House or car - which did/would you chose?
Discussion
Bertrum said:
I don't get it???
So you buy a house in your 20's you pour all your money into it, giving up holidays, nights out etc,
Says who?So you buy a house in your 20's you pour all your money into it, giving up holidays, nights out etc,
I bought my first place at 20 & had plenty of nights out, holidays etc. I also had somewhere to invite my mates back to rather than my parents house.
If you want to talk about giving up nights out, holidays etc then children are far worse
Bertrum said:
I bet if you added up all the extra's you've spent on your house plus moving mortgage payments stamp duty etc, it will be more expensive than renting.
In 18 years you own the house, but so what. You now just have a load of money tied up in a big pile of bricks ,mortar and some MDF (kitchen).
That's what I don't get. I just don't see the point.
Guess I never will.
Cars are the same, 30/60/90/120/150/180k, at the end of the day they are just bits of plastic or metal that drop in value.In 18 years you own the house, but so what. You now just have a load of money tied up in a big pile of bricks ,mortar and some MDF (kitchen).
That's what I don't get. I just don't see the point.
Guess I never will.
When a car/bike breaks down it's nice to go back to ones own gaff and sulk untill its fixed.
Bertrum said:
RizzoTheRat said:
The alternative to buying would be renting, which would cost more than my mortgage costs me. In 18 years time I'll own a house, whereas if I'd rented I'd have less money and no house. Seems a it of a no-brainer to me.
I bet if you added up all the extra's you've spent on your house plus moving mortgage payments stamp duty etc, it will be more expensive than renting. In 18 years you own the house, but so what. You now just have a load of money tied up in a big pile of bricks ,mortar and some MDF (kitchen).
That's what I don't get. I just don't see the point.
Guess I never will.
As for the so what in 18 years, yes I'll have a chunk of money tied up in brick mortar and chip board (not an MDF fan myself), but I won't be paying rent for the next 30 or so years before I sell it to pay for my place in an old people's home. Though admittedly the reality is I'll probably upsize in a couple of years and be paying the mortgage for a bit longer.
Not forgetting the sense of security of knowing I'm not going to have to move out because the landlord wants the house back, as happened in 2 of the 3 places I rented before buying.
...edotid for speeling
Edited by RizzoTheRat on Monday 16th April 15:09
RizzoTheRat said:
I agree there's a lot of additional expenses that a house owner has that a renter doesn't but I'm paying about £600/month on my mortgage while renting a similar sized place would be well arounf £1000/month according to Rightmove. I'm not convinced I'm paying anywhere near £4800/year on maintenance. Bear in mind a lot of rented properties are mortgaged by the owner so the rental prices generally cover a mortgage and maintenance costs. Admittedly my figures are a bit optimistic as current mortgage rates are stupidly low, and I did have a couple of years savings as a deposit, but I did look at it in a fair bit of detail (I'm an analyst for a living, I can't help it) when I bought and renting and buying worked out about the same cost over the life of the mortgage but I ended up with an asset worth several hundred thousand pounds at the end of the mortgage.
As for the so what in 18 years, yes I'll have a chunk of money tied up in brick mortar and chip board (not an MDF fan myself), but I won't be paying rent for the next 30 or so years before I sell it to pay for my place in an old people's home. Though admittedly the reality is I'll probably upsize in a couple of years and be paying the mortgage for a bit longer.
Not forgetting the sense of security of knowing I'm not going to have to move out because the landlord wants the house back, as happened in 2 of the 3 places I rented before buying.
Also worth noting is when you hit 60, you can sell your place for £x00,000 and buy a smaller house with a garage for the Lambo.As for the so what in 18 years, yes I'll have a chunk of money tied up in brick mortar and chip board (not an MDF fan myself), but I won't be paying rent for the next 30 or so years before I sell it to pay for my place in an old people's home. Though admittedly the reality is I'll probably upsize in a couple of years and be paying the mortgage for a bit longer.
Not forgetting the sense of security of knowing I'm not going to have to move out because the landlord wants the house back, as happened in 2 of the 3 places I rented before buying.
Cash
PomBstard said:
House or car - which did/would you chose?
I was in something approaching this situation - a car or the beginnings of a small deposit - and I went for the car.I don't particularly like living in the South East and I'm in the fairly early stages of a new career, so the house wasn't realistically an option. Prices round here are ridiculous, I'm on a relatively low income and my girlfriend is technically self employed so it would have been an extortionate mortgage for a bug hutch in a rough part of town or a couple of years of TVR ownership. Seemed like a no-brainer.
I do slightly resent paying rent for something you get no lasting equity on, but I think it was the right decision.
It always had to be the house, for me.
Renting is mainly for idiots, who want to tread water and are going nowhere. Many of my friends and colleagues are renting. They always complain about being flat broke, whereas their monthly outgoings tot up the same as mine for mortgage and bills on a three bedroom house. I'll take that over a one or two bedroom flat any day, not to mention that, importantly:
1) One day I will own it.
2) It has parking for three cars in front of it, and it's a cul de sac. I think we could have about 5 cars in the household, without even having to worry about parking in front of anyone else's house!
