At least the mighty ORG understands?!

That`s a very negative point of view!! How can owning your own home ever be considered as a stone round your neck??? as opposed to what? renting??? wasting all that money every month on rent with no financial comeback.

The OP`s problem is to find a solution to immediate financial problems... not ones that might or might not present 50/60 years down the line!!

[NTECUK]

Think about. They have to pay up keep of the property. Insure it .
If your close to the line you end up selling your bike car tv .
Chances are you may be postponing the inevitable.
Owning a house is no bed of roses.
Its a particularly English thing.

[dizzyblonde]

On one respect I'd agree. Owning my house is a heavy stone. It's planted in a bad area, and its hard to shift, its thought of as quite burden of maintenance and bad memories. In another respect, my mortgage is so small, you couldn't rent a bedsit for the equivalent...then I'm grateful for that mercy.

In the event of a relationship split. And house ownership, it can be very messy. Mortgage debt can be a nightmare to handle, and come out without someone not having a black mark. Unless you are loaded, or lucky.
It's quite a complicated affair. Sometimes you wish you only rented, in these circumstances.

Originally Posted by NTECUK

Think about. They have to pay up keep of the property. Insure it .
If your close to the line you end up selling your bike car tv .
Chances are you may be postponing the inevitable.
Owning a house is no bed of roses.
Its a particularly English thing.

You still have to insure rented property!!

If you can`t pay your rent you may end up selling your bike, car or TV

Owning a house is a predominantly English thing yes but what difference does that make to anything.

Yes it may be postponing the inevitable but if you can`t afford your mortgage then surely you won`t be able to afford to pay rent either???

I have friends with mortgages and I have friends who rent.... the friends with mortgages pay less each month on their mortgage payment than my friends pay in rent. The big difference is that with a mortgage each month a little bit more of the house belongs to you and a little less belongs to the bank/building society therefore at the end of the mortgage, you own an asset free and clear. Also along the way you build an ever-increasing amount of equity and the icing on the cake comes when your property appreciates over time. With renting, you pay for the privilege of continuing to reside in the dwelling, but you never gain an iota of equity no matter how long you stay.


Anyways.... as I said in an earlier post this thread is not a debate on the advantages of mortgage over rent. It is to try and answer a question set by the OP on whether or not she should sell her bike

[MisterTommyH]

Originally Posted by NTECUK

Think about. They have to pay up keep of the property. Insure it .
If your close to the line you end up selling your bike car tv .
Chances are you may be postponing the inevitable.
Owning a house is no bed of roses.
Its a particularly English thing.

Wow.

[chris8886]

Originally Posted by Speedy Claire

You still have to insure rented property!!

If you can`t pay your rent you may end up selling your bike, car or TV

Owning a house is a predominantly English thing yes but what difference does that make to anything.

Yes it may be postponing the inevitable but if you can`t afford your mortgage then surely you won`t be able to afford to pay rent either???

I have friends with mortgages and I have friends who rent.... the friends with mortgages pay less each month on their mortgage payment than my friends pay in rent. The big difference is that with a mortgage each month a little bit more of the house belongs to you and a little less belongs to the bank/building society therefore at the end of the mortgage, you own an asset free and clear. Also along the way you build an ever-increasing amount of equity and the icing on the cake comes when your property appreciates over time. With renting, you pay for the privilege of continuing to reside in the dwelling, but you never gain an iota of equity no matter how long you stay.

couldn't agree with this more.

Originally Posted by chris8886

couldn't agree with this more.

+2

[NTECUK]

All I can say is this .
My partner has a freind who got into debt tying to hold onto a house.
It got so bad they went to a very dark place .
Fortunately they did sell there home. What was left got them in rented accom.
When that mony ran out because they didn't intentionally make them selves homeless the service found them a place .
Now 2 years on they are in work .Out of debt etc.
It would have been less stressful to sell up first .and maybe the marriage would have survived.

[NTECUK]

If you can buy then go for it yes .
Don't bother insuring a house you don't own .only your stuff in it.
Look hard at the outlook you have.
The property crash in the 90's caught allot of people out.
Remember you need to keep sane for your kids .

I hope to have 20 years retirement between retiring and needing care. I dont have a pension and friends of mine have lost money on thier pensions in recent years so there is no point starting one now. I have bought a 5 bedroom house, much bigger than we need for a family of three and more expensive on mortgage payments and mortgage term than would really be comfortable. I'm also planning to buy a small house on 25 year buy to let now that house prices seem to have hit rock bottom an are climbing slowly. I have 30 years to work and 20 years left on the main mortgage (hopefully less as its offset), in the last 10 years of work, I plan to continue paying the same amount per month and buy a flat. In short I'm putting every spare penny I have into property, despite the crash it is still the most secure investment you can make. Then once we retire I will sell the big house for a cash retirement fund, move into the small house, and continue to rent the flat for some regular monthly income. The cash retirement fund should be pretty much spent on enjoying our retirement by the time either of us need to go into a care home, and the flat will be bought in my sons name.

Buying a property doesn't just have to be an asset to be surrendered when you get old, if you plan it properly and are prepared to move to a smaller house or flat when you retire to release the cash.