Is buying a house a good idea?

Marvel1

Lauralou79 wrote: »

I rented In my 20s, went travelling, went out a lot, few big holidays. Basically had a ball. I sorted myself out in my early 30s I paid of my small debts and started saving. I met my lovely partner at 32, We bought a house 6 years later. I'm 39 this year. We have a mortgage of 47% LTV that we aim to pay of within 15 years. We have money to have holidays, save and treat ourselves.

What I'm getting at is you can do both, I'll be honest I had no plan but I don't regret the experiences I had for one minute. I loved it.

Maybe you could have a plan your obviously thinking longer term. Life is short and I'm a big believer in it should be about balance. I'm lucky the northwest is cheaper for FTB property.

It will massively depend on your salary, property prices in your area and your ability to save up in the meantime I'm just putting a different spin on things, you can buy property much later than 27 and still be secure and build for your future.

Could you have done it on your own?

jimbog

MiserlyMartin wrote: »

I used to think as you here. BUT now I have a relative who worked and saved hard all his life. He has a great pension and a had a nice house. Now he has dementia and is paying over £3000 a month in care home fees. He will be left with just £23,000 of savings before the state will pay anything.

With savings you are means tested on nearly everything and you will get zero help or benefit in hard times or ill health. Whereas if you have nothing, you get all care and benefits thrown at you for nothing. Why should you save and scrimp,? You might as well spend it, lead a happy life while you are young and healthy. The government won't fail the elderly in the future.
I've totally changed my mind.

As you say, he had a nice house - not paying a landlord's mortgage, a home he was free to do up as he pleased and enjoy without the fear of being asked to leave with 2 months notice. Now he is receiving the care he needs utilising the asset he built as his needs have changed. He's fine - it's only the relatives who lose out when it comes to inheritance.

BikingBud

artyclarty wrote: »

Whatever you decide, good luck!

I for one was not one of those people who wanted new shiny things and expensive holidays. My partner and I are now 30 and own our home outright. We have crummy cars compared to the rest of the street but we have the smug satisfaction that while they have their nice hire purchase shiny wheels, they are all renting their big brick and mortar box!

I have friends who have just bought a 1 bed in Bristol at £180k, not the best area, not the worst. I would strongly urge you if you are buying to have probably closer to £25k saved up for deposit, legal fees, moving costs and some furniture. They had £20k all in and are currently sleeping on a mattress on the floor and sitting on bean bags!

So why do people put themselves in that position?

We are sheeple letting it happen?

Why not bid what you can afford rather than feeding the fire?

jimbog

artyclarty wrote: »

Whatever you decide, good luck!

I for one was not one of those people who wanted new shiny things and expensive holidays. My partner and I are now 30 and own our home outright. We have crummy cars compared to the rest of the street but we have the smug satisfaction that while they have their nice hire purchase shiny wheels, they are all renting their big brick and mortar box!

BikingBud wrote: »

So why do people put themselves in that position?

We are sheeple letting it happen?

It's a culture thing BikingBud where materialistim has become an accepted norm. As artyclarty says there is an alternative way

MobileSaver

MiserlyMartin wrote: »

Now he has dementia and is paying over £3000 a month in care home fees... He will be left with just £23,000 of savings before the state will pay anything.

Davesnave wrote: »

Having cash and a home to sell counted for something though, because we had choices about the place where he'd end his days.

Davesnave is spot on. Only a couple of weeks ago a friend of my girlfriend was in tears after visiting the local care homes available through the state... she said she wouldn't leave her dog there let alone her father.

lookstraightahead

But do you really have more choice in care homes if you pay yourself? Most care homes are a mix of !!!8216;private!!!8217; and !!!8216;state!!!8217; customers it!!!8217;s jyst that private customers pay more. I am not against the security of choice but I am not sure how much choice you get.

ciderboy2009

sv722 wrote: »

Is £10k a substantial deposit to get a 1 bed? I'd be looking to buy in Bristol.

OP - whereabouts in Bristol will you be looking?

Here in East Bristol prices are still going up so £10k might be around a 5% - 7.5% deposit for a 1 bed flat.

Elsewhere in Bristol it could be anything from 2.5% to 10%.

Lauralou79

Cjdavies, I could get something small on my wage on my own but until I met my partner I wasn't looking to. I never was of the opinion I needed to own a house to be honest. But opinions/priorities change and I'm glad I've bought now but I don't see at as a big investment but my home which I love.
There are other ways to invest in our futures besides property. We do need to plan for our older years but also make the most of our younger years too. It's a balance and comprises do have to happen but not forever.

Davesnave

lookstraightahead wrote: »

But do you really have more choice in care homes if you pay yourself? Most care homes are a mix of !!!8216;private!!!8217; and !!!8216;state!!!8217; customers it!!!8217;s jyst that private customers pay more. I am not against the security of choice but I am not sure how much choice you get.

Yes, I visited over a dozen care homes and found there's a huge amount of choice, though it's not just about the money by any means.

My Dad would have hated the one with silver service dining, and I didn't particularly like being squirted-at by automatic air fresheners as I walked through its corridors either!

The place we chose was small, private, run by a family who cooked the meals, dined with their residents every day and did their best to make it feel like a family situation.

ruperts

I think this is probably a troll thread designed to try and prove that the reason millennial find it hard to get onto the property ladder is that they are always spending their wads of cash on all these amazing fun things and nothing to do with the cold hard fact that house prices as a multiple of income are at unprecedented levels.

That said, if on the off chance it is a genuine question then the it is totally up to you. Buying the house is probably the better option from a purely financial perspective. Going travelling will enrich your life in other ways. You can also do both as long as you build a decent career and it is much better to go travelling when you are young.