Bricks and Mortar or Rent and Save

blue_boy

This is not a house-price thread.

My own personal bubble is about to burst.

Just a thought.....

Why do we in this country cling to the idea that wealth must be based upon bricks and mortar - to the point of struggling to make the mortgage, secured loans, credit card debts, loans, etc, etc?

I have a decent salary, (one which is probably more than a lot of families joint income) have been a house owner for almost 10 years, an ok mortgage (probably about half the house value), but a secured loan and many many other debts. I used to think managing debt was the key, but now I'm not sure. If I were to sell (if I could), pay off debts and rent instead I could make a very decent stab of making money instead of paying interest and helping the banking sector's more than healthy profit. You never know I could even then buy a cheaper property as a rental opportunity. I would be happier, my family would be happier and we would be able afford normal everyday things without wondering where we get the money from.

raq

I often think the same.

We had a tiny mortgage 3 years ago, just like a car loan and then we moved. No regrets as it is lovely round here but our mortgage more than doubled, plus the 5 lots of interest on top but amazing how we manage. Ours is the same average size mortgage on a property that is double in value. We did overstretch ourselves but it has been worth it in the end and thankfully my husband is now in a better paid job to put money aside for those rainy days ( plenty of them to be honest ). We never had this luxury before.

GeorgeUK

I think alot of it is to do with the way some of the rental market operates. If you want a home - longterm, then there are no guarantees about your lease renewal. If there are problems with your house, you fix them rather than waiting for someone else to get round to it (IF they get round to it).

I think for alot of people it boils down to more than just financial security, but feeling secure that they can plan ahead for the future without worry about the removal costs, how long they may be in the property, Rental increases if the area becomes popular etc.

Scarlett.1974

It's a very interesting point. I've always been of the thought that this house we're in now means everything to me and that I would fight with all I have to keep it. However, we're now seriously considering BR, handing the house back (so to speak) and renting instead.

It IS just bricks and morter at the end of the day. Slightly twee, but it's the people in it that make it a home, not the house itself. I know we could be much happier in rented, the albotross of debt that's hanging around our necks draining the very life from us would be no more.

An interesting thread

Jacks_xxx

We-ell I've never really given this much thought so forgive me if I think aloud for a bit..

Our mortgage is about £760 a month and although we incurr all the cost of the house upkeep we'll also hopefully make a profit at some point to help us with the costs of moving when and if we decide to.

Whereas...the identical house next door rents for £1100 a month plus a £2000 security deposit and when the owner comes back from his travels around the world the family who live there might be kicked out, and have to move. They definitely won't have made a profit, and may not get all of their security deposit back.

My mortgage is the only debt we've got that I like.

The money we pay on the mortgage went on an essential - a place to live - whereas most of our CC debt went on considerably less vital items.

When we finish paying the mortgage we'll have a house.

When we finish paying off the other debt we'll have long forgotten what we spent it on.

I'm a fan of bricks and mortar I think.

What's going on with your bubble?

Love Jacks xxx

andan

As someone who is renting i find it frustrating that i am paying someone elses mortgage rather than my own. If it wasn't so difficult for first time buyers then i would happily buy a house but mainly for financial reasons such as my money not going to waste and having a house at the end of it.

In a lot of ways i do like renting though, if something goes wrong within the house such as the boiler breaking down, i don't have to pay the expense and due to us being with a well known letting company they are constantly checking the property and making improvements and ensuring standards are maintained.

I also don't have to worry about increases in mortgage rates and if things becoming unbearable in the neighborhood i'm living in or i get bored where i am, then i have the freedom to get up and go.

Just my opinion!