2020++ - smiling and waving and looking so fine

alt80

Lol yes I do like my home too but the equity is just sat there. Maybe it’s an age thing and I’ll become much more risk adverse as I get older. 

Sarahwithlove

I think you are doing right thing paying off the mortgage. The amount of people I come across that have a 2nd or 3rd property and the rent only just covers the mortgage costs and their retirement day to day and then something happens and they need care and suddenly have to pay for it themselves as they own a 2nd or 3rd property but don't have the disposable income to do so. I think if you have a comfortable lifestyle that means you're not living paycheck to paycheck why not just be happy with what you have? 

alt80

@Sarahwithlove if this to address me I already have a number of properties so will be adding to an existing portfolio. I don’t think BTL is worth it for 2/3 obviously everyone has to start somewhere I currently have 9. Didn’t say property was the way to go for the OP just what I plan to do with money (equity in home) which is just tied up doing nothing. 

Sarahwithlove

alt80 said:

@Sarahwithlove if this to address me I already have a number of properties so will be adding to an existing portfolio. I don’t think BTL is worth it for 2/3 obviously everyone has to start somewhere I currently have 9. Didn’t say property was the way to go for the OP just what I plan to do with money (equity in home) which is just tied up doing nothing. 

Wow that's a lot and I agree if you can have enough to make it worthwhile then do it but if not then having an extra property or two isn't necessarily the way to a good retirement that people think. 

ohdearhowdidthathappen

I wouldn't personally remortgage to release funds elsewhere either, I like to see the balance going down and am too risk averse overall.  I've changed my tune on wanting to massively overpay though, we've changed our DD to knock a couple of years off the term, but no immediate plans to do more.
BTL is something that appeals if we ever had lump sums to invest, but we'd need to buy properties in a much cheaper area and I wouldn't know where to start looking.  My understanding is you need 20-25% deposit for BTL.  Round here, a 2 bed terrace is £300-
350k, so that's not happening 
I like watching things like 'Homes under the Hammer' or whatever and it's so much cheaper elsewhere.  Madness!

savingholmes

Hi Mark - I agree that risk is about the amount of 'recovery' time you have left before things become critical. When we were younger it was easier to take risks and made mistakes - and still recover the financial situation by retirement age. As we get closer to our desired retirement - then the consequences of risk could increase - and our potential earning power could decline rapidly for health reasons - so it makes sense to be more caution - as you are being.

mark55man

I love homes under the hammer too - I'm not particularly practical so I really like when something old and tatty gets a new lease of life - gives me hope as much as anything 

I think its not just about risk in deciding not to even consider financial engineering with my house equity, I think its about balance and a bit of "a place for everything and everything in its place" - which is not entirely consistent with how cluttered the inside of the house is   So my house is my house for living in and having my family with through thick and thin, and my job is where I put my mental energy and get my money from.  I moved a lot as a child so for me the minimum number of moves (transactions if you wish) was a target - and so it went - my getting married house, my family house, and my retirement house (prob not for another 20 years)

mark55man

Diet News - Day 2 is today

* Day 1 - Breakfast: Scrambled Egg & Trimmings - Lunch: Ham Salad - Supper: Hunter Chicken, Cauli Mash and Green Beans

* Day 2 - Breakfast: Yoghurt and berry - Lunch: Protein Shake - Supper: Mince and Peas

Weekday Focus 

• Improve house environment - normal chores done - bit flat today so nothing else
  
• eat more frogs more often - (save/make) - bit flat today so nothing much - will have a flurry tomorrow doing end of month reports
• Hobby/Personal stuff - not cycling - bit flat today so nothing else 

alt80

Actually really refreshing to see differing views on property / res home tbf. Many people I know in the property game will do whatever it takes to get the next (include myself in this though I'm not in for a 95%LTV remo of my res home - some would if they could lol).

savingholmes

HI Mark - sorry you are feeling flat. Hope that you feel more positive soon. It's hard with so little we can control. At least you are trying to do what you can and seeing progress.