Mortgages

ted1 wrote: »

A house doesn't deprecate like a car does. (with the exception if those bought during the boom)

Once you pay off the mortgage in x years you li e mortgawge and rent free. If your paying rent how on hell will you pay rent when you stop working.

Also i'm currently paying 1150 a month rent. I just bought a house in a slightly better estate and my mortgage will be 750. A no brainer if you ask me.

Houses do depreciate, but perhaps not as fast as cars do.

Hayden Gorgeous Silencer wrote: »

I fully intend on getting one when I can get a job back near home.

I hate handing money over in rent when I know it could be going towards owning the place instead also the thought of renting all my life is awful.

You rent either way. You rent either the house or the money to buy the house. That's what mortgage interest is - rent on the money.

Bear in mind that - depending on interest rates - you can pay back a multiple of what the house costs. In the first few years, the overwhelming majority of your mortgage is paying the interest portion.

Monty Burnz wrote: »

Houses do depreciate, but perhaps not as fast as cars do.

Houses can, cars just do.

Gurgle wrote: »

Houses can, cars just do.

Well no, both do. You point me towards a house that doesn't depreciate, and I'll show you a car that doesn't.

Monty Burnz wrote: »

Well no, both do. You point me towards a house that doesn't depreciate, and I'll show you a car that doesn't.

Going to have to point you towards the 90s if you're comparing to the right now value.
Any house bought up to approx 2000 is worth more now than it was then. Any car bought up to 2000 is worth a small percentage of its original price.

Domo230 wrote: »

A very subtle form of slavery.

Yes, very subtle.

You decide to purchase, go looking for a mortgage, agree loan conditions, payment schedule, interest rates. At the end of it, if you stick to the deal then you own outright the house you want to live in. They're sneaky feckers alright.

Renting provides shelter in one way, but it also buys flexibility.
Especially if you are not tied to one particular place.

You can't do that with a mortgage (or death contract :eek:)
Also renting, doesn't imply that you will be paying off some "smart, ballsy" persons mortgage. You can also rent with the councils, tenancy.

The only criteria for me to get a mortgage would be if I were getting married, intended to have a family, prices were sensible and future job prospects were solid.

foxyboxer wrote: »

You can't do that with a mortgage (or death contract :eek:)

Just a tad overdramatic don't you think? I'll have my mortgage paid long before I'm dead (hopefully). Where are all the people currently renting going to live when they only have a pension to live off? That €200 a week pension isn't going to go very far.

Domo230 wrote: »

That's the ideal but it doesn't go that way for many. If I lose my job, I can pack up and move somewhere else and rent there. Or I can switch careers if my career sucks and take a pay hit without worrying. People on Mortgages can't. They are very restricted compared to renters. My parents have lost a lot of freedoms due to their mortgage so yes I do think it is a subtle form of slavery.

There's nothing stopping me from packing up. I can rent my own house out, it'll more than cover the mortgage, and rent somewhere else if I wanted. I don't know very many people though, renting or with a mortgage, who could afford to take a hit in their pay without worrying. Bills still need to be paid.

Domo230 wrote: »

If I lose my job, I can pack up and move somewhere else and rent there.
I can switch careers if my career sucks and take a pay hit without worrying.

People who have such situations on the horizon would be stupid to buy a house at all, mortgage or otherwise.

Domo230 wrote: »

I will have to go the long and difficult path towards saving for a house and paying upfront.

Sure you can, I assume you've done the calculations.
Good luck with that.

ocallagh

ted1 wrote: »

A house doesn't deprecate like a car does. (with the exception if those bought during the boom)

Once you pay off the mortgage in x years you li e mortgawge and rent free. If your paying rent how on hell will you pay rent when you stop working.

Also i'm currently paying 1150 a month rent. I just bought a house in a slightly better estate and my mortgage will be 750. A no brainer if you ask me.

Yes, 1150 is dead money
Interest is also dead money
A drop in your house price is dead money too

The latter turns it from a no brainer into a high stakes gamble. The 12k you blow in rent each year is pittance if your property drops by 10% in the same period not to mention the money you wasted on maintenance, interest etc.

[Deleted User]

Monty Burnz wrote: »

You rent either way. You rent either the house or the money to buy the house. That's what mortgage interest is - rent on the money.

Bear in mind that - depending on interest rates - you can pay back a multiple of what the house costs. In the first few years, the overwhelming majority of your mortgage is paying the interest portion.

Its still your house from day one though, you can decorate it, change it around, not worry about renewing a lease, getting thrown moved on when the landlords son/daughter wants to move in.

Even better (and what my plan is) is you can build your own house exactly as you want if you chose.

and as I said before in a lot of cases now, rent is more than the mortgage repayments. I cant understand people not wanting to own their own house and own it when they are fairly young too not when they are married with children. I have 3 close friends all under 26 building houses at the moment.

Wile E. Coyote wrote: »

Just a tad overdramatic don't you think? I'll have my mortgage paid long before I'm dead (hopefully). Where are all the people currently renting going to live when they only have a pension to live off? That €200 a week pension isn't going to go very far.

The word mortgage is a Law French term meaning "death contract," meaning that the pledge ends (dies) when either the obligation is fulfilled or the property is taken through foreclosure.

