“I’ve already made 12k in 2 years on my house, in 20 years time I’m going to be rich”

Stewboy1978

irnbru wrote:

If you wanted to make a 75% return you wouldn't have saved. You'ld have sought a high-risk investment.

Equally: lets say your next property would have cost 100K 3 years ago but its now 175K (75% rise). You were short by 40K last time but now it's 70K.

OOC, are you buying a bigger property?

To answer a few questions....I bought this property to live in 3 years ago. The work had to be done as the place was run down. It helps that I know so many people in various trades.

I have moved to a bigger property now using some savings as a deposit (30k, plus my wife had some). I still have the original property and am letting it out to pay that mortgage off (Should be done in 8 years).

So far I have never bought a property to make money...I have bought to live in!!!

meanmachine_2

I'm guessing the spreadsheet guy is including a 3% rise in wages each year?

I guess that would make sense...although with any wage rise, house prices tend to go up by about the same amount, so that's a zero sum game.

And yes, rents do tend to go up too - although mine has been stuck at 1995 prices for years now, so that's not a given.

moneywise_2

to clean all the unsolved mistry on my post

the amount of 900 go up becuase of inflation amount which i put 2 %

if it is without here is the result .. not far from the orginal amount roughly about 3 M pounds

Month Deposit Balance
Now 0.00 0.00
May-06 900.00 900.00
Jun-06 900.00 1,809.00
Jul-06 900.00 2,727.09
Aug-06 900.00 3,654.36
Sep-06 900.00 4,590.90
Oct-06 900.00 5,536.81
Nov-06 900.00 6,492.18
Dec-06 900.00 7,457.10
Jan-07 900.00 8,431.67
Feb-07 900.00 9,415.99
Mar-07 900.00 10,410.15
Apr-07 900.00 11,414.25
May-07 900.00 12,428.40
Jun-07 900.00 13,452.68
Jul-07 900.00 14,487.21
Aug-07 900.00 15,532.08
Sep-07 900.00 16,587.40
Oct-07 900.00 17,653.27
Nov-07 900.00 18,729.81
Dec-07 900.00 19,817.10
Jan-08 900.00 20,915.27
Feb-08 900.00 22,024.43
Mar-08 900.00 23,144.67
Apr-08 900.00 24,276.12
May-08 900.00 25,418.88
Jun-08 900.00 26,573.07
Jul-08 900.00 27,738.80
Aug-08 900.00 28,916.19
Sep-08 900.00 30,105.35
Oct-08 900.00 31,306.40
Nov-08 900.00 32,519.47
Dec-08 900.00 33,744.66
Jan-09 900.00 34,982.11
Feb-09 900.00 36,231.93
Mar-09 900.00 37,494.25
Apr-09 900.00 38,769.19
May-09 900.00 40,056.88
Jun-09 900.00 41,357.45
Jul-09 900.00 42,671.03
Aug-09 900.00 43,997.74
Sep-09 900.00 45,337.71
Oct-09 900.00 46,691.09
Nov-09 900.00 48,058.00
Dec-09 900.00 49,438.58
Jan-10 900.00 50,832.97
Feb-10 900.00 52,241.30
Mar-10 900.00 53,663.71
Apr-10 900.00 55,100.35
May-10 900.00 56,551.35
