a homeowner it's not all rainbows and unicorns either. Everyone's life situation is different. Everyone's financial situation is different. It's not really fair to say that someone *should* do something the same way you would because they don't share the same unique set of circumstances. Enjoy your new home!
@@loveandlondon yes, it was funny, i like learning from Graham for investment tips too but people value things differently. Graham is like a finance major kid from business school, and we are the liberal art majors from another college.
Thank you for this video, I wish others realised how hard it is to buy a house (if you want to buy one). its hard to save for a deposit when your renting, then to buy a house/apartment and the up keep of it. you can no longer move out of London and buy an affordable property as everyone has done that and pushed the prices up. I live in Cardiff the average good area house price is £220k at the very least a really nice area is £400k plus. that's still between 22k-40k deposit and for a single person that's a lot to save. my mums generation bought her house for 40k and mortgage was £100 a month those were the days.
Laura thank you so much for sharing your experience in Cardiff, especially as I always though it was “affordable” but you’ve shown me it’s similar stories in other parts of the UK too, not just London. Thank you so much for watching!
@@loveandlondon I think its the same every where to be honest, I used to live in a smaller town, the average house price was 120k to 220k the toll fee of the Bristol bridge was cancelled and all the areas around went up by at least 100k and above because now people could afford to commute over the bridge so even the locals who grew up in the areas cant afford to buy a house in their own town.
@@loveandlondon A lot of people are hard wired to assume if you rent it's because you're poor or because you lack a big savings account. Frankly, it's easier for me. Lower tax bill. The community I'm in, the landscaping is even done.
I am a single woman in the US who does not live in a big famous city, has a Master's degree, and works in health care full time and I still cannot afford a home.
I think it’s a great thing that you’re willing to be so honest and you make a very good point. It makes me feel relieved to think that there are a lot more people in this position.
Thank you for highlighting the cladding and building safety scandal affecting most of London's new build properties. Up to 1 million of Londoners could be affected by nil-valued and unsaleable homes. Many of us have learned that home ownership has been the biggest mistake in our lives, with the UK government failing to protect buyers from UK's corrupt developers.
Great vid. I live in the Bay Area in California and there is no way I could afford to purchase the loft apartment that I happily rent. I actually owned homes when I was much younger but I’m never going back to cutting the grass and the constant upkeep. Renting gives me a sense of freedom that I never had with home ownership. That was more like a millstone around my neck.
I understand. I used to live in a suburb of Vancouver, Canada, another town with insane real estate prices. Buying was just not an option - and I make pretty good money. A couple of years ago I moved to a smaller town. Since I work from home over the internet I can do that. Not everybody can. Thanks to you know what house prices here have skyrocketed too. I could retire in a few years or I could rent. I choose to rent.
Great video, and you have listed the reasons why as a 37 year old I still live at home with my mother in Zone 3 in SE London. I know it is pathetic, pushing 40 and still living at home, but it is a big money saver and I have saved money in both rent and transportation which I have used to invest in my business and also to socialise often.
Hiii Jess!!! Thank you so much for explain it so well and with real facts!!!!! I'm a Brazilian woman (33yo), physiotherapist moving to London again (I lived there for a year, to study English in 2019) And now finally I got a job! SO, I watched almost all your videos and even though you say that " As American woman, millennials generation, single, with few very close friends, family in other country...that can't afford buy a place to live" fits perfectly for Brazilians as well...it's our generation that doesn't have family properties...or heritage...we need to make our own money to LIVE NOW and if it's possible, make some money for the future, haha, that rarely will be enough for buy a place to live.....Anyway! Thank you so much for all information! Have a great summer there!
I don't! It's the system and cultural pressure that frustrates me and wanted to make something that other people might relate to :) Thanks so much for watching Christine!
Spot on. My daughter rents for exactly the same reason - she can live where she wants to, have a job she enjoys and earns a good salary from and enjoy living in a house/place she could never afford to buy. Interestingly she has bought a buy to let property in a different cheaper area as a long term investment which she rents out and is planning to get another at some point. Doesnt do this to make money on now but for the future. Good on you as an intelligent person to do whats right for you.
What I love from your channel is that you have an exceptional way to communicate and say what you think. This a common situation in large cities all around the world. Here in Argentina is very difficult to buy your own property in Buenos Aires or in the capital cities from each province, so if you want the benefits of the capital and you don't have wealthy parents probably you'll have to pay rent haha, sometimes you can't have everything. Thanks for looking at the bright side and being so honest! :)
100000% yes! Especially the part about rent shaming! There are other ways to feel financial progression & build security, it's not all owning a flat! Thanks for speaking for us 30 something single Londoners Jess! :)
Renting in London Is the financially prudent thing to do. Aside from everything you said which is 100% true, yields on property are low. Housing is too expensive relative to rentals. Smart to rent now.
Buying a property in London now will mean locking in debt of an asset that will decline in value when the inevitable recalibration of the market occurs. Renting enables you to patiently await the real estate correction, meanwhile investing in other asset classes.
I have to say your insight and commentary on this subject was 100% spot on. The prices are a disgrace and they keep the bubble fueled by new first time buyers. You're fine just enjoying your life and renting. Just make sure you put money aside each month to invest and save and you're good. Enjoy the freedom life offers you.
Thanks for this great video. My wife and I saved up and bought a house in Connecticut in 2008. At the time it was a real stretch for us but with both incomes we could just make it. This was 2008 and the house we bought for $219,000 was worth 100k less by the end of the year thanks to the financial crisis. We didn't worry too much since we planned to stay there, basically forever. Then my wife got laid off and then developed breast cancer. Eventually she died and I couldn't afford the mortgage on the house by myself. This was further complicated by my moving back to Texas for work. Eventually the house was foreclosed on and I was very happy to be rid of it. The whole ownership thing was a nightmare for me. Sure it was great when there were two of us going on about the beauty of plaster walls and wood floors, but economically it was a really bad decision that I am still recovering from.
Edward I am so sorry to hear this story. It must be so difficult to still be dealing with and it was of course something that you couldn't have predicted or EVER planned for. Thank you for sharing this with us ♥️
Such a tragic story. Absolutely heartbreaking. I am very sorry to hear this. Together with my husband we own a house on the outskirts of London, it was strongly recommended to use to get an insurance which would paid off the remaining balance on the mortgage in the case of death of the other half. I do hope brighter days are ahead for you. The sun always shines after a storm.
I agree whit you, I buy a house years ago, then after sold it, now I'm so relaxed, I'm free to repair, and don't spent my money keeping it. Then if I moved, I don't worried about the property. Good for you. 👍🏼
A lot of Non-londoners bring up rent prices to make themselves feel better about where they live lol... We need an LVT (Land Value Tax) and a common sense monetary policy (no quantitative easing).
I love the flexibility of being able to move anywhere when I rent. I could basically up and go from one country to another. And co-living is actually becoming a thing. Love it.
My dream is moving to London (from Norway) and I know it's not the most practical thing, I know Brexit is a thing, I know it's expensive... but London has been my dream all my life, I feel like it'll be worth it. And for some people, the city alone is worth it. ❤️
I lived there for 1.5 years, I loved the theatres, the restaurants, the vibe. I worked as a nanny and yes, rent is not cheap but the experience was worth it!! I also lived in Tokyo for 6 years, that's not practical either, but who cares, I love that chunk of my life! SO go for it!!!!
Ugghghhh YES. My mom especially doesn't understand the concept of using our savings to fund/cushion our business instead of dropping all that cash on an effing down payment. OH THE SHAAAAMEEE! Also bonus points, I get extremely irritated by the midwestern mentality that there could be no possible better place to live than KC simply because the cost of living is low. Like that's their only metric of happiness. The cost of housing (and college) stats compared to wage increases over time really get me fired up as well.
Oh yes, college costs! You're so right, another thing that has gone up way faster (in the us) than salaries, so with that added loan burden, it sets everyone back by like 20 years. Thanks so much for giving your input Madison.
Omg thank you!!! Im soon about to move into SW london and the amount of folk that tell me “why are you paying that much for rent? Its stupid, you can find other better places ” Just turned 20 and i feel im responsible enough to overcome these things and also im a musician and artist. Everything pretty much what u covered and mentioned is exactly relatable and agreeable! Thank you!
