A home, or an investment?

readytofly

I KNOW this is a board about getting the most out of your money, but I cant help but notice just how many people buying home JUST as an investment or practical purchase! I thought having your own home was so that you had somewhere comfortable to live, with your loved ones around you and all your own things and not constantly worrying if you 'bought at the top of the market' or 'going to be in negative equity'. (Am i just young and naiive????)

I appreciate that we need to be sensible and not bite off more than we can chew and get behind with mortgage repayments and bills, but surely the most important thing is having a safe, happy place to live?

I can also appreciate that when you buy a small place and will eventually need to sell if your family grows that you need to be fairly sure that it can be sold on. By the same token,no one knows what will happen next (just look at japan ) and we will all be miserable cos we're not happy and worrying about our money!

Just my thoughts - all opinions (friendly) appreciated

pawlala

IMO it's both

Neil_in_Bristol

You're absolutely right, for most people there are more important things in life than worrying about whether house prices are going up or down. Events like those in Japan put it all into perspective.

There seem to be two very vocal groups on this forum though: one that thinks that prices are about to crash, and another that thinks that investing in housing is a sure-fire way to make money. I suspect the familiar names will pop up later on this thread. Hopefully nobody with any sense pays too much attention to their extreme views, though.

That said, I do have two friends who overstretched themselves to buy their houses a few years ago at a time when parents, the media and just about everyone else was urging them to "get on the ladder" at all costs. Both are now desparate to move out due to a change in circumstances and neither of them can, due to being in negative equity.

I can also understand why young people are frustrated about houses being so far out of their reach and are desparate for prices to fall.

HAMISH_MCTAVISH

Neil_in_Bristol wrote: »

There seem to be two very vocal groups on this forum though: one that thinks that prices are about to crash one that desperately want house prices to crash, and another that thinks that investing in housing is a sure-fire way to make money knows that the most sensible way to reduce housing costs for the long term is to buy not rent.

Fixed that for you.

Errata

A property can be a home, an investment and a millstone at the same time.

Neil_in_Bristol

Neil_in_Bristol wrote: »

I suspect the familiar names will pop up later on this thread.

HAMISH_MCTAVISH wrote: »

Fixed that for you.

Right on cue...

evoke

It's a home.

Houses should NEVER be investments. Sadly, the low moral standards and greed perpetuated by capitalism brings out the worst in the human race.

lincroft1710

A home is an investment in that you invest an awful lot of money buying it, furnishing it, maintaining and decorating it, paying to heat and light it, paying for its water supply and drainage/sewerage and paying your local council for the privilege of living within their jurisdiction.

casper_g

Your house, if you plan on living in it, should be bought as a home. It is where you will spend most of your time, and how you feel when you're in it will have a massive impact on your quality of life. At the same time, you should keep one eye on the building's saleability, as the day will probably come when you need to move on either to "trade up" or to move to another area. So, it's a bit of both -- an investment in your happiness and a financial investment. But financial investment should always be for the purposes of improving your life, or the lives of your family, shouldn't it?