Slim Posted April 11, 2005 Share Posted April 11, 2005 If you were in a position to buy an adequate house outright or put the money into a larger house but have a mortgage, which would you do? For me, I'd rather the security of owning my house rather than borrowing. I was talking about this to a mate who's got a huge old 1/2 a mil house, mostly on borrowed dosh, and he talked to me as if I was a loony. He recons borrowing is your only sane option, that you'd be a nutter not to buy the biggest house you can with your personal credit limit. Is this the way everyone thinks? Is it just me who thinks you should live to your means? Link to comment Share on other sites More sharing options...
GD4ELI Posted April 11, 2005 Share Posted April 11, 2005 If you were in a position to buy an adequate house outright or put the money into a larger house but have a mortgage, which would you do? For me, I'd rather the security of owning my house rather than borrowing. I was talking about this to a mate who's got a huge old 1/2 a mil house, mostly on borrowed dosh, and he talked to me as if I was a loony. He recons borrowing is your only sane option, that you'd be a nutter not to buy the biggest house you can with your personal credit limit. Is this the way everyone thinks? Is it just me who thinks you should live to your means? <{POST_SNAPBACK}> I've seen two recessions on the IOM, in the long run you can't take the money with you. Manx housing market seems to be stuttering a bit at the moment. Big house = lots of maintenance, lots of cleaning for the missus etc. Link to comment Share on other sites More sharing options...
slinkydevil Posted April 11, 2005 Share Posted April 11, 2005 lots of cleaning for the missus etc. <{POST_SNAPBACK}> Yeah but she must be able to get my dinner on the table quicker with her bigger kitchen Back on topic, I would go for the security of an outright purchase. If you still got a good credit limit go and invest somewhere like Bulgaria on a second home that you have a better chance of making a nice wedge on for your retirement. Link to comment Share on other sites More sharing options...
GD4ELI Posted April 11, 2005 Share Posted April 11, 2005 Take a look at Chrystals Report for 2004: "Sellers are beginning to accept a slow down is happening and reluctantly, are being prepared to price their properties realistically in order to achieve a sale. We expect an uplift in viewings in the New Year and anticipate that buyers faced with greater choice will continue to be price and quality sensitive. This move will continue to put pressure on property with unrealistic asking prices. In conclusion, it should be remembered that the housing market fundamentals are sound. Expect Manx Property prices to stabilise and only move upwards if demand dictates." Link to comment Share on other sites More sharing options...
thebees Posted April 11, 2005 Share Posted April 11, 2005 lots of cleaning for the missus etc. Comments like that fella, I guess you don't have a missus? If you can afford a big house, a cleaning person isn't going to break the bank. We paid £132K for our house (5 years ago), we could have afforded upto £160K but didnt want to take this risk, I'm not sorry, we've never struggled financially and when I got pregnant there was no question of me being sent back out to work. I am very happy with our house, our neighbours and I think Mr Bee is happy with the cost of the morgage (I do not even know how much it costs). Its a toughie, if I were buying a house now, I would go 10-20K under my maximum - just for the sake of a hike in interest rates. Link to comment Share on other sites More sharing options...
Paul H Posted April 11, 2005 Share Posted April 11, 2005 It is all too easy to work your way into debt. Not easy to work your way back out. Best leave the big houses to the folks who can easily afford one and save your own money to make your life a bit easier. I know that a house can be a good investment, but at what cost? Link to comment Share on other sites More sharing options...
GD4ELI Posted April 11, 2005 Share Posted April 11, 2005 Comments like that fella, I guess you don't have a missus? If you can afford a big house, a cleaning person isn't going to break the bank. We paid £132K for our house (5 years ago), we could have afforded upto £160K but didnt want to take this risk, I'm not sorry, we've never struggled financially and when I got pregnant there was no question of me being sent back out to work. I am very happy with our house, our neighbours and I think Mr Bee is happy with the cost of the morgage (I do not even know how much it costs). Its a toughie, if I were buying a house now, I would go 10-20K under my maximum - just for the sake of a hike in interest rates. <{POST_SNAPBACK}> Actually you're right - I am an aging bachelor but a tidy one I agree with your financial ideas - play safe. The recession in the early 80's was unpleasant, the island has a lot to lose if the Financial Services market collapses. Link to comment Share on other sites More sharing options...
Mission Posted April 11, 2005 Share Posted April 11, 2005 I'm very happy with what I have, the only thing I'd like is a bit more space between me and the neighbours, oh and a double garage. Given the choice, I'd rather be able to buy outright I guess but there is the tax benefit of having a mortgage. Hmm, pay more tax or pay mortgage??? I'll go for pay more tax, it'll still be less than what I pay out on the mortgage each month. Link to comment Share on other sites More sharing options...
thebees Posted April 11, 2005 Share Posted April 11, 2005 the island has a lot to lose if the Financial Services market collapses If?? I see it on its way out now, all we will be left with is nasty compaines who call people and ask them to get into more debt - these types of companies are banned in the UK - why do we allow them over here? BTW, GD4ELI I was only tricksking ya. I do ALL the house work round here....so its messy? well what do people expect when I have such an active forum life? Link to comment Share on other sites More sharing options...
Fatty Fatty Toad Boy Posted April 11, 2005 Share Posted April 11, 2005 A mortage is one of the cheapest loans that you can get (especially so with MIRAS). A house is one of the safest investments. Have you ever met a poor property developer? Link to comment Share on other sites More sharing options...
Paul H Posted April 11, 2005 Share Posted April 11, 2005 I'll go for pay more tax, it'll still be less than what I pay out on the mortgage each month. <{POST_SNAPBACK}> Isle of Man tax rate could go up and mortgage interest rate could come down. Property prices can go up and down as well. But there is no mistaking that whatever you pay in tax won't stand any chance whatsoever of making a profit and certainly won't leave anything to your kids. As for security. At least the mortgage comes to an end one day. Tax is forever. Link to comment Share on other sites More sharing options...
GD4ELI Posted April 11, 2005 Share Posted April 11, 2005 A house is one of the safest investments. You missed out on the last two property crashes then? Link to comment Share on other sites More sharing options...
Slim Posted April 11, 2005 Author Share Posted April 11, 2005 A mortage is one of the cheapest loans that you can get (especially so with MIRAS). A house is one of the safest investments. Have you ever met a poor property developer? <{POST_SNAPBACK}> Property developers dont usually have mortgages. There's also no property investment market currently, phone any estate agent on the island and ask if he has anyone looking to invest in property. They don't. The short term view on property currently is pretty bleak, lower than inflation even. Rent return's also not so good because of the price of property compared to rental income. Link to comment Share on other sites More sharing options...
thebees Posted April 11, 2005 Share Posted April 11, 2005 Have you ever met a poor property developer? Nope.....but I've never met an honset or nice one either. You can make a go of any business if you are prepared to 'rip people off' (be it customers, suppliers or employees) you do not get rich by being nice - quite simple. I keep trying to think of nice millionaire making schemes......there arent any. Link to comment Share on other sites More sharing options...
Slim Posted April 11, 2005 Author Share Posted April 11, 2005 You can make a million very easily. Just invest 500 million into something safe.... Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.