So I live in Stockholm, Sweden and it is almost as expensive to buy here. But it is significally cheaper to rent, however it is crazy hard to find something to rent. The system basically requires you to have 15-20 years in the housing queue to get something in the city. The nice and cheap ones could require up to 30 years.
BUT If you move to a rural village in Cambodia and raise your own chickens you can invest 97.3% of your income in long term index funds and buy a studio in Lewisham when you're 60!
Completely agree with you. Owning a property is so much expensive. Maintenance is so high in properties in London and for people staying for rent in my building end up paying so much lesser than us and that feels terrible.
Watching your videos from Sydney as we are travelling to London next April. Same problems here regarding property ownership. Your videos are very informative and well put together. All the best.
Great video Jess! Owing a property isn't a big deal for like you said more are renting than owning. I could go on about this but it will sound like I'm ranting. All I have to say to all you read this is that if you are going to buy a house and to end up being house poor or taking a reverse mortgage then you might as well rent. Lastly, remember to all the three rules of real estate: location, location, location. Stay safe all.
Totally agree sister. Live today, work and build your dreams. When buying a house you basically spent 30 years on not living and being a prisoner of a real estate.
Totally not shaming, just genuinely curious if you ever have or still do struggle with the concept of renting as "throwing away" money? I currently own a townhome, and I feel the same way about leasing a car. It's just a mental hurdle I don't know how to get over, even though all the pros you mention are things that I enjoy and want to continue with my lifestyle (ease of travel, minimal maintenance responsibility, etc.). Would love to know if/how you made this shift in perception, maybe it will help me as I further cement my plans to move to the UK.
Thanks for asking! No I don't struggle with it because it's my only option! And as many other people have commented, it can't be throwing money away if it's a good decision for you, and plus, you're keeping a roof over your head and making a home that you hopefully enjoy :) Thanks for watching!
Thank you for this, i SO resonate! I dont get it when people saying you throw money away on rent when the money is actually spent of having a roof over my head and a home for me and my son. That's NOT throwing money that is clearly investing it on a home. I think people fail to understand also the rent actually BUYS you freedom.. freedom to get up and move when you want to for whateveer reasons. (i personally dont believe in a forever home.. i feel i naturally want to move every 5 to 7 years and get a change of scenery). I love that my landlord and estate agent takes care of everything. Also lets address the elephant in the room and say paying a mortgage does not mean you own the home, you are in debt for the rest of your life trying to pay installments for a home you MIGHT one day own in like 1000 years. I used to be London resident for 15 yrs currently living in Brighton which is equally expensive but totally adore! So enjoy your rental lovely and the freedom it gives you. I think we re going to be just fine as we are ;-)
Wow... so well said Samaya! And yes you're so right... you don't own your house until you pay it off 30 years later!! Thank you so much for giving your insight.
“Fools make houses for wise people to live”. You’re better off investing the deposit in funds and ISAa in the long term with the flexibility of moving within and outside London. There are amazing neighbourhoods to explore.
I used to be a very happy renter, now I own a condo, but honestly I was happier renting, anytime anything needed fixing I just let the landlord know and it was fixed, plus I was able to save a lot more money. There is absolutely nothing wrong with being a renter.
I agree! I just sold my house that I owned for 18.5 years and I am feeling free as a bird because of all of the items you mentioned!!! At the end of the day, we all have to do what’s best for ourselves, and it’s great to be either an owner or a renter!!
I've never bought into the myth that home ownership is the measure of success. If I can get the location I want and have the freedom to move as needed, I'd be just fine! Hope you're doing well Jess!
I live in Chicago, and for years, people told me that I was crazy to be renting and sacrificing space relative to what I could get somewhere else. Listening to that got old quickly. No one should have to justify choosing to live in a major city. My wife and I were fortunate enough to be able to buy a place a few years ago, and we chose a condo because it enabled us to live in the neighborhood where we wanted to live while also saving on a lot of the time and hassle that goes with owning a home. That said, even buying an apartment/condo isn't something that I'd recommend to everyone because it involves costs that you don't have when renting.
I feel this so much! You and I had a conversation on Instagram so this video is so relatable. Unfortunately, many of us can’t just pick up and move. Jobs, life, etc!
Ditto as many in the USA have the same issues. We live in the Seattle area and it is one of the most expensive cities. We have rented for years but never paid for any new appliances example my stove blew up and i got a brand new one, better than the original stove. We also can move anywhere if we decided to and would not have to sell and try to relocate. I would rather rent at this time. Don't let them get you down you do you and for what you need. Thanks for sharing
Hi Jess, long time. Great video, it's good to see your channel growing. I too I'm in that position where I'm considering the 'property ladder' (although I'm not living in London anymore). You made some good points. The flexibility that come with renting is the biggest advantage for me!
I rented 6 years before buying my own property. Not because I don’t have money, but due to the fact I constantly move places due to job requirements. Thus, it’s up to personal circumstances to rent or to buy.
This is a great video Jess! It's all about what are your short & long-term goals? What lifestyle do you like to live? And then factor in what you can afford (while keeping in mind that sure, you might get approved for that mortgage, but you don't want to be so house-poor you can't furnish it, or get in debt up to your eyeballs, or your monthly payment is so high that you can hardly enjoy life). There are so many pros and cons to owning and renting, but what it comes down to: is do what's best for your situation. I currently own, but I have to be honest: there are definitely times that I miss the flexibility of renting, that I miss being closer to the city. But I also don't miss having noisy people above and below me and I can practice my french horn without pissing off my neighbors :)
SO well said. I wish the cultural narrative was less "BUY A HOUSE" and more "do what makes sense for what you want out of life." Thanks so much for watching and commenting!
There is a middle way (if so inclined). Rent in London and buy a cheaper place outside London and rent it out to tenants that covers the mortgage. Benefits: you get on the property ladder and live where you want in London that is affordable on earnings.
@@loveandlondon your content is great Jess, well done for making a go of it here :) If the property you own can pay for itself by the rental you can get for it, then yes! You can afford to do both. If the option is either (a) rent flat for X or (b) rent flat for X and make money Y from a purchased flat, then you end up paying X-Y instead of X. We moved to Belgium and had to rent, but bought a 2-bed flat in Ashford (~ £115K) with tenant already in place and the rental easily covering the mortgage. It was a way for us to stay on the property ladder and benefit if there was reasonable growth.
@@loveandlondon I totally agree that owning property is not for everyone though - it does not mean you've made it. Plenty of folk have got burned buying property (I did once ;-) ). There can be greater returns from making a business successful or investments (other people's businesses, shares, etc) and mortgage interest was so low, it lowers the bar to making better profits slewhere than property.
This is so timely! I just thought through whether or not to buy a home and decided against it in this season. I've realized some business dreams I want to pursue and will use my earnings to do it debt free. Hopefully it will bring me to London 😍 Thanks, Jess! You're inspiring ❤
Tax advisors made me aware any money brought in from the U.S. for a down payment would be subject to a 40% UK tax. And they recently told me if I later sold the UK home, the fluctuation of the currency exchange rate at the time I sell vs. when bought could create a tax liability too. And the time it takes to build credit here to qualify for a mortgage. I’ll continue to rent.
yes i didn’t even get into the fact that buying a property in the UK is COMPLICATED for an American! Thank you for bringing that up! Thanks for watching Sandra.
I admire you being vocal about this topic. The fact of the matter is that house prices in and around London have grown at a much faster rate than salaries for the past 20 years, making it impossible for most working age people to independently purchase property. Many who do either get help from the bank of mom and dad or are lucky enough to live in their parents’ house for 10 years and save on a deposit. I feel strongly about this because one can easily feel left out in a place like London where people constantly talk about property prices and their mortgages, etc. Its the focus of tv shows (Location, Location, Location) and in the newspapers - you can’t get away from it. Furthermore, people who do rent (because they can’t save for a £100k deposit) are told that they are being irresponsible. People should be a bit more thoughtful when sharing their unsolicited “advice”.
