h5djr said:
Unless of course house prices start to go down, as they seem to be doing at the moment. Although a house will still be a good investment in the long run but an investment that is difficult to access, unless of course your happy to retire to a tent.
Prices going down?
Where are you h5djr?
They are still rising here...very much so.
I believe Aberdeen was recently voted one of the most expensive areas in the Uk...
Great for us homeowners...not so great for those not yet on the property ladder.
I've had my own place since I was 21...now got a £250k+ mortgage on a 300k+ valued house, at 36 years old.
I don't go much for financial investments or care too much about house prices or depreciation on cars...my view is that if the house is making money, I'll offset it against what I'm loosing on cars...and pretty much break even in the long run, whilst living somewhere nice and enjoying nice cars. I have a damn good share package (buy one, get two free) through work, free life insurance through work, a good bonus scheme through work and a non-contributory final salary pension scheme also through work so the essentials are covered.
A simplistic view perhaps...but it works for me...
I earn it, I spend it...
911 paid for - was on finance
vRS paid for - bought outright
GTI paid for - was on a personal loan.
I don't go for PCP type deals to be honest...I want to own the car and want to be able to modify, drive, do what I like with them...and if I need to sell one/more, I'll sell them.
I don't like tied maintenance arrangements either...I'll take my cars to whom I choose, fit the tyres and brakes I want to etc
Big mortgage payments don't frighten me now - they did - but after 2 years...I'm used to it.
Car Loans don't frighten me either - I've usually got one...normally take it over 4-5 years with a reasonable deposit covered by the trade-in, leave the rest in the bank 'just in case' and when I get bored and want a change (normally after 4 years or so), pay it off and change the car.
I suppose a healthy but manageable debt is the norm nowadays...