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AIBU?

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Original poster

Do you buy a house with the intention of paying off the mortgage, or using it as a stepping stone?

57 replies

mrstea301 · 13/03/2022 18:29

I was just curious about the madness of house prices at the moment and was thinking about the process of buying houses etc. (I also have watched lots of Selling Sunset, Grand Designs and Location Location Location!)

When you buy a house, do you do so planning to fully pay off the mortgage in due course? Or do you buy something as a stepping stone where you can manage the mortgage payments for the foreseeable and can sell it when necessary and move on to something larger or smaller?

OP posts:
ReadyToMoveIt · 13/03/2022 18:31

Surely it depends? Some people will be buying with the intention of staying forever, others won’t. Depends on life stage etc.
We have lived in our house for 5 years. We’ll probably stay another 3. Our mortgage still has 25 years left on it.

RoseMartha · 13/03/2022 18:31

It depends on the person and their circumstances.

LaWench · 13/03/2022 18:35

I hate moving house and other than our first home we have bought to stay long term and have made large overpayments on the mortgage. This has been beneficial as a stepping stone to move up to a bigger property with much more equity to reduce the mortgage repayments.

So I guess the answer is both really.

AllOfUsAreDead · 13/03/2022 18:39

We bought ours with the intention of moving to a bigger one eventually. But with house prices sky rocketing, and utility bills going higher too, that won't be happening for a while.

InvincibleInvisibility · 13/03/2022 18:39

Flats 1 and 2 = stepping stones
Flat 3 (finally big enough for 3 bedrooms) = will stay until we retire then downsize with no mortgage

We live in the centre of a capital city. No way could we have afforded a family sized flat when we first bought aged 25 & 27

Moody123 · 13/03/2022 18:41

Our first home was our forever home, until we worked from home and didn't have any space to work ... so now this house is our forever home (I assume till something else comes up)

beattieedny · 13/03/2022 18:43

This is our third and, god willing, final house. Moving is pricey. Easier to stay put. Plus it's ideal for our small family, and will be ideal in old age too. Different for everyone.

Ariela · 13/03/2022 18:43

Neither. All my houses so far have been bought with a specific need in mind eg near work, near aging parents, off road parking, sufficient bedrooms etc.

DontLookBackInAnger1 · 13/03/2022 18:44

It depends if that's your forever home.

We're not sure if our one is or isn't yet. So we view it as a stepping stone really, we want to make it the best home possible through renovation and upkeep. Then, once it's the best it's going to be, we'll decide whether we stay or move again.

Ideally we'll stay but that's because we're in a house well sized for us, in an area we like. If it was too small or a bad area it would be a stepping stone for sure.

Kitkat151 · 13/03/2022 18:45

House 1 (2 bed ...3 years) stepping stone to house 2 (3 bed.....7 years) ....house 3 relocation ( 4 bed ...Finish bringIn up kids home( 16 years) ......house 4 Downsize when kids all gone ( small 3 bed cottage...been here 6 years) .....we paid mortgage off at20 year point whilst in house 3.....Im 57 now

topcat2014 · 13/03/2022 18:51

Been in my 3 bed 1970s semi for 20 years this year - was only going to be about three. idealistic

DialsMavis · 13/03/2022 18:53

We didnt buy until we were 38 and 42 with a 16 year old and an 8 year old, bought a house we can stay in for the long run, but now remortgaged until DH is 75 to renovate it. So we will have to either downsize, or pay off mortgage with inheritance when it sadly comes. We would love to move up the ladder, but if we cant then this house is completely fine and will be lovely when finished.

gingercat02 · 13/03/2022 18:54

First house bottom of housing slump, new build bought to turn around in a year or two. Sold after 11 months for big profit. Second was perfect for the 2 of us and DS when he was small. Sold after 11 years for small loss. Current house is for the foreseeable future but mortgage will be paid in the next year or less depending on interest rates. We will move once DS is settled in his own home. That will be our retirement home and who knows after that!

Dawnofthefed · 13/03/2022 18:57

First House was a stepping stone. Second house I thought I would stay in but I got married and had lots of children so we moved to a third. We have been here for a few years and don't intend to move.