Thank you for the info. I am moving to London soon so you channel is very informative and I love the way you continue to be "real" regarding these kind of topics.
Amen! As a young, fellow Londoner who is currently even unemployed, I wholeheartedly agree! Honestly, the hassle of keeping up a property, especially in London, is insane. And property tax and council tax are another factor for home owners that most people don't know or forget about, but that makes houses here unaffordable. Thank you so much for setting things straight. Most of us Londoners simply DON'T WANT to own the property they live in at this point
Lea I’m so sorry to hear you’re unemployed :( That must be so difficult to be dealing with. Hang in there, and give yourself a pat on the back for literally just SURVIVING. That is truly a feat over the last year. You’ve made so many good points, thank you for weighing in!
Thank goodness for a bit of commonsense analysis of the situation. You may not realise that this fixation with home ownership is quite recent in Britain and only dates back to Margaret Thatcher's decision to force local authorities to sell off their housing stocks at thieves prices. My father was the only one of six siblings to ever own his own home, and in Continental Europe the vast majority of urban dwellers live in rented flats. As a home owner I can tell you they absorb a vast amount of money and energy, so it makes complete sense, especially when you are young, to get on with your life. When you retire, come to East Lancashire and you can buy a street!
Hi Jess, I love your videos and appreciate the work you put into them - so thank you! As far as owning property- I don’t understand why people feel they have the right to criticize/shame others that do not own property- it’s none of their business. You don’t go around asking personal questions about their lives. I own my home, but honestly sometimes I wish I didn’t. Keep up the awesome videos!
So relatable, same here in amsterdam where I first bought at 40. And only after moving between countries and starting a business for over 10 years. Buying sort of came on the horizon after the business started to settle. Ik think some of the earlier comments are part of the discussion of wat type of person you are: ‘a people from somewhere’ person or a ‘people from anywhere’ person, with all the differences in world view that come with that. Anyway, glad to see your appartement hunt was successful and enjoy your new flat
That’s a good point Dirk, both types of people can be happy and successful financially but on different terms. Thanks for weighing in with your experience and for watching the video ❤️
I owned a house for a few years while my kids were growing up. It was in rural Alabama, and I had a two-hour commute, every day. Seven days a week, for two jobs. I almost never got to see the inside of my house, except through bleary eyes, between the front door and my bed. There were two young people there, asleep in the other bedrooms. I think they were my kids, but I never got to talk to them and find out for sure. The day we actually moved in, the house got hit by lightening and burned out my clothes dryer and my water heater. There was a clothesline, so the dryer didn't matter. But we had no hot water for two years. And my daughter got electrocuted, because she had her hand on the gate, letting our dogs into the backyard. So she spent her first few homeowner-family days in the hospital. 14 years later, after numerous other things fell apart or came crashing down, I left for grad school. I could not sell the house. So I rented it to my neighbor's criminal daughter. She did not pay me, so I could not pay the mortgage anymore. Bye-bye house.
That dynamic of income to house price is a huge problem in most of the UK since you usually also earn less in more rural areas or smaller towns. The only people that seem to win are those that bought houses in back when prices were low and then sold them to move to a cheaper area, they don't have to deal with a lot of the problems. Everyone else is just switching like for like a lot of the time. The area I live in has an issue with holiday homes and second home ownership that adds another layer to making home buying inaccessible.
Really great points Jeanette, thank you so much for sharing your own experience! Yes I've been reading a lot about certain English areas that have a problem with holiday homes and second homes. I hope they do something about that, maybe additional tax for multiple properties that goes locally, or just ban it altogether. Thanks so much for watching!
My older brother bought a house outside of Silicon Valley before the Great Recession and his mortgage is still underwater (he owes more to the bank than what the house is worth). He can't retire until prices go back up or he pays off the mortgage. The latter seems more likely these days.
Oh wow that must be so difficult. Unfortunately stories like this never are mentioned when the narrative of “YOU MUST GET ON THE PROPERTY LADDER” are played out over and over again. It’s not risk-free and that sounds like a very stressful situation, I’m sorry he’s having to deal with that.
Hi Jess, Based on this video, you are very analytical and practical. This is very relevant for young people in the UK and elsewhere today. There is more to life than ownership. Life is short, enjoy it. Thanks for sharing.
Totally agree with everything you said. I'm also an American in the UK (many, many years) and have the privilege of being on the property ladder as the sole owner of a flat. I'm in the process of selling after 4 years and do NOT want to own again, particularly leasehold. I too value the flexibility and ease of renting. Flexibility to move when your job changes, for example, or the disruption of a construction of a multi-year project starting nearby. Those happened to me a few times as a renter and owner. And sure, you can rent it out, which I did for 9 months, but in that time the tenants left an extraordinary amount of wear and tear (it's damage, but I also had a terrible letting agent). And the fees. Anyway - there are other ways to be financially responsible, as you say!
Really interesting to hear your story and feelings Lisa, thank you for weighing in! Good to hear from the other side. Thanks for watching and commenting.
You're 100% correct. I lived in London for 10 years as an American expat with dual citizenship. Rented the whole time. The network you create and the experience gained more than pays you back if/when you leave. People should take that into consideration. My 2 cents.
Nobody who talks about how rent is just money thrown away ever mentions property taxes. In upstate NY my property taxes are 2/3 what I paid for rent in the same area. That’s “thrown away” money too. And that’s before everything else you mentioned like maintenance costs and the flexibility of renting. Sure owning is an appreciating asset, but even if you can afford it it’s not the obviously advantageous financial move people make it out to be.
Good on you Jess. It’s okay to rent. You put forward excellent reasons why. London is expensive. Here in Melbourne, Australia is expensive with many properties in the millions. For many it’s not just the cost. You put fwd your thoughts in a calm, considered and researched way. Cheers.
While owning property is a good investment, a person needs to be ready to assume the responsibilities of home ownership. Owners are responsible for the maintenance and upkeep of the property, and if you spend all your savings for a down payment, you many encounter problems. I am currently renting and hope to buy something within the next two years. At times I wished I had purchased my own home, and there have been times where I was content to rent.
Next Year on the 1st April, you should announce that you are moving out of London and that you are changing the Chanel name to “Love Loughborough”.😃. You enjoy living in London, ignore what others say, as long as you are happy that’s all that matters.
Hahahahhaha imagine? I feel like I might run out of content ideas quickly 😂 Yup I totally ignore, but I wanted to share to hopefully relate to others in similar situations (aka most of my generation!) Thank you so much for watching !!
I think the whole rent/buy thing depends on your age. In 1984 I was 24 on a modest salary. I easily afforded my Mortgage of £14k. The house was a mid-sized Edwardian and in a small Midlands town and cost £15k. If I was 24 in 2021 I would not have been able to afford that house on a similar salary. It's sad that most people now just don't have the choice.
She's right. Property in a lot of expensive world cities is a TERRIBLE investment. Plus the government also sees it as a gold mine and keeps much of the return through stamp tax, property tax, capital gains tax and on and on. Plus, maintenance is either DIY, which takes a lot of time and expertise, or pay for labor and materials, which quickly adds up! My strategy is somewhat interesting... i like the idea of having a plan B home that I own outright in a cheap area that still has a reasonable amount of activity and opportunity. I can rent it out, but also move there if I ever need to in life, whether for retirement or some other reason.
Excellent video and explanation of your situation. I do own my own home in Los Angeles (yikes !) and have said for years that I could not afford a home if I were starting out again. Don't let anybody shame you for your decisions or life choices. I do think that the younger generation (not you of course) are much more into instant gratification, instead of planning for home, business, travel, or whatever. I try to offer advice when asked, but not forcing my opinions on anybody. Here's wishing you good fortune in your quest.
I'm not sure I would agree about the instant gratification thing. I think people forget that younger generations have been dealing with lower salaries, in some countries they have large university loans, and know from the start that owning a property and getting by in life is much harder than the older generations (and impossible for many) so they choose instead to just enjoy their life in the moment. I know this is the case for me... yes I could kill myself working insane hours for years, living way below my means and not doing anything fun, all to save for a house. But really, what kind of life is that to live for a few years, to then buy a crappy house in an area that I can afford but don't particularly like? That's where our generation is at these days. Thank you so much for watching and sharing your insights though, especially as a homeowner!
