Wise life advice from the oldies to the youngens!

UK PROFESSIONAL DRIVERS FORUMS THE UK PROFESSIONAL DRIVERS FORUM (INTERACTIVE)
21

Smoggie89:

martinviking:
Ok, I’ll give it a try- I know it’s a lot harder now, but when I first got married in 1982 we struggled with a mortgage, but it was the best move I ever made. Always had equity in every house I’ve brought since. I rented 15 years ago (for 6 months) whilst going through a divorce (occupational hazard) & hated every payment. I couldn’t get back on the property owning ladder soon enough & found a repossession for 56k, put a 30k extension on it & paid it all off 3 years ago.
Now I’m 53 & got spare cash, not looking for the high paying/weekend work any more & even brought & paid for a Mobile Home last February.
My advice is always to try & buy, enjoy the partying when you’re young then between 25-50 ease off (a bit) after 50 with your own home paid for GO FOR IT ! Just buy shares in the right sectors to pay for it. Lol.
One last bit of advice=make a budget & keep to it, don’t spend more than you earn & always put some away for Rainy Days.
Oh ! & drink cheap Whisky with coke, save the good stuff for special occasions.

I’ve always rented , was in the army then met the other half and rented for the last 4 year, how do repossessions work? Do you get them a lot cheaper? , I’m currently living in hull (well 12mile outside) and I like it here in the countryside I would like to live somewhere like this but most of the places are private rent or buy , like I said I’m not clued up on this sort of stuff so don’t know where to start, im in a 2bed cottage at the minute , it’s too small for 2 people really but for £375 it is a big help as I’m not on the best of wages, and it’s not the best of places I.e damp etc, I hate moving so I would like to find a decent house and just pay it off but it’s easier said than done lol , cheers for reply mate

Should be some affordable properties in your area, check out the local Estate Agents.

There’s a Help to Buy scheme that the Government has got involved with, IMO you should be on the list (ex army) www.helptobuyese.org.uk,
hope this helps.

Repo’s were big 15 to 20 years ago, then the ‘Rip Off’ Banks cashed in & pushed the
price up, you used to be able to buy one at a good price but had some work to do, but now you have to part with a lot more & still have the work to do.

22

calsdad:
The get a property with a mortgage option has worked out really well for people over the past 30/40 years. The main reason for this is that there has been a rise in house prices that has seen the price off the asset grow significantly. So its become a sort investment that everyoe should have.

What you need to ask yourself is will this increase in house prices continue. It’s not a given that it will. If it doesn’t renting might not be a dead option it might be sensible. You have to take into account the costs of owning the property both it’s up-keep and interest on the loan.

The mistake a lot of people make is they dont take into account the interest they have paid on the mortgage. They just say my house value has gone from £100k to £180k in the last ten years. Not strictly £80k profit if you have paid £60k in interest on your mortgage. In that 10 years they may have had new windows new kitchen etc and actually not be infront at all. Yes they still have an asset to in the house but as you always need a roof over your head not always easy to cash it in. Always look at the true cost of a mortgage including interest.

Any advice you want on anything financial just ask, used to be a financial and mortgage advisor and hapy to share knowledge. Also happy to offer advice on pensions, life assurance and savings for free if anyone wants it. Will have to stay annonomous and on here though as don’t want FSA chasing me. Happy to start another thread if u want as long as i can answer in my own time.

When you say look at the true value mortgage plus interest can you give me a few examples please mate, I went n seen a mortgage advisor before just for an idea and he said for £440ish a month (rent we were paying at the time) we would be looking at a house value of 90-100K , it’s obviously better to get a mortgage sooner rather than later but it’s not just that easy lol, If I ever get 1 i would like to have 1 by the time I’m 30

23

martinviking:

Smoggie89:

martinviking:
Ok, I’ll give it a try- I know it’s a lot harder now, but when I first got married in 1982 we struggled with a mortgage, but it was the best move I ever made. Always had equity in every house I’ve brought since. I rented 15 years ago (for 6 months) whilst going through a divorce (occupational hazard) & hated every payment. I couldn’t get back on the property owning ladder soon enough & found a repossession for 56k, put a 30k extension on it & paid it all off 3 years ago.
Now I’m 53 & got spare cash, not looking for the high paying/weekend work any more & even brought & paid for a Mobile Home last February.
My advice is always to try & buy, enjoy the partying when you’re young then between 25-50 ease off (a bit) after 50 with your own home paid for GO FOR IT ! Just buy shares in the right sectors to pay for it. Lol.
One last bit of advice=make a budget & keep to it, don’t spend more than you earn & always put some away for Rainy Days.
Oh ! & drink cheap Whisky with coke, save the good stuff for special occasions.