As a result of me and the missus buying a house this year, I've had to curtail my fleet dreams. It doesn't matter a great deal. I've bought my dad's Impreza and I'll run that for a year as it is cheap, then once I'm settled in in the new house and I've got some money coming back in I can go out and see if I want something else.
Renting is mainly for idiots, who want to tread water and are going nowhere. Many of my friends and colleagues are renting. They always complain about being flat broke, whereas their monthly outgoings tot up the same as mine for mortgage and bills on a three bedroom house. I'll take that over a one or two bedroom flat any day, not to mention that, importantly:
1) One day I will own it.
2) It has parking for three cars in front of it, and it's a cul de sac. I think we could have about 5 cars in the household, without even having to worry about parking in front of anyone else's house!
As a result of me and the missus buying a house this year, I've had to curtail my fleet dreams. It doesn't matter a great deal. I've bought my dad's Impreza and I'll run that for a year as it is cheap, then once I'm settled in in the new house and I've got some money coming back in I can go out and see if I want something else.
House every time. When I was young free and single I had cars, aeroplanes, motor bikes, holidays.
Now I have a family home and an old diesel passat and an old triumph spitfire I'm slowly restoring.
I've seen the pain and stress that eviction can cause to a family, so we're working as hard as possible to get mortgage free ASAP. And after that it'll be school fees, uni fees and the rest.
I can still have fun with cars - I just have to indulge in shedding and playing with low value classics. It's not exactly a hardship.
Now I have a family home and an old diesel passat and an old triumph spitfire I'm slowly restoring.
I've seen the pain and stress that eviction can cause to a family, so we're working as hard as possible to get mortgage free ASAP. And after that it'll be school fees, uni fees and the rest.
I can still have fun with cars - I just have to indulge in shedding and playing with low value classics. It's not exactly a hardship.
Bertrum said:
I don't get it???
So you buy a house in your 20's you pour all your money into it, giving up holidays, nights out etc, so when you are in your 40's you have some extra cash to spend on what?? won't be booze and hookers? Also by the time you are 40 if things go well you will also be earning more anyway???
So what's the point in that??
Plus all the associated running costs of a house.
I'll have fun now thanks.
we do have a strange obsession with owning houses in this country.
I applaud your attitude!So you buy a house in your 20's you pour all your money into it, giving up holidays, nights out etc, so when you are in your 40's you have some extra cash to spend on what?? won't be booze and hookers? Also by the time you are 40 if things go well you will also be earning more anyway???
So what's the point in that??
Plus all the associated running costs of a house.
I'll have fun now thanks.
we do have a strange obsession with owning houses in this country.
I think houses are going nowhere fast in terms of value. I bought when I was 19 and have owned off and on since then (43 now).
Ideally do both, I would quite happy sacrifice an extra bedroom for a chrome orange Lotus Evora
doogz said:
Fair enough, but after those 18 years, or however long, is up, you own the place. You don't have to pay for it any more. Whereas someone else will be paying rent til they die. I'll have paid around £360,000 by the time my mortgage is paid off, in interest and capital. Could i rent a house for life with that? If monthly rent was only 3/4 of what my mortgage payment is, that's 33 years. I bought a house when i was 24, so if i live to be 57, i'm quids in, and that's before you look at the other reasons for choosing to buy instead of rent.
It is however an interesting time. When you buy interest rates are low but the prices are high and for the most part static.
The rental market is artificially high due to the high prices of property and the high demand for rental properties.
Neither renting or buying is an attractive proposition, but you have to live somewhere.
Not my thread but good to get some peoples views.
I'll keep renting, racing and driving round in my antique BMW. And neither race car nor road car will depreciate so happy days.
Edited by Bertrum on Monday 16th April 15:40
Bertrum said:
When you buy interest rates are low but the prices are high and for the most part static.
The rental market is artificially high due to the high prices of property and the high demand for rental properties.
Neither renting or buying is an attractive proposition, but you have to live somewhere.
Completely agree with you there. House prices are pretty mad in this country, though not as bad as Japan where apparently 100 year mortgages are considered normal. The rental market is artificially high due to the high prices of property and the high demand for rental properties.
Neither renting or buying is an attractive proposition, but you have to live somewhere.
What we don't have in this country is as good an attitude to renting as they have in the rest of Europe, in France for example I believe renting is the norm, and as a result long term contracts are usual, rather than the short term ones we tend to have in the UK, which gives the renter peace of mind that that they're not going to get kicked out on a few months notice. Plus presumably the houses don't change hands as frequently so many owhers aren't paying a mortgage and see the rental income as the return on thier investment, which keeps prices at a sensible level.
Totally off topic, Rachel looks really good on Countdown.
When I hit 18 signing the terms and conditions of a bank loan to buy my first Lancia were truly the most amazing thing ever. I would and have never felt the same way buying a house.
My bedroom in my parents house had everything, telephone, colour remote control tv, and an arm chair. My mate Dave had his own huge flat converted from a church roof, this was the party pad. I lived for the moment in my 20's and don't regret a thing, had an integrale at 26 and waited until I was 28 before buying a flat.
