At 45 should I be a MFW?

GettingThingsDone

Hi smf2 - I hope my 'making you think' hasn't made you lose any of your focus.

I think a few posters on here have hit the nail on the head - what is it you want out of life? For example, are you looking to move to a more expensive property because it's in a better area and you'll stay there for the rest of your life, or are you looking to maximise your property 'wealth' so that you can downsize and live off the rest of the proceeds?

I think that's what I was saying before, it's all down to your circumstances and desires.

Also, expectations about property prices are becoming an increasingly important factor - if prices are starting to level out or fall in the area you wish to buy then DD's plan makes good sense (yes, you did read that right) as you will have plenty of cash to tempt eager sellers with. Especially if interest rates keep climbing too.

If you live in a £650K house already, I'm sure you know what you're doing when it comes to buying and selling property, and you're old enough to remember that house prices fall as well as rise Timing and luck have their part to play.

gtd

MissKJ

Don't forget, bigger house means bigger overheads, and usually harder to sell when you come to downsize. But if you want further property investment, why not buy a nice holiday home and the rent when oyou aren't using will contribute towards the running and mortgage costs. You are in a fortunate position of not having to rent it to cover costs, so what ever you make would be a bonus to you.

GettingThingsDone

Good point MissKJ about the holiday home. My mother is a MFW (not on here I hope!) and has just returned from her 'ruin' in Italy and will rent that out when she's not over there.

She is now down-sizing in the UK so that she will be completely MF; unfortunately one of her pensions was stolen back in the 90's so she's a bit behind where she 'should' be, if you see what I mean.

She started this plan in her early 50's and it has involved a bit of over-paying and a bit of property speculation.

@FC - 'tis gone

setmefree2

Hi,

Many, many thx for your replies. I know things can get a little "lively" on this board but I really appreciate that, as there are lots of opinions to make me think. We don't have a particulary swanky lifestyle. We live in London and everything is expensive. Like all Londoners "I love this city" but we all crave more space. However, it's more about how I see my life in 5 to 10 years time. I want to be happy above all else (don't we all!:D). I want my 50's to be fun. Travelling, visiting friends and having a laugh. :jYes, having a laugh like I did in my 20's. So I suppose having a mega mortgage hanging around my neck doesn't seem like fun.:rolleyes: Also, we want to be able to help our kids through Uni and getting on the property ladder themselves. They are 14 & 11. It's striking a balance as I don't want to become risk averse either. I want my cake and eat it!:rotfl:Do you think big houses can make you happy?

duchy

I think I'd be spreading my eggs out of one basket....If you want to stay in property and are confident (and like where you are now) then would an investment second property be a better bet ? Otherwise what you would be paying in new morgage could be spread betwen several investments -depends if you are prepared to gamble a bit -both investmentwise and also whether you consider the property market to be a gamble at present or not.
Of course buying a property where your kids go to university so they have somewhere to live and rent from other students offsets all/some of the mortgage can work. My brother did this as a mature student for himself and kept the house another three years after graduating as it just seemed to let itself and then sold quickly at a very nice profit. His financial thinking was to avoid living in halls (a week of halls living got him into the estate agents ! ) and simply cover the mortgage-the increase in value he regarded as a unforcastable bonus. This would work especially well if they are taking a gap year so you know ahead of time where they will be studying.
As for Do big houses make you happy.........My answer is no-but then I don't like housework and would spend my money on travel rather than a bigger house (I have no mortgage on a tiny house with a big garden-I honestly wouldn't consider anything bigger that requires more dusting, vacuuming and maintanance ) I don't ever regret not having a big mortgage-my son will be off to uni in three years and I'll be able to help him more without a mortgage to consider