I grew up renting and always wanted a house. I have been the co-owner of two houses as an adult. I moved to an apartment after my divorce by choice. There is so much MORE FREEDOM renting. Owning a house meant that my most of weekends were taking care of house. I liked it in the beginning because it was such a novelty, but I seriously never want to labor like that on where I live anymore when I have to work so hard and so many hours at my job. I like that someone else is responsible for all that upkeep. I can rest on weekends without having to think about fixing something or doing yardwork, etc.
Jess is so right about ownership v renting and especially alternative investments/saving options. Unfortunately our narrative is and has for too long been so focused on ownership that it is so out of reach for so many .. and I’ve been in London property for over 30 years.
Loved this video and so understand as when I moved to Toronto my mother said live in suburbs it’s cheaper and my reply was I wanted a life instead lol. Some of us are made for big cities and my choice would be live in london it’s such a fabulous city and I cannot wait to come back and explore more! Love your argument and channel!
Well said Jess. Not everyone wants to own and have all of the responsibilities of home ownership....it's a lot of work and takes time away from doing some fun stuff, especially on weekends!
This is a very well-researched analysis with a great set of resources. Good for you. And, I really like your comments about investments in other areas, particularly with small business ownership. I have invested in a few women-owned businesses in the bio and healthcare sectors in San Francisco and Boston, and am just starting to research that landscape among alumni/friends at the London School of Hygiene. Really great analysis. The shame on this topic is just nonsense, really. Great comments!!
I don’t think people are shaming others who aren’t prioritising buying a property, they just care and are encouraging you to. Many don’t have bigger plans of building a business like you so no plan of building their wealth. If rents go up and salaries don’t than you’re in a bad situation. I wish family and friend pushed me more when mortgages and properties were cheaper. I managed to buy a help to buy new build in Greenwich in December but now shared power ship is the only ‘cheaper’ way of buying a property and building wealth. I understand if you aren’t planning to stay in the city though.
I think people need to realise that there have only been about 3 generations in England who could afford to buy a house before that nearly everyone rented. I own a house as did my parents but all previous generations rented.
I live in Sydney Australia, which like London, is very expensive to live in. I do own a flat which I bought long ago, but there is a price I pay by living in the outer suburbs away from work in the city and most entertainment options. I do wonder if it’s worth it at times! The long daily commute and all the driving that I have to do to get around can get a bit much. I can understand why young people don’t want to deal with all that just for the sake of owning a property!
I didn't buy in London (or anywhere else I lived) until I was in my late 30s and that was with my partner who had lived at home with his family in order to save money for a deposit. It's super, super tough to buy in London and renting is actually really a good way to go (I moved every 2-4 years for my adult life until my mid-30s, so it would have made so much less sense. I think you are smart!
Was about to London next month. (well until my country was moved to the red list for travel.) I follow all your tips and make a note of things I will use to find a place for myself. Thanks for doing what you do.
Renting or owning a home is a choice that people can make but people renting a home are in a better position now but the property bubble is going to pop. Many people who are on big mortgage will be devastated
Everything you said makes perfect sense for a person in your situation. Just out of curiosity I googled some small towns in England to check property prices...yikes!!! $325,000 for a 2 bedroom cottage!!! No way I could ever afford that! I don’t know how young people starting out could even begin to afford that!!! Do what you want and forget about it!
![BOWKYLION - วิงวอน (ex-change) [Official MV]](http://i.ytimg.com/vi/cLdnZWDaO-w/mqdefault.jpg)
Your patience in explaining this obvious scenario to those who are pretending to be daft is admirable! Girl, you do you! Fierce woman you are!
hahha well I also was happy to just talk about it in general so those who are feeling the same can feel less alone !! Thanks so much for watching Kells.
My youngest daughter (I have 4 more! ) , moved to London about a year and one half ago. Living in London was her goal. To make ends meet, she had to rent half of a flat. She moved in with a male roommate that she had never met. He is a Londoner and had the flat. It has worked out great. They are fast friends and through him she has made more friends. London was her goal and she did what she had to to make it work. Proud dad. Good luck with your new place, it sounds wonderful.
Renting a room can be an amazing experience and saves a lot of money! So many people do this here well into their 30's and 40's. Glad she's had such a good time. Thanks so much for commenting and watching Larry!
my parents are over 60 and they have been renters all their life. i grew up moving at least 15 times. maybe because of that i've always wanted to buy my own place - i was so sick of moving. everyone has their own reasons to buy or rent - there's no right or wrong.
Yes and you’re right! You do you, everyone has different situations and reasons and I completely understand yours!
“You don’t have to own a property to feel like an adult or feel like you are not making sound financial decisions.” I am gonna print this and put it up my bedroom. 😄
Haha! but in all seriousness, I'm so glad this resonated. I do have to remind myself of this sometimes too!
How about "I don't own a property" on a T-shirt? :-)
..and pass this message to our parents too. The day to buy our house will come, parents! Don't bug.
My husband and I (ages 49 & 47) just, two weeks ago, started owning our first house. We have rented this house for ten years after having owned a condo and loosing it, and had to rent to heal ourselves and our finances. All we heard from our parents was "oh! You're going on a vacation? Maybe you should save that money to buy a house!" We live outside of Seattle. It's is NOT CHEAP to buy a house. Skipping a weekend away wasn't going to make a house purchase possible! But! Our landlords neglected this house in a neighborhood we love and when we finally had the chance to buy it, luckily we were ready. Doesn't mean it's completely awesome. First thing we get to do is replace the roof. Fun times. 😒 So, I totally understand, especially in London, as a single woman from the US, wanting the flexibility of renting WHERE YOU WANT TO LIVE! London? I mean, how cool is that?? And we benefit from you being there, too! ☺️❤️
That's great news, congrats! Sounds like fantastic timing and that's great that it's a place you have lived in for so long already! Thank you so much for sharing your story and for your kind comment Anna ♥️
I needed this video right now - thank you! I'm 30 and have been living in London for almost 10 years now. I'm about to move to my first 1 bedroom flat where I'll be living on my own after years of renting rooms with strangers. It feels amazing and I can't wait! Sadly most of my income will be spent on rent, but I'm at the point of my life when I choose and want to pay this money just to live on my own.
after renting for 15 years in 3 different countries having 34 different housemates, im also going to move and have my large studio / 1 bedroom flat in a few weeks (still looking tho). it hurts to pay that much money, but hey... my life, my decisions.
Love it, congratulations. You're right, it's your choice! thanks so much for watching.
Yes exactly... your life! Thanks so much for watching.
Haha. I’m totally starting Love and Stoke-On-Trent on TH-cam. Gonna make a mint!
haha I bet!
As both a renter and homeowner in a high-cost city my take is that there is no right or wrong answer. Lots of people would like to own but unfortunately it's unattainable for all the reasons you lay out. But once you do become a homeowner it's not all rainbows and unicorns either. Everyone's life situation is different. Everyone's financial situation is different. It's not really fair to say that someone *should* do something the same way you would because they don't share the same unique set of circumstances. Enjoy your new home!
Very well said!! Couldn't agree more. Thank you so much for watching :)
Girl, as a homeowner, stay renting 😂 It IS nice to be able to do what you want with the property...but it is such a headache, too!
Haha yes I mean I would love to do my own stuff to my own place but yes, lots of work! thanks so much for watching Lauren.
OMG I almost spit out my coffee when you said "thanks Graham Stephen" 🤣 As a Toronto, Canada realtor I totally understand what you're saying!
Haha right?! I mean I think he shares some fantastic tips and expertise! I watch his content a lot. But we can’t all move to LV can we ;)
@@loveandlondon yes, it was funny, i like learning from Graham for investment tips too but people value things differently. Graham is like a finance major kid from business school, and we are the liberal art majors from another college.
Ironically enough he points out some of the same reasons Jess does for reasons *not* to move to a cheaper area in one of his videos.
The next time someone asks you to buy a house, ask them for the down payment and the first year of mortgage, lol!
