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What's Your Plan B


Timak

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HOLA441

Like many on here my plan during the bubble leading up to 2007/8 was to save as much money as I could and wait to buy a bigger house when the market collapsed.

My strategy has been a failure for two reasons:

1. In the area I want to live prices haven't fallen, nor have they stabilised, they have continued to rise far quicker than my savings

2. Having build up a large wodge of savings I am reluctant to spend it all on a slightly bigger house

Assuming others are in the same boat what have you got planned as an alternative to plowing hundreds and hundreds of thousands into buying a 3 bedroom semi on a newbuild estate?

My current thoughts are:

Extend current house (although I have been quoted ridiculous prices for doing so)

Continue to save but also invest any new money I earn more aggressively maybe expanding my business

Enjoy the freedom of not being a mortgage slave - travel the world with the kids in a few years time

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HOLA442

I just posted something similar today about this. I'm now happier with my Plan B than I think I would have been with Plan A. Current situation is;

Plan A - scuppered by London HPI

* I live in London/South East

* I rent as prices are either out of my reach/I'm not prepared to take on huge 25 year debt for a tiny flat/I don't want to compromise on area and live in an "up and coming" London sh*thole.

* My job is firmly tied to this area. I can't just leave. I also can't logistically or financially easily commute into my work.

I've now stopped stressing about prices in my area as they're so out of my reach and instead my Plan B is;

* Move out to Suffolk/Norfolk/Kent/wherever appeals in 10 years time.

* I can outsave houses in my target areas, even allowing for 5% HPI every single year.

* I can buy cash and retire earlier than I'd ever anticipated from work.

London HPI has done me a favour in a round about way. I've got no debt, I'm saving loads, I'm never having a mortgage again, and my quality of life will be much better. I don't think that's what Dave and friends wanted me to do though.

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HOLA443

Like many on here my plan during the bubble leading up to 2007/8 was to save as much money as I could and wait to buy a bigger house when the market collapsed.

My strategy has been a failure for two reasons:

1. In the area I want to live prices haven't fallen, nor have they stabilised, they have continued to rise far quicker than my savings

2. Having build up a large wodge of savings I am reluctant to spend it all on a slightly bigger house

Assuming others are in the same boat what have you got planned as an alternative to plowing hundreds and hundreds of thousands into buying a 3 bedroom semi on a newbuild estate?

My current thoughts are:

Extend current house (although I have been quoted ridiculous prices for doing so)

Continue to save but also invest any new money I earn more aggressively maybe expanding my business

Enjoy the freedom of not being a mortgage slave - travel the world with the kids in a few years time

I didn't start working and saving until the height of the bubble, and I'm still waiting to become a FTB (buyer or builder). I'm still expecting a big correction and there's no way I'm plowing 100's of thousand into a 3 bed newbuild.

Plan B is to move back up north for value and possibly start a business with most of my savings.

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HOLA444

Just to enjoy life without having to worry about being in hock to the bankers big time just to say you "own" four walls. The only good thing about the boom if gotten in early enough was that it may have afforded me to live in a better area, but I couldn't (too young and earning too little at that time) so why worry now. I have resigned myself to never buying now unless an exceptional deal comes my way.

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HOLA445

Just going to let the whole idea of owning property go, and concentrate on health, fitness, relationships, travel, writing, music, investing, creating multiple streams of income from doing things I enjoy, and having the popcorn ready for when it all goes Titty Titty Bang Bang :P Seriously, if you can live within your means and enjoy life, what difference does it really make if you own some bricks? I remember reading years ago about someone seriously wealthy who just lived in hotels, and thought that was weird, now I understand it. The people who used to bleat on about the "ladder" and "renting for losers" have been called out, they are debt serfs, and their opinion no longer has any relevance, except as a measure of how mad the country went during an exceptional time of property mania.

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HOLA446

I've given up on any plan to buy another house. I'm going to carry on running my business until mid-2015 at the earliest, more likely mid-2016, then I'm going to sell up, sell everything I own, buy a narrowboat, give up work and spend the rest of my days pottering around the UK canal network.

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HOLA448

My strategy as always, is to stay an adaptable omnivore. (Adapt or DIE ;) )

Currently am renting near Cambs, wife is at home not working, but am making good money (for now).

I have really hammered my budget; renting way below what I used to, cut out all debt, all non-essential spending now has to be saved for.

I have massively increased my saving rate, ploughing it into cash and stocks and shares.

If/when my job gets out sourced, I will move back to the midlands with family and remote contract.

