Scared to go from deposit saving to mortgage paying..

Jay83

Sorry if this is in the wrong place but need help.

I have been saving since i was 16 from my very first part time job I am now 27. Was always saving for a rainy day and eventually my total grew. In the last 3 years i have been saving really hard, social life disappeared as a result and never spent much apart from basic needs. Now i have enough for a decent deposit and with help from family i can afford to buy a house with a mortgage but i am scared. I have been saving for so long and to go from having a bit of security behind you to nothing but a big mortgage payment every month is really scary. How did everyone adjust? I think whats hard is that i have spent my whole life avoiding getting into debt and to jump right into a big one is nerve wrecking.

loracan1

It is a big adjustment and for some people an awful shock when they've never had to budget. Some go into it with such unrealistic expectations you wonder how they'll cope when the bills start coming in.

From the sounds of it you've been level-headed and been preparing for this for a few years. I know it can be quite tough to spend when you've spent so much time saving and it's a mindset that's difficult to break out of sometimes, but you have to just go for it. A mortgage is a debt that can be justified. And I think, from your opening post, that you'll be fine!

PasturesNew

It's perfectly normal. I sold my house a couple of years back, money's in the bank waiting for me to find the next one, only I've been way too scared to spend my money, to hand it over for a house. It's "mine" now, when it's your own money you're handing over, the game changes.

missile

I like the feeling of security that comes with owning the roof over my head.

Not everyone feels that way and many have other priorities. Home ownership may not be right for you?

Bullfighter

missile wrote: »

I like the feeling of security that comes with owning the roof over my head.

Not everyone feels that way and many have other priorities. Home ownership may not be right for you?

Home ownership is a very secure feeling. Owing hundreds of thousands of pounds in the depths of the worst economic crisis in over 100 years* is a whole lot worse

Davesnave

Yes, you won't own the house till it's paid for, but if you don't start paying a mortgage, you may never own. How would you feel if you were nearing the end of your working life and still paying rent? Opting to buy is a big decision, but so are choosing a career, getting married or deciding to start a family.

There is an alternative path; you could continue saving and learn more about investment to maximise the returns on your money. Depending upon what happens to markets, you might eventually amass enough to buy a property outright, but it's conceivable that you might not. Every action, including inaction, carries an element of risk, and there's no escaping it.

Bullfighter

Davesnave wrote: »

Yes, you won't own the house till it's paid for, but if you don't start paying a mortgage, you may never own. How would you feel if you were nearing the end of your working life and still paying rent? Opting to buy is a big decision, but so are choosing a career, getting married or deciding to start a family.

There is an alternative path; you could continue saving and learn more about investment to maximise the returns on your money. Depending upon what happens to markets, you might eventually amass enough to buy a property outright, but it's conceivable that you might not. Every action, including inaction, carries an element of risk, and there's no escaping it.

Why would I want to own?

The reason home ownership made a lot of sense over the past 50 years is the inflationary environment we lived in. People ended up with a nest egg when they retired.

I believe that period is ending.

I see a long protracted period of deflation with a potentially rapid hyperinflation scenario followed by a new Bretton Woods agreement - and whatever this new monetary system looks like I doubt the average person will end up 'better off'.

With this in mind, having a huge debt over the next few decades may be a very risky position. A complete paradigm shift from the last few generations, where the property ladder was born.

This paradigm shift is accelerated by the underlying, fundamental problem of energy scarcity which will call time on our growth based monetary system on it's own.

If/when I can buy a house outright (somewhere other than Stabsville) I probably would, but I won't be taking on debt in this climate. In fact I've gone one step further - I sold to rent in January.

sinbad182

Davesnave, look at the above guys login name before attempting to engage him in an objective conversation on property ownership.

Bullfighter

sinbad182 wrote: »

Davesnave, look at the above guys login name before attempting to engage him in an objective conversation on property ownership.

Are you capable of an objective discussion? Do you have any evidence or reasoned logic to base your argument on?

Go on then...

sinbad182

I'm capable of objective discussion, yes. But then I'm not the obvious HPC troll chucking about vague theories as to why purcahsing property is such a terrible idea.

I mean, Bullfighter, !!!!!! make it less obvious lad.

Bullfighter

sinbad182 wrote: »

I'm capable of objective discussion, yes. But then I'm not the obvious HPC troll chucking about vague theories as to why purcahsing property is such a terrible idea.

I mean, Bullfighter, !!!!!! make it less obvious lad.

Why does my opinion make me a troll?

What does your opinion make you?