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    • sugarbabe84
    • By sugarbabe84 8th May 18, 7:44 PM
    • 254Posts
    • 33Thanks
    sugarbabe84
    Scared of becoming a homeowner
    • #1
    • 8th May 18, 7:44 PM
    Scared of becoming a homeowner 8th May 18 at 7:44 PM
    Iím now close to exchange, yet now feeling so nervous about becoming a home owner, despite having been paying extortionate rents for the last 5 years.

    Does anyone else identify with this feeling?
Page 1
    • LandyAndy
    • By LandyAndy 8th May 18, 7:47 PM
    • 24,420 Posts
    • 51,564 Thanks
    LandyAndy
    • #2
    • 8th May 18, 7:47 PM
    • #2
    • 8th May 18, 7:47 PM
    Actually no. I've owned since 1980 and I've always found it a very good experience. Only really for grown ups though, which im sure you are.
    • G_M
    • By G_M 8th May 18, 8:09 PM
    • 45,334 Posts
    • 54,347 Thanks
    G_M
    • #3
    • 8th May 18, 8:09 PM
    • #3
    • 8th May 18, 8:09 PM
    It's a common feeling when making any major change in life!

    Career change? New job? Marriage? Dumping a long-standing partner? Emigrating?

    Doubts and fears are normal. As long as your reasons for house-buying add up, and your reasons for choosing this house are sound, go for it.
    • ACG
    • By ACG 8th May 18, 8:09 PM
    • 17,520 Posts
    • 9,325 Thanks
    ACG
    • #4
    • 8th May 18, 8:09 PM
    • #4
    • 8th May 18, 8:09 PM
    I did when I first bought a house.
    Realising you are waking up one day owing tens or hundreds of thousands of pounds and you will do for the next 20-30+ years and that you have spent a few grand to get there so your basically stuck there for a couple of years at least.

    Well scary!

    I moved house last year from house a with a £70k Mortgage to a house with a Mortgage 3 times that and I got the same feelings all over again.

    But give it a month and it will subside...the fears, not the house (sorry...ill get my coat).

    The thing is to put it in to perspective. My Mortgage repayments are half what it would cost to rent the same house. My last house made £60k in 4 years, that is more than some people make in work.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • datlex
    • By datlex 8th May 18, 8:26 PM
    • 1,771 Posts
    • 1,673 Thanks
    datlex
    • #5
    • 8th May 18, 8:26 PM
    • #5
    • 8th May 18, 8:26 PM
    I totally know this feeling. But the thought of having to pay rent once I am retired scares me more.
    • sugarbabe84
    • By sugarbabe84 8th May 18, 8:44 PM
    • 254 Posts
    • 33 Thanks
    sugarbabe84
    • #6
    • 8th May 18, 8:44 PM
    • #6
    • 8th May 18, 8:44 PM
    Thanks all for the reassurance.

    It!!!8217;s a completely irrational feeling, given the monthly mortgage payment is going to be less than my rent and I!!!8217;ve also never ever missed a rent payment.

    I need to put it into perspective indeed.
    • sheepy21
    • By sheepy21 8th May 18, 8:54 PM
    • 162 Posts
    • 162 Thanks
    sheepy21
    • #7
    • 8th May 18, 8:54 PM
    • #7
    • 8th May 18, 8:54 PM
    It's normal to be nervous, it's essentially the biggest debt you ever have and it's a big responsibility BUT I've found as a fellow ftb, you just have to rationalise. Our mortgage will be little more than our rent, so no reason to be particularly worried when thinking rationally
    • sevenhills
    • By sevenhills 8th May 18, 8:54 PM
    • 1,553 Posts
    • 575 Thanks
    sevenhills
    • #8
    • 8th May 18, 8:54 PM
    • #8
    • 8th May 18, 8:54 PM
    Iím now close to exchange, yet now feeling so nervous about becoming a home owner, despite having been paying extortionate rents for the last 5 years.

