I've never lived in the same place for more than 2 years, and I've always rented because I was a poorfag and relocated a lot for various reasons.
2 years ago I got my shit together and started an online biz, which has netted me about £250k. I'm 36, widowed, unlikely to remarry, and will not have children and If I'm lucky I have 40 years left.
I'm happy enough renting, but part of me thinks it would be one less outlay if I just dropped my profits on a house and owned it outright, making the rest of my life just about paying for food, petrol and taxes which should be easy enough to do.
If I pay rent for the rest of my life and assuming inflation doesn't kill me I'm looking at £550 a month £264k for the next 40 years, while earning interest and dividends, or dropping 180-220k now on a house and never paying rent again, but loosing the bulk of my capital (which I will eventually replace mind you).
3rd option being to take a mortgage, but paying interest wen I have capital doesn't make sense to me - maybe I'm wrong?
So, any advice /biz?
Part of me would like my own house in the country, but I'm also pretty content where I am... I'm not savvy on these things as I never had any models to base my lifestyle on.
Here's your position in life, mate.
Your level is aboute
>here _________________
everyone else on this board is waaaaaaaaaaaaay the fuck down
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>here _________________
You should be giving US directions and advice.
Also buy the fucking house. If you can afford to buy it and enjoy it fucking do it. You can not take money with you into the next life (if there even is one)
>>1175232
about*
I'm laying down and eating while awkwardly typing on my laptop.
It's past my bedtime.
>>1175232
Haha thanks mate, that was a nice ego boost :)
Not sure I have any advice other than make a list of all this shit yiu want in life, then work your ass off to get it. If you can, be your own boss. Not many people get rich working for someone else.
I know I can't take it with me, but I've also got no one to leave it too, so rent actually isn't that bad a thing.
>>1175132
Let's assume a house you buy will be 300,000 GBP. I seem to recall that property taxes in the UK are quite low, 1% of assessed value or something like that. So that means you'll be coughing up 3,000 GBP for property taxes on a year basis. Also, there is going to be some maintenance cost. Rule of thumb is 3% per annum but if you're willing to do some work, you can get it quite a bit lower than that.
Realistically, what do you think your yearly income is going in the coming years? You do not have enough wealth to retire and how much house you buy should be a function of your liquid net worth and yearly income.
Finally, you yourself have stated that you've moved roughly every two years. Did you move around in the same city or did you move from city to city or even country to country? Do you anticipate being able to stay put?
Housing prices are not exactly cheap right now although the prices you're stating don't seem out of this world.
Unfortunately, the answer to your question is: it depends. If you anticipate earning more than, say, 60,000 GBP per year going forward, then you should be able to easily afford the house.
Note: I'm an American and if I remember correctly, there is no 30-year fixed-rate mortgage in the UK so some of my numbers might be a bit spotty. However, the rules of thumb I use for how much house to purchase should be close enough.
After 20% down payment, borrow no more than 3x salary and try to borrow 2x salary or less. This is assuming you have no other debt.
>>1175349
Damn it.
"Let's assume a house you buy will be 200,000 GBP."
Not 300,000 GBP.
>>1175349
Thanks for your reply. In the UK we don;t have property tax (other than at the sale of the house), just a yearly council tax, which even renters pay, so there no major difference in that outlaw between renting and owning.
>Realistically, what do you think your yearly income is going in the coming years? You do not have enough wealth to retire and how much house you buy should be a function of your liquid net worth and yearly income.
My yearly income in unknown at this point. As with any small business it could thrive as it is, or dry up tomorrow. There's not garenteed income, and though i'm learning a lot, there no way to say my current income will continue at this rate, and the 250k I have is everything, including retirement funds.
Armed with that knowledge I wonder if dropping the bulk of my nest egg on a house is worthwhile?
I'd life to stay put, I've finally found an area that feels like home, and that I can see living in, but it is a bit scary not to be able to up and move easily should I want to.
