If you where Mortgage free

[carmanmemoranda]

Not always. When we sold our old house in 1990, we sold it for £71,000. Three years later it was repossessed and sold at auction for just over £40,000.

Our house cost £105,000 in 1990, down from £130,000 6 months earlier. Two years later, next door but one, exact same house as ours, sold for £72,000. I think they went even lower. I remember saying to Mrs Mottie that we shouldn’t start worrying until it is worth less than our mortgage which was £50,000 at the time.

And for balance, its value now ?

Investment is a long-term thing, not short term. Values can fall short term, but have always risen long term

 

[Mottie]

And for balance, its value now ?

Investment is a long-term thing, not short term. Values can fall short term, but have always risen long term

Both are over £500k

Yes, I know it’s a long term thing if it’s an investment and that’s just inflation but sometimes when people buy a home and things go wrong - job loss, illness, overstretching themselves, divorce etc, they don’t get to hang on to them for the long term, hence they can lose and lose heavily.

 

[carmanmemoranda]

Both are over £500k

Yes, I know it’s a long term thing but sometimes people don’t get to hang on to them long term.

That doesn't change the fact that property is a good investment.

Savings of that value in a bank would be way behind that value increase

 

[Mottie]

That doesn't change the fact that property is a good investment.

Savings of that value in a bank would be way behind that value increase

Not if you have to buy when the market is high and are forced to sell when it’s low.

If you put that money in the bank, you’d have to pay rent or live in a tent though!

I’ve never bought a house as an investment. I’ve bought it to live in. Okay, I was fortunate in that I bought my first house because of the attached plot and workshop and when we moved, we split it up and sold just the house. Tgat turned out to be a good investment but it was only by chance.

 

[gas112]

Not signing up to a civil service scheme is pure madness.

These days auto enrolment sorts this out. A very good thing that happened in the last decade

the guy with 25 years told me he originally had to get union involved as they enrolled him and he wanted his money back .
Im standing there thinking jesus h christ you have thrown away 6 figures when you finish

 

[carmanmemoranda]

Not if you have to buy when the market is high and are forced to sell when it’s low.

If you put that money in the bank, you’d have to pay rent or live in a tent though!

You've answered yourself.

That's not investing

 

[Mottie]

You've answered yourself.

That's not investing

No, that’s called buying a house to live in.

 

[gas112]

Not always. When we sold our old house in 1990, we sold it for £71,000. Three years later it was repossessed and sold at auction for just over £40,000.

Our house cost £105,000 in 1990, down from £130,000 6 months earlier. Two years later, next door but one, exact same house as ours, sold for £72,000. I think they went even lower. I remember saying to Mrs Mottie that we shouldn’t start worrying until it is worth less than our mortgage which was £50,000 at the time.

When we moved our parents back from Hastings, we found them a repossessed bungalow that they bought for over £100,000 less than it was advertised for previously. Only trouble was, for a year or so they had letters and bailiffs calling on them looking for the previous owners. The bills and demands that came through the door were unbelievable.

yep mate bought house back in 80`s 22k about 3 years later put it up for 70k few viewing then market crashed took about a year to sell and he got 40k so if he had managed to get the 70 someone would have been looking at 30k loss in less than a year .
Too many young ones mortgaged to the hilt would be in the shyte with the interest rates we were paying back then

 

[carmanmemoranda]

No, that’s called buying a house to live in.

So no need to sell at lesser value unless not keeping up with repayments.

 

[Murdochcat]

My view on housing that is that that you are paying to own the property to allow you to live mortgage and rent free.

Our current house would cost over £2500 per month to rent

the appreciating value is irrelevant IMHO

 

[Mottie]

So no need to sell at lesser value unless not keeping up with repayments.

Correct. And then you lose. That was my point, not everyone makes money on property.

 

[carmanmemoranda]

My view on housing that is that that you are paying to own the property to allow you to live mortgage and rent free.

Our current house would cost over £2500 per month to rent

the appreciating value is irrelevant IMHO

Agree if it's for that purpose

 

[carmanmemoranda]

Correct. And then you lose. That was my point, not everyone makes money on property.

Not keeping up with repayments is the reason, not property value increasing, or unlikely decreasing

 

[Mottie]

property value …….unlikely decreasing

 

[Murdochcat]

Not keeping up with repayments is the reason, not property value increasing, or unlikely decreasing

Keeping up with payments is most important. That way you don't have a landlord who might end your tenancy OR put your rent up.

Homes are a long term view............