subject: Enjoy your life, Don't get a mortgage [print this page] Enjoy your life, Don't get a mortgage Enjoy your life, Don't get a mortgage
Everyone in their right mind would get the mortgage if only they could, right? Or would they? Keep in mind that the buzz about mortgages, while justified to some degree, doesn't mean that you need one. Here is why.
First of all, you are responsible for all the costs associated with your house. Let it be installing a new cooker, windows or repairing a boiler; it's your money that's going to be spent not your landlord's. You're also responsible for paying home insurance.
How many times did you rent a house in a seemingly great area just to discover later that it's not the case? Now you're unlucky with buying a house all the noisy, nasty neighbours next door and untamed minors roaming the streets can become reality. And you can't just move out a week later.
Do you know how much hassle is it to sell a property? What if you decide to move abroad in the next couple of years? Or even better, move to another town next month because due to a new job? Is having your own' house worth all the effort?
Few people truly realize it, but the house will not be yours until you pay the last installment of your mortgage, some 25 years in the future. Even if after 15 years of regular mortgage payments you get info financial problems, all your equity is not going to save the home from being repossessed by bank. How is that for your own' home? Is it really yours?
There's that false assumption that mortgage saves money because you're not simply throwing it away, as in paying the landlord, but instead you're accruing wealth through equity in property. So it's better to get a mortgage, even if it's only for two or three years, rather than renting your place. You could always sell your property after those few years and recover all the money, right?
That's a beautiful and idealistic thought; most likely coming from someone who never had a mortgage.
Repayment mortgage actually gets you very little equity while interest only gets you none. Yes, with the latter, for the first five or six years you will only pay the interest fees. If four years into the mortgage you decide to sell, it will bring you major loss.
You will discover a new meaning to the word stress'. Imagine that for the next 20 to 30 years a large chunk of your wages will be paid to the bank. No more spontaneous outings and impulse buying, welcome calculator and spreadsheets. Once the mortgage payments commence there's no way to stop for the following couple of decades, unless you're prepared to lose home.
It's a purchase you children may appreciate one day but most likely not you. You will work hard for years to get a small piece of land an a concrete construction. If that's fine with you go ahead.
If you wish to learn more about mortgages, all the pitfalls and ways to get the most out of them without becoming a slave to the wage for a few decades check out www.MortgageInUK.co.uk. It's helpful.
