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MF Motovation

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Comments

  • beanielou
    beanielou Posts: 94,024 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Mortgage-free Glee!
    kempiejon said:
    kempiejon said:
    kempiejon said:
    I rented my homes for decades, not wanting the liability of a mortgage and enjoying more flexibility about where and what I lived in, where I worked and travelled. Never bought the obsession of property ownership. The contrarian idea here is keep the mortgage, use other people's money to pay for your property and have inflation eat the debt while piling my money into productive assets. Not really wanted on this board but I'll settle down, buy a property but using other peoples money for a house while my assets grow faster and at a higher rate than the cost of borrowing looks to me like financially the smartest move.
    I hear the view about safety, stability and peace of mind, suits some people but I'm not that.... what is the right phrase, cautions, insecure, a worrier I guess I'm a risk taker and I've always afforded somewhere to live in and out of work.

    One problem with your theory, is that you are paying someone elses mortagage whilst renting, but each to their own!
    I don't see a problem. I realise this is a focused board but you are not necessarily paying someone's mortgage, you pay your landowner to use their property for your home, they have the cost of maintaining that place. You might be helping them cover the rent on the money they used from the bank/building society to acquire the property or they might not have a mortgage, or might be an institution. Inflation does help with debt.
    Housing has a cost, one generally has to pay it, there are different ways.
    Your entries baffle me, perhaps I am missing a point, but I can't see a positive to what you have said to not actually buying your own home and not having your own place and not paying and overpaying a mortage, perhaps you are being deliberately secretive to appear more apt? or you just wanted to give a different opinion, I would recommend being completely clear with your arguement, at the moment it looks unclear? From what you have said I can't think of a way to do things differently and it being the intelligent option? 
    Sorry. Thanks for the recommendation let me see if I can do better. I'm not try to appear to be anything. I do have a different point of view and as this is very specific board I can see my ideas are the anathema of the prevailing view, perhaps that is why you can't see mine?
    There are positives to not owning a home, you really can't see any?
    How about not being in debt, not have property maintenance, having to occupy the same place while you own it.
    I can see it's awkward me chiming in on this board with my fairly specific ideas of not having a mortgage, or with a mortgage not wanting to clear it as soon as possible while money can be working elsewhere.
    It’s maybe not the best board for you to comment on as this is a mortgage free diary board. It means that the majority of posters aim to be mortgage free. 
    I personally see renting as a waste of money. 
    To each their own. 
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

    Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.

    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
    One debt remaining. Home improvement loan.
  • CrazyBee787
    CrazyBee787 Posts: 245 Forumite
    100 Posts Name Dropper Photogenic
    edited 5 January pm31 6:39PM
    kempiejon said:
    kempiejon said:
    kempiejon said:
    I rented my homes for decades, not wanting the liability of a mortgage and enjoying more flexibility about where and what I lived in, where I worked and travelled. Never bought the obsession of property ownership. The contrarian idea here is keep the mortgage, use other people's money to pay for your property and have inflation eat the debt while piling my money into productive assets. Not really wanted on this board but I'll settle down, buy a property but using other peoples money for a house while my assets grow faster and at a higher rate than the cost of borrowing looks to me like financially the smartest move.
    I hear the view about safety, stability and peace of mind, suits some people but I'm not that.... what is the right phrase, cautions, insecure, a worrier I guess I'm a risk taker and I've always afforded somewhere to live in and out of work.

    One problem with your theory, is that you are paying someone elses mortagage whilst renting, but each to their own!
    I don't see a problem. I realise this is a focused board but you are not necessarily paying someone's mortgage, you pay your landowner to use their property for your home, they have the cost of maintaining that place. You might be helping them cover the rent on the money they used from the bank/building society to acquire the property or they might not have a mortgage, or might be an institution. Inflation does help with debt.
    Housing has a cost, one generally has to pay it, there are different ways.
    Your entries baffle me, perhaps I am missing a point, but I can't see a positive to what you have said to not actually buying your own home and not having your own place and not paying and overpaying a mortage, perhaps you are being deliberately secretive to appear more apt? or you just wanted to give a different opinion, I would recommend being completely clear with your arguement, at the moment it looks unclear? From what you have said I can't think of a way to do things differently and it being the intelligent option? 
    Sorry. Thanks for the recommendation let me see if I can do better. I'm not try to appear to be anything. I do have a different point of view and as this is very specific board I can see my ideas are the anathema of the prevailing view, perhaps that is why you can't see mine?
    There are positives to not owning a home, you really can't see any?
    How about not being in debt, not have property maintenance, having to occupy the same place while you own it.
    I can see it's awkward me chiming in on this board with my fairly specific ideas of not having a mortgage, or with a mortgage not wanting to clear it as soon as possible while money can be working elsewhere.
    I see yes, there are benefits to not having a mortgage like being able to upsticks whenever you should choose unless of course you have signed a contract...although usually they are rolling after a specific time period although not always. Also if you lose your job, providing you have the freedom and the money, a lot don't you could get a job anywhere in the country, which is a repeat of what I have already said I know but for other benefits, whereas I am limited by what jobs I can apply for being in one stationery position, of course I could sell and there are fees for this another drawback. Then also if you have annoying neighbours, you can just change them within a flash providing you have those freedoms not all do. And a repeat of what I have already said with a different reason. However you can be savvy where you pick your home, within commutable distanced to several places of industry, obviously avoid flood zones and try to choose freehold (unlike me) so that you will be the owner. Of course if the governement should choose it they could buy your home and put a big train line through it, that would be unfortunate especially now when there is a housing crisis, of course that is less likely but has happened to some recently. 