Its a tough one - I've been wrestling with it for a while, but every months rent I pay could be going into other things I suppose.
>>1175132
Well done on sorting your life out.
In terms of smart investments, it generally always makes sense to own something you will be using every day. Saying that, if you don't have any children, siblings or other family members to give it to after you're gone, then it might not be worth it. Owning a house isn't just the upfront purchase price, there are always maintenance costs. On the flip side, it will probably go up in value, but again this won't matter if you plan on living in that same house for the rest of your life.
Personally, I would buy a house. It gives you freedom in the future if you were ever to start a family, you will have some thing to give to your children. Also, owning a house will be a great feeling.
>>1175132
Suppose you don't buy a house. What will you be doing with the money instead? Them just sitting in a savings account for decades is worse than buying a house.
On the other hand, you are still very young (even if you don't feel like it) and life can throw surprises at you, that might make you want the freedom to up and leave or put your money into something else.
Might be an idea to ponder on this in the next year or two whilst leisurely browsing the house market and getting an even better idea of what you want your life to look like in the coming years.
>>1175132
>I've never lived in the same place for more than 2 years
Look, when you buy a house you have to fork over 5-10k+ to the kikes called real estate agents. There are a ton of closing fees. This doesn't build equity, it's money down the toilet. Home ownership is only financially viable if you plan on living in the same place more than two years (rule of thumb). If you live 2+ years in the place, you also don't pay taxes on gain. Hence if you sell in less than two years, the govt fucks you up the asshole.
Home ownership also involves high risk, low liquidity of your assets, property taxes (money in the toilet), and property maintenance (paying for shit when it breaks.)
It's good for some people, it's bad for some people, it depends on the area.
Anyone who says it's definitely a good deal always or "lol rent is throwing moneyz away :^) " is a fucking retard.
I personally never plan on owning a home because I'm a lazy shit who would rather leave the maintenance to someone else, and I like bouncing around every year or two. I'll stick to municipal bonds, index funds, and other instruments.
>>1175933
>Them just sitting in a savings account for decades is worse than buying a house.
You speak as if this is the only option. Why are you on /biz/ if you're that fucktarded?
>>1175132
>and will not have children and If I'm lucky I have 40 years left.
oh. Your a fortune teller. better work on wallstreeet bro.
You never know what comes around in the the 14600 day of your life.
>>1176097
Nah man, I'm also not gonna have kids. I fucking hate 'em. It's like dog people vs cat people. If you have someone who vehemently hates dogs, hates the look and the smell and all things dog-owner-being, they ain't gonna turn around and open a kennel. Some people just don't like certain things.
Why would you buy a house with 100k down and 200k from the bank when you could just buy 300k of REITs?
The dividends from the REIT are literally the exact same as the rent money earned if you rented out your house, and if you buy the house, the dividends you're NOT getting from the REITs are the cost of "renting" your own house.
It's a basic finance concept of opportunity costs, but most people still don't understand that buying a house is not getting free money
>>1175738
>>1175933
>>1175963
If I were to buy, I would want it to be the house I live out the rest of my life in. I would never buy with short term intent. My traveling days are mostly over, and it's time to put down roots. It have been really difficult finding a quiet and secluded property, which is a must have for me - I don't particularly like being around people. In the UK most people live shoulder to shoulder with the neighbors, and that is definitely not for me.
Still it is a tough decision future income are always a concern when in biz for ones self so its nice to have a big bank balance and liquidity but other than some well placed investments its not doing a lot for me as far as growth at the moment.
>>1176097
40 years is probably generous given family history, and marriage is extremely unlikely as I'm not looking, or interested. Children - no way like this guy said: >>1176137
Anyway thanks for the input lads, still not sure what do do tho...
>>1175232
>i've always rented
>300k usd at 36
>your level is about here
I have bad news for you senpai
>>1175132
Rent, don't buy. If you insist on buying, rent it out and and cover your own rent with it.
>>1175132
I would buy.
It's that time for you.
>>1176166
THIS
