Horse or House?!

[honetpot]

House. Home always comes first, because as well as being an investment in money terms, it's about being able to make choices about how you live that affect you're wellbeing. My daughters flat was very cheap, the feeling of coming home to your own space, having control was I think one of the things she loved. When she sold to move in with her boyfriend, she also moved jobs, something she found very difficult to give up, even though her fiancé has a brand new house which is much larger than her flat, and it made economic sense.

 

[TheHairyOne]

I went for the house and bought a fixer upper, but am in an area where rent is bonkers. My mortgage payments on a 3 bed house are 50% less then a friend of mines rent on a 2 bed flat, which is just insane.

One of mine and my sisters long term (5+ years now!) bought 3 years ago and so sharing worked for her.

Renting both the horse and the house does remove issues with the unexpected costs.

 

[SO1]

I should add that I didn't buy my pony till I was 35 which was nearly 13 years ago and at the time I was earning about £33,000 which was nowhere near enough to get a London mortgage somewhere safe enough for a single woman to live on a single income.

By this time most of my friends were married and having babies so my social life would have gone downhill and if it was not for my horse I would probably have spent a lot of the last 13 years at home sat on my own very lonely.

I would say if can afford to do it and have family and friends near by so you can still have some social life and fun then go for the house.

 

[Wishfilly]

Negative equity is fine unless you *need* to move for some reason. You just sit tight and wait for things to pick up. But one reason that mortgage companies want bigger deposits these days is to avoid negative equity situations, because they lose money, too.

I don't understand how people know they can avoid needing to move, though? Especially in the longer term. There's all sorts of reasons someone could end up needing to sell, and not able to sit tight.

 

[Pearlsasinger]

It very much depends on your job. If you work in much of the public sector, you could sit tight for most of your working life if you so choose. In fact even if you don't work in the public sector, you could choose to rent your house out and rent somewhere else if you really needed to move. Mortgage companies are not giving 100% mortgages which are what led to negative equity. Negative equity is much less likely when you have had to put down a decent sized mortgage, it certainly isn't a reason not to buy a house imho.

 

[Wishfilly]

It very much depends on your job. If you work in much of the public sector, you could sit tight for most of your working life if you so choose. In fact even if you don't work in the public sector, you could choose to rent your house out and rent somewhere else if you really needed to move. Mortgage companies are not giving 100% mortgages which are what led to negative equity. Negative equity is much less likely when you have had to put down a decent sized mortgage, it certainly isn't a reason not to buy a house imho.

I mean, I work in the public sector (teacher) and I would say 100% job security is very much a thing of the past- at least in teaching. Also, if you are young-ish and buying a first house, then it is often necessary to move to progress your career. And equally there are all sorts of other factors, like accidents/illness/relationship breakdown that can cause someone to need to move.

I just don't think it's always as simple as you are making out, and it's something to consider when buying.

 

[shamrock2021]

House definitely renting is very expensive and having a horse will effect you getting a mortgage because you have to declare what your spending . Why don’t you share a horse instead

 

[Sealine]

As someone who experienced negative equity in the 80's it is a serious consideration. We bought a 3 bed house on a 95% mortgage and then the interest rates went through the roof, our mortgage repayments doubled and property prices crashed. Alot of people weren't able to sit it out as they couldn't afford to pay their mortgages so their houses were repossessed or they just had to hand the keys in and were left with huge debts and a bad credit record. We just about managed to sit it out with a little support from family but sold the house after 10 years for £1k less than we paid it for. We may as well have been paying rent for 10 years bearing mind we had spent money on the house decorating, maintenance etc.

I'd like to think that scenario would not be repeated as alot has changed since then including who controls interest rates but it was a tough, stressful time.

ETA: In your situation OP I wouldn't buy right now but build up your deposit and maybe share a horse in the meantime.

 

[Jango]

Honestly it depends on your age, financial circumstances and longer term job/financial prospects. E.g. if you're 26 with good job security/prospects and if you just saved for a house you could buy at 29/ if bought a horse now, then could buy a house at 33 I would enjoy your life and get the pony!! But if buying a horse now will make it v difficult for you to buy in the future then I would be sensible, get a horse on part loan and save hard now for the house ?