I’ve always rented , was in the army then met the other half and rented for the last 4 year, how do repossessions work? Do you get them a lot cheaper? , I’m currently living in hull (well 12mile outside) and I like it here in the countryside I would like to live somewhere like this but most of the places are private rent or buy , like I said I’m not clued up on this sort of stuff so don’t know where to start, im in a 2bed cottage at the minute , it’s too small for 2 people really but for £375 it is a big help as I’m not on the best of wages, and it’s not the best of places I.e damp etc, I hate moving so I would like to find a decent house and just pay it off but it’s easier said than done lol , cheers for reply mate

Should be some affordable properties in your area, check out the local Estate Agents.

There’s a Help to Buy scheme that the Government has got involved with, IMO you should be on the list (ex army) helptobuyese.org.uk,
hope this helps.

Repo’s were big 15 to 20 years ago, then the ‘Rip Off’ Banks cashed in & pushed the
price up, you used to be able to buy one at a good price but had some work to do, but now you have to part with a lot more & still have the work to do.

Thanks mate I’ll have a look on that site, some good advice thanks

24

Back in the 60s I lived in London. I could have bought a semi-detached Victorian villa for pretty much the same as I was then paying in rent but I didn’t. If I had, it would probably put me in line for Labours new mansion tax.

The problem is, things have changed a lot and its pretty unlikely that house values will go up anything like as fast as they did in the 80s and 90s. You should not see buying a house as an investment but simply buying a place to live in. You really need to sit down with a calculator and a piece of paper and do your sums. As well as the mortgage, which looks pretty cheap just now but may well go up in the not too distant future, there are things like building insurance and maintenance. If you’re any good at DIY, and probably even if you’re not, it may well be worth your while looking at places that need work.

As well as finding a deposit, which needs to be as high as you can possibly manage, you will have to find several thousand pounds in fees. The point about the deposit, as any number cruncher will tell you, is that every pound you pay upfront not only reduces the monthly payments, but can have a disproportionate effect on the total amount you have to pay back.

Your best hope is to borrow from relatives, which is what many young people do these days to find a deposit. By all means look at government incentives, but getting an advance on your inheritance will give you a major advantage now and in the future.

25

martinviking:
Repo’s were big 15 to 20 years ago, then the ‘Rip Off’ Banks cashed in & pushed the
price up, you used to be able to buy one at a good price but had some work to do, but now you have to part with a lot more & still have the work to do.

You should remember that someone is still being chased for what they owe on that house and the more money the bank can get for it the less debt the original owner will have.The bank wins either way.

One man’s meat… Etc

26

Martin Vikings contribution makes a lot of sense.

One main rule, never pay interest on a depreciating asset.

Property, there is no better day in your life than the one that you pay that last instalment or final lump sum off your house and then the letter of confirmation arrives from your building society…THEY do not have you by the ■■■■■■■■ any more from that day onwards, a truly liberating moment.

Women/significant others, beauty is skin deep look into the heart, and look east my friend (further than bloody Ipswich) where care, passion and loyalty can still be found, when you find the one treat her well and she will reciprocate a thousand fold…do not vanish down the pub/footy/boys nights out, she is the most important person in your life so take her flowers every week and tell her what she means to you every day.

Cars, do not borrow money for a car, end of line.

Work, in this game your reputation is all, your work history and reputation can lift out of the dross and into the cream, so never ever take the ■■■■ out a job via sickies etc, do your best and always leave on good terms.

27

Coffeeholic:
Always spend that little bit extra for the good toilet paper.

To save money use both sides of the toilet paper :unamused:

28

Work to live - don’t live to work !

29

bigvern1:
Spend more time with the ones you love.

Definetly this.

Lots of other great stuff on here.

If it seems to good to be true, it normally is.

Enjoy today for all it may be worth, and never take anything or anyone for granted.

