Psychology of Home Owning

Mr_Matey

Hi all,
I have a few questions for those of you who are home owners, and those who aspire to be. I think it'd be interesting to see how owning a property changes people's perspectives. I'm not talking £, although some of these points may influence how much you'd be willing to pay for a place.

1) How did you feel when you moved in to your first place?
Nervous, elated, very drunk, like you'd "made it", a sense of belonging/identity ("this is my place"), superiority to renters (threw that one in for the Ferguses out there), ticked off one of life's "things to do", no different?

2) Has owning a home limited your choices?
* Delayed things you really wanted to do (e.g. a long holiday)
* Missed out on job opportunities because you'd have to move

3) Has owning a home enriched your life, or do you imagine it would?
* You can keep pets
* You can change things to your taste
* Sense of stability for you and your family
* Or has it been a source of angst / worry

4) How did you feel when you paid off your mortgage?
* Relief?
* Sense of accomplishment?
* "Time to get a new one and move somewhere better"?
* No different?

5) Any other good/bad things about owning that I've missed but you'd like to share?



For me right now, financial things aside (better to buy or rent, HPI/HPC, currencies etc...), I think owning a property would be more hassle than benefit.

I like being debt-free, being able to pack up and move to another place if I get a good job offer, or having the option of travelling until I get bored or the money runs out. I also like the fact that I don't get dragged down to IKEA or Homebase every weekend to get "things for the house".

I think that'll change when we settle down and have kids, but there must be a fair few potential FTBers out there with a similar attitude and the average age people are having kids is over 30. Or maybe not with the way young people are bombarded with "you should buy" advice.

I guess for me it does come down to £ in the end. The financial benefits would have to outweigh the above. So I'd only buy if it's a really good price.

Cleaver

Interesting post. My answers...

1) How did you feel when you moved in to your first place?
Happy, excited, nervous, giddy. However, we felt this when we moved in to our first rental place together - I think getting a new place is fun regardless of whether or not it's rented or bought. Just to point out the obvious, I felt no superiority to renters as that's a silly concept.

2) Has owning a home limited your choices?
No. One of the things we checked when we first bought, and would always check when we buy in the future, is that we can live our life how we want to and our mortgage payments wouldn't stop us doing that.

3) Has owning a home enriched your life, or do you imagine it would?
I think if owning a home 'enriches' your life you might have a bit of an empty life. It's quite nice being able to put up shelves, have your own style, etc. etc. but it doesn't impact my life in a big way. Having said this, renting again would probably annoy me a bit. No biggy either way though.

I certainly don't feel any angst or worry owning a home. I could get hit by a bus tomorrow, what's the point in worrying about something you have no control over?

4) Any other good/bad things about owning that I've missed but you'd like to share?
I could share plenty of life tips and advice that I think could enhance your life. None of them have to do with owning a house though. I can think of certain books, albums and holidays that have made my life more enriched than owning a load of bricks has.

Rochdale_Pioneers

I can think of only 2 reasons to own rather than rent - you can do what you want with it, and its an asset with saleable value . If you're not bothered about having an asset to sell at the end (assuming the market allows you not to lose money of course!) then rent. If its a flat and "buying" means owning nothing but the door keys, then rent.

Mr_Matey

I agree, moving into a new place is exciting regardless if you own.

Cleaver wrote: »

I think if owning a home 'enriches' your life you might have a bit of an empty life. It's quite nice being able to put up shelves, have your own style, etc. etc. but it doesn't impact my life in a big way. Having said this, renting again would probably annoy me a bit. No biggy either way though.

I certainly don't feel any angst or worry owning a home. I could get hit by a bus tomorrow, what's the point in worrying about something you have no control over?

I'll take that as a no . I disagree with your empty life point, though I see what you're getting at. As an example, one of my friends found it hard to find suitable pet-friendly rented accommodation and moving into his own place means he can keep as many dogs as he likes with no hassle. Currently I think he has 4, although his wife is a Vet and occasionally brings home animals.

