Pay off the mortgage and buy a motorhome...

[Wind Witch]

... campervan/caravan.

Can anyone explain the psychology behind this phenomenon please? You spend years working to get the mortgage paid off and the house is yours, all yours.. Then you go out and spend your money on something to give you a "home from home" away from the thing you've worked so hard to own... What's that all about?

 

[Meoncoast]

Think it is about "Time" most of the time you are paying for the house one is working. Mortgage paid off often also means retirement is possible and thus more spare time to use a motorhome/caravan

 

[Wind Witch]

Think it is about "Time" most of the time you are paying for the house one is working. Mortgage paid off often also means retirement is possible and thus more spare time to use a motorhome/caravan

Hi Andy

Makes sense but I worry that I'm in the post baby boomer generation who has managed to buy a house in timely fashion - but every time I get within a whisper of reaching the state pension age, the government pulls it from my grasp

At least I will have the Cali to escape in

Cheers, Wind Witch

 

[Meoncoast]

but every time I get within a whisper of reaching the state pension age, the government pulls it from my grasp

in the same boat there re the state pension guess I did not read the small print

 

[Hotel California]

The thing is one should get a higher salary when young , thats when you need the money most and you want lots stuff.
Getting older your salary goes up and pension comes , then you can spent more money on stuff you wanted 20years earlyer!

 

[AlanH99]

... campervan/caravan.

Can anyone explain the psychology behind this phenomenon please? You spend years working to get the mortgage paid off and the house is yours, all yours.. Then you go out and spend your money on something to give you a "home from home" away from the thing you've worked so hard to own... What's that all about?

A house you have to own, a camper you want to own. Buy the house first, buy the camper second. Well, that's what I did.

 

[Wind Witch]

A house you have to own, a camper you want to own. Buy the house first, buy the camper second. Well, that's what I did.

Exactly, same here. And I am entirely aware that for young people, these days, the first foot on the house-owning ladder is beyond reach.

 

[Amarillo]

Exactly, same here. And I am entirely aware that for young people, these days, the first foot on the house-owning ladder is beyond reach.

It is up to us as parents to make sure that it isn't. My boys are 2½ and 1¼ and I am saving hard for their first homes already. Banks and building societies are willing to help too. Nationwide offer children 2.5% gross on savings up to £50,000, though, depending on where the money has come from, the parent may have to pay tax on some or all of the interest. Child ISAs are also an excellent savings idea for children, though the child will have legal entitlement to the cash at 18, and unlike a building society passbook, it cannot be concealed from an errant teenager.

 

[Wind Witch]

It is up to us as parents to make sure that it isn't. My boys are 2½ and 1¼ and I am saving hard for their first homes already. Banks and building societies are willing to help too. Nationwide offer children 2.5% gross on savings up to £50,000, though, depending on where the money has come from, the parent may have to pay tax on some or all of the interest. Child ISAs are also an excellent savings idea for children, though the child will have legal entitlement to the cash at 18, and unlike a building society passbook, it cannot be concealed from an errant teenager.

That you are able to do that for your children is admirable - though it may have to go towards their university educations should they wish to study for a degree before it goes on a house deposit at the rate we are going - it still remains true that I was able to put down an affordable deposit and pay a mortgage I could pay out of my salary and still eat, pay the bills and enjoy the occasional treat. I live in an area where house prices are relatively inexpensive, yet a starter flat for a young couple would cost in excess of £90,000. Just how property prices were allowed to inflate so far and so fast in the early Noughties is a debate for another occasion

Best, Wind Witch

 

[Amarillo]

That you are able to do that for your children is admirable - though it may have to go towards their university educations should they wish to study for a degree before it goes on a house deposit at the rate we are going

How the gift is spent can be heavily influenced by the parent. If I had saved hard for 20-25 years and were giving the money for a first home deposit, that is where I would expect the money to go.

Student debt repayments are 9% on earnings over £21,000 until the debt is repaid or until 30 years have passed. The cost of a university education should not be a major worry to parents, and it would be financially unwise for a parent to carry the burden - it may never have to be paid.

Having a child live with me past the age of 25 is much more of a concern (18 years commitment plus 7 years grace seems more than reasonable).

 

[Wind Witch]

Having a child live with me past the age of 25 is much more of a concern (18 years commitment plus 7 years grace seems more than reasonable).

