I have saved £10,000. Should i spend for deposit on house or go travelling?

Question

Please help, this is question i have thought over for years. Do i spend money buying a house, then have years of debts or live life freely and go travelling while i still can? What would you do? Do you have any regrets after doing either?

Answer 1

Here's a comparison for you.

3 years ago:
- I spent all my money on a flat and the mortgage took me to the limit of what I could afford each month.
- My sister spent all her money on travelling and gave up her job.

Now:
- After lots and lots of hard work and hard saving, I've managed to get together enough to go travelling for a year and still keep paying my mortgage.
- My sister got a job and worked hard and saved hard and has just bought a flat.

So we'll both have gone travelling for a year but I've got 3 fewer years on my mortgate and gained equity on it from rising prices.

As a result, I think it's best to get on the property ladder as soon as possible.

If it helps you relate to things, I'm now 27.

Answer 2

If you are still young, invest in a house. If you don't want to be tied down and paying a mortgage, invest the money and take the profits and go travelling. That way, you can have your cake and eat it too!
Now the big question is how do I invest the money to make a sizable return? Well, go to http://www.4xmoneytrain.com
My account has made over 70% return from 12th October 2006 to 3rd December 2006. I opened a new account on 7th December 2006 and i am already up 10% as of 11th December 2006.

If you use the 10,000 to go travelling, it will be gone by the time you get back and you will have to start all over again.
With the above strategy, your 10,000 will continue making money for you while you are on vacation and you will come back to a bigger account.
Give it a try.

Answer 3

It depends. Firstly, how old are you? If you are still young and strong, buy a house that you are able to service the debts with some cash to spare. If you are getting old and feeble, go travelling while you still can. Secondly, consider how long do you have to service the debts if you buy a house? After which, you could enjoy living in the house free of encumbrances. A roof over one's head, without having to worry about debts after one retires is important to many. Thirdly and more importantly, is your job/future income assured and/or stable? Losing your job/income would affect your ability to service the debts. Most important of all, at which stage is the real estate cycle now? In other words, is price of the house expected to go up or go down? If the former is likely, buy a house; and go travelling if the latter is likely.

Answer 4

It seems you've answered your own question. You sound like you really want to go travelling and you see buying a house as weight around your ankles, something you may resent in future.

I bought a house first then went travelling for a year a couple of years later. The rent I made on the house paid for my travels so I spent a bit of time doing voluntary work but the majority of it drinking beer and sunbathing. See the opportunity to buy a house as an investment, one that you can use the dividends to do what you really want to do in life - spread your wings and enjoy the world.

Answer 5

If you use it as a deposit for a house will you be able to keep up the mortgage payments as well as things like council tax, electricity, gas, water, repairs and insurance? On top of that you will have to buy furniture. Also consider that, just now, you may be buying at the top of the price cycle.

If you travel a great deal, do you think you will be able to return to normal life here? On the other hand you may see a lifestyle and an opportunity that appeals to you and which could change the rest of your life.

The choice is yours - as it has always been.

Answer 6

definitley go traveling. you can save up for a deposit on a house when you get back. Once you get settled down with a house etc you will be less likely to go traveling so i say do it now!! Or you could always split the money.....use half for traveling and save the other half towards a deposit for a house!

Answer 7

A house definitely !!! We doubled a small amount of money we put into a house with someone else.... it took just 2 years. Think about it - in two years time you can have both!!!

Buy a house, it's just as big a risk, an you'll have great fun doing up yourself... If you go travelling now, you'll never get that money back. In two years time you can have both.

Answer 8

Buy the house. After a few years when you have made some equity, you can then borrow against the house and go travelling then. You are a fool if you spend 10k on travelling!

Answer 9

How old are you anyway?
If you're young try building your wealth first, then go traveling. Well what's the point when you traveling back happily then come back your life to work like hell again.

If your're old, well, gimme a hell yeah, why bother as you have to live in debt again and again. Just enjoy your live.

As for me, I'm still young and just think of getting a house and car to get a good wife and when I have enough saving to last to my golden age, then I go travelling.

As for life misery, why do you think you have to buy life insurance for.

Answer 10

i'm 21 from the U. S.. Me in my opinion i imagine that spending $40k on a wedding ceremony is a waste of money. i have been to this kind of vast quantity of weddings the position human beings spend an outrageous quantity & no human being that attends truly cares about the ceremony or the which technique of the day. those who attend weddings look ahead to the social gathering on the reception. So why shell out all that money? Plus I trust you that the money that they could be spending on their wedding ceremony can make a outstanding deposit on a house. Too a lot of human beings opt for the lavish wedding ceremony & then can not discover the money for a house for somewhat a even as.