Rich People in Big Houses

Mr.Brown_4

Would you rather..

Own a 100k property outright?
Have a 100k mortgage on a 200k property?
A 200k mortgage on a 300k property?
Or a 300k mortgage on a 400k property?

The point is, which is richer. Or just has the appearance of it. With a lot of worry.

What do you think rewired?

ess0two

Or how about its my home and it does'nt matter what i pay or what its worth?

Masomnia

Assuming they have the income to service the debt, they're all as wealthy as each other, just going off house values anyway.

Being honest I'd choose the last one, assuming I had the income and job security, I want a nice house! Sorry!

PasturesNew

Mr.Brown wrote: »

Own a 100k property outright?

It's yours then and if your boss is an !!! you can tell them to stick it up their jumper and find something else without worrying about where the money's coming from to pay the mortgage.

Mr.Brown_4

ess0two wrote: »

Or how about its my home and it does'nt matter what i pay or what its worth?

It's about people's attitude and comfort with debt. Also about how appearances can be deceptive - big house does not mean wealthy, it can (to borrow from nearlynew) just mean a large debt. In troubled times, in fact in any time, I would prefer a smaller debt. Showing off is not so important.

ess0two

Mr.Brown wrote: »

It's about people's attitude and comfort with debt. Also about how appearances can be deceptive - big house does not mean wealthy, it can (to borrow from nearlynew) just mean a large debt. In troubled times, in fact in any time, I would prefer a smaller debt. Showing off is not so important.

Suppose it depends on your personality then.

ukcarper

Bit of a silly question I could sell my detached house and buy a terrace and have no mortgage but after being plagued by noise in a semi I am reluctant to move back into one. I would obviously like no mortgage but in this life you have to pay for what you want.

whathavewedone

Well they all have 100k invested in property so they are all as "rich" as one another.

As to what you would prefer, well that depends on whether you're a family or a single person and whereabouts you live in the UK surely?

If we could afford a decent house for our family for 100k then obviously we'd rather live in one and have no mortgage. Unfortunately where we live the 400k house and 300k mortgage is most suitable option (and actually pretty close to our own situation!)

100k where I live would only buy a one bed flat and probably not a particularly nice one at that. Not really feasible for a family of four and even if I was single I'd rather take out a small mortgage to buy a nice one bed flat.

I think it's a bit unfair to say people who choose the last option want to "show off". Maybe they just want a decent sized house and garden for their family in an area of low crime with good schools? I daresay in some parts of the UK 400k buys you a large house with wow factor - where I live it buys you a 4 bed semi.

kriss_boy

Id prefer the 200K house with the 100K mortgage.

Im only 26 so plenty of time to pay off the 100K.

sjaypink

£100K mortgage in a £200k.

I'd be more than happy with a £200k house, and very happy with only a 50% mortgage :A

mbga9pgf

ess0two wrote: »

Or how about its my home and it does'nt matter what i pay or what its worth?

Thats great, up to the stage that when FTBs complain they are priced out of basic family homes, fetid people say "Work for it like we did(nt)"

In response to the OP, facing a highly inflationary environment, I would prefer a 100K deposit on a 1 Million pound home.

Facing a Deflationary environment (like I suspect we are) then I would prefer to rent and stow as much cash as possible.