12 reasons to not buy a house

Lewis1967

1) you need somewhere to live.

BUT REALISE YOUR HOUSE IS NOT AN ASSET, ITS A LIABILITY.

2) there is a risk with every purchase in your life that you will over pay.

Not so if you rent now waiting for the bottom of this property bear market.

3) its yours and the banks, banks dont want houses they want money, if you cant pay the bills you still have 6 months before they can kick you out. (reality if reach the point of nominal income as long as you contribute you wont be removed from the property (e.g £1 a week) )

Its never yours even when you pay the mortgage off. Property in any country belongs to the government and they charge you tax on it. Unlike silver bullion in your possession which is private.

4) its your house, you can add to or subtract from it what you want, you can change the skirting board / doors / room lay outs.

Yes what a stress that you dont have when you rent you give your LL all that worry.
If you rent you just call the LL when you need a new fridgefreezer or washing machine.

5) Once you start paying the mortage your debt liability starts reducing.

You mean the bank gets to charge you interest on the fiat currency that was just created out of thin air when you signed the mortgage contract. But you still have to maintain the property.

6) in 20 years time your house will be worth more than you paid for it 95% of the time

Maybe the price will be more but that does not mean it has gone up in value.

7) Greeks going bankrupt arent going to cause you to loose your house.

But the crisis will bring an end to cheap easy credit which will stop propping up high prices

8) If you wish to move somewhere else you sell your house your house is only ever worth what someone will pay for it at that point in time ( same as your car you fridge your PC and your mobile phone )

And it costs thousands in agent and solicitors fees, not to mention surveyers.

9) Houses will eventualy crash they will also recover, as will stock markets and gold prices and anything else that sufferes panic purchasing.

You mean Property goes from overvalued to undervalued and back again, same as gold and other asset classes. So when gold is cheap (now) buy gold when houses are cheap buy houses. (in a few yrs when we touch bottom)

10) just because your house was worth £10 million yesterday and £10 today doesnt mean you want / need to sell your house.

But it hurts paying mortgage on neg equity. Renting you can sleep well at night even in a property bear market.

11) Its a house buy one when ever you want they are always for sale there isnt a shortage

Yes there are over a million empty houses in the UK.

12) over pay your debt obligations and you will reduce your risks (in any market).

Reduce but as property falls further risks increase.

roswell

ok the choices are choices you make them or you dont, you get lucky or you dont just agree to differ.

dont forget cradit crunch 1 started in 2008 ... is the market flooded with cheap properties yet - NO, are interest rates very low YES does this give you the opion of fixed cheap credit if you have the score to access - Yes 4 years is almost a quarter of a mortgage life time ...

gold is far from a sound investment its just a bubble as house prices were / are / may be, funny thing is house owners dont believe there houses are over valued, gold holders dont believe gold is over valued and 99% of all turkeys recon christmas wont happen this year.

dont get me wrong I hold investments in property funds, I hold equities, I hold bonds and i recon .... I have no idea whats going to happen in the future, i dont really care I have a very bsic income but made some wise choices and regardless of my choices I have made some money along the way and lost some money along the way but nothing i have ever done has turned me to think that tin hats and mad max are going to happen because some greeks dont pay taxes and never will. Or house prices taking a dive really make any differance on a whole.

Look at our current high streets shops that were bad have gone, shops that didnt progress went to the wall, shops that over supplied a single sighted mindset.

Next up will be cash for gold pop up shops ( thankfully )

Houses have been repoed off people that made bad decisions but not off the 90 % of the public that so many wish to happen just so they themselves can own those bricks and cement that are in no short supply.

most importantly a house is a house, its not a pension pot, its not a asset its a basic requirement of life, if you want your own buy it, if you dont rent it goes for electical good, cars, agriculteral land, companies (make your own or get shares in others)

nearlynew

Owning your own home - mortgage free - is a major step towards financial and emotional security.

However, achieving this is getting harder and harder.
And as it gets harder, the bank gets richer and people get poorer.

I own my own home, mortgage free. And the number one reason I am in this position is the fact that I was born at the right time.

roswell

nearlynew wrote: »

Owning your own home - mortgage free - is a major step towards financial and emotional security.

However, achieving this is getting harder and harder.
And as it gets harder, the bank gets richer and people get poorer.

I own my own home, mortgage free. And the number one reason I am in this position is the fact that I was born at the right time.