30

my advice for what its worth is,
don’t buy what you cannot easily pay a month for,
expect the interest rate to climb sometime soon
(mine was 15.4 % at one time and most of my mates went into negative equity),
its doubtful that you will have a house and holidays (so which would you want)
caravans are a cheap holiday and the kids love them
not paying the mortgage brings all sorts of trouble that does not go away even when the house has,
and the feeling once the last payment is paid is euphoric, all the weight is lifted off your shoulders and if all has gone to plan the holidays come with a good chance of retiring in your 50s,
but this is only my thoughts (although I did manage to retire at 58)

31

Right lets sort out mortgage and financial advisors.

There’s a need to get one thing straight in your mind he/she is not your mate. They are trying to earn a fee for arranging your loan/pension/life assurance. In some cases a big one. I have no problem with a fair fee for advice, some will be huge.

Good thing is they have to tell you what the fee is. They have to talk you through illustrations of the deal they are signing you up to. This is more detailled than ever in wake of mis-selling scandals. Ask a million question and be sure you understand. I would always recomend not signing straight away and asking for a few days to work through. The advisor will hate this they want to sign you earn their commision and move on to the next client(mug) asap thats how they pay for the Audi TT. Most stuff can be done direct with the lender and save you big money. If you want to know how PM me all cases are different so lets not bore anyone on here.

Buying a house is not always the best financial option ill try and explain for a 20 year mortgage;

If you rent for 20 years at £400 per month it will cost you £96,000

If you buy and your mortgage is £440 per month plus what you spend on the up keep of your property over 20 years say £100 per your house will cost you £129600

But at the end of the 20 years the house will be yours. It will and it’s value will be un-known, this is where people have done well over the last 40 years but this might not be the case in the future.

However what if you had saved the £140 per month you saved by renting Thats a £33,600 lump sum without any compound interest. Yes no property to call your own but also no ongoing up keep costs to worry about just have to keep finding the rent.

The key factor is the gap between the total cost of paying for your home and alternative rent. To do a comparison obviously all inflation and interest rates have to be fixed which is unrealistic but think it shows the thinking.

Great book on this type of thinking is called Rich Dad Poor Dad. In buying a house you are buying a financial commitment that will cost you money. Lose your job and have to move … just look at estate agent and solicitors costs. New roof anyone. It’s not as straight forward as people lead you to believe, it is when house prices are guarenteed to rise but they are not!! how many houses are the government building supply and demand maybee…

Happy to work an example through if you send me your numbers.

32

Smoggie89:
I know this is a truck forum, but what’s the best advice you have been given or what’s the lessons you have learned over the years? Ive just turned 25 and been renting for the last couple of years, just been to view another house for rent at 450 a month and starting to think maybe I should look at getting mortgage , main problem as with everyone is the deposit! I have a car on finance wich will be paid off in 6 months time after 5yeRs (thank god lol) !! And I’m currently paying 375 a month so I’m only paying someone else’s mortgage for them… Would I be better of getting a new build with the 5% deposits etc? Not really in tune with all that sort of stuff so don’t know where to start etc it all seems a headfart sorting everything out … Any replies appreciated as long as stobarts,angencies or foreigners don’t get involved haha cheers people !!

Don’t buy a house. May sound like it flies in the face of all logic but bear with me.

Buying a house sounds great doesn’t it, you can save £100 a month over renting, do what you like to it, yadda yadda. Except the reality is you are lucky if you do. We’ve been in this house 3 years, 11 months. Our mortgage with a 30% deposit is £100 cheaper than renting the same house.

A month after we moved in we had to have the sliding double doors replaced as it turns out one was warped letting a gale in - £800.
6 month later the shower unit packed up, £200.
We recently had to have all the double glazing replaced as after 2 years the units started to go and it turned out to be 20 year old double glazing with external beads, no fire escape etc - £3700
Combo-Boiler needed £250 of repairs.

So in the 3 years, 11 months we’ve been here its cost us £5000 in repairs a landlord would be required to do making us £300 worse off than renting except its more than that because there’s another £600 of gas safety checks/servicing that we’ve had to do as well as having to have buildings insurance so we’re nearly £2000 worse off over 4 years than renting.