Gurgle wrote: »

Going to have to point you towards the 90s if you're comparing to the right now value.
Any house bought up to approx 2000 is worth more now than it was then. Any car bought up to 2000 is worth a small percentage of its original price.

Now you are referring to the rate of depreciation. Of course they are different.

Hayden Gorgeous Silencer wrote: »

Its still your house from day one though, you can repaint it, change it around, not worry about renewing a lease, getting thrown moved on when the landlords son/daughter wants to move in.

Even better (and what my plan is) is you can build your own house exactly as you want if you chose.

and as I said before in a lot of cases now, rent is more than the mortgage repayments.

Ah now there are tenancy laws after all.

And if you have a mortgage, you don't own the house and it's not an asset. Anything that takes money out of your pocket is not an asset.

It is an asset for the bank and it's market value is the collateral for them in giving you the money in the first place. You own it when you get the deeds.

You default? They take the house.
You die? They cash in the life assurance they made sure you took out.

I don't recall giving life assurance details when renting?

Stiffler2

RENTING IS DEAD MONEY

THERE - I SAID IT IN CAPS

golden lane

ocallagh wrote: »

Yes, 1150 is dead money
Interest is also dead money
A drop in your house price is dead money too

The latter turns it from a no brainer into a high stakes gamble. The 12k you blow in rent each year is pittance if your property drops by 10% in the same period not to mention the money you wasted on maintenance, interest etc.

you pay your mortgage.....you live in the house......you die...and you leave the house to your children.......

how on earth is that not a good idea........????

Stiffler2 wrote: »

RENTING IS DEAD MONEY

THERE - I SAID IT IN CAPS

MORTGAGE INTEREST IS ALSO DEAD MONEY.

I said it in italicised caps.

Domo230 wrote: »

I will go the longer and more difficult path towards saving for a house and paying for it upfront.

How do you see that working out for you?

c_man

People with mortgages should be forced to wear a big 'M' on their person so that we may all deride them for being such fools. We can attach the Stone of Shame to special cases. "Rent is dead money? Well this is dead weight!"

c_man wrote: »

People with mortgages should be forced to wear a big 'M' on their person so that we may all deride them for being such fools. We can attach the Stone of Shame to special cases. "Rent is dead money? Well this is dead weight!"

You should really try look at the bigger picture rather than whats happened over the past couple of years. If people didn't buy houses what would you rent? If the local councils were forced to build houses to provide rental accommodation for everyone in the state how much tax would have to pay each week to keep them habitable? Where are all the people currently renting going to live when they reach retirement age and only have the state pension to live off?

Stiffler2

Monty Burnz wrote: »

MORTGAGE INTEREST IS ALSO DEAD MONEY.

I said it in italicised caps.

Well - let's put it this way.
My parents bought their house for 25k, it's worth roughly 400k now and they own it.

Once I'm finished paying off my house in 30 years I paid let's say 350k for the house. In 30 yrs it'll proabably be worth 3 million if inflation is anything to go by from back when my parents bought to when I bought.

So I'll own a house worth 3 million, I'll probably lease the bathroom and 1 room for a cool 100k a month in 30 years while you'll be out working at 80 to pay your rent.

do you see ?

I always like to have a mental escape plan, a mortgage is like a financial mind job (constantly at the whims of varying interest rates, any shred of bad news at work "I'm getting laid off!!!! I'll default!!!!" etc etc)

If I were to lose my job, get defrauded out of savings, basically left with nothing.

I'd simply stay in a hostel at €12 a night. €84 a week. To start from scratch again. Worst case scenario.

Stiffler2 wrote: »

Well - let's put it this way.
My parents bought their house for 25k, it's worth roughly 400k now and they own it.

Once I'm finished paying off my house in 30 years I paid let's say 350k for the house. In 30 yrs it'll proabably be worth 3 million if inflation is anything to go by from back when my parents bought to when I bought.

So I'll own a house worth 3 million, I'll probably lease the bathroom and 1 room for a cool 100k a month in 30 years while you'll be out working at 80 to pay your rent.

do you see ?

Did your parents have such remarkable foresight when they got their mortgage? What if we experience a decade or two of deflation?

Past performance is not an indication of future gains and all that jazz.

golden lane

when my grandfather died...my uncle bought my grandfathers house.....i think i remember 600 pounds being mentioned.......the house is on lismore road in kimmage.....

my auntie bought a house in kilmainham at about the same time....don't know how much..

how much are those houses worth today.....?????

foxyboxer wrote: »

If I were to lose my job, get defrauded out of savings, basically left with nothing.

You'd still have a roof over your head if you had a mortgage and could negotiate with the bank till you were back on your feet. You could even rent out a room tax free to give you an extra income.

golden lane wrote: »

when my grandfather died...my uncle bought my grandfathers house.....i think i remember 600 pounds being mentioned.......the house is on lismore road in kimmage.....

my auntie bought a house in kilmainham at about the same time....don't know how much..

how much are those houses worth today.....?????

Are we forgetting about inflation?

Wile E. Coyote wrote: »

You'd still have a roof over your head if you had a mortgage and could negotiate with the bank till you were back on your feet. You could even rent out a room tax free to give you an extra income.

But in all fairness, how likely is that though?