    Does anyone else identify with this feeling?
    Originally posted by sugarbabe84
    I bought my council house towards the end of last year, a few people thought it the wrong choice, I never had any doubts.
    I never used to think about over-paying the rent, but having a mortgage is different. On paper I am a lot richer, but its just equity.

    I have a lot more freedom, a lodger, been and gone; might do it again in years to come.

    • Gwendo40
    • By Gwendo40 9th May 18, 5:43 AM
    • 159 Posts
    • 177 Thanks
    Gwendo40
    • #9
    • 9th May 18, 5:43 AM
    • #9
    • 9th May 18, 5:43 AM
    My last house made £60k in 4 years,.
    Originally posted by ACG
    And presumably the house you've moved up to has also seen an equivalent increase in value? (Unless you've possibly relocated to an entirely different part of the country.)

    So in what way does that increase help you as an owner occupier?
    • worried jim
    • By worried jim 9th May 18, 5:51 AM
    • 9,525 Posts
    • 14,661 Thanks
    worried jim
    Thanks all for the reassurance.

    It!!!8217;s a completely irrational feeling, given the monthly mortgage payment is going to be less than my rent and I!!!8217;ve also never ever missed a rent payment.

    I need to put it into perspective indeed.
    Originally posted by sugarbabe84
    Congratulations! Putting the key in YOUR front door for the first time is a wonderful experience, as is getting your mortgage statement (okay, maybe not for the first few years) and seeing how little you owe in comparison to the properties value.

    For me to rent next door would cost 100% more of what I repay every month on the mortgage after 15 years. I wake smiling every morning, as you will too.

    Enjoy you new home!
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Davesnave
    • By Davesnave 9th May 18, 7:26 AM
    • 26,184 Posts
    • 94,983 Thanks
    Davesnave
    And presumably the house you've moved up to has also seen an equivalent increase in value? (Unless you've possibly relocated to an entirely different part of the country.)

    So in what way does that increase help you as an owner occupier?
    Originally posted by Gwendo40
    It helps people when they retire.

    Had I stayed in my first house, it would now be worth about £350k. The property I owned after that is currently worth about £500k.

    Let's imagine I stayed in Property 2; I'd now have about £150k to spend if I chose to downsize, or much more if I chose to relocate.

    I moved on to Property 3 and invested money in it for personal enjoyment. One day I'll be too crocked to enjoy it, so it will then buy me a good place to end my days.

    And, yes, I agree, I should be taxed and some of the money redistributed to the young when, or even before that happens. No problem with that idea.

    Like many of my generation, I didn't seek or create HPI, but you asked what advantage it brings.
    A garden is never so good as it will be next year....
    • Davesnave
    • By Davesnave 9th May 18, 7:33 AM
    • 26,184 Posts
    • 94,983 Thanks
    Davesnave

    Does anyone else identify with this feeling?
    Originally posted by sugarbabe84
    Yes, even at the age of 60, when we last bought, there was doubt that we could fund all the work the property needed or that we'd be able to cope with it.

    We could have ended up like some of those who never make the TV programmes; filing for divorce and living in a sea of DIY nightmare chaos. We've seen that a few times.

    But nothing ventured etc etc. If you've done your sums and planned-in a bit of contingency, go for it. Fortune doesn't favour the over-cautious.
    A garden is never so good as it will be next year....
    • moneyistooshorttomention
    • By moneyistooshorttomention 9th May 18, 7:46 AM
    • 16,621 Posts
    • 45,889 Thanks
    moneyistooshorttomention
    Yep...it was scary - definitely!

    But, to me, the alternative was even scarier. It would have been scary to be at risk of finding I was still in rented accommodation come retirement age. It was somewhat scary to be in rented accommodation anyway - and, if I'd known just how insecure the rented sector would become = I'd have been a sight more scared than I was.

    It was good to know I have the ability to have some control over my home - now I own it - and am not reliant on what a landlord does (or doesnt) do in the way of maintenance.

