Solving The Renter’s Dilemma
The Renter’s Dilemma is not a new problem. It has been troubling renters for decades, as they find themselves stuck between a rock and hard place while they try to ascend the property ladder.
It’s definitely a matter worthy of examination, so let’s get right down to it.
What Is The Renter’s Dilemma?
The term is best described as a problem that many renters face. It tends to unfold as follows:
- A person rents a home.
- The price they pay for rent is expensive. The rental market is booming the world over.
- The rent costs so much money, the renter doesn’t have much option when it comes to saving for a property.
- As a result, they are stuck in an almost permanent loop. They want to buy their own home. They have a good wage and could afford a mortgage. However, they can’t afford to save for their deposit because of the cost of their rent.
As the rental market shows no sign of abating, this becomes more and more problematic.
Who Does It Impact?
Basically, anyone who wants to buy their own home but has to pay rent at the same time.
Are There Any Solutions?
Plenty – but the reason this is a dilemma is because none of the solutions are particularly attractive.
Renters tend to deal with the problem in a variety of different ways. If you ever find yourself in the same situation, then learning how others have coped can be vital to making the most of your own future. So what are the options?
- Move Back In With Mum and Dad
It’s not an attractive option; few of us relish the idea of returning to our teenage lives. However, it’s becoming a necessity for those who want to save for a deposit – record numbers of people across the world are moving back in with their parents to do just this. They pay a minimal amount of rent, and the rest goes into their savings accounts.
- Lower Expectations
You may dream of buying a perfect home in a landmark apartment development, but that doesn’t mean your finances can stretch that far. Renting and trying to save for a deposit on a luxury dream home is often unfeasible – well, if you want to buy sometime in the next decade, anyway!
The best way of coping is to lower your expectations and look for smaller, less attractive properties. This gets you on the housing ladder, and from there you can look to save for your dream home in the future.
- Frugal Living
If the above two options don’t apply, then moving to a frugal lifestyle means people can find room in their budget to save – but not much else.
This route requires dedication. No evenings out, minimal TV service, making clothes last for years; all the central tenets of the frugal life. Nevertheless, if you stick to it, you could have put together a deposit far sooner than you might have otherwise dreamt.
There is no obvious solution to the renter’s dilemma that works for all; so pick the choice that works for you and remember, never give up on your dreams of owning your own home. You’ll get there – one day!