Mortgage paid off... now what?

[ChimpMaster]

When I was younger I used to believe that I would want my mortgage paid off (on a decent house, which I have at the moment), and then have streams of investment income coming in to allow me to chill out a bit more by my early 40s. My mortgage has been paid off for a short while now, but already the wife is getting ideas about taking on a huge new mortgage to move into an even bigger and better house.

Recently we've been to see plots (with old houses on them) where we could potentially build a lovely big house, which we could either live in or sell for a profit. It is a tempting proposition, albeit with the downside in that I'd need to find £700k from somewhere. We could just buy the plot and live in the older house for a while, but that would be like sacrificing several years of my life to save up some money for the re-build. That would also be in addition to taking out something like a £500k mortgage.... I can't even imagine having that much debt on over my head!

So what to do: live in a pretty decent house and plan for an easier entry into the 40+ years of life (though with growing kids!), or take one more massive leap into the financial dance of death?

[sasguru]

When I was younger I used to believe that I would want my mortgage paid off (on a decent house, which I have at the moment), and then have streams of investment income coming in to allow me to chill out a bit more by my early 40s. My mortgage has been paid off for a short while now, but already the wife is getting ideas about taking on a huge new mortgage to move into an even bigger and better house.

Recently we've been to see plots (with old houses on them) where we could potentially build a lovely big house, which we could either live in or sell for a profit. It is a tempting proposition, albeit with the downside in that I'd need to find £700k from somewhere. We could just buy the plot and live in the older house for a while, but that would be like sacrificing several years of my life to save up some money for the re-build. That would also be in addition to taking out something like a £500k mortgage.... I can't even imagine having that much debt on over my head!

So what to do: live in a pretty decent house and plan for an easier entry into the 40+ years of life (though with growing kids!), or take one more massive leap into the financial dance of death?

Mortgage has been paid off for years now. Its a nice feeling - means that you can take some risks, tell people to fook right orf if they piss you off (I did that at work and it got me promoted fast simply because people got scared ).
If you live in a tulipe hole then by all means upgrade otherwise just use the saved money to prepare for an early retirement or take up somethimg you've always wanted to do like writing that bestseller, starting a small business, doing a PhD, whatever.

[Mich the Tester]

When I was younger I used to believe that I would want my mortgage paid off (on a decent house, which I have at the moment), and then have streams of investment income coming in to allow me to chill out a bit more by my early 40s. My mortgage has been paid off for a short while now, but already the wife is getting ideas about taking on a huge new mortgage to move into an even bigger and better house.

Recently we've been to see plots (with old houses on them) where we could potentially build a lovely big house, which we could either live in or sell for a profit. It is a tempting proposition, albeit with the downside in that I'd need to find £700k from somewhere. We could just buy the plot and live in the older house for a while, but that would be like sacrificing several years of my life to save up some money for the re-build. That would also be in addition to taking out something like a £500k mortgage.... I can't even imagine having that much debt on over my head!

So what to do: live in a pretty decent house and plan for an easier entry into the 40+ years of life (though with growing kids!), or take one more massive leap into the financial dance of death?

Don´t do it! You´re as close as damn it to semi retirement if you´ve paid off the mortgage; otherwise you'll have to slave away for another 20-odd years. Why not do this IT bulltulip part time, go back to university and get yourself a research degree in something really interesting?

Or is ChimpMistress a bit, erm, high maintenance?

[DaveB]

When I was younger I used to believe that I would want my mortgage paid off (on a decent house, which I have at the moment), and then have streams of investment income coming in to allow me to chill out a bit more by my early 40s. My mortgage has been paid off for a short while now, but already the wife is getting ideas about taking on a huge new mortgage to move into an even bigger and better house.

Recently we've been to see plots (with old houses on them) where we could potentially build a lovely big house, which we could either live in or sell for a profit. It is a tempting proposition, albeit with the downside in that I'd need to find £700k from somewhere. We could just buy the plot and live in the older house for a while, but that would be like sacrificing several years of my life to save up some money for the re-build. That would also be in addition to taking out something like a £500k mortgage.... I can't even imagine having that much debt on over my head!

So what to do: live in a pretty decent house and plan for an easier entry into the 40+ years of life (though with growing kids!), or take one more massive leap into the financial dance of death?

If you are happy with the the location you're in now why not look at extending or refurbishing your current property rather than chucking it all in and starting again with a huge amount of debt.

[vetran]

tell her she has a choice, see more of you and live in acceptable house happily with great holidays or you spend all your life working to pay for a fancy new house and either have a heart attack because of the stress.

Had a similar situation when I was 39 paid the mortgage off, but the house we lived in was in a slightly rough area so we moved. Wife now wants the next upgrade and another £100k of debt , not sure I fancy it, finally got the mortgage down to an acceptable level again.

[Mich the Tester]

already the wife is getting ideas about taking on a huge new mortgage to move into an even bigger and better house.

Wife now wants the next upgrade and another £100k of debt , not sure I fancy it, finally got the mortgage down to an acceptable level again.

Chaps, not to put too fine a point on it, but perhaps you should ask yourselves 'do I need a new house or do I need a new wife'?

[sasguru]

You can't blame people who are brainwashed by capitalism to want to "upgrade" all the time. In effect not knowing the difference between wants and needs.

[MarillionFan]

Up to you. I paid my mortgage off about 3 years ago and so moved to a bigger house taking out another mortgage.

That'll will be paid off in about 3/4 years, so I've reinvested and now looking for a holiday home as well.

Interest rates being so low at the mo.

[sasguru]

Up to you. I paid my mortgage off about 3 years ago and so moved to a bigger house taking out another mortgage.

That'll will be paid off in about 3/4 years, so I've reinvested and now looking for a holiday home as well.

Interest rates being so low at the mo.

There is that point of view of course. If you are youngish and still going to be working anyway, having the best property you can have is always a good long-term bet, if only as a legacy to your kids.

[MarillionFan]

There is that point of view of course. If you are youngish and still going to be working anyway, having the best property you can have is always a good long-term bet, if only as a legacy to your kids.

Better invest it. I'd only spend it on drugs, booze and sex otherwise.

I'd probably waste the rest.