Inflation - the Elephant in the Room

[harpo_72]

I've always been reasonably cautious with money, with the attitude of "if I cannot afford to pay it straight up, then I probably shouldn't have it". Obviously, this isn't applicable for a house or a car buy. My gf on the other hand is the complete opposite. 2 weeks in Mexico? That's what a credit card is for!

I understand it on a rational level that renting is as you say me paying off someone else's debt, and filling their pockets at the same time, but what's frightening me mad is the difference of stress that you'd come under if poop hits the fan properly.

Just looked at it and at least our mortgage rate is fixed for 5 years, so if things go wrong, hopefully it'll ride out somewhat by the end of it.

Maybe there is a little chat to be had about interest and how it’s a dead expense… yes credit cards are the tool of the devil. You can use and abuse them but they soon find you out. I bought a car using 0% transfers on credit cards. Paid it all off in the 3 yr period by lining the cards up … but they got a bit unhappy and devalued my credit rating ? .. but I was happy got my car never needed credit I only need access and the major card I use was never on my 6 monthly cards.
We don’t do expensive holidays but having said that my wife and I have traveled the world for work. I am content I have seen enough… I am currently sat by a heated pool in England at 25 degrees C and it was completely affordable.. just missing the beer/cocktail service but I could have bought an ice box and beers.

 

[Deleted member 21784]

It's a stressful time but ultimately worth it in the UK. Despite the gloom and doom, there aren't many (any?) safer financial bets available provided you're operating within your means. If you look at it purely in terms of rent money being a 100% loss - money you'll never see again - versus a mortgage being reasonably safe way of seeing that money again in the future the stress is much less.

I was terrified of mortgages when I was younger, I think the points about financial literacy at school are very appropriate as it's not taught and that's a huge omission in today's society. I have a philosophical distaste of debt and am horrified by the way many other people consider it a near infinite resource, but ultimately in the UK you're either paying off your own mortgage or you're paying off someone else's. It's that simple and given the conundrum I'd rather not be paying off someone else's mortgage for them.

Of course it's easy to say that having only gone through a period of low interest rates for so long but that's also been an advantage in that the money invested in property has been a better return than savings would have had.

I'm not a financial advisor but I just looked at each option as a gamble and the property was best chance of return. Ultimately all money in property can be lost, you just try to look at it as a way to achieve some returns compared to riskier options and it starts to create a little less stress.

The way I look at property is I'm basically paying rent to live here.. at the end it becomes mine

It then is passed onto my kids

Whatever they sell it for is their money not mine