    Not being in debt, repeat of above however when will you ever not owe someone something (rent), you will always have to find the money and unless you have 100% fullproof way of keeping enough money for rent, where you have managed to be ultra savvy and keep a massive pot to earn interest to help live off should you fall into hard times or retire. However I am of the traditional sense there is security in bricks and mortar. I have seen stock markets crash and the interest rates drop, yet your house is still there and hopefully even after a storm.
  • kempiejon
    kempiejon Posts: 528 Forumite
    Part of the Furniture 500 Posts Name Dropper
    CrazyBee787 said:I see yes, there are benefits to not having a mortgage like being able to upsticks whenever you should choose
    .../ 
    However I am of the traditional sense there is security in bricks and mortar. I have seen stock markets crash and the interest rates drop, yet your house is still there and hopefully even after a storm.
    There you go, thank you for persevering with me. Owning a property is what lots of people aspire to and can justify it to themselves - and for you owning a property and getting out of mortgage debt might well be your aspirations and as another poster said this is a specific board with a specific remit. Once the building society has facilitated you buying your house you want to get the charge off of it as quick as possible and stop paying them rent for that money.

    There are warnings on both sides of the opinion. Owning a house comes with lots of property costs. 
    But my point being owning a house and clearing the debt isn't the only way to acquire quality housing nor necessarily the best.
    The specific cannot really inform the general and vv.


  • My motivation is simple. The quicker I pay it, the thousands I can save over the years to pass that onto my wife and child. We get better holidays, nicer things in the long run. Over paying is a must (in my head), whilst balancing it with wanting to lead a comfortable life right now as you don’t know what’s round the corner. 
  • Jemma01
    Jemma01 Posts: 339 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    kempiejon said:
    CrazyBee787 said:I see yes, there are benefits to not having a mortgage like being able to upsticks whenever you should choose
    .../ 
    However I am of the traditional sense there is security in bricks and mortar. I have seen stock markets crash and the interest rates drop, yet your house is still there and hopefully even after a storm.
    There you go, thank you for persevering with me. Owning a property is what lots of people aspire to and can justify it to themselves - and for you owning a property and getting out of mortgage debt might well be your aspirations and as another poster said this is a specific board with a specific remit. Once the building society has facilitated you buying your house you want to get the charge off of it as quick as possible and stop paying them rent for that money.

    There are warnings on both sides of the opinion. Owning a house comes with lots of property costs. 
    But my point being owning a house and clearing the debt isn't the only way to acquire quality housing nor necessarily the best.
    The specific cannot really inform the general and vv.



    I lived the life you're talking about for the last 18 years, I've been renting and consulting around the UK, took privilege to being able to relocate without the constraints and added burden of property maintenance. But the reality is, job security is not guaranteed! We know you could be made redundant any minute, even with your own business The Company House says lots and lots of companies have closed down higher than it was 10yrs ago, the average life span of a company is also lower now than it was before. You'll get to a point where you either have children that require stability and you can't be moving around, and you can't guarantee your life for them, or reach the old age where you will struggle to find a job even if you wanted it. Even if you talk about saving up money, inflation is making money worthless.

    Your age and mindset plays a role in your way of thinking, the younger you are the more risks you take, when you start a family with children, it's no longer about you.
    Note:
    I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.
    Mortgage debt start date = 25/10/2024 = 175k
    **/2024 = 139.3k
    01/2025 = 137.3k
  • kempiejon
    kempiejon Posts: 528 Forumite
    Part of the Furniture 500 Posts Name Dropper
    beanielou said:
    kempiejon said:
    kempiejon said:
    kempiejon said:
    I rented my homes for decades, not wanting the liability of a mortgage and enjoying more flexibility about where and what I lived in, where I worked and travelled. Never bought the obsession of property ownership. The contrarian idea here is keep the mortgage, use other people's money to pay for your property and have inflation eat the debt while piling my money into productive assets. Not really wanted on this board but I'll settle down, buy a property but using other peoples money for a house while my assets grow faster and at a higher rate than the cost of borrowing looks to me like financially the smartest move.
    I hear the view about safety, stability and peace of mind, suits some people but I'm not that.... what is the right phrase, cautions, insecure, a worrier I guess I'm a risk taker and I've always afforded somewhere to live in and out of work.

    One problem with your theory, is that you are paying someone elses mortagage whilst renting, but each to their own!
    I don't see a problem. I realise this is a focused board but you are not necessarily paying someone's mortgage, you pay your landowner to use their property for your home, they have the cost of maintaining that place. You might be helping them cover the rent on the money they used from the bank/building society to acquire the property or they might not have a mortgage, or might be an institution. Inflation does help with debt.
    Housing has a cost, one generally has to pay it, there are different ways.
    Your entries baffle me, perhaps I am missing a point, but I can't see a positive to what you have said to not actually buying your own home and not having your own place and not paying and overpaying a mortage, perhaps you are being deliberately secretive to appear more apt? or you just wanted to give a different opinion, I would recommend being completely clear with your arguement, at the moment it looks unclear? From what you have said I can't think of a way to do things differently and it being the intelligent option? 
    Sorry. Thanks for the recommendation let me see if I can do better. I'm not try to appear to be anything. I do have a different point of view and as this is very specific board I can see my ideas are the anathema of the prevailing view, perhaps that is why you can't see mine?
    There are positives to not owning a home, you really can't see any?
    How about not being in debt, not have property maintenance, having to occupy the same place while you own it.
    I can see it's awkward me chiming in on this board with my fairly specific ideas of not having a mortgage, or with a mortgage not wanting to clear it as soon as possible while money can be working elsewhere.
    It’s maybe not the best board for you to comment on as this is a mortgage free diary board. It means that the majority of posters aim to be mortgage free. 
    I personally see renting as a waste of money. 
    To each their own. 
    I'm mortgage free too, love it. Housing has costs. Borrowing is a cost MFW don't want I concur.
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