    Once that mortgage goes (one way or the other - eventually) then that is a huge degree of security there. Personally - I paid my mortgage off as soon as I reasonably could (ie it was a 25 year mortgage and I paid it off in 13 years - go me - as a poorly-paid single person).

    Once that mortgage is gone - no-one can ever exert that much pressure on you as to how to live your life. Believe me - there are parts of the country where some people do put pressure on you to live your life "their way" and, if you own your own home "lock, stock and barrel" you know there are limits to how much they can manage to pressurise you and, once you no longer need a job (ie retired) that sort of person can try all they please - but they can't touch you basically if you own your own home. (no risk of someone putting pressure on your landlord to chuck you out for having the "wrong" opinions in their opinion).

    Not to forget scenarios like we read on a current thread - of someone striving to buy a house for themselves now they've just finished years having their finances mucked up by being a carer. It happens to a lot of people and some never manage it because a curveball like that has come along and whacked them one. If you've got the house - you've got it...end of.....and you know you have your "security" and, if it came to a set-up like being a carer, you keep that house and, if need be, could rent it out. But you wouldnt be "out on your ear" wondering where to live come the point you got your Life back.
    Last edited by moneyistooshorttomention; 09-05-2018 at 7:52 AM.
    ****************
    • AdrianC
    • By AdrianC 9th May 18, 8:22 AM
    • 18,430 Posts
    • 16,635 Thanks
    AdrianC
    It's a completely irrational feeling, given the monthly mortgage payment is going to be less than my rent
    Originally posted by sugarbabe84
    Don't forget that your rent does more than simply "pay the mortgage".

    Boiler's just died? Roof leaking? Toilet blocked? Service charge on a flat? Buildings insurance? All part of your rent. Your landlord will also be paying a much higher interest rate on a BtL mortgage than your residential one.

    Your landlord will be doing very well indeed to be getting more than a 5% return on his investment, out of which he has to pay tax.

    Yes, there's capital growth of the property. If it increases in value. Which it might or might not continue to do. If it does, then the landlord has to pay CGT on the growth.

    As you say, the biggest difference is that you will ultimately have paid the mortgage off, so will be free of those ongoing monthly outgoings. But, if and when you come to old age, you will have considerable assets behind you which you will need to use to pay for residential care, and which will be taken into account for any means-tested benefits. If you hit financial difficulties or get divorced, your house may well need to be sold.


    It's not quite so one-way as "But the rent is more than the mortgage payment!".
    • moneyistooshorttomention
    • By moneyistooshorttomention 9th May 18, 9:18 AM
    • 16,621 Posts
    • 45,889 Thanks
    moneyistooshorttomention
    Re the "not having a house the Government could grab" if it came to going into a care home come old age - actually, quite frankly, I'm not putting it past the Government to assess the chances of a lot of millenials and beyond as = not that likely to get a house we could grab and so we'll think of some other excuse to grab money from them instead.

    Am cynical enough to think the Government will be determined to find some "chink in the armour" somewhere that they can grab money off younger individuals "if.....".

    Moral of that story = might as well go ahead and get a house anyway if they're going to try and find an excuse to go for your money if it comes to it anyway #shrugs.

    Forgetting the plus factor the millenial and younger generations will have on the other hand - and I anticipate us Baby Boomers will also have - and that is we will have the ability to enforce any decisions we personally make about never going into care homes anyway. I made a decision long ago personally that, if it ever came to that, I'd just make A Decision not to live any longer, rather than be forced into that situation.

    The millenials will take for granted the change to the law to give us the right to make our own decisions on that that will be there enshrined in law within the next 5 years one way or another (be it watching Guernsey get that legal right within weeks, as they are due to) and that gives us further "pressure" we can apply to mainland Britain or that brave 104 year old currently in Switzerland at the moment fighting for our rights to make our own decision.

