You should be lucky to live in such a great country in your wheelie bin, at least you can afford a mobile home.
Housing market
- Thread starter matt j
- Start date
You should be lucky to live in such a great country in your wheelie bin, at least you can afford a mobile home.
paulfromcamden
Baffled
Perhaps because it's a beautiful day and it feels like summer is just around the corner I've been reflecting on life... (oh dear)
There have been a bunch of posts suggesting that young people should spent every last penny they earn on getting on the housing ladder rather than frittering it away on crushed avocados and Netflix.
As I shuffle through middle age and various bits of me conk out I'm starting to realise what terrible advice this is.
There's no point waiting until you're 60 to go out raving until 8am. If you want to see the world do it before you need hip replacement surgery.
There have been a bunch of posts suggesting that young people should spent every last penny they earn on getting on the housing ladder rather than frittering it away on crushed avocados and Netflix.
As I shuffle through middle age and various bits of me conk out I'm starting to realise what terrible advice this is.
There's no point waiting until you're 60 to go out raving until 8am. If you want to see the world do it before you need hip replacement surgery.
I've slowly (44 soon!) come to the same conclusion, I can live like a monk and maybe with a tail wind and some good luck end up buying somewhere, or I can just get on with life and whatever will be will be.
Gingerbeard
Ayup Me Duck
I did, he was a cash rich multi millionaire pleading poverty! Gave him my notice within a week and moved out not long after, I thought he can try mugging someone else off, the cheeky pr*ck
Thankfully, I’m no longer having to rent and to deal with such shallow individuals
Mike Reed
pfm Member
A lifestyle difficult to refuse, so that's a good tip.
Mike Reed
pfm Member
And join a nunnery. You'll soon get into a habit.
Ponty
pfm Member
Life is a question of balance. I think it’s fair to say, all other things remaining equal (health included), the earlier you get your house bought and paid for, the better. It just gives you more choices in life.
Mike Reed
pfm Member
Couldn't agree more; not sure about the choices in life becoming more numerous (which would confuse me anyway !), but it simply removes a fluctuating financial millstone from around one's neck.
After paying Barclays interest on a £30K repayment mortgage over 15 years, I ended up owing a fair bit more when I moved. This was mostly due to a succession of interest hikes towards the end and the inability to have capital repayment taking effect until the year's end. I vowed never to have another mortgage, and 3 houses later, I haven't. A bit of scrimping/begging was initially involved though, as the whole thing included separation and two properties out of one, so to speak.
Ponty
pfm Member
Yep, it’s a question of removing the necessity to work for the man. That opens up a world of options. Having said that, bloody council tax is the size of many peoples mortgages these days!
Darth Vader
From the Dark Side
Spot on.
At 44 you are only half way through your life yet are willing to give up and accept living in poverty when actually you will be in most need of an income/cash.
I'm sooo glad that I saved and invested for my retirement. I've already had 12 years without the daily drudge and can afford what ever I need. I have never bought myself a new car always s/h however I did have some brand new company cars and now in retirement are about to buy my wife another new car - one we have in now 10 years old and still going well.
I remember decades ago local people in the pub commenting and laughing about those incoming people living on the new estate were sitting on soap boxes as the mortgages were so high. Well almost yes. It was several years before we could afford a telephone line and our TV was hired. It was worth it as it put us on the housing ladder.
Just did some sums to get my head around affordability. To borrow £100K repayment mortgage over 30 years will cost pa with interest at 2% £4436 5% £6440 and 8% £8804 according to the mortgage calculator. Then assuming a gross income of £30K pa that becomes as a percentage 14.8% 21.5% 29.3%. I think that this is an indicator of affordability. I was paying around 8% interest for most of my mortgage and just checked these figures against what I borrowed Sept 1972 for my first place and yes the 29.3% of my gross income is accurate. Hand-me-down furniture helped in the initial years so we weren't exactly on soap boxes......
One critical thing that makes house ownership more affordable is to partner with someone you like. - if only for a few years.
DV
Joe P
Memory Alpha incarnate | mod; Shatner number = 2
I’ve done some back-of-an-envelop calculations and if people simply lived exactly as I have — and by exactly I mean exactly — they too could have exactly what I have.
You, too, could have a Retro 51 Apollo 11 fountain pen, a found Berlioz record on a curb while out for a walk, not to mention a Kit Cat Clock. (It's a current model, not the 1931 original. I'm not made of money you know!)
But instead people have done different things and do not have what I have. You only have yourself to blame.
Joe
Ponty
pfm Member
Don’t take this the wrong way but since it became the norm for both partners go out to work rather than one bring kids up etc, that’s pretty much a prerequisite. Dual incomes have been a significant house price driver IMHO. Of course, partnering for a few years can be a very good way of giving a whole house away!
I don't recall claiming to be in poverty, that's offensive to those who actually are. What I'm not is wealthy enough to buy a house. I haven't given up, I still go to work every day and still live within my means, I've just given up on owning a house.
Darth Vader
From the Dark Side
I guess I put that rather poorly as I meant - living in poverty in your old age if you don't now start preparing for it. Having your own property is a start and you really shouldn't give up. I think having a partner would be a way to go if only for a few years to try for some equity.
You are 44 and as I understand with a reasonable income so unlike those who say live for today I would say its better to prepare for a good retirement you really will appreciate that when you are not so mobile and have less energy. So if not planning on owning your own home put as much as you can into a SIPP as HMRC will give you your tax back thus boosting your investments.
DV
Darth Vader
From the Dark Side
Indeed. However there are different types of partnerships and the financial issues can be dealt with at the very beginning with the correct legal guidance and agreements in place. The plan is after separation both parties will have some equity that can be used as a deposit for another property of their own. 44 is a relatively young age and the OP may have some unexpected good career changes in the upcoming years. Better to be optimistic than to look back with 'if only .....'
The omens are that the price of residential property will drop so now is a good time to try and find a way to build up some savings and be ready to pounce when the time is ripe.
DV
I do already pay into a pension, it's just yet another monthly outgoing that reduces what I can save towards a house deposit. Living with someone isn't happening, my mental health is already walking a fine line, having to share a house with someone would tip me over the edge in all likelihood.
Career wise I already earn towards the top end of what I can potentially earn so the chances of earnings increasing is slim to none, just like everyone else I haven't had a pay rise in over 5 years or more whilst my cost of living has probably increased 30% or so, I'm approx £500 a month worse of now than I was just before covid.
Darth Vader
From the Dark Side
As ever you misunderstand or perhaps its a US/UK English misinterpretation. What I write is for guidance as someone who has walked the walk with examples.I’ve done some back-of-an-envelop calculations and if people simply lived exactly as I have — and by exactly I mean exactly — they too could have exactly what I have.
You, too, could have a Retro 51 Apollo 11 fountain pen, a found Berlioz record on a curb while out for a walk, not to mention a Kit Cat Clock. (It's a current model, not the 1931 original. I'm not made of money you know!)
But instead people have done different things and do not have what I have. You only have yourself to blame.
Joe
Everyone has different experiences and paths to choose. On reflection I have found that the 'bad' things that life threw at me were actually opportunities/luck although they certainly didn't feel like that at the time. I lost my job in my 40s and couldn't get another 'over qualified' was the common gist. At that point the choice was either to throw in the towel give up and blame everyone else for my lot or rise up to the challenge and sod it I'll show them. You never know what the future holds.
DV