Definitely can't enjoy the benefits of one's Cali with "big" kids still in the nest.

 

[AlanH99]

My two children refused to go to university, had a variety of jobs learning multiple skills and are now both in steady employment earning more than me. One of them many times more than me. Makes me question whether my belief in a university education was justified.

 

[Amarillo]

My two children refused to go to university, had a variety of jobs learning multiple skills and are now both in steady employment earning more than me. One of them many times more than me. Makes me question whether my belief in a university education was justified.

Everyone's individual, and it is our differences that make us special.

I spent my late teenage years flipping burgers, until I decided I'd had enough of that and at 25 took the second year only of two A levels (English and maths) at Woolwich College, and miraculously ended up reading maths at Cambridge. I now make more money in a single year as a property investor than I would have in a lifetime flipping burgers.

 

[andyinluton]

Everyone's individual, and it is our differences that make us special.

I now make more money in a single year as a property investor than I would have in a lifetime flipping burgers.

Lifetime flipping burgers, say 45 years + £10k a year = £450k a year as a property investor

Hence ability to not worry about paying kids university fees, buy a T6 cali and save up for the kids first house.

In the meantime those of us on a more modest income worry about how our kids are going to afford their first house. Whilst the likes of Crispin push up the prices of houses further & further.

 

[Amarillo]

Whilst the likes of Crispin push up the prices of houses further & further.

Most unusual, why do you expect your children's first home to be in Sanya?

 

[Stoneybroke]

Definitely can't enjoy the benefits of one's Cali with "big" kids still in the nest.

Big kids Dog sitting, parents swanning off?

 

[Wind Witch]

Big kids Dog sitting, parents swanning off?

Mmmm certainly has its advantages, I admit...

 

[Scotts]

Wow. This thread certainly shows that all sorts of folks are drawn to VW California's.

 

[johnyboy]

Indeed! Went to uni, got the debts, paid the debts, got the optional debts (more than a Cali) paid them, got a Cali (cash), paid the mortgage.

 

[AlanH99]

Everyone's individual, and it is our differences that make us special.

I spent my late teenage years flipping burgers, until I decided I'd had enough of that and at 25 took the second year only of two A levels (English and maths) at Woolwich College, and miraculously ended up reading maths at Cambridge. I now make more money in a single year as a property investor than I would have in a lifetime flipping burgers.

I can see how A level maths might be useful for a property investor but not reading maths at Cambridge. Has going to university made the difference between being successful and not?

 

[Amarillo]

I can see how A level maths might be useful for a property investor but not reading maths at Cambridge. Has going to university made the difference between being successful and not?

A degree was a requirement of my profession on leaving university; maths was useful, though not essential. "Successful" is a relative term: who is more successful, one who has a law degree or one who drops out of college; the richest man in the world, or one who owns little?

 

[Stolly]

I personally don't think 'success' in life has anything at all to do with qualifications or money. Heck it doesn't even have anything to do with being able to buy a Cali camper van

 

[AlanH99]

A degree was a requirement of my profession on leaving university; maths was useful, though not essential. "Successful" is a relative term: who is more successful, one who has a law degree or one who drops out of college; the richest man in the world, or one who owns little?

I meant 'successful' in achieving your career aim. Not necessarily in having a successful life. I'm sure we all know of people with lots of money whose life is mess.

Obviously, if a degree is a requirement for the profession you want then it is more than useful, it is essential.

I just wonder how many go to university because it is expected but would have been better learning on-site or on the shop floor and creating a career path through building up experience instead.

There are many jobs that require the leadership and interpersonal skills that aren't taught in university but have to be learnt by doing the job. And once you have the experience on your CV you can command more money than many people who have excellent university qualifications.

To sum up: I believe that, on average, a degree will get you a higher salary but it probably isn't as certain as many people think and for some it could actually result in lower pay.

 

[Amarillo]

To sum up: I believe that, on average, a degree will get you a higher salary but it probably isn't as certain as many people think and for some it could actually result in lower pay.

I do not wholly disagree with what you say, but I think that you miss some important non-academic benefits of university.
- a gentle transition from the family home to independent living
- networking
- clubs and societies

And I disagree with you about leadership and interpersonal skills not being taught at university. Perhaps not always, but they are.

 

[johnyboy]

Uni gives you the independence and the debt required as a motivator for success in my case