Owning your own home

So the money that people tell people who rent that they are "throwing down the drain"

man that pisses me off!
do they say that to people who buy food too? 'your just throwing that money down the drain!'

Ha, I used to buy tinned food and store it at the bank but the bank manager stole it and ate it.

I've owned a house before - wouldn't bother again. It was nice decorating it, and furnishing it, and getting it all cosy and chintzy etc. but it also became an unmanageable, expensive out of control monster that needed constant nourishment and feeding (and re-mortgaging twice) and ultimately cost me my relationship and my job and almost gave me a nervous breakdown

I rent now...I can't see me buying anywhere ever again unless I become very rich (unlikely) or win the lottery (impossible as I don't play it). The key thing is I am no less happy now than when I did 'own my own home'......

It's been high on my list of priorities to buy a house for a long time. I think since I left for uni ten years ago I've had about 20 homes, in lots of different cities, and been screwed over by the odd landlord. The few years before uni were slightly chaotic as well. Think I just crave a bit of stability. Would probably get bored with it though. Maybe I should spend what I've managed to save so far on cake.

Loads of early posts saying it's wrong to look at it as an investment but given how pensions are going(...gone) and that a house buy is the largest investment you'll make how can you see it as anyhting other than an investment?

I don't understand why people call having a massive dept and paying that off to the bank
"owning a house". You own shit.
My parents bought a flat recently and payed it off all at once from savings. They actually own it
and seam quite happy to me. Their biggest worries now are what gigantic flat screen TV they
should get.

I don't understand why people call having a massive dept and paying that off to the bank
"owning a house". You own shit.
My parents bought a flat recently and payed it off all at once from savings. They actually own it
and seam quite happy to me. Their biggest worries now are what gigantic flat screen TV they
should get.

They don't own the land though do they? don't they own a section of the air above a certain bit of ground?

I like the idea of saving to buy a house outright. If they cost a sane amount, like £40-50k then you could do that.

£4k a year for ten years and you've got £45k - go and buy a flat. Nice one.

But costs here are ridiculous. If you can afford to put away £200 a month then how long will it take to get to £150k? Long time...

I like the idea of saving to buy a house outright.

Buying on credit is generally much better financially, the way house prices are going you will make far more in the extra years you "own" the property, then you do saving the money.

They don't own the land though do they? don't they own a section of the air above a certain bit of ground?

They bought in germany, so I am not sure how it works exactly. But they
have joined ownership with the other flat owners. There is no thing like
a leasehold there.

They don't own the land though do they? don't they own a section of the air above a certain bit of ground?

Probably not: what you describe would be a flying freehold, which are quite rare. Most likely they have a share of freehold.

Buying on credit is generally much better financially, the way house prices are going you will make far more in the extra years you "own" the property, then you do saving the money.

Which way are house prices going?

Buying on credit is generally much better financially, the way house prices are going you will make far more in the extra years you "own" the property, then you do saving the money.

that kind of thinking was part of the cause of the current crisis.
interest rates are at a record low now but only because of the crash.
at a "normal" higher level you end up paying 2 to 3 times the initial
cost of the house through interest over the long payback period.
and of course you need to be able to make enough money over the 20-30
years or you lose it quickly.
And buying and selling property also has significant administrative costs that
can easily reach 1-2 years of rent.

I have a flying freehold!

Not so rare now then!

That is all small change compared to the money you will lose/waste trying to buy, buying and upkeep once bought.

Only if you buy an overpriced money pit you can barely afford.

I bought a brand new flat in 1999 (well, it's a 50% part ownership so I bought half of it)
I estimate I have paid only £2-3k in decoration, repairs and maintenance in the last 11 years.
If I was to sell it now I would get more than 3 times what I paid. The mortgage /rent on the place every month is about 2/3rds of the price I would pay on the rental market.
As a bonus I get to have it exactly as I want, have all my own furniture and fixings to take with me when I move.

Explain how I have wasted my money?

Which way are house prices going?

Up, generally, and certainly in the London flat market.

that kind of thinking was part of the cause of the current crisis.
interest rates are at a record low now but only because of the crash.
at a "normal" higher level you end up paying 2 to 3 times the initial
cost of the house through interest over the long payback period.
and of course you need to be able to make enough money over the 20-30
years or you lose it quickly.
And buying and selling property also has significant administrative costs that
can easily reach 1-2 years of rent.

All valid points, though I would have to look at my mortgage, I'd be surprised if I am paying back 3 times the initial cost.

But what you haven't factored in is the cost of rent, while you are waiting.

Generally the rent is much higher than the mortgage on a similar property, and every penny you spend on rent is money out of the window.

All valid points, though I would have to look at my mortgage, I'd be surprised if I am paying back 3 times the initial cost.

But what you haven't factored in is the cost of rent, while you are waiting.

Generally the rent is much higher than the mortgage on a similar property, and every penny you spend on rent is money out of the window.

I always hear that but for the shithole I live in I would have to pay
£400pcm more for the mortgage than for the rent + 50k deposit
upfront. for 20 years.
Much more when interest rates go up.

Which way are house prices going?

Most mortgages are for 25 or 30 years. Which way do you think the housing market has gone over the past 25 years? How will it go over the next 25 years?

England and London in particular has a shortage of land and so we should not witness the catastrophic collapses in land value that they have in the US or even in Ireland. In my humble opinion, house prices will be considerably higher in 25 years than they are today. I may also be dead by then and so not around for you to come back and question me. If, however, we are both around and on this forum, diarise 30 December 2035 and let's talk then.

every penny you spend on rent is money out of the window.

I don't think it is money out the window - certainly I never saw it as that when I was renting (though most house owners smugly insisted on calling it that). If you're thinking of buying a house, by renting you're sort of buying yourself an option (as in a financial instrument) to buy one when conditions favour you.

In addition in the meantime you can generally get yourself a higher standard of living than you could if you bought a place to live.

the prediction over the next 2-5years isn't so hot though.
even in london's famous london.

(from my limited understanding)

Kill parents.

Get free house.

Kill parents.

Get free house.

a small cell? atleast you get a playstation.

In addition in the meantime you can generally get yourself a higher standard of living than you could if you bought a place to live.

Please explain?