This is a question faced by many – but what should you do? No one will answer this honestly because they are all trying to sell you the dream of travelling.
Let’s look at the adult answer vs the dream!
Are you from the UK, why not explore what’s on your own front doorstep in the mean time – see this list of 50 amazing things to do in the Cotswolds
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Adult answer
Money
Although some people don’t like to say it out loud – money does indeed make the world go round – and so it drives the answer to this question.
Firstly, buying a house will cost significantly more money than travelling. If you plan to live off £30 a day – which is harder than it sounds – then travelling for 6-months will cost £5,400.
If we add £1000 for long haul return flights and some extra money for insurance, all that kit you need, and well, the inevitable thing or 2 that will go wrong – then you’re looking at around £7,000 to travel for 6-months all in. That is being extremely conservative!
To buy a house worth £150,000 you will likely need a 10% deposit, as well as solicitor’s fees, and other fees for surveys, checks, and moving in costs. For a purchase like that, you would need around £20,000 all in.
For the average person, if you have £20,000, or that amount between 2 of you – you will have more than likely worked very hard, for a very long time, to get it.
What if I have that money and I’m not tied down?
Of course, the biggest factor here will be that you are even considering travelling in the first place!
Even so – still buy a house! The main reason you would consider not buying a house if you found yourself with that amount of money is if you were concerned about the market – house prices going up and down against you.
But, even if there is a terrible crash in the market and the value of your new house goes down – history has shown us time and time again that it will go back up and more over time.
Buying a house, especially your first house, is something better done sooner rather than later. What if prices do go up – it is absolutly possible that if the value of your house goes up enough, it will provide you with the money to actually go travelling at a later date for free.
The reality
This is where the curve ball comes in. Maybe you just find yourself in a position where you have the time to do that thing you’ve wanted to do for years – travel! Maybe you find yourself in between jobs and it is the perfect time to do this.
In that case – it is worth reiterating that the £7,000 estimate quoted above is very conservative! You simply cannot predict where you will end up if you decide to travel, or what will happen.
The need to replace a phone or camera, buy a ridiculously overpriced ticket home mid-way through your trip for a family emergency, or have to dig in to your savings when you return while you look for employment again – will significantly raise that figure.
So, as much as you want to travel – the question is, how quickly can you raise another £7,000 – £10,000. Do you want to wait that long before you are in a realistic position to buy a house again?
What are you talking about, I just have a few thousand and want to travel for a few months?
If you haven’t got £15,000 – £20,000, the reality is you likely won’t be buying a house anytime soon anyway. This is the only time it is worth thinking about travelling and not using your savings to buy a house.
Of course, the answer to this question will depend on everyone individually. What if that dream house you’ve been looking at actually goes up in value over those 3 – 6-months – don’t forget you will need at least 3-months’ worth of pay slips when you return to even get a mortgage as well.
If you have the money and are in a position to buy a house – then do it now and travel later!
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