 

[DirectorFury]

Re: interest rates - as part of the mortgage application process now they ‘stress test’ your finances to make sure you could still make the repayments if interest rates rise (I think it’s +7% above the rate you’re applying for). Alternatively, as rates are so low, if you know you won’t be moving soon you can go for a 5 or 10 year fix at 3ish%.

 

[Sussexbythesea]

I asked myself the same question when I was 30 and ended up buying a horse and not a house. Mainly the reason was that I just could never seem to get enough deposit together before house prices went up again and I wasn’t earning enough as the sole owner to get a big enough mortgage.

I was lucky (of sorts) in the end to get a house through a mixture of inheritance and mortgage a number of years later but paying for both means no savings but I will have a reasonable work pension.

Sometimes I regret it as having horses means I never save and won’t pay my mortgage off until I’m 65 but then I might die tomorrow and never benefit from it.

 

[Pearlsasinger]

I mean, I work in the public sector (teacher) and I would say 100% job security is very much a thing of the past- at least in teaching. Also, if you are young-ish and buying a first house, then it is often necessary to move to progress your career. And equally there are all sorts of other factors, like accidents/illness/relationship breakdown that can cause someone to need to move.

I just don't think it's always as simple as you are making out, and it's something to consider when buying.

I'm sorry but teaching is still one of the most secure jobs there is. There is a shortage of teachers! You might need to move to a different school for promotion but there is no time limit on that and it doesn't necessarily mean moving house. Negative equity is usually a short-term situation and as I said before, it was historically mostly because the mortgage companies had been offering 100% mortgages which they are not doing now.

 

[splashgirl45]

mortgage rates went up to 15% at one time so its best to be aware that it could happen again. my rent on a 1 bed ist floor flat was less than my mortgage , but i bought a 2 bed house with garden which needed lots of work, it had no central heating, all single glaze windows, the bathroom was disgusting and i had that replaced as a first job as even after cleaning it with bleach over and over again i wasnt happy to use it .....the rest of the house was a brown colour which was from nicotine and the whole lot had to be cleaned before decoration....but it was the best thing i could have done as i now live in a beautiful suffolk village in a period cottage

 

[racebuddy]

I am
In my early 30 decided to buy my second horse instead of a house, in theory it was a great idea , practice should have bought the house do i regret it no , I absolutely love him to the end of the earth And back , i am lucky that can still live at home pay some of house bills and horses with my wAges lucily the house is big enough were u dodnt feel like u live at home , going to build on my mum and dads land then me and my boyfriend can live in that xxx

 

[Crazy_cat_lady]

It was scary what mortgage rates can go up to, our financial advisor showed us when we took out the mortgage

Ours is due for renewal next year (I think or may be year after can't actually remember) so fingers crossed we will be OK. We did have a discussion when taking out the mortgage if the rates did rise, while it sounds harsh, I would seriously have to reconsider having a horse and what to do with him as I couldn't sell him on- hopefully they won't rise that much as the costs were scary, but if it meant losing our home while a large chunk of my wage goes on a horse then some very tough decisions would need to be made.

 

[SpotsandBays]

House. You can have horsey time through friends, volunteering etc, but renting as above is dead money. Or... if it’s an option, move in with family until you have a deposit? Will save you a bit of money which means you can either get the house sooner or have a horse. But for me I’d get the house sorted first.

 

[Whoopit]

House.

If you buy a house now, in a few years years you could sell it for a small profit (housing market allowing or if you buy one needing some work), move and still have money left to buy the horse as well. Win win. If you buy a horse now, you’ll never have savings again as long as you live.

 

[pansymouse]

I'm from a generation that put owning a house as their number one life goal. When I bought my first it was a monumental financial struggle requiring a second job to be able to eat. I think there is much more choice in the rental market now and the desirability of owning is much more actively questioned. If a horse will bring you greater happiness than owning (and being responsible for maintaining) a house then maybe the horse is the better option.

