Mortgage free or luxury house?
Hi guys. I’m new to this so not sure what to expect. Just wanted to ask a question and to see what everything thinks. So the situation is.. a few years ago I bought my first house at 21 for 89k, flipped it and sold it just over a year ago for 120k so had a nice bit plus savings to put into my current house, currently living in a 3 bed detached house with a garage, it’s nice but for me it’s not something I look at when I reverse off my drive in the morning for work and think ‘I’ve made it’. What me and my wife have discussed is saving up a lump sum, selling our current house, and putting both funds together to buy a ex council outright for around 90k again with no mortgage and doing the same, flipping it so we can take that 120k again and keep building it. That was the plan, to keep doing it until we had a nice chunk to buy a forever home and be mortgage free. However, I understand it would take a lot of messing around, a lot of moving around all the time to keep flipping houses and it would also not give our kids a chance to actually settle in a house. I’m now 25 and I want to me mortgage free ASAP, in our forever home, or in a home that we will stay in until the kids move out (20 years time or so). However one thing came to mind today which has kid of changed my way of thinking. If I take that 90k and instead of buying houses outright to flip and keep moving, do I put this down on a house for around 350k as a nice deposit, and stretch myself for a house we will stay in or do I do what we originally agreed? The only reason I ask which I put to my wife today, is that a house that costs 350k today, by the time we have finished flipping houses and have 350k to buy out right which could be 10 years time, that house could then be worth 500k by that time and we would still be in a position of having to save more again! Houses price are always going up so do I buy now when x house is 350k, stretch on my mortgage payments and pay interest as well (which won’t accumulate to the 150k extra I would have to pay if I waited to have the money in full even if interest rates did increase over the years ) and then we get the value increase of the new house in our pockets instead of having to pay it, or do I do what we originally said and keep flipping and building on that lump sum? I hope this makes sense, I may have gone around it in a round about way.. any thoughts?
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