Put home ownership on hold: now tenants can get rich too
Shock, horror! Home ownership is falling and will continue to fall. But is that so bad? A recent report from the Centre for Housing Research says that the percentage of households that are owner- occupied is expected to fall from 68 per cent in 2001 to less than 62 per cent in 2016.
Tuesday, October 25th 2005, 8:00AM
by The Landlord
And longer-term data show that current rates are down from about 74 per cent in 1986.I'm not arguing that owning your home is not a good idea. Most people want the security – the knowledge that no landlord can kick them out just when the kids are settled in to school – and the freedom to do what they want with their dwelling and garden.
Other advantages include pride of ownership and the ability to take in boarders or flatmates for extra income.
And, if you want to borrow for business and you have built up equity in your home, you can take on a mortgage, or add to your current mortgage, giving you much cheaper finance than alternative sources.
There are, however, some pretty strong arguments in favour of renting.
"The key advantages of rental tenure were no responsibility for rates, insurance and maintenance; flexibility; and the ability to live in locations where owner-occupation was unaffordable," says the report.
Flexibility is obvious. Tenants are not stuck at home doing maintenance or gardening that they do not enjoy. As someone said: "Did you have a good weekend or do you own your own home?" And tenants can move much more easily and cheaply than home owners.
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