FTEngineerM · 13/03/2022 18:57

House number 1 was stepping stone, the most live-in-able for our minuscule £7 (5%) deposit.

House number 2 is where we’re dumping the £60k we made in 4 years into, it’ll be our long term home but certainly not forever.

Original poster
mrstea301 · 13/03/2022 18:58

It's an interesting point, I was just a bit curious as I know it's different for everyone and needs can change etc - we moved into our current house to do it up and sell it and move on... that was in 2015 and we're still here, and haven't done half of the work required!

I think as well that some houses priced over half a million and upwards would be realistically out of our reach, but wonder if sometimes people buy them due to school areas or whatever, fully planning to move on after a short period of time. I'm probably not phrasing this very well lol. Think I'm also thinking about people in the US that seem to buy houses that cost millions of dollars and then will turn round and sell them relatively quickly afterwards. Are they just seeing it as a temporary asset that's better than renting, or is it down to changing needs again?

OP posts:
Original poster
mrstea301 · 13/03/2022 18:59

Thanks for all the responses - it's interesting to hear everyone's points of view!

OP posts:
BernadetteRostankowskiWolowitz · 13/03/2022 18:59

House 1 - bought a doer upper, very young, planned to sell in 5 years. House crash after we bought so stayed 10y. Still had a fab amount to put down on House2

House 2 - bought for size with a growing family. Thankfully able to overpay so planning to align mortgage cleared at the same time the dc fly the nest.

Then we can find H3 which we will hopefully be able to buy outright, downsize a bit, and see out our days there

mumjustmum · 13/03/2022 18:59

Stepping stone currently - we are 36 and 40, with children 3, 2, and 2.
I expect will will step stone again in 5-10 years.
Then our long term home.
Then a home for just me and DH - hopefully big enough for the boys and families to visit 🤞🏻

cherryonthecakes · 13/03/2022 19:03

I was going to stay in my current house until my youngest finished school but the crazy house prices mean that I am stuck here for longer. I am reluctant to make a big move when anything could happen in the next 2-5 years

vickyc90 · 13/03/2022 19:04

House 1 - 1st time buyer stepping stone
House 2 - moved area but didn't like it
House 3 - great location was meant to be forever but was to small
House 4 - forever home 🤞🏻it's a renovation project, that we will only sell if we decide to do a self build when DS has flown the nest.

We always look for something we can do up to add value so if we want to move on we can. I think we are at the limit of what I want to spend but we do have the scope to double our mortgage if we want something bigger so who knows.

We take a long mortgage and make over payments

Rainbowshit · 13/03/2022 19:11

1 and 2 stepping stones
3 meant to be forever but school catchments meant we had to move
4 very much an investment and don't think we'll ever pay the mortgage off. We intend to downsize once the kids move out.

HPandTheNeverEndingBedtime · 13/03/2022 19:15

I'm on my own, when my grandparents died I had the opportunity to either buy my council flat or move and get a mortgage.

I chose to buy my council flat making me mortgage free before I was 30, it has a drive and private garden and isn't that different to a bungalow apart from once you go through the frontdoor you have to go upstairs to get to the rooms ie it's not a high rise.

It's not my dream house by any means but realistically anything I could afford wouldn't be worse than what I have, rooms and gardens would probably be smaller so I have opted for improving where I am as it makes the most sense.

I cannot describe the security knowing its all paid off brings especially with the recent increase in living costs, at least I know Dd and my home is safe. Its pretty future proof, I'd just need to put a stair lift in, close to good bus links for when I can't drive, 10 minute walk to shops, hospital, Dr's and beach in the various directions.

Not sure what I'd want to do if I was in a two income family.

bobsholi · 13/03/2022 19:17

We bought our first house 4 years ago and it was meant to be a stepping stone. However, in that time our house has doubled in price and so has everything else we want to buy. As a result, we face being stuck here until the mortgage is paid off.

notanothertakeaway · 13/03/2022 19:19

House 1 = stepping stone, stayed 7 years

House 2 = larger stepping stone, stayed 10 years

House 3 = longterm family home. Suitable for retirement / old age

For most people, I'd think that (1) if you can afford it, better to pay off as much of the mortgage as possible, as you pay interest on the debt and (2) stamp duty is a deterrent to moving too often