Home-ownership can cause problems. Houses/neighbours from hell and all that. Though I'm glad to hear you haven't had such troubles.

Cleaver wrote: »

4) Any other good/bad things about owning that I've missed but you'd like to share?
I could share plenty of life tips and advice that I think could enhance your life. None of them have to do with owning a house though. I can think of certain books, albums and holidays that have made my life more enriched than owning a load of bricks has.

Fair enough, I wasn't trying to imply that property ownership is the path to nirvana.

natman

Hi, I too like this post...Here goes with my answers.

1) How did you feel when you moved in to your first place?
I am 32, I bought my first property 11 years ago so I was young and took a big risk financially I suppose, stretched myself. I fels scared and a lot of responsibility. I remember to begin with i just did not want to leave the place.But yeah felt giddy, scared and happy


2) Has owning a home limited your choices?
At the time probably yes, we wanted to travel a bit etc but put it off. But because we bought at a young age and at a time were prices were a lot lower, this has helped do things in the here and now i have turned 30

3) Has owning a home enriched your life, or do you imagine it would?
Defo. Defo. Yet only about 10 years on. i.e didnt see it coming at the time. I bought a house for 50k, and had a mortgage for 20k, 2 years ago. I recently sold my house for 150k, having a lovely profit of 130k. This did two things -
1 - help me buy a fantastic super house in a really lovely area we could not afford, but because of the risk we took 10 years ago and house prices going up, we really did well.
Also this fortune paid for a month off work going to the west coast USA and Vegas. Just Amazing. However this was not seen at the time of buying and at the present moment this would be very difficult to duplicate due to falling house prices etc. But for me my first house purchase has really been the cornerstone to my life both financially and personally...wowzers!!!


4) Any other good/bad things about owning that I've missed but you'd like to share?
I suppose negatives are maintenance , bills etc, but thats like that for most things I suppose. Though friends at the minute who have bought at poor times have now lost their homes, are in negative equity and really struggling, so theres really a nasty sting in the tail if you get it wrong. I suppose thats why the country is so obsessed.
When things go well, they go really well but when they go bad, is so so bad!!!! In my opinion timing is the key and trying to use your head rather than your heart. Be flexible and be open to comprimises!!!!

Paying off the mortgage -

I had two years ago a mortgage for 20k and savings for 20k, in theory I could of paid of the mortgage, it was so exciting just turned 30, having a 150k house and no mortgage.....................But my wife.............. found a house that was well umm so so yummy.
Big questions asked to either stay in house with no mortgage or move to more expensive house...............................Move we did.
But we are still in a fab position, though have a mortgage for 20 years!!!! darn it!!!! This was really difficult to weigh up!! so we just hope this decision pays off in the future as well as today!!!

silvercar

Good thread, OP.

1) How did you feel when you moved in to your first place? elated, like you'd "made it", a sense of belonging/identity ("this is my place"),

2) Has owning a home limited your choices?*
Not at all. Bought where we want to live long term.

3) Has owning a home enriched your life, or do you imagine it would?
* You can change things to your taste.
* Sense of stability for you and your family -very important

4) How did you feel when you paid off your mortgage?

* "Time to get a new one and move somewhere better", OH's view and I gave in :rolleyes:


5) Any other good/bad things about owning that I've missed but you'd like to share?Buying young enabled us to afford a bigger home sooner, which enabled us to have kids while still young (ish). (Sorry to anyone offended, but I wouldn't have had kids before having a secure home to bring them up in.)

wageslave

When I got the keys to this house, I came in and sat in a corner and cried like a frakking baby.

It wasn't the first house I had owned but it was the first house that was just mine.

I didn't feel that I had limited my options, I felt that I had finally did something right.

