Own a house - you're working for nothing.

Wheezy_2

PasturesNew wrote: »

So I made £2k last month by not owning a house.

Thanks for this very MSE idea. I will consider selling our house to increase our monthly income by £2K.

baby_boomer wrote: »

And the peace of mind that comes with it . Like knowing where your kids are going to school next year.

And you can have a doggie

Batchy

Lets just compare...

You own your home house price falls... so what... it doesnt matter what home you own, the value would technically be falling, take the good with the bad. RESULT... do nothing live in it like your supposed to and dont worry about the value until you have to, ie remortgage or relocation.

You dont own a home, your renting, house price falls, landlord decides to get out quick and reduce his exposure, he puts it up for sale, forcing, you to make a move you never thought youd have to make, RESULT... moving house, one way or the other and all associated costs and hassle.

You dont own a home, house prices are falling your living with rents, who own a house, Your the beneficiary of the house, when they die its yours, its worth a lot as they brought big when prices were low, RESULT... you losing twice as much as everyone else, plus your still living with the rents, cause you havent let them downsize yet, so you lost twice as much of your inheritance,... feeling guity yet?

wymondham

des_cartes wrote: »

http://www.telegraph.co.uk/finance/personalfinance/8092471/House-prices-drop-in-value-by-more-than-average-salary.html

It's the bricks and mortar cash machine in reverse. If you own a house in 2010, it is losing value faster than you can earn money.

all irrelevant isnt it? You need to live somewhere - who cares if the value goes down so long as you can afford to live there.

ska_lover

Why do people resort to name calling on this type of thing? This was obviously posted as a serious debate, but has resorted to playground chat!

FTBFun

ska_lover wrote: »

Why do people resort to name calling on this type of thing? This was obviously posted as a serious debate, but has resorted to playground chat!

I don't believe so - the OP has disappeared after throwing a few spiteful comments around.

Loughton_Monkey

des_cartes wrote: »

It's the bricks and mortar cash machine in reverse. If you own a house in 2010, it is losing value faster than you can earn money.

This is an interesting one for me!

I have retired, and live in a mortgage free house*. I have owned a house for 37 years, 32 of which were years in which I worked. I have kept detailed accounts of salary (to the penny) and house prices/equity (sensible estimation) every year.

My statistics reveal the following:

- Out of the 32 years, 27 years showed a positive house appreciation.
- The average percentage (of my salary) that I made in equity over the 32 years was 42.75% (this includes the negative years).
- In 3 of the 32 years, the house 'profit' exceeded my salary.
- My current house is valued, today, at 57% of the total amount of salary I earned in all 34 years at work.

So only 5 years of showing a "loss". Had I at any time used this information to come out of property, or indeed decided not to buy because of a temporary 'blip', then I would be significantly poorer than now. I do not consider this to be bad performance, even taking into account that I bought a house in 1988, and sold it in 1997 for precisely £2,000 more than I paid for it.

If I was stupid enough to have listened to what I call the "Brain Dead sensationalists who know only how to predict in straight lines", then at some periods of my life I would have been destined to be a pauper, and at other times, a property multi-millionnaire.



*PS This is 'technically' not true. I had my Offset Mortgage fully paid for a number of years. I have taken it all out because I can invest it at a higher rate than my mortgage rate. So for all practical purposes, Mortgage Free.

olly300

baby_boomer wrote: »

Even if property prices fall, you've earned the right not to be kicked out by your landlord with one month's notice with all the attached removal and relocation expenses .

Not true.

Landlords have to give 2 months notice due on rent day. And you can delay moving out until they go to court giving you up to another 6 months during which time you can trash the house and be behind on the rent. You can also annoy the neighbours if you want to as well.

Now what is true is that lots of people have repayment mortgages so the amount owed on their property decreases every year.

borntobefree

des_cartes wrote: »

It's the bricks and mortar cash machine in reverse. If you own a house in 2010, it is losing value faster than you can earn money.

Property in my area is up 10% YOY:D

MRSTITTLEMOUSE

I don't know about anybody else but I bought a "home",not just a bricks and mortar house.
I don't care if it depreciates as so will everybody elses,so if I want to move houses will be cheaper anyway and I won't lose out.
As I've already said my house is my home not a "cash cow".
Most people don't care what their homes are worth,don't give it a second thought.
It's certainly not been something that comes up in conversation.

des_cartes

MRSTITTLEMOUSE wrote: »

I don't know about anybody else but I bought a "home",not just a bricks and mortar house.
I don't care if it depreciates as so will everybody elses,so if I want to move houses will be cheaper anyway and I won't lose out.
As I've already said my house is my home not a "cash cow".
Most people don't care what their homes are worth,don't give it a second thought.
It's certainly not been something that comes up in conversation.

This forum is called money saving expert. The largest expense anyone is likely to make on a house. The Daily Telegraph article about wiping out average earnings by falls in house prices should be seen in the context of money saving for potential house buyers. Anyone foolish enough to consider buying a house now needs to ask themselves, do I really want to spend the next year working for nothing? Of course for those who have recently bought it is now too late, but they do have the consolation of being able to have a dog and have a stable home (at a cost).