The only thing that may have had a hope in hell of changing the way I lived would have been a child.
My daughter was born when I was 30 and that's when I started to change my principles. The car comes last, that's why its in the garage with a blown head gasket and rusty wing and sills. But.... that feeling when I was 18 is about to come back. The bank loan is nearly finished and it wont be getting spent on a new kitchen or family run-a-round.
When I hit 18 signing the terms and conditions of a bank loan to buy my first Lancia were truly the most amazing thing ever. I would and have never felt the same way buying a house.
My bedroom in my parents house had everything, telephone, colour remote control tv, and an arm chair. My mate Dave had his own huge flat converted from a church roof, this was the party pad. I lived for the moment in my 20's and don't regret a thing, had an integrale at 26 and waited until I was 28 before buying a flat.
The only thing that may have had a hope in hell of changing the way I lived would have been a child.
My daughter was born when I was 30 and that's when I started to change my principles. The car comes last, that's why its in the garage with a blown head gasket and rusty wing and sills. But.... that feeling when I was 18 is about to come back. The bank loan is nearly finished and it wont be getting spent on a new kitchen or family run-a-round.
I'm 19 at the moment and am fortunate enough to have just got a job that pays very well for my age, and (alright, maybe not in the PH-world of multi-millionaire directors but in the real world 
) pretty well full stop. First thought was what car I was going to spunk my hard-earned on, when a slightly boring thought occurred to me. If I was to overpay like mad, still live at home with very low overheads, and buy a modest house around here and let it out whilst the mortgage is being paid, I could potentially have it paid off before I'm 25 (I know someone on a pretty average wage who, through living extremely budgeted, has paid off the best part of £90k in little over 4 years, and they still had the running costs of the house to spend). The idea would be that by the time I'm in my mid-late 20's it's one big bill less to pay, and all my money would be mine. Plus, there's the security aspect. That for me certainly has appeal.
Not sure if I am going to follow through with it, but I'd be interested in opinions or experiences of any other people who have done it I figure as well, there are more than enough cars that are cheap but still bloody good fun (MX5 anyone? 
), so it wouldn't even be like I'd have to be rattling around in complete sheds and poverty until it was done.
The alternative is Monaro shaped
) pretty well full stop. First thought was what car I was going to spunk my hard-earned on, when a slightly boring thought occurred to me. If I was to overpay like mad, still live at home with very low overheads, and buy a modest house around here and let it out whilst the mortgage is being paid, I could potentially have it paid off before I'm 25 (I know someone on a pretty average wage who, through living extremely budgeted, has paid off the best part of £90k in little over 4 years, and they still had the running costs of the house to spend). The idea would be that by the time I'm in my mid-late 20's it's one big bill less to pay, and all my money would be mine. Plus, there's the security aspect. That for me certainly has appeal.Not sure if I am going to follow through with it, but I'd be interested in opinions or experiences of any other people who have done it
I figure as well, there are more than enough cars that are cheap but still bloody good fun (MX5 anyone? ), so it wouldn't even be like I'd have to be rattling around in complete sheds and poverty until it was done. The alternative is Monaro shaped
I wrestled with the whole house vs car/lifestyle for years...long happy years of renting a nice barn conversion, unplanned weekends in Vegas, Venice, driving a 4.5 Cerbera and beer fuelled casino nights out. Never worrying about "what if that breaks" because I knew I always had the spare cash to fix it.
Then, my son arrived and things changed...all the fun things you used to blow money on you can't really do anyway once you have kids. Then my daughter arrived and the idea of providing a more permanent family home close to good schools rather than living out in the sticks became important. I now have a nice house, in a nice area that costs more than triple what I was paying per month renting. Sometimes it is annoying that instead of a week in Italy/Goa/any place I wanted to go we have a week camping in the lakes and sometimes it is annoying that the extra cost of owning a house would have easily bought a very good TVR every year. But, life changes and so do your priorities. My family is far more important than cars and holidays.
I guess what I am saying is have fun while you can - I did and I loved every second of it. Your life (or should that be wife) will tell you when it is time to settle down. Until then just have fun!
Tim.
Then, my son arrived and things changed...all the fun things you used to blow money on you can't really do anyway once you have kids. Then my daughter arrived and the idea of providing a more permanent family home close to good schools rather than living out in the sticks became important. I now have a nice house, in a nice area that costs more than triple what I was paying per month renting. Sometimes it is annoying that instead of a week in Italy/Goa/any place I wanted to go we have a week camping in the lakes and sometimes it is annoying that the extra cost of owning a house would have easily bought a very good TVR every year. But, life changes and so do your priorities. My family is far more important than cars and holidays.
I guess what I am saying is have fun while you can - I did and I loved every second of it. Your life (or should that be wife) will tell you when it is time to settle down. Until then just have fun!
Tim.
RenesisEvo said:
Baryonyx said:
Renting is mainly for idiots, who want to tread water and are going nowhere.
I think that's being a bit harsh. I think this sums it up best at the moment:Betrum said:
Neither renting or buying is an attractive proposition, but you have to live somewhere.
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