Jun-10 900.00 58,016.86
Jul-10 900.00 59,497.03
Aug-10 900.00 60,992.00
Sep-10 900.00 62,501.92
Oct-10 900.00 64,026.94
Nov-10 900.00 65,567.21
Dec-10 900.00 67,122.88
Jan-11 900.00 68,694.11
Feb-11 900.00 70,281.05
Mar-11 900.00 71,883.86
Apr-11 900.00 73,502.70
May-11 900.00 75,137.73
Jun-11 900.00 76,789.11
Jul-11 900.00 78,457.00
Aug-11 900.00 80,141.57
Sep-11 900.00 81,842.98
Oct-11 900.00 83,561.41
Nov-11 900.00 85,297.03
Dec-11 900.00 87,050.00
Jan-12 900.00 88,820.50
Feb-12 900.00 90,608.70
Mar-12 900.00 92,414.79
Apr-12 900.00 94,238.94
May-12 900.00 96,081.33
Jun-12 900.00 97,942.14
Jul-12 900.00 99,821.56
Aug-12 900.00 101,719.78
Sep-12 900.00 103,636.98
Oct-12 900.00 105,573.35
Nov-12 900.00 107,529.08
Dec-12 900.00 109,504.37
Jan-13 900.00 111,499.41
Feb-13 900.00 113,514.41
Mar-13 900.00 115,549.55
Apr-13 900.00 117,605.05
May-13 900.00 119,681.10
Jun-13 900.00 121,777.91
Jul-13 900.00 123,895.69
Aug-13 900.00 126,034.64
Sep-13 900.00 128,194.99
Oct-13 900.00 130,376.94
Nov-13 900.00 132,580.71
Dec-13 900.00 134,806.52
Jan-14 900.00 137,054.58
Feb-14 900.00 139,325.13
Mar-14 900.00 141,618.38
Apr-14 900.00 143,934.56
May-14 900.00 146,273.91
Jun-14 900.00 148,636.65
Jul-14 900.00 151,023.01
Aug-14 900.00 153,433.24
Sep-14 900.00 155,867.58
Oct-14 900.00 158,326.25
Nov-14 900.00 160,809.52
Dec-14 900.00 163,317.61
Jan-15 900.00 165,850.79
Feb-15 900.00 168,409.29
Mar-15 900.00 170,993.39
Apr-15 900.00 173,603.32
May-15 900.00 176,239.35
Jun-15 900.00 178,901.75
Jul-15 900.00 181,590.77
Aug-15 900.00 184,306.67
Sep-15 900.00 187,049.74
Oct-15 900.00 189,820.24
Nov-15 900.00 192,618.44
Dec-15 900.00 195,444.62
Jan-16 900.00 198,299.07
Feb-16 900.00 201,182.06
Mar-16 900.00 204,093.88
Apr-16 900.00 207,034.82
May-16 900.00 210,005.17
Jun-16 900.00 213,005.22
Jul-16 900.00 216,035.27
Aug-16 900.00 219,095.63
Sep-16 900.00 222,186.58
Oct-16 900.00 225,308.45
Nov-16 900.00 228,461.53
Dec-16 900.00 231,646.15
Jan-17 900.00 234,862.61
Feb-17 900.00 238,111.23
Mar-17 900.00 241,392.35
Apr-17 900.00 244,706.27
May-17 900.00 248,053.33
Jun-17 900.00 251,433.87
Jul-17 900.00 254,848.21
Aug-17 900.00 258,296.69
Sep-17 900.00 261,779.65
Oct-17 900.00 265,297.45
Nov-17 900.00 268,850.43
Dec-17 900.00 272,438.93
Jan-18 900.00 276,063.32
Feb-18 900.00 279,723.95
Mar-18 900.00 283,421.19
Apr-18 900.00 287,155.40
May-18 900.00 290,926.96
Jun-18 900.00 294,736.23
Jul-18 900.00 298,583.59
Aug-18 900.00 302,469.43
Sep-18 900.00 306,394.12
Oct-18 900.00 310,358.06
Nov-18 900.00 314,361.64
Dec-18 900.00 318,405.26
Jan-19 900.00 322,489.31
Feb-19 900.00 326,614.20
Mar-19 900.00 330,780.35
Apr-19 900.00 334,988.15
