60k - buy a motorhome or pay off some mortgage?

[WetBench]

I know it’s a lovely problem to have, but most people are aware that people coming into chunks of money do not usually do so through happy means, and most people would rather give the money back to not be in that position.

So I I have the opportunity to buy a motorhome for £60k, or pay off some of the mortgage and reduce it down from 60% to 50% and take out a loan for 25k to pay for the motorhome. We have been on several trial holidays hiring different models and have narrowed down the one we want and think we would use it for short holidays and longer 1/2weeks.

Although maybe that’s just crazy and we should pay off more mortgage or keep it for a rainy day, and that’s a stupid amount to spend on anything. We spent 2 years umming and ahing about buying a garden bench so this is way out of our usual comfort zone and price range. Our savings would be down to zero buying this.

But circumstances mean we want to get as much out of life as we can in the next few years and this seems to be the solution?

Could you pay off some of the mortgage and just hire the best motorhome when you want to?

Do you have children? If you do then it's a good idea to keep some back for help with rent if they go. That's what I did with an inheritance.

I'd pay off half the mortgage, and buy a micro caravan, like a Swift Basecamp 2, or a Barefoot caravan, which I covet like crazy.

Why a motor home and not a caravan. Have you thought about how you will park it out and about on your holidays.

Life's short and experience has taught me that you never know what's around the corner, but you can't live your life holding your breath, waiting for the next bad thing to happen or change to come.

My advice would be to buy the motorhome, enjoy the here and now and make the make the most of it!

@titchy sadly not an expression.

@MrsFezziwig yup, figured that it’s not cheap and we are paying for the use of it rather than say buying an old £1k caravan to do up and save money.

Buying new for the mod cons and layouts and a few other reasons.

Previous holiday budget was spending maybe £1500 a year in the U.K. combined on self catering.
Apologies for the vague answers, wanted to check what else I had used this username for before potentially outing myself!

@Dogsandbabies thanks, I’m completely at peace with paying the standard amount and my mortgage lasting until I am 60, haven’t overpaid yet and would rather enjoy the extra few hundred a month now than pay it off a few years early. I have no problem seeing that mortgage amount trickle down slowly over 30 years. Although I know I could save money in the long run doing this, I’m okay with it!

@countrygirl99 we’ve thought for a few years between the 2 and tried motorhomes on holiday so we’ll tested with the parking, but for us and our circumstances motorhome works best and means day trips and overnight trips possible. Even though a top of the range caravan is half the price!

@Mosaic123 obviously current times mean no availability until October/November. Also means we wouldn’t have it for spontaneous night away/day trips.

@Cattitudes I know you can make a lot of money renting it out, but for complicated reasons I won’t be doing that. I won’t be letting family/friends borrow it either for the same reasons, and that will be another thread asking how to say no to people and still remain friends!

How is a motorhome beneficial for day trips compared to just a car?

How often do you think you'd be able to get away? Are you talking coach built big one or VW camper style?
They do hold value well but not if buying brand new.
I'd love one. Have spent many hours browsing and dreaming but realistically we don't have sufficient time to get the best of it. If you do, go for it but next year may be a better time to buy.
An alternative you could consider is a microcamper. That's what we've gone for. Google amdro boot jumps. It gives us what we want at the cost of an ordinary car (which we needed). Or if you only need two seats chapel motorhomes do some cracking kits which would likely increase the value of your vehicle as a 'done' package.
Also remember to factor in fuel costs. Some of the vans are very thirsty, perhaps less so at the newer end

Mortgage

@SweatyBetty20 those are super cute!

If you don't have an off set mortgage then I wouldn't pay extra in to it.

If it's a VW van I absolutely would not buy it unless you know a mechanic who will do mates rates.

I’d be more inclined to get a buy to let property

@DuesToTheDirt complicated to explain. But ability for one person to remain in the motorhome comfortably whilst one say goes for a hike/bike ride without feeling guilty.
@Calmdown14 6-6.4m long coachbuilt not a VW day van type. Need the toilet! Some of the 7.5m are amazing, but we’re going to likely get a 6m one for the use we’d get out of it and some are quite good a sleep 2 adults and 2 kids if you’re all on talk terms!

@WetBench aren't they? It's the only reason I do the Euromillions!

@Itsbeen84yearss we thought about that for longer term income generation, but that doesn’t make life more fun now and we’re happy with not making long term money.

No way would i buy a depreciating asset if I already owed money on a mortgage. Pay off as much as you can and rent a motor home. Buying one in this high demand market is crazy anyways. There will be plenty to buy far more cheaply within months.

I be very tempted about the motor home as I really love one myself. But they are crazy money right now and I wouldn't spend £60k on one if I had alot to pay on a mortgage

@Calmdown14 those amdro units are super clever! But unfortunately we need the motorhomes toilet!

Work out how many times a year you'd use it over 5 years and work out how much each trip actually costs.

@WowIlikereallyhateyou renting one is about £1200-£1500 for a week if you can get availability. We’ve thought about it for 2 years and didn’t make a decision quick enough per covid and know the cost has gone up with demand. New ones won’t come down in price though and waiting might not be an option.
Understand it’s a depreciating asset, not buying it to make money from, but to use for enjoyment.

I’d buy a second hand one for less than half that and at least pay off some of the mortgage.

@MrsPelligrinoPetrichor thanks, have a rough idea from the hire periods we’ve done with fuel/campsite costs etc. Stayed on EHU sites as a hire, but aware of lots of pubs etc that let you stay for free off grid if buying a full meal etc so should be cheaper in the long run than hiring costs during peak times.

Sounds like they're expensive to hire and would be worth it to you.