Property Price Drop

pandamonia

kier333 wrote: »

Flat is 155k putting down 18k deposit so 137k plus i'll over pay 20% ach month and no wont lose 2 hrs sleep over £70 although i'd rather it in my pocket.

its £80 per month more expensive thats nearly 10% more nearly £1000 per year.

you will be paying £180 per month off the capital extra too?

i doubt london allowance is tax free.

kier333

Well unless my company HR lie then yes it is tax free, i work with people who get it, same as subsistancy although that 10k pa, i used to claim it.

And yes will pay 180 pcm or 20% of the capital.

pandamonia

kier333 wrote: »

Well unless my company HR lie then yes it is tax free, i work with people who get it, same as subsistancy although that 10k pa, i used to claim it.

And yes will pay 180 pcm or 20% of the capital.

i just checked on the net and its basically just added to your salary taxed at the rate which will be about 51% with NI. if they try pay you tax free they will break the law and you will end up having to pay it back

kier333

pandamonia wrote: »

i just checked on the net and its basically just added to your salary taxed at the rate which will be about 51% with NI. if they try pay you tax free they will break the law and you will end up having to pay it back

Well the company must be breaking the law then, still its 150 pcm so will cover the 20% nearly,

pandamonia

After Amt. Owed Int. Paid
5 Years £124,552 £44,553
10 Years £107,089 £84,090

9k interest per yr

you would have more money if you rented and saved the £180 per month

kier333

Yes sounds about right 9k PA, do you have an interest free mortgage?

can you give me the link showing LLA is taxable. Thanks

kier333

renting the same flat would cost me £950pcm or around 230pw= 996pcm

Mortgage is 890 pcm so not alot of difference oh plus 35pcm maintanance/ground rent.

pandamonia

http://www.guardian.co.uk/money/2003/jul/12/workandcareers.drwork1

Does your rent include bills?

its cheaper to rent than buy a home just based on interest payments. only after 10 years does it work out better.

You can still earn 5-6% from some savings accounts and bonds etc.

Your 18k would be better there until you save up 20-25% deposit.

kier333

Pandamonia,

I agree i'll end up in negative equity no doubt in 2 yrs but the point is i'm not in it for a quick profit in around 8 yrs i'll rent it and move to OZ, work should be ok until then what with cross rail in London until 2020 plus 20yrs re generation program in Cricklewood, ie new station etc.

Life is not about proit its about having a HOME, renting is totally dead money.

Plus in time property will go up again certainly in London

Cat695

kier333 wrote: »

Pandamonia,

I agree i'll end up in negative equity no doubt in 2 yrs but the point is i'm not in it for a quick profit in around 8 yrs i'll rent it and move to OZ, work should be ok until then what with cross rail in London until 2020 plus 20yrs re generation program in Cricklewood, ie new station etc.

Life is not about proit its about having a HOME, renting is totally dead money.

Plus in time property will go up again certainly in London

Erm paying high interests is "totally dead money"