Are we that desperate to get on the housing "ladder"?

[VectraMan]

I may be in the minority, but i have no interest in buying a house, even though i could easily afford it.

Same here. With hindsight I should have bought something in the mid 90s, but there was something to gain then. There isn't now. When I seriously looked at buying 7 or 8 years ago the mortgage interest on a similar house was going to be double the rent, and to me that was just insane.

[Ketchup]

If I was in your position I'd do the same.
I've benefited hugely through the housing market, mainly by being born at exactly the right time and having the contrcating cash to invest in the biggest housing boom in Uk history.
But now? I wouldn't put myself in hock for uncertain returns.
I would try and invest the money in other ways though, although the only qet rich quick scheme that I know was the housing boom.

I struggle to work out what to put it in, I keep a 30k warchest in premium bonds as they are easy to get at. I invest my isa allowance every year. Have a small amount in a p2p lending scheme, a b2l seems a logical next step, but the numbers don't add up.

[vetran]

Better return than my pension.

we own a fairly large property (obviously small compared to a Swindon mansion) we pay far less than rental would cost and barring major issues should have an asset at the end.

My calculation is

House Value - Mortgage remaining > (Mortgage paid + deposit) - rental of similar property = Vetran happy.

currently we are a few hundred thousand in profit over 15 years.

So long as we pay the mortgage we can stay as long as we like (again barring force Majeure).

We can also decorate & improve as we wish.

This of course doesn't suit everyone but with a family its almost the only option I would consider in normal circumstances.

[original PM]

intersting but...

renting - each month you pay x and get nothing but a roof over your head for that month so imho dead money

buying a house - each month you pay y, get a roof over your head and pay a little bit more towards the house you are buying


not saying that the housing market is a good investment to make money but it seems to make more sense than renting in the long term?

[Ketchup]

Better return than my pension.

we own a fairly large property (obviously small compared to a Swindon mansion) we pay far less than rental would cost and barring major issues should have an asset at the end.

My calculation is

House Value - Mortgage remaining > (Mortgage paid + deposit) - rental of similar property = Vetran happy.

currently we are a few hundred thousand in profit over 15 years.

So long as we pay the mortgage we can stay as long as we like (again barring force Majeure).

We can also decorate & improve as we wish.

This of course doesn't suit everyone but with a family its almost the only option I would consider in normal circumstances.

I agree with a family it is good to have a "family home", but for a semi-single bloke in his late 20's, there is no real need to own a property IMO.

[vetran]

I agree with a family it is good to have a "family home", but for a semi-single bloke in his late 20's, there is no real need to own a property IMO.

My little brother bought rather than rented, then rented out as he moved. He is now considerably richer than Dim.

wish I had done it.

[DimPrawn]

My little brother bought rather than rented, then rented out as he moved. He is now considerably richer than Dim.

wish I had done it.

How much of the wealth is "real" and how much is mortgage debt?

[CheeseSlice]

I agree with a family it is good to have a "family home", but for a semi-single bloke in his late 20's, there is no real need to own a property IMO.

I was once there in the same mindset, but after being a good tenant but still being evicted twice at really bad times due to:

a) landlord wanted to convert large house into two smaller properties, then
b) landlord finances going titsup and moving back into their previously rented out house.

...buying a house was the only way to be sure it never happened again.

[vetran]

How much of the wealth is "real" and how much is mortgage debt?

pretty much self financing now.

[NotAllThere]

I bought a house in 1991 for £24K - sold 2 years later for £26.5K. That was enough for a deposit on a £59K house, which we sold three years later (1996) for £64K. Rented a bit, then bought a house for £179K, sold it 3 years later for £230K. All very nice, especially as I put quite a lot of the profit into my Swiss pension fund, which was a tax deduction, resulting in zero income tax for a year.

The house I own now costs about £1200 a month in mortgage payments. It would cost at least double that to rent it.