- How do people afford large houses?
I appreciate you never really know peoples financial gubbins, but Mrs K talked to another wife yesterday to discover they are moving house. Now, they are similar to us – typical 3 bed Victorian semi north London, halfway through a £300k mortgage. Yet they are moving to a £500k 4 bed house the other side of town in their mid 40’s. She doesn’t work, hubby is an Uber driver.
I’m not exactly on low wages but blimey, how they hell are affording that? I see this all the time and can’t help wondering if I’m doing something wrong by aiming to pay off what we have as early as possible with a view to retirement – surely they’ll have a mortgage forever…?Posted 2 months agostewartcSubscriber
I live in Hong Kong, how do people afford really small apartments let alone big houses?
Can’t afford a one bedroom apartment here but have a 3 bedroom house back in the UK, its all relative but I believe the standard property saying applies, location, location, location or they are drug dealers.Posted 2 months ago
Inheritance, family money.
That’s exactly why we have a 4 bed detached with a large garden and en-suite in Harrogate. We could have stayed in our 2 bed terrace and paid off the mortgage but we felt that our growing family (they were 4 years old at the time) would benefit from having a bedroom each, a nice garden to play in and us some privacy when they reach their teens. We currently have a LTV of around 35% although I will be paying it up to normal retirement age (another 15 years to go).
We’ll downsize again once they have flown the nest and hopefully I will be able to retire before 67.Posted 2 months agoRoter SternMember
For us we managed to sell our house at three times the price that we bought it. We bought it in 2006 when the property market was really struggling over here and have taken on another mortgage of about the same as we originally paid for our old house so the new mortgage payments are slightly bigger than the old and we have a newer bigger house in a better (for us) location.Posted 2 months agoscotroutesMember
Not at all. Over on BigHouseWorld, someone has just started a thread asking how their current neighbours are driving around in a flash motor, go on expensive holidays, and “have you seen how much he spends on bikes” ? Perspective and choice, innit?Posted 2 months agoFuzzyWuzzySubscriber
I’d agree with the inheritance thing + getting lucky with the housing market. My brother doesn’t work and his wife is a teacher, they have 4 kids and live in a £500k+ house in London. They got ‘lucky’ with a big inheritance from his wife’s side that allowed them to move into their current house almost mortgage free (also helped in part by having a huge amount of equity from their previous house that they’d bought at the bottom of the market).
I’ve worked all my life, have no kids and live in a 1 bed flat. I have a mortgage and way less savings than my brother – I’m still not sure where it all went wrong :pPosted 2 months agobedmakerMember
There seems to be some fairly combative, borderline bullying, answers to a reasonable question above.
I sometimes wonder myself, looking at folk you know and their spending. It doesn’t bother me, I’m doing okay thanks.
I reckon a lot of it comes down to simply spending everything that comes in, with nothing being put aside for a rainy, high interest rate, day. I’m just not wired that way, some people are.Posted 2 months agoearl_brutusSubscriber
the best ways to own a large house are:Posted 2 months ago
Earn a 6 figure salary
dont have kids
drive a 15 year old car
buy a big old wreck of a place and renovate it. Do this right and the value you add to the house will be greater than the cost of the renovations.
borrow more money over a longer time frame.stumpy01Member
Interest only mortgage.
Other income streams that aren’t mentioned.
Medical insurance payout
Could be any number of things, or a combination of things.
A lot of people do a good job though of hiding just how near to being absolutely skint they are.Posted 2 months ago
A friend of my brother’s appears outwardly successful; nice car, well dressed, good social life, living in one property with another rental property.
But chatting with my brother, it turns out that she could barely afford the second rental property, was constantly living at the limits of her overdraft and relatively frequently went without eating properly as there was no money left for food. Sounded like she was on a constant financial knife edge & was close to a nervous breakdown.
But you would have absolutely no idea about any of that from just chatting with her.bikebouySubscriber
Well firstly you have no idea what he/they did for a living before they moved to where they are no… and just because he’s an Uber driver doesn’t mean he’s always been an Uber driver.
I know someone who used to be an Investment Banker in the early 90’s. He made about £5m thereabouts before he burned out and his wife took him to the cleaners and got the house.. and a decent pay off..
Yet now, and for the last 18years, has been pootling around Chichester Harbour in a massive Rib providing rescue cover for all manner of sailing craft 365 days a year, winter/summer whatever the weather. He sleeps in an Army bivi and Army sleeping bag in the back of his Rib 365 days a year and eats cheese and drinks Gold Top Milk..
And is still a millionaire.
So, whilst you may feel “how the hell” I’d start to consider the back story before making any judgements about others ability to buy/live the way they do.
Keep your own nose clean, live within your means and live a happy life.Posted 2 months ago
just because he’s an Uber driver doesn’t mean he’s always been an Uber driver.
This is true – on a recent trip to Australia I got chatting to a driver and he was an ex-accountant and wanted out. His wife works as a special needs teacher (so very vocational) and he had children at university. However it made him happy and he could afford to have that lifestyle.
On another note, a very good friend recently came into a very large sum of money (properly life-changing, but not quite ‘lottery jackpot’ stuff). They paid off their mortgage and now rent the house along with a couple more they have bought then bought a new family home for themselves in full. They both have brand new Jags (he’s got an F-Type just for the weekends as he also has a company car). Although I wish it could be us, I don’t begrudge him it as he borrowed a substantial sum to buy into a company and that has paid off after the company was sold on to an investment company.
However they have already said they are getting lots of snidey remarks from their ‘friends’ in the village they live in, along with direct questions about how they can afford all this and it’s really upsetting her (he’s a ‘water off a duck’s back type of guy and doesn’t care). So basically what I am saying is that it doesn’t necessarily matter if you have lots of money or not as it won’t always make you happy.Posted 2 months agofossyMember
My sister has a huge mortgage, and a huge house. No real equity as her flat didn’t appreciate in 10 years, and husband didn’t own anything when they got married. Both earn good salaries, but everything is borrowed. Also, no expensive hobbies or kids. We have kids and two ‘expensive hobbies’, and a static caravan, which eats £4k a year in ground rent/insurances.Posted 2 months agomrmonkfingerMember
many routes available –
few round our way earn exactly(ish) what we do, but, that big old 5 bed detached house is bought on a shared ownership mortgage with them paying interest only, proper knife edge live for today spending
inherited land and houses and farm, also somewhat common (its farming country round here), farmers get to build their own place with less restrictions
a few were individual house owners before marriage from exactly the right time in the property market – sold up and pooled resources and bought a single big house
others are exec band earners
others have two decent incomes, so about double our resource
a few more “do property renovation” and have done since when it was easy to get into pre- house price boom, so their savings are all sunk into the latest project which they’re living in
or maybe, have little savings, everything but everything goes on the house, downsize at retirement “the house is the pension”, but all the time and money and effort is going on keeping the place maintained on a shoestringPosted 2 months ago
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