CockneyMafia Posted September 8, 2006 Share Posted September 8, 2006 I ask because... I have just accepted an offer on my flat in Sheffield, and after selling it, have no intention of buying again for at least 5 years. I want to be more independent finanically for a while, and have no idea where I will be living in a few years time or what I will be doing. This will be the first time since the year 2000 that I will not be a homeowner, so I am sort of doing things arse around face. With so many people scrambling to get on the property ladder at the first opportunity, I ask myself in retrospect, why is it so important, esepcially for someone like me who is single and has no children. People often say that rent is "dead money" but on the other hand, when you have a mortgage, the house is still effectively the banks until you pay it off. There are also the costs associated with running and maintaining a house, and the fact you are tied into a 20, or sometimes 30 year finanical commitment, other factors which dont come with renting. What to other people think? Is getting on the property ladder as important as people make out? Link to comment Share on other sites More sharing options...
torin8 Posted September 8, 2006 Share Posted September 8, 2006 For me house prices were going up so much that it was the best investment I could make for my money - far better than any savings account. In addition to this the house I have now will follow the market so if it shoots up again I won't lose out. If the market does shoot up any savings that I have would be dwarfed. It's madness but I'm playing along sadly. Link to comment Share on other sites More sharing options...
4U2NV Posted September 8, 2006 Share Posted September 8, 2006 nothing better than safe as houses. Link to comment Share on other sites More sharing options...
Agent Orange Posted September 8, 2006 Share Posted September 8, 2006 I've recently just got on the first run of the property ladder and I'm really happy with my decision. As said above, it's probably the best investment I've made and in future there's little chance of me being priced out of the property market when it comes to sell on and find an alternative property. Link to comment Share on other sites More sharing options...
JoeP Posted September 8, 2006 Share Posted September 8, 2006 The problem is that whilst your property is increasing in price, so is everyone else's. When you come to move, the gains made in your house's value will be offset by paying more, unless you move to an area where house prices haven't increased at the same rate. Link to comment Share on other sites More sharing options...
nick2 Posted September 8, 2006 Share Posted September 8, 2006 I have to say I'm confused by people who keep moving to bigger and bigger houses, getting bigger and bigger mortgages, I suppose it is an investement but you will always owe money to the bank, it seems never ending. I suppose you could sell your house and be rich, but you'd also be homeless. Personally I want to pay my current mortgage off and then enjoy not paying it for the rest of my life. Link to comment Share on other sites More sharing options...
alou Posted September 8, 2006 Share Posted September 8, 2006 I have also become a homeowner recently - if we hadnt made the decision to get on the ladder when we did then maybe we would not have the opportunity to again (or at least we were both in higher paid jobs - by which time house prices would also have risen) Its a bit of a catch 22 situation. If I were you, I would not have sold, but rented out the property to someone, to cover the mortgage and a little more - at least that way you would still have an investment, and if circumstances change you could have lived their again! Link to comment Share on other sites More sharing options...
Agent Orange Posted September 8, 2006 Share Posted September 8, 2006 I have to say I'm confused by people who keep moving to bigger and bigger houses, getting bigger and bigger mortgages, I suppose it is an investement but you will always owe money to the bank, it seems never ending. I suppose you could sell your house and be rich, but you'd also be homeless. Personally I want to pay my current mortgage off and then enjoy not paying it for the rest of my life. That really confuses me too and I agree with you. Although, my better half and I will probably want to buy a bigger house eventually should we have children, but otherwise we will stick the house we currently have. I love the idea of being mortgage free, just think of all that money it will free up?! Link to comment Share on other sites More sharing options...
Tony Posted September 8, 2006 Share Posted September 8, 2006 it is an investement but you will always owe money to the bank, it seems never ending. It's not compulsory to extend the period as well as the amount. I've had 3 houses which I like to think I bought well each time, and I've kept the same start date from my first mortgage and I've been deliberately overpaying by a couple of hundred quid a month for the last few years. As a result I'm expecting to be mortgage free with a nice house before I'm 40. I'd say get on that ladder, but don't ever extend the repayment period! Good luck Link to comment Share on other sites More sharing options...
nick2 Posted September 8, 2006 Share Posted September 8, 2006 And another thing, my mum was going on about how "this house will be yours when I die", well I don't need her house, I have one of my own, I told her to sell it and spend the money on a world cruise. These days I don't think people need to spend their whole life saving/buying a bigger house so they can leave it to their kids. Link to comment Share on other sites More sharing options...
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