May-19 900.00 339,238.03
Jun-19 900.00 343,530.41
Jul-19 900.00 347,865.71
Aug-19 900.00 352,244.37
Sep-19 900.00 356,666.82
Oct-19 900.00 361,133.48
Nov-19 900.00 365,644.82
Dec-19 900.00 370,201.27
Jan-20 900.00 374,803.28
Feb-20 900.00 379,451.31
Mar-20 900.00 384,145.83
Apr-20 900.00 388,887.28
May-20 900.00 393,676.16
Jun-20 900.00 398,512.92
Jul-20 900.00 403,398.05
Aug-20 900.00 408,332.03
Sep-20 900.00 413,315.35
Oct-20 900.00 418,348.50
Nov-20 900.00 423,431.99
Dec-20 900.00 428,566.31
Jan-21 900.00 433,751.97
Feb-21 900.00 438,989.49
Mar-21 900.00 444,279.38
Apr-21 900.00 449,622.18
May-21 900.00 455,018.40
Jun-21 900.00 460,468.58
Jul-21 900.00 465,973.27
Aug-21 900.00 471,533.00
Sep-21 900.00 477,148.33
Oct-21 900.00 482,819.82
Nov-21 900.00 488,548.01
Dec-21 900.00 494,333.49
Jan-22 900.00 500,176.83
Feb-22 900.00 506,078.60
Mar-22 900.00 512,039.38
Apr-22 900.00 518,059.78
May-22 900.00 524,140.37
Jun-22 900.00 530,281.78
Jul-22 900.00 536,484.60
Aug-22 900.00 542,749.44
Sep-22 900.00 549,076.94
Oct-22 900.00 555,467.71
Nov-22 900.00 561,922.38
Dec-22 900.00 568,441.61
Jan-23 900.00 575,026.02
Feb-23 900.00 581,676.28
Mar-23 900.00 588,393.05
Apr-23 900.00 595,176.98
May-23 900.00 602,028.75
Jun-23 900.00 608,949.03
Jul-23 900.00 615,938.52
Aug-23 900.00 622,997.91
Sep-23 900.00 630,127.89
Oct-23 900.00 637,329.17
Nov-23 900.00 644,602.46
Dec-23 900.00 651,948.48
Jan-24 900.00 659,367.97
Feb-24 900.00 666,861.65
Mar-24 900.00 674,430.26
Apr-24 900.00 682,074.57
May-24 900.00 689,795.31
Jun-24 900.00 697,593.27
Jul-24 900.00 705,469.20
Aug-24 900.00 713,423.89
Sep-24 900.00 721,458.13
Oct-24 900.00 729,572.71
Nov-24 900.00 737,768.44
Dec-24 900.00 746,046.12
Jan-25 900.00 754,406.58
Feb-25 900.00 762,850.65
Mar-25 900.00 771,379.16
Apr-25 900.00 779,992.95
May-25 900.00 788,692.88
Jun-25 900.00 797,479.81
Jul-25 900.00 806,354.60
Aug-25 900.00 815,318.15
Sep-25 900.00 824,371.33
Oct-25 900.00 833,515.04
Nov-25 900.00 842,750.19
Dec-25 900.00 852,077.70
Jan-26 900.00 861,498.47
Feb-26 900.00 871,013.46
Mar-26 900.00 880,623.59
Apr-26 900.00 890,329.83
May-26 900.00 900,133.13
Jun-26 900.00 910,034.46
Jul-26 900.00 920,034.80
Aug-26 900.00 930,135.15
Sep-26 900.00 940,336.50
Oct-26 900.00 950,639.87
Nov-26 900.00 961,046.27
Dec-26 900.00 971,556.73
Jan-27 900.00 982,172.30
Feb-27 900.00 992,894.02
Mar-27 900.00 1,003,722.96
Apr-27 900.00 1,014,660.19
May-27 900.00 1,025,706.79
Jun-27 900.00 1,036,863.86
Jul-27 900.00 1,048,132.50
Aug-27 900.00 1,059,513.82
Sep-27 900.00 1,071,008.96
Oct-27 900.00 1,082,619.05
Nov-27 900.00 1,094,345.24
Dec-27 900.00 1,106,188.69
Jan-28 900.00 1,118,150.58
Feb-28 900.00 1,130,232.09