Hahaha I mean I do basically say that 😂
Thank you for this video, I wish others realised how hard it is to buy a house (if you want to buy one). its hard to save for a deposit when your renting, then to buy a house/apartment and the up keep of it. you can no longer move out of London and buy an affordable property as everyone has done that and pushed the prices up. I live in Cardiff the average good area house price is £220k at the very least a really nice area is £400k plus. that's still between 22k-40k deposit and for a single person that's a lot to save. my mums generation bought her house for 40k and mortgage was £100 a month those were the days.
Laura thank you so much for sharing your experience in Cardiff, especially as I always though it was “affordable” but you’ve shown me it’s similar stories in other parts of the UK too, not just London. Thank you so much for watching!
@@loveandlondon I think its the same every where to be honest, I used to live in a smaller town, the average house price was 120k to 220k the toll fee of the Bristol bridge was cancelled and all the areas around went up by at least 100k and above because now people could afford to commute over the bridge so even the locals who grew up in the areas cant afford to buy a house in their own town.
You do you. Last year I sold my house and now rent an apartment. I find it is a lot easier now.
LOVE hearing this. The convenience and reduced costs of renting is never discussed. Thank you for watching and adding your personal experience.
@@loveandlondon A lot of people are hard wired to assume if you rent it's because you're poor or because you lack a big savings account. Frankly, it's easier for me. Lower tax bill. The community I'm in, the landscaping is even done.
I am a single woman in the US who does not live in a big famous city, has a Master's degree, and works in health care full time and I still cannot afford a home.
So difficult! I think I've heard recently there's a "single tax".. I feel that!
I think it’s a great thing that you’re willing to be so honest and you make a very good point. It makes me feel relieved to think that there are a lot more people in this position.
That's exactly what I hoped the video would provide to people, so I'm really glad to hear that. Thanks so much for watching Valerie.
Thank you for highlighting the cladding and building safety scandal affecting most of London's new build properties. Up to 1 million of Londoners could be affected by nil-valued and unsaleable homes. Many of us have learned that home ownership has been the biggest mistake in our lives, with the UK government failing to protect buyers from UK's corrupt developers.
It's awful
Great vid. I live in the Bay Area in California and there is no way I could afford to purchase the loft apartment that I happily rent. I actually owned homes when I was much younger but I’m never going back to cutting the grass and the constant upkeep. Renting gives me a sense of freedom that I never had with home ownership. That was more like a millstone around my neck.
Cutting the grass... I couldn't ! Thank you for sharing your story Kent.
I understand. I used to live in a suburb of Vancouver, Canada, another town with insane real estate prices. Buying was just not an option - and I make pretty good money.
A couple of years ago I moved to a smaller town. Since I work from home over the internet I can do that. Not everybody can. Thanks to you know what house prices here have skyrocketed too. I could retire in a few years or I could rent. I choose to rent.
Yes yes yes. It seems to be a problem in so many major cities around the world. Thanks for watching and giving your personal insight Laura.
Great video, and you have listed the reasons why as a 37 year old I still live at home with my mother in Zone 3 in SE London. I know it is pathetic, pushing 40 and still living at home, but it is a big money saver and I have saved money in both rent and transportation which I have used to invest in my business and also to socialise often.
You're super lucky to have that option!
Well said! ⭐️ No shame! The game has changed and you’re making wise choices for you.
The game has changed 👏🏾👏🏾
Thank you Kim, and thanks for taking the time to watch!
At the end of the day we all need to live within our means
Yes!
Hiii Jess!!! Thank you so much for explain it so well and with real facts!!!!! I'm a Brazilian woman (33yo), physiotherapist moving to London again (I lived there for a year, to study English in 2019) And now finally I got a job! SO, I watched almost all your videos and even though you say that " As American woman, millennials generation, single, with few very close friends, family in other country...that can't afford buy a place to live" fits perfectly for Brazilians as well...it's our generation that doesn't have family properties...or heritage...we need to make our own money to LIVE NOW and if it's possible, make some money for the future, haha, that rarely will be enough for buy a place to live.....Anyway! Thank you so much for all information! Have a great summer there!
So well said Andréa! Thanks for watching and commenting ♥️
Don't let people get you down. Live your life however you want. Most people are jealous. Best of luck to you!
I don't! It's the system and cultural pressure that frustrates me and wanted to make something that other people might relate to :) Thanks so much for watching Christine!
Spot on. My daughter rents for exactly the same reason - she can live where she wants to, have a job she enjoys and earns a good salary from and enjoy living in a house/place she could never afford to buy. Interestingly she has bought a buy to let property in a different cheaper area as a long term investment which she rents out and is planning to get another at some point. Doesnt do this to make money on now but for the future. Good on you as an intelligent person to do whats right for you.
Thank you Karen! Thanks so much for taking the time to watch and comment.
hi KL can i ask where she bought in what area
What I love from your channel is that you have an exceptional way to communicate and say what you think.
This a common situation in large cities all around the world. Here in Argentina is very difficult to buy your own property in Buenos Aires or in the capital cities from each province, so if you want the benefits of the capital and you don't have wealthy parents probably you'll have to pay rent haha, sometimes you can't have everything.
Thanks for looking at the bright side and being so honest! :)
Wow that's kind of you to say, thank you so much Hernán! And interesting to hear what it's like in Argentina.
100000% yes! Especially the part about rent shaming! There are other ways to feel financial progression & build security, it's not all owning a flat! Thanks for speaking for us 30 something single Londoners Jess! :)
You're SO welcome, and thanks for watching!
Renting in London Is the financially prudent thing to do. Aside from everything you said which is 100% true, yields on property are low. Housing is too expensive relative to rentals. Smart to rent now.
Buying a property in London now will mean locking in debt of an asset that will decline in value when the inevitable recalibration of the market occurs. Renting enables you to patiently await the real estate correction, meanwhile investing in other asset classes.
This all totally applies to me renting in NYC! Love your channel, coming to London in September for the first time.
YES NYC!! Thank you so much for watching Grant!
I have to say your insight and commentary on this subject was 100% spot on. The prices are a disgrace and they keep the bubble fueled by new first time buyers. You're fine just enjoying your life and renting. Just make sure you put money aside each month to invest and save and you're good. Enjoy the freedom life offers you.
Thanks for this great video. My wife and I saved up and bought a house in Connecticut in 2008. At the time it was a real stretch for us but with both incomes we could just make it. This was 2008 and the house we bought for $219,000 was worth 100k less by the end of the year thanks to the financial crisis. We didn't worry too much since we planned to stay there, basically forever. Then my wife got laid off and then developed breast cancer. Eventually she died and I couldn't afford the mortgage on the house by myself. This was further complicated by my moving back to Texas for work. Eventually the house was foreclosed on and I was very happy to be rid of it. The whole ownership thing was a nightmare for me. Sure it was great when there were two of us going on about the beauty of plaster walls and wood floors, but economically it was a really bad decision that I am still recovering from.
Edward I am so sorry to hear this story. It must be so difficult to still be dealing with and it was of course something that you couldn't have predicted or EVER planned for. Thank you for sharing this with us ♥️
Sorry this happened to you.
Such a tragic story. Absolutely heartbreaking. I am very sorry to hear this. Together with my husband we own a house on the outskirts of London, it was strongly recommended to use to get an insurance which would paid off the remaining balance on the mortgage in the case of death of the other half. I do hope brighter days are ahead for you. The sun always shines after a storm.
I agree whit you, I buy a house years ago, then after sold it, now I'm so relaxed, I'm free to repair, and don't spent my money keeping it. Then if I moved, I don't worried about the property. Good for you. 👍🏼
Love to hear it Bety! Thanks so much for watching!
A lot of Non-londoners bring up rent prices to make themselves feel better about where they live lol... We need an LVT (Land Value Tax) and a common sense monetary policy (no quantitative easing).
I love the flexibility of being able to move anywhere when I rent. I could basically up and go from one country to another. And co-living is actually becoming a thing. Love it.
yup! Thanks for watching
My dream is moving to London (from Norway) and I know it's not the most practical thing, I know Brexit is a thing, I know it's expensive... but London has been my dream all my life, I feel like it'll be worth it. And for some people, the city alone is worth it. ❤️
When life return's to something like normalality, try to make your dream a reality, good luck (from a rhyming Londoner)!
