Buying a house remains impossible for an increasing group of renters. Bumarang observes that the gap between renters and homeowners is growing. This increasing inequality becomes painfully clear when we compare current living conditions to those of the past.
What was it like before?
After high school, you went to study. A few years of effort earned you a degree. You could start working and perhaps even buy your first car. From your parents’ house to a dorm room and then something for yourself. You rented a small apartment. It was neither big nor luxurious, but it was fine. After only two years of work, you got a permanent contract. You earned enough, did what you wanted, and could even save. You looked to the future with confidence. Like all your friends, you decided to buy a house. You quickly found a suitable home. Your bid, below the asking price, was accepted. Now the bank. That turned out not to be a problem either. A decent salary, a permanent contract, and some savings officially made you a homeowner.
And what is it like now?
Life after high school is full of choices and uncertainties. The range of courses and studies is vast. Can I afford to move out? Just that is a significant financial challenge. With student aid and a part-time job, you can’t make ends meet. You’re forced to borrow money, initially 300 euros per month, but quickly 900 euros. After two wrong study choices, you proudly obtain your degree. But there’s also shame, as your debt has now accumulated to over 50,000 euros. Applying for jobs proves difficult. Through a temporary employment agency, you end up in a call center. Bored with your dorm room, you look for your own place. It doesn’t work out with a housing corporation, so you turn to private renting.
Half of your income
The offers start at 900 euros, basic rent. Half your income, but 30 square meters and everything for yourself. It turns out more expensive than expected. All fixed costs together cost you 1,300 euros, and after next month’s rent increase even 1,350 euros. Rent allowance? You don’t get that. The apartment next door was recently sold. The new owner bought it to rent out. Out of curiosity, you checked the price: €300,000. For fun, you calculated how much you could borrow. The result: €180,000, but that’s without student debt. With debt: €60,000. So, buying a house is not an option. You find solace in the thought that this applies to all your friends as well.
Bumarang helps you get what you’re entitled to!
At Bumarang, we’re aware that there is no easy solution to the housing problem. Yet, we’re convinced that we can make significant improvements at an individual level. Renters have rights and must utilize them. Bumarang assists in this, ensuring lower rental prices. Maybe this will allow renters to have money left over, to save, or to pay off their student debt.