Property Obsession

Mr_Matey

We all know Brits, Aussies and Yanks have an obsession for property. The American dream and all that.

But how obsessed are you?

Are all your savings set aside in a cash/ISA account to own your "dream property" or used to pay off your existing one. Do you own several properties? Do you watch 5 property shows a week on tele but not know how world share/bond markets are performing? Or are you diversified across different asset classes?

Personally, I'm saving for my first place and have my money spread across a lot of different markets. If I decide to buy I'll probably take it all out and move to a 100% property asset allocation.

Given that most people with mortgages have a similar 100% property asset allocation (pensions aside), does the saying "safe as houses" ever really apply? This is probably the biggest financial risk you will take, and if it's the wrong one it can ruin you.

Perhaps we could coin a new saying such as "risky as bricksy". Suggestions?

thriftybabe

Mr_Matey wrote: »

We all know Brits, Aussies and Yanks have an obsession for property. The American dream and all that.

But how obsessed are you?

Are all your savings set aside in a cash/ISA account to own your "dream property" or used to pay off your existing one. Do you own several properties? Do you watch 5 property shows a week on tele but not know how world share/bond markets are performing? Or are you diversified across different asset classes?

Personally, I'm saving for my first place and have my money spread across a lot of different markets. If I decide to buy I'll probably take it all out and move to a 100% property asset allocation.

Given that most people with mortgages have a similar 100% property asset allocation (pensions aside), does the saying "safe as houses" ever really apply? This is probably the biggest financial risk you will take, and if it's the wrong one it can ruin you.

Perhaps we could coin a new saying such as "risky as bricksy". Suggestions?

I am probably a bit obsessed about property but that is cause we work in Construction! The best advice I have been given is never put all your eggs in one basket! We worked 100% new housebuilding until a few years ago when we set up another company doing extensions. It is the best thing we done given the market today. Dont get me wrong it does not pay the way new housebuilding does but it is seeing us through this difficult time just about!

We paid off our mortgage a few years ago and are very lucky to have done that. Following that we saved liked mad as thanks to MSE we found out that things were going to get bad. We have Cash ISA's, Stocks and Shares ISA's, Pensions, NSI's and savings in fixed rate accounts. These things may not make us a fortune but it is how we like to do things.

One thing I would not do is put all your money in your house. We did this a few years ago to pay it off and had things gone the way they are now we would have had no savings to live on!

Really2

I am more obsessed with the economy. I then use that to make decisions on mortgage etc or possibly moving.

House prices do not bother me all that much, but making sure I am not paying to much for my mortgage or seeing when a good time to trade up or down is.

lostinrates

As someone looking to buy I think its far to say I am fairly obsessed. However I am not obsessed with property, the property ladder itself, but rather the right property for us and our purposes, as part of the whole of our lives rather than an investment/plan to move forward from if that can be avoided: as such. I'm interested more in architecture than possible rental yields or price increases/falls after purchase. However, that the right property for us would potentially allow me to work in my field it would potentially provide an income, and it would be disingenuous for me to not declare that, because that does impact on the viabilty of a purchase for us and is a consideration.

At the moment by far the majority of our savings are earmarked for property: and we'd go to all of them.

Mr_Matey

thriftybabe wrote: »

One thing I would not do is put all your money in your house. We did this a few years ago to pay it off and had things gone the way they are now we would have had no savings to live on!

It is tempting to invest everything once you've got a mortgage, as you can earn a guaranteed rate = mortgage rate, and that's after tax.

I guess offset accounts are the answer to your point as they give you access to funds in an emergency, but I'd still consider that investing in property as opposed to shares, bonds etc.

Really2

Mr_Matey wrote: »

I guess offset accounts are the answer to your point as they give you access to funds in an emergency,

I have now done the above it is great. It is a great way to manage your mortgage that is for sure.

Davesnave

We are not property-obsessed, but like LIR, we have been running a business from home for years. When we outgrew the last place, it was important to find something that would not be outgrown for the next 20 years. Now we have that paid for, there's still money in the bank, but we'll use most of it, either improving or adding a little more business potential.

I agree that it's important to have a reserve fund that's more or less untouchable, so we have that too in ISAs etc. I don't think too much about that money, or else I might be tempted to dip into it.

Broken_hearted

My house is my home once its paid off I will feel safer to take risks again.

lemonjelly

I'm not obsessed, but hope to own a home that makes me happy, ticks the boxes (whatever they are at the time - they keep changing) and is value for money.

My savings/investments are not solely for the future house purchase.

I'm interested in the economy because of the social implications for us all, particularly myself, and all the people I work with (I work in advice, and most of my clients are students).

PasturesNew

I am not obsessed, but being single and usually/on average on low pay I just want to make sure I don't end up alone in a damp rented bedsit. At least if you own your own home, one day the "rent" stops and you can make changes to it that make it nicer.

bumpoowee

Well I follow property prices etc fairly closely as will be looking to buy in next couple of years (waiting to see what happens after Tories get in first). Once i've bought somewhere I won't bother following it, I just want a home to bring up my daughter and don't care if I make/lose paper money once I have that.