    I think the concept of going into a home against ones will will be something that is in the history books surprisingly soon now

    EDIT; The other plus point to having a home of one's own is that one can use any chunks of extra money one gets to pay off mortgage capital with. That is certainly what I did when I had a mortgage - and it gave me HUGE satisfaction to know that "if the worst came to the worst" and I ever got made redundant again, then my spare capital was absolutely safe from being used for assessing benefit due as income. That spare capital had been thrown at repaying the mortgage capital and would have safely been spent before I had any logical way of knowing I was about to get a redundancy letter and therefore was safely not sitting there as savings they would have taken into account and treated as savings - and reduced my benefit because of it.
    Last edited by moneyistooshorttomention; 09-05-2018 at 9:24 AM.
    ****************
    • PasturesNew
    • By PasturesNew 9th May 18, 9:25 AM
    • 64,318 Posts
    • 377,496 Thanks
    PasturesNew
    It's perfectly normal to be scared. You've made an expensive decision that you're going to now have to live with ... it's petrifying.

    It doesn't change for the next house, or the next. It doesn't change if you pay cash or buy on a mortgage. If you're the sort who finds some things scarey then they'll be scarey

    The thing is - it's "you" - and you have to "deal with it", whatever "it" could be. "It" could be an electrical problem, or a noisy neighbour ... but whatever "it" is, there's nobody to call to fix it ... to take the problem away, to make the decisions for you .... so you wonder what are all the "it" issues.... and did you buy a pig in a poke.

    You'll be all right.
    • Out, Vile Jelly
    • By Out, Vile Jelly 9th May 18, 10:38 AM
    • 4,138 Posts
    • 14,067 Thanks
    Out, Vile Jelly
    The scariest part for me was the online transfer of the deposit to the solicitor. All those years of savings translated into zeroes that got casually clicked away!

    I bought a house in a bit of a state, and it was frankly depressing walking through the door for the first time as owner and clocking just how much there was to do. My dad advised me to focus on one room at a time and showed me how easy it is to brighten up a space by a quick lick of white paint to the ceiling.

    I also had to spend a lot of time in boring shops like Wickes, and in some of those awful out of town furniture retail places where the staff jump on you and don't let you browse.

    Last night though I could sit out in the warm evening on a patio I'd built to my spec, eating a meal made from veg I'd grown, in a garden I'd been able to plant exactly how I want. Better than anything from my rental days.
    They are an EYESORES!!!!
    • suki1964
    • By suki1964 9th May 18, 10:52 AM
    • 11,297 Posts
    • 30,217 Thanks
    suki1964
    Yes its scary committing to such a huge debt, scared me. Thought we would never have a life again and would live on dust for years to come

    But the feeling you get the day you put the key in the door of your own ( banks) home for the first time is amazing

    You might still lie awake worrying that night mind

    Soon wears off, esp once you are on normal mortgage repayments and all the legal fees are paid. Then you realise that yes you can manage, you still have a life and best of all you are paying off your own home, not a landlords retirement fund

    Give it a year and you will be looking at over paying the mortgage to get it down so you can go through it all over again in a bigger house
    if you lend someone £20 and never see that person again, it was probably worth it
    • Techno_Mystic
    • By Techno_Mystic 9th May 18, 11:14 AM
    • 57 Posts
    • 20 Thanks
    Techno_Mystic
    I totally know this feeling. But the thought of having to pay rent once I am retired scares me more.
    Originally posted by datlex
    Same here. Never could motivate myself enough to do all the shenanigans of buying a property. Can't really understand the obsession with it.

    But still paying rent in retirement is proving to be a great motivator. I am lucky that I live modestly and I am quite well paid, so I reckon I could save up enough to buy a small flat within a few years, totally in cash, or mostly in cash with a small mortgage.
    • pkmid
    • By pkmid 9th May 18, 11:27 AM
    • 14 Posts
    • 15 Thanks
    pkmid
    Also I think you will feel differently when you have completed. I was scared at first but I don't think anything of it now.
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