I lived there for 1.5 years, I loved the theatres, the restaurants, the vibe. I worked as a nanny and yes, rent is not cheap but the experience was worth it!! I also lived in Tokyo for 6 years, that's not practical either, but who cares, I love that chunk of my life! SO go for it!!!!
It will be worth it!! Good luck on your journey!
Ugghghhh YES.
My mom especially doesn't understand the concept of using our savings to fund/cushion our business instead of dropping all that cash on an effing down payment. OH THE SHAAAAMEEE!
Also bonus points, I get extremely irritated by the midwestern mentality that there could be no possible better place to live than KC simply because the cost of living is low. Like that's their only metric of happiness.
The cost of housing (and college) stats compared to wage increases over time really get me fired up as well.
Oh yes, college costs! You're so right, another thing that has gone up way faster (in the us) than salaries, so with that added loan burden, it sets everyone back by like 20 years. Thanks so much for giving your input Madison.
Omg thank you!!! Im soon about to move into SW london and the amount of folk that tell me “why are you paying that much for rent? Its stupid, you can find other better places ”
Just turned 20 and i feel im responsible enough to overcome these things and also im a musician and artist. Everything pretty much what u covered and mentioned is exactly relatable and agreeable! Thank you!
You're so so welcome. Thank you so much for watching!
i agree with you. Why buy a property in Birmingham, when you work in London.
So I live in Stockholm, Sweden and it is almost as expensive to buy here. But it is significally cheaper to rent, however it is crazy hard to find something to rent. The system basically requires you to have 15-20 years in the housing queue to get something in the city. The nice and cheap ones could require up to 30 years.
BUT If you move to a rural village in Cambodia and raise your own chickens you can invest 97.3% of your income in long term index funds and buy a studio in Lewisham when you're 60!
hahah basically!
Absolutely love this vlog so accurately true for so many.
So true for so many, yet it doesn’t seem to be talked about much sometimes, does it? Thank you so much for watching Paul.
Completely agree with you. Owning a property is so much expensive. Maintenance is so high in properties in London and for people staying for rent in my building end up paying so much lesser than us and that feels terrible.
Yes! Thank you for weighing in with your own experience Namitha. Not just me ;) ❤️
Watching your videos from Sydney as we are travelling to London next April. Same problems here regarding property ownership. Your videos are very informative and well put together. All the best.
Great video Jess! Owing a property isn't a big deal for like you said more are renting than owning. I could go on about this but it will sound like I'm ranting. All I have to say to all you read this is that if you are going to buy a house and to end up being house poor or taking a reverse mortgage then you might as well rent. Lastly, remember to all the three rules of real estate: location, location, location. Stay safe all.
Totally agree sister. Live today, work and build your dreams. When buying a house you basically spent 30 years on not living and being a prisoner of a real estate.
I love your channel and the advice you give! You keep doing you and ignore the rest!
Thank you so much Byron! Yes I absolutely am doing me. Hope by sharing my personal insight that others can pull from it or relate to it! ❤️
Totally not shaming, just genuinely curious if you ever have or still do struggle with the concept of renting as "throwing away" money? I currently own a townhome, and I feel the same way about leasing a car. It's just a mental hurdle I don't know how to get over, even though all the pros you mention are things that I enjoy and want to continue with my lifestyle (ease of travel, minimal maintenance responsibility, etc.). Would love to know if/how you made this shift in perception, maybe it will help me as I further cement my plans to move to the UK.
Thanks for asking! No I don't struggle with it because it's my only option! And as many other people have commented, it can't be throwing money away if it's a good decision for you, and plus, you're keeping a roof over your head and making a home that you hopefully enjoy :) Thanks for watching!
Thank you for this, i SO resonate! I dont get it when people saying you throw money away on rent when the money is actually spent of having a roof over my head and a home for me and my son. That's NOT throwing money that is clearly investing it on a home. I think people fail to understand also the rent actually BUYS you freedom.. freedom to get up and move when you want to for whateveer reasons. (i personally dont believe in a forever home.. i feel i naturally want to move every 5 to 7 years and get a change of scenery). I love that my landlord and estate agent takes care of everything. Also lets address the elephant in the room and say paying a mortgage does not mean you own the home, you are in debt for the rest of your life trying to pay installments for a home you MIGHT one day own in like 1000 years. I used to be London resident for 15 yrs currently living in Brighton which is equally expensive but totally adore!
So enjoy your rental lovely and the freedom it gives you. I think we re going to be just fine as we are ;-)
Wow... so well said Samaya! And yes you're so right... you don't own your house until you pay it off 30 years later!! Thank you so much for giving your insight.
Love this comment needed to read this today 🙏💕💕💕❤️
“Fools make houses for wise people to live”. You’re better off investing the deposit in funds and ISAa in the long term with the flexibility of moving within and outside London. There are amazing neighbourhoods to explore.
I used to be a very happy renter, now I own a condo, but honestly I was happier renting, anytime anything needed fixing I just let the landlord know and it was fixed, plus I was able to save a lot more money. There is absolutely nothing wrong with being a renter.
I agree! I just sold my house that I owned for 18.5 years and I am feeling free as a bird because of all of the items you mentioned!!! At the end of the day, we all have to do what’s best for ourselves, and it’s great to be either an owner or a renter!!
Agreed! Thanks so much for watching ♥️
I've never bought into the myth that home ownership is the measure of success. If I can get the location I want and have the freedom to move as needed, I'd be just fine! Hope you're doing well Jess!
Exactly!! Love it. Thanks for watching Chris!
I live in Chicago, and for years, people told me that I was crazy to be renting and sacrificing space relative to what I could get somewhere else. Listening to that got old quickly. No one should have to justify choosing to live in a major city. My wife and I were fortunate enough to be able to buy a place a few years ago, and we chose a condo because it enabled us to live in the neighborhood where we wanted to live while also saving on a lot of the time and hassle that goes with owning a home. That said, even buying an apartment/condo isn't something that I'd recommend to everyone because it involves costs that you don't have when renting.
Yes! All well said!! Thanks for watching and commenting Jared.
I feel this so much! You and I had a conversation on Instagram so this video is so relatable. Unfortunately, many of us can’t just pick up and move. Jobs, life, etc!
yes exactly!! Glad you enjoyed the video in the end :)
Ditto as many in the USA have the same issues. We live in the Seattle area and it is one of the most expensive cities. We have rented for years but never paid for any new appliances example my stove blew up and i got a brand new one, better than the original stove. We also can move anywhere if we decided to and would not have to sell and try to relocate. I would rather rent at this time. Don't let them get you down you do you and for what you need. Thanks for sharing
Well said, thanks for watching Pamee!
Hi Jess, long time. Great video, it's good to see your channel growing. I too I'm in that position where I'm considering the 'property ladder' (although I'm not living in London anymore). You made some good points. The flexibility that come with renting is the biggest advantage for me!
Hey Zee! Thanks so much for watching, glad you enjoyed the video :)
So true! Most people don’t get the true cost of owning vs rent. I have owned my house and rental properties, I totally agree with you.
I rented 6 years before buying my own property. Not because I don’t have money, but due to the fact I constantly move places due to job requirements. Thus, it’s up to personal circumstances to rent or to buy.
Couldn't have said it better myself. Thanks for watching Wenn!
This is a great video Jess! It's all about what are your short & long-term goals? What lifestyle do you like to live? And then factor in what you can afford (while keeping in mind that sure, you might get approved for that mortgage, but you don't want to be so house-poor you can't furnish it, or get in debt up to your eyeballs, or your monthly payment is so high that you can hardly enjoy life). There are so many pros and cons to owning and renting, but what it comes down to: is do what's best for your situation. I currently own, but I have to be honest: there are definitely times that I miss the flexibility of renting, that I miss being closer to the city. But I also don't miss having noisy people above and below me and I can practice my french horn without pissing off my neighbors :)
SO well said. I wish the cultural narrative was less "BUY A HOUSE" and more "do what makes sense for what you want out of life." Thanks so much for watching and commenting!
