Celebrate 15 long years today on HPC

westernpromise

Meanwhile poor old AG47 is having a torrid time. No sign of a house price crash, but his Bitcoin "investment" appears to be going down the tubes:
https://www.telegraph.co.uk/technology/2018/08/15/bitcoin-price-falls-5000-ethereum-plummets-crypto-markets-hit/

Herzlos

I've always viewed a mortgage as a decreasing rent. I probably pay about the same as equivalent rent by the time you factor in maintenance, but I also know that the mortgage payments will likely go down over time (better rates based on LTV) whilst rents will only go up, and eventually the payments will stop.

lisyloo

and eventually the payments will stop

Personally I think this is major.
I'm expecting to spend about 40 years living rent free.
That's a large help towards a comfortable retrirement.


Also if you have a large or expensive home you can downsize to free up cash or buy a second property on the continent or a flat near parents etc. etc.

gevans35

Opportunity cost.

Crashy_Time

lisyloo wrote: »

Personally I think this is major.
I'm expecting to spend about 40 years living rent free.
That's a large help towards a comfortable retrirement.


Also if you have a large or expensive home you can downsize to free up cash or buy a second property on the continent or a flat near parents etc. etc.

Or maybe you can`t......


https://www.yorkshireeveningpost.co.uk/property/property-news/property-transactions-fall-21-year-year-areas-2017/

Herzlos

You're going to have to walk me through that logic. You can't downsize because transactions are down?
That just means you might have to settle for a lower offer or wait a bit longer.

lisyloo

Crashy_Time wrote: »

Or maybe you can`t......


https://www.yorkshireeveningpost.co.uk/property/property-news/property-transactions-fall-21-year-year-areas-2017/

Certainly you have to accept that it is not a liquid asset.
You can almost always sell e.g. at auction, but you'll have to wait if you want top dollar, which of course most people do.


The same is true of most other investments e.g. stock market.
You have to sell at the market value or wait.



If it's somewhere you have chosen to live, then in general that's not an issue.


For the vast majority of people this lack of liquidity isn't a show stopper and certainly not worth paying 70 years rent vs 25 years mortgage.

lisyloo

I have a flat to sell to finance care fees.
Guess what - Local authorities know it takes time to liquidate if you want a good price, therefore they are already set up to do a deferred payment arrangement (a secured loan).
No issue here, we'll just pay off the loan after sale.

worried_jim

lisyloo wrote: »

Also if you have a large or expensive home you can downsize to free up cash or buy a second property on the continent or a flat near parents etc. etc.

Exactly this! Home ownership provides you opportunities and choice.

lisyloo

Also the opportunity to starting loading up your pension from mid-40's/early 50's so you can retire early.