Property or savings

Wispy1234

Is it better to have savings or upgrade to bigger house,  (which will inreaase value in future), use some savings, and still be mortgage free.  Rather than savings sitting in bank?.

El_Torro

You shouldn't look at the house you live in as an investment. If you need / want to live in a big house and you can afford it then fine. A lot of people talk about downsizing when they are older and freeing up cash that way, it isn't always as easy as it seems though, especially the older you get.

One thing you can do with your money is invest in the stock market, ideally in pensions and Stocks & Shares ISAs. How much you should invest and where depends on your circumstances. 

badmemory

A bigger house will cost a fair bit more to run, also requiring more effort in upkeep & probably a bigger garden, more need to keep up with the neighbours.  There is no guarantee that the value will increase.  Then there are the thousands required to actually move house.  If you have a 2 bed house & 2 children then move but don't move just for the sake of it.

Albermarle

Wispy1234 said:

Is it better to have savings or upgrade to bigger house,  (which will inreaase value in future), use some savings, and still be mortgage free.  Rather than savings sitting in bank?.

Long term it is not really a good idea to have a lot of cash savings. However the alternatives could be
Bigger house
Top up pension ( especially if pension is not that good)
Stocks and shares.

PoGee

I used savings to purchase a buy to let so I can use rental income to allow me to retire before statutory retirement age.  

PoGee

JamesRobinson48 said:

If you can afford it, it's always nice to obtain a high quality home, in a safe area, with enough inside and outdoor space for pleasant family life, easy access to all amenities, and a convenient commute to work. IMHO that's one of the worthwhile things that money is for. If one's home also turns out to be a solid investment, so much the better. But when I bought my house, it was not for the purpose of making me rich or funding my retirement, just doing the best for my family's wellbeing and security. Once those needs were met, I never considered investing any more in real estate, but focused instead on financial investments including pensions.

Yes, I agree. My family home is in a nice area, front/side/back garden etc. I'm nhs so never had to look into private pensions properly. Dabbled in crypto, bought some gold/silver/shares - all increased in value, as has the family home. The investment in rental was due to an inheritance amount, sitting doing nothing, after the dabbling. Only regret is that I've mollycoddled kids who are nearing 30 but still at home. I grew up in a very working class family, where money was short during childhood but parents bought a couple of rentals hence the inheritance, which I received aged early 50s.

MEM62

Wispy1234 said:

Is it better to have savings or upgrade to bigger house,  (which will inreaase value in future), use some savings, and still be mortgage free.  Rather than savings sitting in bank?.

You are talking about two completely unrelated subjects here and not typically two options that you would choose between.  Nothing wrong with putting money into your house but you can't then spend it.  It remains tied up in your property and cannot be used for anything else.  Savings are liquid and available when you need them.  If you want the value of your saving to increase in the long term but still be accessible without the need to sell the roof over your head then look at investing.