There is a middle way (if so inclined). Rent in London and buy a cheaper place outside London and rent it out to tenants that covers the mortgage. Benefits: you get on the property ladder and live where you want in London that is affordable on earnings.
...if you can afford to do both!
@@loveandlondon your content is great Jess, well done for making a go of it here :) If the property you own can pay for itself by the rental you can get for it, then yes! You can afford to do both. If the option is either (a) rent flat for X or (b) rent flat for X and make money Y from a purchased flat, then you end up paying X-Y instead of X.
We moved to Belgium and had to rent, but bought a 2-bed flat in Ashford (~ £115K) with tenant already in place and the rental easily covering the mortgage. It was a way for us to stay on the property ladder and benefit if there was reasonable growth.
@@loveandlondon I totally agree that owning property is not for everyone though - it does not mean you've made it. Plenty of folk have got burned buying property (I did once ;-) ). There can be greater returns from making a business successful or investments (other people's businesses, shares, etc) and mortgage interest was so low, it lowers the bar to making better profits slewhere than property.
This is so timely! I just thought through whether or not to buy a home and decided against it in this season. I've realized some business dreams I want to pursue and will use my earnings to do it debt free. Hopefully it will bring me to London 😍 Thanks, Jess! You're inspiring ❤
Yay for debt free... such a free feeling. Thank you so much for watching Megan!
Tax advisors made me aware any money brought in from the U.S. for a down payment would be subject to a 40% UK tax. And they recently told me if I later sold the UK home, the fluctuation of the currency exchange rate at the time I sell vs. when bought could create a tax liability too. And the time it takes to build credit here to qualify for a mortgage. I’ll continue to rent.
yes i didn’t even get into the fact that buying a property in the UK is COMPLICATED for an American! Thank you for bringing that up! Thanks for watching Sandra.
I admire you being vocal about this topic. The fact of the matter is that house prices in and around London have grown at a much faster rate than salaries for the past 20 years, making it impossible for most working age people to independently purchase property. Many who do either get help from the bank of mom and dad or are lucky enough to live in their parents’ house for 10 years and save on a deposit.
I feel strongly about this because one can easily feel left out in a place like London where people constantly talk about property prices and their mortgages, etc. Its the focus of tv shows (Location, Location, Location) and in the newspapers - you can’t get away from it. Furthermore, people who do rent (because they can’t save for a £100k deposit) are told that they are being irresponsible.
People should be a bit more thoughtful when sharing their unsolicited “advice”.
Couldn't have said it better myself.
Thank you for the info. I am moving to London soon so you channel is very informative and I love the way you continue to be "real" regarding these kind of topics.
Really great to hear you found it help! Thanks so much and good luck with your move!
Amen! As a young, fellow Londoner who is currently even unemployed, I wholeheartedly agree! Honestly, the hassle of keeping up a property, especially in London, is insane. And property tax and council tax are another factor for home owners that most people don't know or forget about, but that makes houses here unaffordable. Thank you so much for setting things straight. Most of us Londoners simply DON'T WANT to own the property they live in at this point
Lea I’m so sorry to hear you’re unemployed :( That must be so difficult to be dealing with. Hang in there, and give yourself a pat on the back for literally just SURVIVING. That is truly a feat over the last year. You’ve made so many good points, thank you for weighing in!
@@loveandlondon Thank you so much for your kind words
Thank goodness for a bit of commonsense analysis of the situation. You may not realise that this fixation with home ownership is quite recent in Britain and only dates back to Margaret Thatcher's decision to force local authorities to sell off their housing stocks at thieves prices. My father was the only one of six siblings to ever own his own home, and in Continental Europe the vast majority of urban dwellers live in rented flats. As a home owner I can tell you they absorb a vast amount of money and energy, so it makes complete sense, especially when you are young, to get on with your life. When you retire, come to East Lancashire and you can buy a street!
Hi Jess, I love your videos and appreciate the work you put into them - so thank you! As far as owning property- I don’t understand why people feel they have the right to criticize/shame others that do not own property- it’s none of their business. You don’t go around asking personal questions about their lives. I own my home, but honestly sometimes I wish I didn’t. Keep up the awesome videos!
Agreed, Cheryl! Thanks so much for watching!
So relatable, same here in amsterdam where I first bought at 40. And only after moving between countries and starting a business for over 10 years.
Buying sort of came on the horizon after the business started to settle.
Ik think some of the earlier comments are part of the discussion of wat type of person you are: ‘a people from somewhere’ person or a ‘people from anywhere’ person, with all the differences in world view that come with that.
Anyway, glad to see your appartement hunt was successful and enjoy your new flat
That’s a good point Dirk, both types of people can be happy and successful financially but on different terms. Thanks for weighing in with your experience and for watching the video ❤️
I owned a house for a few years while my kids were growing up. It was in rural Alabama, and I had a two-hour commute, every day. Seven days a week, for two jobs. I almost never got to see the inside of my house, except through bleary eyes, between the front door and my bed. There were two young people there, asleep in the other bedrooms. I think they were my kids, but I never got to talk to them and find out for sure. The day we actually moved in, the house got hit by lightening and burned out my clothes dryer and my water heater. There was a clothesline, so the dryer didn't matter. But we had no hot water for two years. And my daughter got electrocuted, because she had her hand on the gate, letting our dogs into the backyard. So she spent her first few homeowner-family days in the hospital. 14 years later, after numerous other things fell apart or came crashing down, I left for grad school. I could not sell the house. So I rented it to my neighbor's criminal daughter. She did not pay me, so I could not pay the mortgage anymore. Bye-bye house.
That dynamic of income to house price is a huge problem in most of the UK since you usually also earn less in more rural areas or smaller towns. The only people that seem to win are those that bought houses in back when prices were low and then sold them to move to a cheaper area, they don't have to deal with a lot of the problems. Everyone else is just switching like for like a lot of the time. The area I live in has an issue with holiday homes and second home ownership that adds another layer to making home buying inaccessible.
Really great points Jeanette, thank you so much for sharing your own experience! Yes I've been reading a lot about certain English areas that have a problem with holiday homes and second homes. I hope they do something about that, maybe additional tax for multiple properties that goes locally, or just ban it altogether. Thanks so much for watching!
I always enjoy your videos. I am learning so much from you!
Wow thanks so much Sophie, really nice to hear that! Stay well and thanks for watching.
My older brother bought a house outside of Silicon Valley before the Great Recession and his mortgage is still underwater (he owes more to the bank than what the house is worth). He can't retire until prices go back up or he pays off the mortgage. The latter seems more likely these days.
Oh wow that must be so difficult. Unfortunately stories like this never are mentioned when the narrative of “YOU MUST GET ON THE PROPERTY LADDER” are played out over and over again. It’s not risk-free and that sounds like a very stressful situation, I’m sorry he’s having to deal with that.
Hi Jess, Based on this video, you are very analytical and practical. This is very relevant for young people in the UK and elsewhere today. There is more to life than ownership. Life is short, enjoy it. Thanks for sharing.
Thanks for watching!
Speak your truth! Owning is often more of a hassle than renting-and way more upkeep. Support you always 🥰🥰🥰
WAY more! I can't even deal with putting together flat pack furniture 😂 Thanks for watching!
You explain the situation in a beautiful way! It's a shame that so many people feel entitled to give advice or opinions on other people's lives...
Thank you! and thank you so much for watching.
I can relate to that a lot! Thanks for this great video! 👍
Glad to hear it! Thanks so much for watching.
Totally agree with everything you said. I'm also an American in the UK (many, many years) and have the privilege of being on the property ladder as the sole owner of a flat. I'm in the process of selling after 4 years and do NOT want to own again, particularly leasehold. I too value the flexibility and ease of renting. Flexibility to move when your job changes, for example, or the disruption of a construction of a multi-year project starting nearby. Those happened to me a few times as a renter and owner. And sure, you can rent it out, which I did for 9 months, but in that time the tenants left an extraordinary amount of wear and tear (it's damage, but I also had a terrible letting agent). And the fees. Anyway - there are other ways to be financially responsible, as you say!
Really interesting to hear your story and feelings Lisa, thank you for weighing in! Good to hear from the other side. Thanks for watching and commenting.