Mar-28 900.00 1,142,434.41
Apr-28 900.00 1,154,758.75
May-28 900.00 1,167,206.34
Jun-28 900.00 1,179,778.40
Jul-28 900.00 1,192,476.19
Aug-28 900.00 1,205,300.95
Sep-28 900.00 1,218,253.96
Oct-28 900.00 1,231,336.50
Nov-28 900.00 1,244,549.86
Dec-28 900.00 1,257,895.36
Jan-29 900.00 1,271,374.31
Feb-29 900.00 1,284,988.06
Mar-29 900.00 1,298,737.94
Apr-29 900.00 1,312,625.32
May-29 900.00 1,326,651.57
Jun-29 900.00 1,340,818.09
Jul-29 900.00 1,355,126.27
Aug-29 900.00 1,369,577.53
Sep-29 900.00 1,384,173.30
Oct-29 900.00 1,398,915.04
Nov-29 900.00 1,413,804.19
Dec-29 900.00 1,428,842.23
Jan-30 900.00 1,444,030.65
Feb-30 900.00 1,459,370.96
Mar-30 900.00 1,474,864.67
Apr-30 900.00 1,490,513.31
May-30 900.00 1,506,318.45
Jun-30 900.00 1,522,281.63
Jul-30 900.00 1,538,404.45
Aug-30 900.00 1,554,688.49
Sep-30 900.00 1,571,135.38
Oct-30 900.00 1,587,746.73
Nov-30 900.00 1,604,524.20
Dec-30 900.00 1,621,469.44
Jan-31 900.00 1,638,584.14
Feb-31 900.00 1,655,869.98
Mar-31 900.00 1,673,328.68
Apr-31 900.00 1,690,961.96
May-31 900.00 1,708,771.58
Jun-31 900.00 1,726,759.30
Jul-31 900.00 1,744,926.89
Aug-31 900.00 1,763,276.16
Sep-31 900.00 1,781,808.92
Oct-31 900.00 1,800,527.01
Nov-31 900.00 1,819,432.28
Dec-31 900.00 1,838,526.60
Jan-32 900.00 1,857,811.87
Feb-32 900.00 1,877,289.99
Mar-32 900.00 1,896,962.89
Apr-32 900.00 1,916,832.52
May-32 900.00 1,936,900.84
Jun-32 900.00 1,957,169.85
Jul-32 900.00 1,977,641.55
Aug-32 900.00 1,998,317.97
Sep-32 900.00 2,019,201.15
Oct-32 900.00 2,040,293.16
Nov-32 900.00 2,061,596.09
Dec-32 900.00 2,083,112.05
Jan-33 900.00 2,104,843.17
Feb-33 900.00 2,126,791.60
Mar-33 900.00 2,148,959.52
Apr-33 900.00 2,171,349.11
May-33 900.00 2,193,962.60
Jun-33 900.00 2,216,802.23
Jul-33 900.00 2,239,870.25
Aug-33 900.00 2,263,168.95
Sep-33 900.00 2,286,700.64
Oct-33 900.00 2,310,467.65
Nov-33 900.00 2,334,472.33
Dec-33 900.00 2,358,717.05
Jan-34 900.00 2,383,204.22
Feb-34 900.00 2,407,936.26
Mar-34 900.00 2,432,915.63
Apr-34 900.00 2,458,144.78
May-34 900.00 2,483,626.23
Jun-34 900.00 2,509,362.49
Jul-34 900.00 2,535,356.12
Aug-34 900.00 2,561,609.68
Sep-34 900.00 2,588,125.78
Oct-34 900.00 2,614,907.03
Nov-34 900.00 2,641,956.10
Dec-34 900.00 2,669,275.66
Jan-35 900.00 2,696,868.42
Feb-35 900.00 2,724,737.11
Mar-35 900.00 2,752,884.48
Apr-35 900.00 2,781,313.32
May-35 900.00 2,810,026.45
Jun-35 900.00 2,839,026.72
Jul-35 900.00 2,868,316.99
Aug-35 900.00 2,897,900.16
Sep-35 900.00 2,927,779.16
Oct-35 900.00 2,957,956.95
Nov-35 900.00 2,988,436.52
Dec-35 900.00 3,019,220.88
Jan-36 900.00 3,050,313.09
Feb-36 900.00 3,081,716.22
Mar-36 900.00 3,113,433.39
Apr-36 900.00 3,145,467.72

