Buying a house without a mortgage

Frugaldom

Hi Cha, I'm hardly ever on the 4k challenge thread as it sort of changed direction when it was moved to a different part of the MSE forums. I tend to stick to my own site / blog where there are a few of the original challengers hang out and keep up to date with their own challenges. Hope all is going well with you and I can't agree more about the work. We'd to do a full renovation and extension in the house we had whilst my two were 3 and 1 - bit of a nightmare, especially having to rehome us all for the weeks it took to demolish and rebuild walls, ceilings and floors, extend up the way and install a proper bathroom. End result was the ex got the lot and moved his new wife into it! Things work out OK in the long run, though, as I'm happier living in the country than on a busy village street, which is where that particular house was. I did get my share of the tiny profit when it eventually got sold and that's what started me off on my saving craze for a mortgage free home. I think it was a combination of that and DH (ex) having been paid off whilst interest rates had been screaming around the 15% mark. :eek: But I learned from it.

I now have enough to live off for a few years if everything goes **** up on the work front and, at worst, I could afford a bargain basement fixy up and just rough it. As long as I can have Internet and my chickens & ducks.

cha97michelle

You never change do you.

I noticed the thread moved a bit too quickly for me, and too many who were just living a bit more frugally rather than the absolute frugalness i loved the thread for. Not as interesting or inspiring as they just give in if they want to buy something.

I miss hearing about you and sophies mum and a few others. Some people i still see around the MFW boards. Perhaps i need an evening of blogging, but i try and use my internet time now for earning money mostly. Glad to hear you are ok anyway.

Frugaldom

Just a quick note to see how Pavlov is doing? How is life in the new house? 'Fraid I caved in and replaced a few of the Premium Bonds, nothing major, but it just doesn't seem worth saving money in the bank of building society. Hopefully, you can make the most of the low rates to tackle your mortgage before they decide that it's time for them rates to start climbing.

adwat

Hi Frugaldom

I haven't had time to read all your diary, and was wondering how far you've got saving up for a house? Great idea by the way, if everyone did this you can bet house prices would be a fraction of the price they are now!

Frugaldom

Hi adwat,

There's no real way of saying how far I've got with my savings plan because of the huge range of property prices. I'm at the stage I could buy a cheap flat in a bad neighbourhood or, at a push, a semi-derelict property that would blow the savings and leave next to nothing for the rebuild. Judging by your signature, you're doing incredibly well at kicking out the mortgage. Well done! I haven't earned what you've paid off in the past 5 years.

Onwards and upwards, there are still plenty of cheap properties about if you have the type of lifestyle that allows for you to rough it during the renovations.

adwat

I think you've got the right attitude - there are loads of houses out there and there's no rush at all to buy one, especially when prices are decreasing, far better to do what you're doing. The more you can save the better, utimately meaning a smaller mortgage or even no mortgage at all. It's always a balancing act isn't it between your needs and your wants - for some people what you intend to do isn't practical. My intention is never to have a mortgage again, when we decide to move again it will be a cash transaction - and if we can't afford to do cash then we won't move, simples!

Yes, the mortgage is coming along nicely, can't wait to start spending our income on nice things again soon rather than paying it all to the nasty bank.;)

[Deleted User]

Hi Frugaldom
Have enjoyed reading your diary and certainly like the idea of saving up for a house outright- have mortgages at the moment but plan is to save as much cash /lower mortgages as much as possible before buying a house again .. we are tied to a more expensive area cos of family and jobs but still not impossible- may just take longer!
looking forward to seeing what happens for you sounds like its going well

Frugaldom

Sorry this took so long, I seem to have lost a month somewhere along the line! Frugal living & working still working for us and only hiccup was when we received notice to quit this house, so we're preparing to move in the next couple of months. Those fixy ups are few and far between but prices about this area do seem to be tumbling fast. House we looked at in 2008 when owners were asking for £145,000 is now on the open market at offers over £80,000! :eek:

Flats are available from under £50k, so things are looking quite promising for the future of savers aiming to buy a house without a mortgage. (Assuming they don't mind relocating to an inexpensive area.) It's certainly a buyers' market out there at the moment, even some of the holiday homes are now being advertised for sale and many more are being tenanted for 6 months whilst owners try to off-load their properties.

The housing market is stagnating, slightly, and I'd expect the interest rates to start recovering at some point this year. At the moment, interest on savings won't even feed one let alone be sufficient to live off. Never mind, I've still got those pesky premium bonds!

I ALMOST blew a sizable chunk of the money on land, when 30 acres came up for sale with a guide price of only £15,000! FORTUNATELY, the weather has been atrocious, so the boggy mess the land was in meant we hesitated when unable to walk the perimeter. Thank goodness! I'd have kicked myself if I'd spent it on a marshland peat bog.

Any word from Pavlov's?

pavlovs_dog

I've got myself a diary on the MFW board... come and play

cha97michelle

Hiya Nyk,

Can't believe you are having to relocate again, no doubt incurring expense for setting up to be self sufficient again. Is it 2 years you have been there?

I hope you find somewhere really suitable.

Michelle x