Whilst I can see the value in this
I love the people draw the distiction with a house. As in, "only buy what you can afford, except a house"
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 14:48, 1 reply, 12 years ago)

but renting feels so futile.
I'd rather pay the same in a mortgage on my own property than just give it to someone else.
( Windy Pig I'm naturally quite suspicious about the moon., Tue 12 Feb 2013, 14:55, Reply)

Oh, absolutely.
I'm not suggesting it's wrong, just that if you're going to play the "I never bought anything on credit because I want to save up and be able to afford it outright" card, why are houses excluded?

Might as well say "I'd never buy anything on credit except my house, my car, my telly and a sofa I liked but I didn't have £2K kicking around at the time" ... I fail to really see the distinction.
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:01, Reply)

I don't make the rules - when measuring debt levels, mortgages and student loans are not usually included.
However, when we bought our house we borrowed less than it was worth at a rate we could afford to pay back.
Since then the value of the house has increased, as has our income, while the interest rates have vastly diminished.
( tangledupinblue hairy badge with moving eyes, Tue 12 Feb 2013, 15:12, Reply)

absolutely, I'm interested in why those who do make these rules exclude houses.
I'm not having a go at you, I just really don't see the distinction. Yes, house values can increase, but they aren't guaranteed to. And all the "not counting" as debt in the world won't stop the bank taking it off you and raping your credit rating back to the stone age if you stop paying, so it's no different in reality to any other debt even if people want to pretend otherwise.
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:15, Reply)

I dunno badge
I guess it's because everyone has to pay for their accomodation one way or another.
My own experience of 'owning' a house is that it costs considerably less than renting one.
If I was renting right now I'd be paying two to three times more each month for something shitter.
( tangledupinblue hairy badge with moving eyes, Tue 12 Feb 2013, 15:19, Reply)

I know, but I think you're missing the point.
Of course it makes financial sense, but it's still a debt, in the same way a credit card or a loan is a debt.

I'm not arguing against buying a house. I'm wondering why it is that some people cheerfully fail to see that as having a debt.
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:23, Reply)

I understand your point fully and I do regard my mortgage as a debt.
I suppose to go back to my original post - only buy things you can afford - I bought a debt that I could afford to repay.
( tangledupinblue hairy badge with moving eyes, Tue 12 Feb 2013, 15:27, Reply)

I just got a sub 2.5% interest remortgage deal, without any stupid flopping about with current accounts or any other stupid crap.
There's 100 quid a month back in my pocket. Can't do that with rent or a sofa.
( Windy Pig I'm naturally quite suspicious about the moon., Tue 12 Feb 2013, 15:16, Reply)

I'm not saying it's not financially clever.
I'm saying a mortgage is the same as any other debt. It's a debt.
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:21, Reply)

I suppose the only way it's different is that if you need to pay it off, all you have to do is sell the house?

(PsychoChomp, Tue 12 Feb 2013, 15:23, Reply)

If you need to pay off the loan on anything else, you can sell that too.

( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:23, Reply)

Few other assets increase in value as quickly as property though.

( tangledupinblue hairy badge with moving eyes, Tue 12 Feb 2013, 15:27, Reply)

valid point, but I'd argue there's still a lot of people in deep shit becuase they made that very assumption
and it turned out to not be true.
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:31, Reply)

fair enough,
It is a debt, but as said above most other things that you do get in credit do not hold their value.
Cars are a prime example, depreciation is a bitch.
( Windy Pig I'm naturally quite suspicious about the moon., Tue 12 Feb 2013, 15:32, Reply)

This is very true
but, I'd argue assuming that your house will appreciate is dangerous, as a lot of people are currently discovering. They won't always.
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:37, Reply)

it's generally the case that borrowing to invest is a good thing.
And it's pretty much impossible to save up the money to buy a house outright.
(dozers, do fuck off ur a nob m8, Tue 12 Feb 2013, 15:17, Reply)

I'm not saying it's a bad idea, dozer
Of course it's better than renting. But it's bollocks to pretend it's not debt.
( the mighty badger Aphrodite, on a bar stool, by your side, Tue 12 Feb 2013, 15:18, Reply)

well of course it's debt
But also investment. One of the few times when inflation is firmly on your side.

I'm remortgaging at the end of this year, and I'll be able to get it done on a commission basis. Either that, or just get on Trigold at work, find the best deal and go to the lender directly. Perks of working for an IFA, innit?
(dozers, do fuck off ur a nob m8, Tue 12 Feb 2013, 15:23, Reply)