Woby_Tide

so the solution is to never leave your parents and you'll be a millionnaire before long

speaking of which, where is deemy2004 now?

meanmachine_2

Yes it really only works if you can shield yourself from rises in the cost of living.

I don't know about anyone else but my gas bill is likely to reach £900 a month before the 30 year period is up.

So the likely outcome is that British Gas become multi billionaires and I get zip.

The question re: housing is always one of timing in the shorter term. The long term argument in favour of buying is very strong.

But then, 30 years is a long time to plan ahead for - Lord knows what could happen then. I suspect we'll see stock market crashes, wars, interest rates back to 15%, then back to 4%.

We'll likely have a few housing booms and busts in that time too.

miaxmia

Haven't read all the replies, so this may have already been said, but are you assuming that you will still be paying the same rent over the next 30 years, because your friend is likely to be paying the same amount of mortgage, assuming interest rates stay the same and he/she doesn't move.

hyposmurf

Tiggs wrote:

but anyone doing that in recent years would have seen house prices rise faster than they could save....and while they may be high now, the assumption that they will not continue to grow long term beyond inflation is naive.


and most important of all......who wants to live with their folks!!! I moved out at 18 and bought the first house i could find! That was 14 years ago, i'd not be to happy today if i was still at parents house saving up my pennies!

finance is important, but so is life.

I spent the past 3 years in a desperate attempt to save for my mortgage deposit.That meant living with my parents until I was 30 and the majority of my friends are in similar suituations.I wouldve laughed if you had said Id have been at home with them until I was 30 say 10 years ago,but the reality is that even if youre a couple looking for a new place you will have to save for a deposit for a number of years and the first time places around my area are about £150000-£160000.
I had to literally spend three years not having much of a life,rarely going out,not buying any new clothes,cheap holiday and looking at every possible way to save money.But it was dam well worth it.Living with my parents wasnt ideal but you have to overlook that and focus on what is important to you in the long term.
With property price increases this year alone, my own property may have increased about £6000 in just over 4 months.How on earth would I have managed to save that extra for my deposit, it just wouldnt have happened.

Its possible the market maybe slow down somewhat so that first time buyers can get on the ladder.Youve only got to look at the amount of new property being built.There are more and more new schemees the goverment are introducing to.

I'd be quite fed up renting all my life.Youre restricted as to what you can do with the peoprty/possibly have to share it with other tenants.Also having your home as an asset is valuable.Paying rent into old age isnt that amazing.

happenstance

miaxmia wrote:

Haven't read all the replies, so this may have already been said, but are you assuming that you will still be paying the same rent over the next 30 years, because your friend is likely to be paying the same amount of mortgage, assuming interest rates stay the same and he/she doesn't move.

Its just an estimation for fun. Anway this was not taken into account as I expect my wages to increase so that I will always be able to save the 900 a month.

happenstance

hyposmurf wrote:

I spent the past 3 years in a desperate attempt to save for my mortgage deposit.That meant living with my parents until I was 30 and the majority of my friends are in similar suituations.I wouldve laughed if you had said Id have been at home with them until I was 30 say 10 years ago,but the reality is that even if youre a couple looking for a new place you will have to save for a deposit for a number of years and the first time places around my area are about £150000-£160000.
I had to literally spend three years not having much of a life,rarely going out,not buying any new clothes,cheap holiday and looking at every possible way to save money.But it was dam well worth it.Living with my parents wasnt ideal but you have to overlook that and focus on what is important to you in the long term.
With property price increases this year alone, my own property may have increased about £6000 in just over 4 months.How on earth would I have managed to save that extra for my deposit, it just wouldnt have happened.

Its possible the market maybe slow down somewhat so that first time buyers can get on the ladder.Youve only got to look at the amount of new property being built.There are more and more new schemees the goverment are introducing to.

I'd be quite fed up renting all my life.Youre restricted as to what you can do with the peoprty/possibly have to share it with other tenants.Also having your home as an asset is valuable.Paying rent into old age isnt that amazing.

Erm I dont live with my parents, moved out the week before my 18th birthday and never looked back. I'm just able to still have nice holidays (Thailand & India last year so far this year Cambodia) and great meals out and save money.

hyposmurf

Well everyones circumstance is different.You are renting anyway where as I was purchasing a property,which is long term asset.I for one would not like to waste my money renting in the hope that my savings would turn out well.For the first two years of saving for my deposit I was on low wages,now Im not but I'd have still found it very hard to keep up with the rising property market saving on my wages now.There are alot of people renting and the majority of those that Ive spoken to would rather have their own place, but they cant get a mortgage for the property in their area or have enough savings for the deposit and fees.
What your doing sounds similar to a interest only mortgage only,only you pay rent instead of the interest and at the end you use your savings to purchase a property.There seems to be a trend of people oving away from these mortgages now as they feel the interest they could make on their moeny will not be enough to keep up with the property market.