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HOLA4410

Just going to let the whole idea of owning property go, and concentrate on health, fitness, relationships, travel, writing, music, investing, creating multiple streams of income from doing things I enjoy, and having the popcorn ready for when it all goes Titty Titty Bang Bang :P Seriously, if you can live within your means and enjoy life, what difference does it really make if you own some bricks? I remember reading years ago about someone seriously wealthy who just lived in hotels, and thought that was weird, now I understand it. The people who used to bleat on about the "ladder" and "renting for losers" have been called out, they are debt serfs, and their opinion no longer has any relevance, except as a measure of how mad the country went during an exceptional time of property mania.

Perfect. Life is multi-factorial. Owning a house needs to be in perspective.

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HOLA4411

Like many on here my plan during the bubble leading up to 2007/8 was to save as much money as I could and wait to buy a bigger house when the market collapsed.

My strategy has been a failure for two reasons:

1. In the area I want to live prices haven't fallen, nor have they stabilised, they have continued to rise far quicker than my savings

2. Having build up a large wodge of savings I am reluctant to spend it all on a slightly bigger house

Assuming others are in the same boat what have you got planned as an alternative to plowing hundreds and hundreds of thousands into buying a 3 bedroom semi on a newbuild estate?

My current thoughts are:

Extend current house (although I have been quoted ridiculous prices for doing so)

Continue to save but also invest any new money I earn more aggressively maybe expanding my business

Enjoy the freedom of not being a mortgage slave - travel the world with the kids in a few years time

..while it's free download and digest....consider this as an option...

Warren Buffet - A Way Forward

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HOLA4415

Renting currently in London.

We have considerable assets, few savings and will probably inherit 1.3 London houses at some point.

If prices crash, we look at our options (although I'd expect the value of the assets to fall as well), but our main priority is the children's future.

Beyond that, no real plans - just keep the powder dry, and wait and see really. With the constant parade of idiots and monsters we have in charge, trying to second guess is what happens next is just a depressing waste of time.

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Oh I am thoroughly enjoying not owning a house.

I asked my missus the other day if she thought about it and she said hell no, let those people have there houses and we will spend the rest of our lives traveling, getting in adventures and doing what we want.

We are currently saving for campervan, the idea being we just rent somewhere modest wherever the work is and then spend our weekends somewhere nice. Eventually we just phase out the house altogether and travel around with little bits of work on the side to add some income.

At the moment I can just buy whatever I want, go away for breaks whenever I want, eat out or save up. I am completely content, To buy what I am renting would take all my savings and leave me in the hole for about 900+ a month. On top of that all the expense of getting a new kitchen or DIY or whatever seems to be constantly stealing money from my home owning friends.

I recently just took up mountain biking, just went out bought a bike (no credit) and been going off into beautiful places and getting in adventures. The concept of just dropping a few hundred quid into a new hobby to try it and if I enjoy it pursuing it further is completely alien to my home owning friends who seem to be aging at an ever faster rate and always paying off the last "improvement" or "repair"

I am always told all these what ifs by home owners, what if you get old where will you live what if you miss the bandwagon and can never own a house. I just say to them what if this is your one life and you spend all of it servicing debt until your too old and tired to do anything interesting. I actually think now that if I even had th emoeny to buy a house outright I would probably rather just rent and keep my savings.

Houses seem to be the last means of income for the talentless, feckless and greedy. With all the good jobs gone or impossible to get I believe they are just clinging on to the dream of home ownership as there get rich scheme and to abandon that and face the prospect of a life working in poundland is too terrifying for many to comprehend.

I also see now that the best "thing" to invest in is yourself.

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HOLA4419

Plan A hasn't failed yet! Continue saving and buy cash after a HPC! :P

Really, I don't have a plan A or plan B. I don't want a mortgage for 25 years. I save a fair bit of cash every month, I put some money into income producing shares. I may move to another country once my current work and studies are finished.

I'm not looking buy a house at all at the moment and I'm quite happy renting, with all the risk or reward on the LL's shoulders.

Yes, my family and friends have a go at me and tell me that I'm silly for not buying but noone knows who will be better off in 20 years time, so I'm just not going to worry about it!

Edited by renting til I die
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HOLA4421

Unlikely they'll always be.

That's Plan C. When the mother of all HPC's occurs. Anytime between now and about 2024 is good for me. No rush.

We are currently saving for campervan, the idea being we just rent somewhere modest wherever the work is and then spend our weekends somewhere nice. Eventually we just phase out the house altogether and travel around with little bits of work on the side to add some income.

All round, great post. Above reminded me of a work convo last week. I work for a FTSE100. They've just announced redundancies in the HR Recruitment Team, because we're not recruiting. Good friend of mine is redundant and I asked him what he was going to do. Answer was,... "Hopefully sell the house, take the equity and redundancy, move out of the South East, get a static caravan, camper van orhouseboat, and I don't care about the money anymore. Worse thing that can happen is they re-employ me somewhere else in the company". A lot of people are realising the work/mortgage lifestyle is a mugs game and it's not the route to real happiness.

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