:T Its also mental attitude that makes the differance, while im not saying its easy there are those that are on the early side of 30 that are almost mortgage free and there are those at the other end of 35+ looking for there first mortgages.

ruggedtoast

I think all this thread proves is that being rich is better then being poor.

Most people are paying a mortgage or rent each month because they aren't rich enough to provide themselves longer term security. For most of these people buying seems to offer security than renting.

Being made unemployed and not being able to look for a new job in the next town because its too far to commute, and the bank would rather you went underwater than give you permission to let, is just another worry like settling in somewhere, getting the kids happy in a school and then seeing a Section 21 flop onto your doormat 4 months later.

Neither are really satisfactory but most people have to compromise, and when they do they generally decide a mortgage and the choice to paint the nursery is a bit better. House prices, and rent, are much too high and are being artificially propped up to benefit a particular section of society.

bungle4by4

damm, all these things ill have to worry about when my house is paid for... and the money i dont pay in rent means i can retire 6 years early... what a total bummer. think ill sell up immediatly and give my money to someone else for the rest of my natural life.

Ronaldo_Mconaldo

B_Blank wrote: »

1, Dont have to get buildings insurance
2, Dont have to pay to repair things like water leaks/the roof
3, If they build a nuclear power station next door you can just move
4, if they build a land fill site next door you can just move
5, if the area turns into a ghetto with high crime you can just move
6, You can search for work across a wider geographical area
7, Your not tied down to a single location for 30 years
8, you dont have to pay interest to a bank for 30 years
9, If you neighbours are awful you can just move
10, You dont have to worry about subsidence and other such issues
11, You dont have to worry about the bank/government raising the interest rates you pay
12, You never have to go through the whole buying/selling process which is a nightmare and very expesnive

Simple, just rent and put a portion of your portfolio into property funds. Then your exposed to property so you wont "miss the boat" if there is a dramatic increase in prices, but at the same time you dont have the annoyance of owning a home.

You do realise that you can sell a house and move to another house, don't you? It's not like you're super glued to the floor for 30 years. Also point 11, don't have to worry about rising interest rates if you rent? Really? So if your landlord pays higher interest he'll just take it on the chin and never ask to put the rent up?

Lewis1967

roswell wrote: »

ok the choices are choices you make them or you dont, you get lucky or you dont just agree to differ.

dont forget cradit crunch 1 started in 2008 ... is the market flooded with cheap properties yet - NO, are interest rates very low YES does this give you the opion of fixed cheap credit if you have the score to access - Yes 4 years is almost a quarter of a mortgage life time ...

gold is far from a sound investment its just a bubble as house prices were / are / may be, funny thing is house owners dont believe there houses are over valued, gold holders dont believe gold is over valued and 99% of all turkeys recon christmas wont happen this year.

dont get me wrong I hold investments in property funds, I hold equities, I hold bonds and i recon .... I have no idea whats going to happen in the future, i dont really care I have a very bsic income but made some wise choices and regardless of my choices I have made some money along the way and lost some money along the way but nothing i have ever done has turned me to think that tin hats and mad max are going to happen because some greeks dont pay taxes and never will. Or house prices taking a dive really make any differance on a whole.

Look at our current high streets shops that were bad have gone, shops that didnt progress went to the wall, shops that over supplied a single sighted mindset.

Next up will be cash for gold pop up shops ( thankfully )

Houses have been repoed off people that made bad decisions but not off the 90 % of the public that so many wish to happen just so they themselves can own those bricks and cement that are in no short supply.

most importantly a house is a house, its not a pension pot, its not a asset its a basic requirement of life, if you want your own buy it, if you dont rent it goes for electical good, cars, agriculteral land, companies (make your own or get shares in others)

"cradit crunch 1 started in 2008"

We are in the same crisis, we never got out of it the first time. The reasons are still there but have been put off into the future. Every time they postpone they make the problems worse.

DaddyBear

nearlynew wrote: »

I own my own home, mortgage free. And the number one reason I am in this position is the fact that I was born at the right time.

:T:T Well done sir. Its not often you get this level of insight from the 'lucky' generations.

roswell

Lewis1967 wrote: »

"cradit crunch 1 started in 2008"

We are in the same crisis, we never got out of it the first time. The reasons are still there but have been put off into the future. Every time they postpone they make the problems worse.

4 years so what this is the new reality this is life welcome.