Home ownership is weird, it really isn't about the money

phil_b_2

I've owned my own home for nearly 2 months now ( I use the word 'own' loosely as I do have a mortgage). While I feel pretty good about it, now that the honeymoon period has worn off I dont really feel much different to when I was just sat in my rental before it if I'm being totally honest. It's just a place where I live but with perks.

I'm currently redecorating quite a few areas which is great after not being able to do anything to rentals. I enjoy the 'project' aspect of it and it beats just being sat watching rubbish TV!

My mortgage is actually cheaper than what the rent was so I'm no more limited when it comes to holidays etc.

I think the time I'll really feel accomplishment and and a great sense of satisfaction is when the mortgage is fully paid off, and not before. That will be a great day indeed.

amcluesent

1) How did you feel when you moved in to your first place?
I started to worry that the "wrong sort" would move into the street and lower the tone and reduce house prices with their loud musics and cooking smells

2) Has owning a home limited your choices?
Yep. It a real millstone and binds you to a place when you're looking to go up the career ladder.

3) Has owning a home enriched your life, or do you imagine it would?
No, it's a load of bills coming in all the time, always something needs fixing, council tax shooting up etc.

4) How did you feel when you paid off your mortgage?
Pretty sick when I slogged away at work to pay it off and now see menageries of chavs & "seekers" waltz into a house, all paid for on my council tax. You need to know that socialist taxation policy is now to take 100% of the capital value of the house in tax over your lifetime; it's not a pension, it's a milch cow for the taxman.

CloudCuckooLand

Rochdale_Pioneers wrote: »

I can think of only 2 reasons to own rather than rent...

Not having to pay rent throughout retirement...?

HAMISH_MCTAVISH

Good thread.

Mr_Matey wrote: »

1) How did you feel when you moved in to your first place?

Delighted. Even then, I knew that buying a house as young as possible was the best start in life you could have. Leading to the lowest possible lifetime housing costs and therefore the best quality of life and financial security later on, when the mortgage was paid off whilst still in my late 30's.

2) Has owning a home limited your choices?

Absolutely not. In fact, just the opposite. Owning a home has opened up a world of options for us, as our financial security is so much greater.

Shortly after we bought our house, we took up an offer to work overseas. We initially spoke to the bank manager, who told us we could rent the house out on a temporary basis for up to a year with no interest rate penalty. (probably different nowadays) We decided not to though, as we made sufficently more money to cover it anyway. We then spent over a decade living and working globally, but all the while secure in the knowledge that we had a home to return to at any time if we didn't like the way things worked out overseas.

3) Has owning a home enriched your life, or do you imagine it would?

More than I could ever have imagined.

I couldn't ever be a renter. I have no idea how people live with the stress and worry of wondering if their lease will be renewed, or having estate agents show up and nosy around on inspections.

Sod that for a laugh. My house is mine. I can do what I want to with it. I paid off the mortgage at the age of 38, and enjoyed the feeling so much, I went and bought a second one.

4) How did you feel when you paid off your mortgage?

A sense of accomplishment, to some extent, a sense of pride, knowing how much money I had saved myself in lifetime housing costs by not wasting years on rent, and also a sense of real security, knowing that I had the freedom to now choose whether or not to work hard, or not so hard, whether to retire early, or work as long as I wanted, etc....

But to be honest, the mortgage costs were insignificant after the first decade anyway, as our income had risen so much.

5) Any other good/bad things about owning that I've missed but you'd like to share?

Owning gives you control of your own destiny. It gives you financial freedom and security. It means you are no longer a "rent slave", and that there is an end in sight to being at the mercy of bad employers or jobs you may dislike.

I guess for me it does come down to £ in the end. The financial benefits would have to outweigh the above. So I'd only buy if it's a really good price.

Every year spent renting, is another year spent not living rent/mortgage free, and another year of rent added to lifetime housing costs.

For all but the two or so years of every twenty where prices fall more than the cost of a years rent.... Rent is a waste of money. Always has been, always will be.