You're 100% correct. I lived in London for 10 years as an American expat with dual citizenship. Rented the whole time. The network you create and the experience gained more than pays you back if/when you leave. People should take that into consideration. My 2 cents.
Omg yes and I didn't even touch on the tax implications of being an American buying property in the UK! Thanks so much for watching Mike.
Nobody who talks about how rent is just money thrown away ever mentions property taxes. In upstate NY my property taxes are 2/3 what I paid for rent in the same area. That’s “thrown away” money too. And that’s before everything else you mentioned like maintenance costs and the flexibility of renting. Sure owning is an appreciating asset, but even if you can afford it it’s not the obviously advantageous financial move people make it out to be.
agreed
Good on you Jess. It’s okay to rent. You put forward excellent reasons why. London is expensive. Here in Melbourne, Australia is expensive with many properties in the millions. For many it’s not just the cost. You put fwd your thoughts in a calm, considered and researched way. Cheers.
Aw thank you Anne, such a nice comment! Thank you for taking the time to watch the video.
While owning property is a good investment, a person needs to be ready to assume the responsibilities of home ownership. Owners are responsible for the maintenance and upkeep of the property, and if you spend all your savings for a down payment, you many encounter problems. I am currently renting and hope to buy something within the next two years. At times I wished I had purchased my own home, and there have been times where I was content to rent.
Great points Deborah!
Next Year on the 1st April, you should announce that you are moving out of London and that you are changing the Chanel name to “Love Loughborough”.😃. You enjoy living in London, ignore what others say, as long as you are happy that’s all that matters.
Hahahahhaha imagine? I feel like I might run out of content ideas quickly 😂 Yup I totally ignore, but I wanted to share to hopefully relate to others in similar situations (aka most of my generation!) Thank you so much for watching !!
Don't worry Jess I won't judge lol. I'm just glad that you are able to do videos still and keep me wanting to get back to visit London again.
That’s all I asked for Barry! Thanks so much for listening and writing a nice comment.
I think the whole rent/buy thing depends on your age. In 1984 I was 24 on a modest salary. I easily afforded my Mortgage of £14k. The house was a mid-sized Edwardian and in a small Midlands town and cost £15k. If I was 24 in 2021 I would not have been able to afford that house on a similar salary. It's sad that most people now just don't have the choice.
yes absolutely!
She's right. Property in a lot of expensive world cities is a TERRIBLE investment. Plus the government also sees it as a gold mine and keeps much of the return through stamp tax, property tax, capital gains tax and on and on. Plus, maintenance is either DIY, which takes a lot of time and expertise, or pay for labor and materials, which quickly adds up! My strategy is somewhat interesting... i like the idea of having a plan B home that I own outright in a cheap area that still has a reasonable amount of activity and opportunity. I can rent it out, but also move there if I ever need to in life, whether for retirement or some other reason.
Excellent video and explanation of your situation. I do own my own home in Los Angeles (yikes !) and have said for years that I could not afford a home if I were starting out again. Don't let anybody shame you for your decisions or life choices. I do think that the younger generation (not you of course) are much more into instant gratification, instead of planning for home, business, travel, or whatever. I try to offer advice when asked, but not forcing my opinions on anybody. Here's wishing you good fortune in your quest.
I'm not sure I would agree about the instant gratification thing. I think people forget that younger generations have been dealing with lower salaries, in some countries they have large university loans, and know from the start that owning a property and getting by in life is much harder than the older generations (and impossible for many) so they choose instead to just enjoy their life in the moment. I know this is the case for me... yes I could kill myself working insane hours for years, living way below my means and not doing anything fun, all to save for a house. But really, what kind of life is that to live for a few years, to then buy a crappy house in an area that I can afford but don't particularly like? That's where our generation is at these days. Thank you so much for watching and sharing your insights though, especially as a homeowner!
I grew up renting and always wanted a house. I have been the co-owner of two houses as an adult. I moved to an apartment after my divorce by choice. There is so much MORE FREEDOM renting. Owning a house meant that my most of weekends were taking care of house. I liked it in the beginning because it was such a novelty, but I seriously never want to labor like that on where I live anymore when I have to work so hard and so many hours at my job. I like that someone else is responsible for all that upkeep. I can rest on weekends without having to think about fixing something or doing yardwork, etc.
So well said and all great points!! Thanks for sharing ♥️
@@loveandlondon Also, you should never have to apologize for how your own money.
Jess is so right about ownership v renting and especially alternative investments/saving options. Unfortunately our narrative is and has for too long been so focused on ownership that it is so out of reach for so many .. and I’ve been in London property for over 30 years.
Yes! Thank you so much for watching Peter.
Loved this video and so understand as when I moved to Toronto my mother said live in suburbs it’s cheaper and my reply was I wanted a life instead lol. Some of us are made for big cities and my choice would be live in london it’s such a fabulous city and I cannot wait to come back and explore more! Love your argument and channel!
Thank you Deborah!! And thanks for watching ❤️
Well said Jess. Not everyone wants to own and have all of the responsibilities of home ownership....it's a lot of work and takes time away from doing some fun stuff, especially on weekends!
Exactly! Thanks so much for watching Dave!
This is a very well-researched analysis with a great set of resources. Good for you. And, I really like your comments about investments in other areas, particularly with small business ownership. I have invested in a few women-owned businesses in the bio and healthcare sectors in San Francisco and Boston, and am just starting to research that landscape among alumni/friends at the London School of Hygiene. Really great analysis. The shame on this topic is just nonsense, really. Great comments!!
I don’t think people are shaming others who aren’t prioritising buying a property, they just care and are encouraging you to. Many don’t have bigger plans of building a business like you so no plan of building their wealth. If rents go up and salaries don’t than you’re in a bad situation. I wish family and friend pushed me more when mortgages and properties were cheaper. I managed to buy a help to buy new build in Greenwich in December but now shared power ship is the only ‘cheaper’ way of buying a property and building wealth. I understand if you aren’t planning to stay in the city though.
Yes I can for sure tell you people are shaming (different than friendly advice), as well as the media ! Nice that you haven't experienced that though.
Someone had to say it! Thank you Jess - the naming and shaming and pressure needs to STOP!!
Exactly! Thanks so much for watching.
I think people need to realise that there have only been about 3 generations in England who could afford to buy a house before that nearly everyone rented. I own a house as did my parents but all previous generations rented.
Live the life you want to. I lived in London for a bit and totally understand this completely!
I bet you do! Thanks for watching!
Love your channel
I live in Sydney Australia, which like London, is very expensive to live in. I do own a flat which I bought long ago, but there is a price I pay by living in the outer suburbs away from work in the city and most entertainment options. I do wonder if it’s worth it at times! The long daily commute and all the driving that I have to do to get around can get a bit much. I can understand why young people don’t want to deal with all that just for the sake of owning a property!
So hard to strike the balance isn't it! Thanks so much for watching and commenting.
I didn't buy in London (or anywhere else I lived) until I was in my late 30s and that was with my partner who had lived at home with his family in order to save money for a deposit. It's super, super tough to buy in London and renting is actually really a good way to go (I moved every 2-4 years for my adult life until my mid-30s, so it would have made so much less sense. I think you are smart!
Love hearing your story Liane! Thanks so much for sharing, and for watching!
Was about to London next month. (well until my country was moved to the red list for travel.)
I follow all your tips and make a note of things I will use to find a place for myself.
Thanks for doing what you do.
Thank you SO much for your kind words, you'll get here soon enough!!
Thanks for this video! Really tired of people lecturing those who rent ALL THE DAMN TIME
SAMEEEEEEEEEEEE!!!!!! Thank YOU for watching!
Renting or owning a home is a choice that people can make but people renting a home are in a better position now but the property bubble is going to pop. Many people who are on big mortgage will be devastated
Everything you said makes perfect sense for a person in your situation. Just out of curiosity I googled some small towns in England to check property prices...yikes!!! $325,000 for a 2 bedroom cottage!!! No way I could ever afford that! I don’t know how young people starting out could even begin to afford that!!! Do what you want and forget about it!
Haha yeah! Thanks for watching Julie.