Has it worked out for you

pbouk

I am currently in the position now to buy a home, CASH! no mortgage. i think if i had bought a few years ago i would have had the idea to just pay it off over the normal 20-25 yrs and pay for the house twice with interest charges, but because i had the instinct that the bubble was going to burst i just decided to save a good deposit which has now grown into a very big deposit, to the extent that i wont need a mortgage.

just wanted to know if it has actually worked out better for you guys?

B_Blank

I would still get a mortgage. Maybe a 30% LTV mortgage. Just to hedge your bets against government interference and the markets. You should diversify between debts and savings, and you should diversify by having your cash in different places (not 100% in a house).

Just my view of course, and what I intend to do.

shortchanged_2

B_Blank wrote: »

I would still get a mortgage. Maybe a 30% LTV mortgage. Just to hedge your bets against government interference and the markets. You should diversify between debts and savings, and you should diversify by having your cash in different places (not 100% in a house).

Just my view of course, and what I intend to do.

Sorry but I don't really see your logic B Blank.

Debt accrues interest which inturn means more to pay back.

shortchanged_2

SUFFER_THE_LITTLE_GHOULS wrote: »

Buying a one bed flat in stabsville for cash does not equate you to being a home owner.

Are you jealous because you are mortgaged up to the hilt and are bricking it if interest rates go up by 0.25%.

B_Blank

shortchanged wrote: »

Sorry but I don't really see your logic B Blank.

Debt accrues interest which inturn means more to pay back.

Too simple a view.

Firslty, maintaining some money in savings/investments rather than tied up in your property gives you flexibility.

In addition, savings and investments income might out way the interest you are paying on the debts. At the very least they will cover a portion of the interest.

shortchanged_2

B_Blank wrote: »

Too simple a view.

Firslty, maintaining some money in savings/investments rather than tied up in your property gives you flexibility.

In addition, savings and investments income might out way the interest you are paying on the debts. At the very least they will cover a portion of the interest.

I can partly see your point but don't forget many investment carry a risk.

Sorry but I would rather be mortgage free any day and then invest the money that I would be paying towards a mortgage elsewhere.

But then I am no financial wizard I just prefer more security as I am not the gambling type.

nearlynew

pbouk wrote: »

I am currently in the position now to buy a home, CASH! no mortgage. i think if i had bought a few years ago i would have had the idea to just pay it off over the normal 20-25 yrs and pay for the house twice with interest charges, but because i had the instinct that the bubble was going to burst i just decided to save a good deposit which has now grown into a very big deposit, to the extent that i wont need a mortgage.

just wanted to know if it has actually worked out better for you guys?

Good for you.

Owning your home outright is a major step towards financial security.

Best of luck and don't forget to haggle on the price.
Start at about 30% off asking price and work from there.

B_Blank

shortchanged wrote: »

I can partly see your point but don't forget many investment carry a risk.

Sorry but I would rather be mortgage free any day and then invest the money that I would be paying towards a mortgage elsewhere.

But then I am no financial wizard I just prefer more security as I am not the gambling type.

Not if you get a mortgage where you can pay off a huge lump sum whenever you want

shortchanged_2

B_Blank wrote: »

Not if you get a mortgage where you can pay off a huge lump sum whenever you want

Not many of those penalty free though is there.

B_Blank

shortchanged wrote: »

Not many of those penalty free though is there.

They might be more likely if you prove you have enough money in savings.

originalmiscellany

If it was me, I'd pay it off in cash and enjoy my life! I'd set up a mortgage amount comparable to what I would be paying and save that every month to ensure I am saving for the future and still living within my means. The freedom to know that I don't owe any money must be the most amazing feeling - lucky you and well done, but don't forget to keep on saving, and as stated above have it in a variety of saving schemes, not all penny shares on ponzi schemes