But it gets worse. I actually own two houses. Why? Because of one thing people who rent and want to buy completely overlook. When we needed to move (need, not want) we couldn’t sell the house. Instead ended up getting a let to buy mortgage (yes, LTB not BTL) to free up a deposit to buy this place and becoming a landlord. One thing that is often overlooked by people in your situation is if you buy a house you’re tied to it if you want to move to either somewhere bigger or to a different town for work etc until you can sell it. When you buy you’re stuck there until you can sell it or get a big enough equity in it to do what we did.

And another thing you’ve not considered. If you end up unemployed the govt will pay some or all of your rent until you find work again. Don’t get any help with a mortgage, just a screwed up credit record.

Then there’s interest rates. They can go up and go up a lot. The normal average is around 5% BoE base rate meaning 6% mortgages and at some point in the next 4 or 5 years they’ll go up towards that. Will your mortgage be cheaper than renting on a 6% interest rate? They will rise and go up to that and unless you can remortgage (and don’t accept you’ll automatically be able to) you will be on the variable rate so your mortgage can go up and down on a monthly basis. Rent can’t and there’s a ceiling with rent charges that does not exist with mortgages. You will be paying BoE base rate plus a percentage the lender adds on even if the BoE base rate whacks up to 15%.

And the final kick in the teeth comes when you retire. If you end up in a care home you will be forced to sell your house to cover the care home fees whilst someone who has rented and doesn’t have their own home will get their fees paid for by the council.

IT IS ALL ABOUT TOTAL COST OF OWNERSHIP. his is something that a lot of people renting don’t think about. They just look at the bottom line, the rent they’re paying and compare it to the mortgage they could pay. They miss the monetary expenses that come with a property plus the non-monetary ones such as the ability to move on a months notice which you no longer have when you buy.

33

After reading some of the last posts saying renting could be better than buying what about all the people now buying to rent out are they all going to lose money or make it

34

I don’t think this will happen again soon but… during the 90’s I started with a small terrace with 2 sockets and no hot water… did it up, sold it for a 20k profit, bought another one did the same, and again, 3 times… Now mortgage free due to taking advantage of the massive hike in house prices over them years.

But can’t see any bargains or price increases now…

35

Some good info from both sides cheers people , the main thing putting me off is the cost of fees , maintenance etc

36

118steve:
I don’t think this will happen again soon but… during the 90’s I started with a small terrace with 2 sockets and no hot water… did it up, sold it for a 20k profit, bought another one did the same, and again, 3 times… Now mortgage free due to taking advantage of the massive hike in house prices over them years.

But can’t see any bargains or price increases now…

That’s the thing a lot of people made money from the price rise , and as you say it probably won’t happen anytime soon, it seems like a lot of head banging just to get on the ladder , people wanting money from all sorts surveyors n all that carry on

37

When i was a young en a old fella i worked with used to give me words of wisdom. Real nice bloke,still in touch with him now years after he retired.

Pretty much every Friday just before home time he used to say to me ‘Remember what ive told you young en, if it raises its head bury it. You never know when your last chance will be’ :laughing: :laughing:

38

A new house like a new car loses value when you buy it.If you intend living in the same area for a period of years then I think that you should buy.Often on a new estate where the developer is still selling new houses there will be some second hand properties for sale ,could be result of divorce or they just couldnt afford the payments.

39

I disagree with those that say buying is not the best move…
I bought my 1st house aged 18 for 28k sold it 7 years later for £49,950
Bought our current property for 71k,now after 8 years we are in the tail end of selling it for £96,950.
We are buying a new build that’s due to be done in Feb/March for 160k on a brand new estate that won’t be fully complete til 2018,when it is all complete the house we are buying is projected to be worth 180k(figures from a independent expert,not a sales pitch from those building the houses)

So in approx 17 years we have managed to “move up” substantially,from a 2 bed terraced to a 3 bed detached with garage.
I’m now 33 and all being well will have my mortage paid off before I reach 53…what happens to those renting when they reach old age and a landlord still wants their £650 a month rent?!

40

ckm1981:
…what happens to those renting when they reach old age and a landlord still wants their £650 a month rent?!

Presumably those who ■■■■■■ it up the wall will get income support benefits including rent paid (every bugger else and their dog does who lands here so why not i suppose), whilst those who were frugal, sensible, or maybe had old fashioned pride in providing for themselves and their families will do as they have always done.
Mind you the frugal ones will have bought their own long ago and taken advantage of low interest rates to pay big chunks out of the mortgage.

I agree with you about buying.