Buying a house without a mortgage

Frugaldom

Kingmonkey, sorry your jalapenos got frosted, butterfly I was just responding to cashsaver's comment about their allotment but with prices the way they are, I may end up only ever saving enough to buy a small caravan and a veggie plot.

Hope your herbs are doing ok, I think my parsley succumbed to dampness in the foundations resulting in irrepairable structural damage. :rotfl:

Frugaldom

Can anyone believe that it's time for the first interest payments to be made on the new ISAs already? :j Time is flying by, and I'm clicking and refreshing in a sad sort of a way to see my balances update. I can't wait for the day that I can earn enough interest to cover my rent until I can buy a house! I should be about half way to covering my grocery challenge this year. :rotfl:

Frugaldom

Progress report:

Stage 1 - 100%
Stage 2 - 100%
Stage 3 - 3.38% <<< a silly number!! I need £306.12 to reach 4%

Ciggie savings/garden fund is growing slowly at a rate of £1.35 per day
I increased the daily amount to reflect the latest price increase.

Interest beater challenge is tax free income being 'earned' to compensate for the interest lost by having to pay my £4000 p.a. cost of living. It's being used to pay for my tax free friendly society bond, which incorporates life insurance, so I don't count it in my house challenge.

Hope everyone is sticking to their guns on the savings plans.
Enjoy holiday weekend.

wisbech_lad

I am also hoping to buy house outright when we get round to it. For various work related reasons, always been a renter.

Saving so far (I am not a miser, but I have a good job, and am not much interested in things, but am interested in investing, so over the years it has added up, compound interest & dividends are your friend)

Shares/equity funds - 520,000
Bonds - 6,000
Cash - 33,000
Other - 25,000
Total - 584,000

Pension pot - about 350,000 or so

My target is somewhere between 1.3 and 2.6 million pounds. A large, vague target, but somewhere inbetween those two we could live without ever needing a job (including buying house outright)

But I enjoy my job, so all a bit moot anyway!

setmefree2

wisbech_lad wrote: »

I am also hoping to buy house outright when we get round to it. For various work related reasons, always been a renter.

Saving so far (I am not a miser, but I have a good job, and am not much interested in things, but am interested in investing, so over the years it has added up, compound interest & dividends are your friend)

Shares/equity funds - 520,000
Bonds - 6,000
Cash - 33,000
Other - 25,000
Total - 584,000

Pension pot - about 350,000 or so

My target is somewhere between 1.3 and 2.6 million pounds. A large, vague target, but somewhere inbetween those two we could live without ever needing a job (including buying house outright)

But I enjoy my job, so all a bit moot anyway!

Blimey! Lucky tou. keep us posted. are you waiting to see how far the housing market drops?

wisbech_lad

Thanks - financially, yes I am lucky (though the harder I work, the luckier I get... ) Wife doesn't need to work, but she does part time job for interest. Still, we would give up a fair chunk of change for children (unfortunately, looks like we can't have any) but have come to terms with that.

Not really looking to time the market. It's like buying a car (which we don't have at the moment, as don't need) or a PC. When you need one, you go buy the one that best fits your needs and budget at that time, and don't fret that there will be a better/cheaper/faster one in six months time. That way stress and remorse lie. And at the moment, we don't need to buy a house.

Frugaldom

wisbech_lad wrote: »

Not really looking to time the market. It's like buying a car (which we don't have at the moment, as don't need) or a PC. When you need one, you go buy the one that best fits your needs and budget at that time, and don't fret that there will be a better/cheaper/faster one in six months time. That way stress and remorse lie. And at the moment, we don't need to buy a house.

I like your reasoning and may borrow a few phrases from it, thanks for that. :T I guess we should all count our blessings rather than drive ourselves round the bend trying to cover every single 'what if' scenario. As Rabbie Burns would say, 'The best-laid schemes o' mice an 'men gang aft agley'.

Maybe there is a slim chance of a self-employed, skint person getting a mortgage. I have never actually asked! :rotfl:

Edited in: On reflection - do I actually NEED to own a house at this time? Right now I'm cheaper renting what fits the combined needs of this household.

Frugaldom

Hi to anyone who is still attempting the challenge of saving to become mortgage free without having to have a mortgage in the first place.

I've just spent an enjoyable couple of hours going through house prices, mortgage & interest rates, savings rates and various other calculations that all point towards it becoming within realistic reach of affording to get on the property ladder without the need for a mortgage.

For savers, interest rates could be better, but I have to say that I have now seen the proof, for myself, that dire straits are where many householders could be heading. My example involves house A, which was bought (with a mortgage) for £100,000 in 2005, current rate 6%. This costs about £500 per month in interest only payments, or £645 interest + capital. In 3 years, it has cost about £18,000 in interest alone, so one would hope that the property would be worth at least £118,000. The current valuation is suggesting £110,000! :eek: Perhaps the buyers' market is getting closer? A search for properties under £40,000 in Scotland just turned up 5 pages of results, lowest priced flat at a starting price of £9,000! :eek:

setmefree2

Keep up the great work...with house prices falling your dream is getting closer:D;)

pavlovs_dog

nice to hear from your nyk. hope the plans for the wedding are going well. you found your outfit yet?