Probably dumb question about whether buying a house is worthwhile

Taggo

I bought my first house in 2014, saved 5k to get me there, 95% mortgage, 85k house 2 bed, mortgage similar to what I paid on a 2 bed flat rent.

2 and a bit years later I sold for 95k, enabled me to move to a 3 bed semi, £140k mortgage, as at this stage I had 10% deposit the mortgage was actually less than my initial fixed 95% mortgage.

2 years on I sold this for £166000 and moved to a new area so I'm just about to finish renting and complete on a 4 bed detached house on Thursday.

I put peanuts in to these house, less than £1k. So a total profit of £35k, this plus the equity I built up enabled me to pay off all debt plus buy a forever home, something I never imagined just kver 5 years ago.

The current rental, is rubbish quite frankly, tiny compared to what I'm buying, and the rent is £8 less than my new mortgage.

Yes interest rates can rise yadda yadda, if they do so will rental rates, and il always need somewhere to live. Im in a better financial position than I've ever been all from buying my first home, no brainer for me.

Taggo

Won't let me edit, 2nd house cost £140k, £126k was the mortgage

_CC_

Crashy_Time wrote: »

The person with next door going for 20k cheaper than theirs, just purchased, probably wishes they had?

Probably, but if they had your mindset they wouldn't buy when it's £20k cheaper either.

The vast majority of people will be better off over the course of their life if they buy compared to renting.

Having to budget for rental payments for a lifetime, including in retirement, is a major burden that most homebuyers won't have.

Can you demonstrate how you not buying has been better for you financially and emotionally? If not, it's bizarre why you encourage others to follow your failed path.

AnotherJoe

In [STRIKE]2010[/STRIKE] 2007 back at the absolute height of the last boom I bought a small terraced house for £200k.
In [STRIKE]2012[/STRIKE] 2010 or so the same houses nearby were going for £150k.
No doubt Crashy woudl have been crowing. But as you say he wouldn't have been buying either.
Which is unfortunate for him as I sold it in 2014 for £250k
FWIW they are now around £325k.

Davesnave

AnotherJoe wrote: »

In 2010 back at the absolute height of the last boom.....

Are you sure about that date?

The last boom peaked and the Crash began in late in 2007 with the Northern Rock debacle. It hit bottom around May/June 2009, when we purchased our current property.

I remember the dates/events because both affected us greatly.

It's less clear when recovery occurred in individual places. In our former southern city it was around 2012/13 when I saw prices back at 2007 levels. As it was a highly desirable location, I wouldn't think many other places bounced back faster, London excepted.


Edited to add: The people who purchased from us did well. The houses are now selling for almost double what they paid ten years ago.

AnotherJoe

I've talked to MrsAJ and you are correct we bought in 2007. Doesn't time fly ! Definitely sold in 2014 .
Changed the dates in above post