buying tiny place with small mortgage

NaughtiusMaximus

korvin wrote: »

I never understood why people in the UK buy 3-bed houses when they have no kids or one kid.

Different people have different priorities.

There's just the two of us in a larger than average 3 bed house, if we'd bought a small 2 bed in the same area we would have had more money for things like holidays, designer clothes, better car etc but we didn't as a spacious house is more important to us.

hazyjo

Not sure why the 'fear' of a mortgage. Yes, it's a debt, but other people will only be paying rent which is just paying for accommodation, not to own something at the end. To expect to buy cash as your first and one and only property does sound somewhat naive.


Appreciate everyone's different and really not trying to convert you lol, but I just see it as a 'roof over my head' expense, same as when I pay council tax, water rates or my season ticket loan (interest free) for my fares at work.


I borrow money in return for somewhere nice to live. The fact I will eventually lose that debt (and most people certainly lose theirs before retirement) is a big bonus. Only got £50k on mine now and not in a rush to clear it.


Where do you propose you will all sleep if only one bedroom?

Trina90

We don't have any children but live in a 3-bed, as do many others. We would like children in the future though. But in the mean time, it is space to enjoy our hobbies (both of our hobbies take up quite a bit of space! We aren't planning to have a mortgage for 25 years, which is why we're overpaying - and we aren't exactly on great money (and in quite an expensive area!)

Thrugelmir

korvin wrote: »

thank you for your answers. I just guess we have a different lifestyle. I don't want to have a mortgage for next 25 years, maybe that is my fear.

Far enough. There's no harm in moving up the property ladder in stages. Rather than burdening oneself at the outset.

comeandgo

There is just the two of us but we have more than 3 bedrooms. We have our friends and families over to stay and they come regularly knowing they are causing us no hardship by staying, they have their own bedrooms and bathrooms.
My house is much more than just living space, it is my sanctuary, my home, a place I love to be in. So what if I had to pay a mortgage for twenty years, I could afford it.

Silvertabby

“ I never understood why people in the UK buy 3-bed houses when they have no kids or one kid.
Originally posted by korvin

NaughtiusMaximus wrote: »

Different people have different priorities.

There's just the two of us in a larger than average 3 bed house, if we'd bought a small 2 bed in the same area we would have had more money for things like holidays, designer clothes, better car etc but we didn't as a spacious house is more important to us.

Exactly. We (also just the two of us) originally thought we wanted a 3 bed, but only the 4 bed option gave us the must-have of a separate utility room. No regrets - master suite, guest bedroom, study and hobby room - plus extra space downstairs. We're certainly not 'rattling around' in a too-big house!

BrassicWoman

single, 2 bed flat, no mortgage, my study has a fold up bed I use when have house guests.



Used to have a 4 bed house. Hated having to garden, and I feel less weighed down with less stuff now.



I would not change; but I'd have 2 beds if I were you for when they are teenage...

eddddy

korvin wrote: »

thank you for your answers. I just guess we have a different lifestyle. I don't want to have a mortgage for next 25 years, maybe that is my fear.

I guess it depends what you think the long term outlook is or property values in your area.

Many people see a mortgage as something that helps them make money - perhaps building a bigger pension pot.

If you're paying mortgage interest at, say, 5% per year, but your property is increasing in value at more than 5% per year - you're making a profit.

(Although there are also the running costs associated with owning a bigger house.)

So when you eventually retire, sell and downsize - you'll have more spare cash as a result of your mortgage.

hazyjo

Anyone familiar with the Mexican fisherman story? I often quote it as actually don't saddle myself with masses of debt to keep up with the Joneses, and am SO happy with where I live and what I have. I think the OP might enjoy it


https://screeble.com/2017/02/fisherman-meets-businessman-story-simple-things-life/

tori.k

korvin wrote: »

Hi people!
I can see a lot of people trying to pay off their mortgage. My husband and I are thinking in a different direction, maybe completely crazy.
We have £40 thousand saved for the deposit, but we were thinking about buying just a 1-bed apartment for £80-100k so that we can repay it as soon as possible.
We have a pre-school son, and we are aware it will be a challenge to live in such a small space, but wouldn't it be worth it? Achieving freedom early on? and not buying something that we actually can't afford? I never understood why people in the UK buy 3-bed houses when they have no kids or one kid. Is there really so much need for space? I guess people in other countries live in much smaller places.

Is it the cheaper long term option, apartments have on-going service charges & ground rents and leases that end up needing to be renewed. A freehold house is just maintenance.
The UK build the smallest houses in Europe often a reason people upsize in newer builds.