 

[splashgirl45]

I'm from a generation that put owning a house as their number one life goal. When I bought my first it was a monumental financial struggle requiring a second job to be able to eat. I think there is much more choice in the rental market now and the desirability of owning is much more actively questioned. If a horse will bring you greater happiness than owning (and being responsible for maintaining) a house then maybe the horse is the better option.

i am of similar generation rent was the cheaper option then but rent is much higher now so you can buy for a cheaper monthly outlay....so i still say house first. friends who bought house before horse are now mortgage free and living in better places than me and some of them have their own land so keep horses at home and if i had done the same i wouldnt now have a mortgage , hindsight is a wonderful thing ..

 

[Pearlsasinger]

I'm from a generation that put owning a house as their number one life goal. When I bought my first it was a monumental financial struggle requiring a second job to be able to eat. I think there is much more choice in the rental market now and the desirability of owning is much more actively questioned. If a horse will bring you greater happiness than owning (and being responsible for maintaining) a house then maybe the horse is the better option.

Yes you are responsible for maintaining our own house but how many times do we hear about landlords who do not maintain their properties correctly At least you know that you can choose to fix that leak immediately.

 

[Tarragon]

I had my own ponies in my teenage years, then went to Uni, career and married and just rode whatever and whenever I could, including a fantastic few years exercising hunters. Bought own land and built own house when 30 and bought my first pony aged 35!
I would go for house first.

 

[Leandy]

House. Renting is lost money. How will you afford to keep renting when you retire? A horse is a luxury not a necessity, a place to live is a necessity.

 

[milliepops]

Yes you are responsible for maintaining our own house but how many times do we hear about landlords who do not maintain their properties correctly At least you know that you can choose to fix that leak immediately.

definitely. we seem to have a half way decent agent but even so waited 3 months for a boiler repair to use the heating in the autumn and have been asking for an extractor to stop the bathroom going mouldy for nearly 18 months. I'm tempted to just get it done myself and deal with the consequences!!

 

[Annagain]

The rational sensible answer is house but only you know if that's really what you want. However, what you want now may well change when you're a bit older but the decision you make now may well affect what you can have when you're older.

I bought my first house at 23 - I was very lucky that my grandparents only ever gave me a small gift every birthday and Christmas but put money into savings for me instead, which I had access to when I turned 18. I had no idea about this until my older sister turned 18 when I was 16. They had started out quite poor but my grandfather did a degree via the OU and worked his way up to a very senior position in his company as well as scrimping and saving all his life to be able to do this so I was massively grateful. I know not everybody is as lucky. At the time I wasn't that fussed about buying but I knew that was the purpose of the money they had given me so I felt like I should. It was also clear house prices were on the rise, so there would never be a better time. At that point the mortgage was only just manageable.

By this point, I had also taken on the loan horse I'd had before uni permanently - a long story but if I didn't, his future was uncertain. I wouldn't have bought a horse at that time but he needed me and I would never have said no to him. It was difficult for a few years and there were times I really struggled but I'm so glad now I bought a house when I did. I sometimes wished I didn't have the expense of the horse (but never regretted having him) but I never wished I hadn't bought the house.

9 years after I bought my house, OH and I bought this house together (his first). By then house prices had gone mad and without the equity in my house (he'd also lived there for 6 years and helped to pay the mortgage so it was 'our' equity really) we'd never have afforded this one. We've now both worked our way up the ladder a bit, we can afford the mortgage and other bills comfortably and that's why I can now afford two horses and - more importantly - enjoy them knowing I don't have to scrimp and save to afford them. If I was still struggling to give them what they need at this point in my life, it wouldn't be the same.

 

[Asha]

Re: interest rates - as part of the mortgage application process now they ‘stress test’ your finances to make sure you could still make the repayments if interest rates rise (I think it’s +7% above the rate you’re applying for). Alternatively, as rates are so low, if you know you won’t be moving soon you can go for a 5 or 10 year fix at 3ish%.

absolutely this. The long term deals help you plan ahead.

Definitely buy a house, you cant beat walking through the front door of your first home. Get into the swing of paying bills and then buy a horse. My son has just bought his first, and my daughter is saving up to get hers.