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Debate House Prices
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Rabbit Hutch Britain
Comments
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. At the end of the 40 years with the same assumptions on HPI, they'll have £340K of house for which they'll have paid £500Kish, assuming they aren't earning enough at that point just to pay off the mortgage early. And this is with house prices losing 1% net on average in real terms!
In that period, assuming a rental of about a grand starters (which would be low for the SE), and 3% inflation, someone renting will have paid about £540K and have no asset. The cost of the rental after the 10 years period is about £1300pa.
Now forgive me, but I don't honestly see why you are criticising this couple. Even with a mortgage deal which is diabolically poor, they still win hands down over someone renting over the same period. They're over £380K better off in fact. And they don't have to worry about where they are going to live for the next 30 years or fund a pension that allows it.
tbh neither option sounds that appealing.
either way they'll be in their sixties. let's hope they don't get ill and need to go into a home. in which case all the equity the mortgaged couple have worked so hard to acquire will go to pay for their care whilst the renters will get theirs for free.
out of interest, what happens when you reach retirement and don't have a pension to continue paying market rents?Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron0 -
out of interest, what happens when you reach retirement and don't have a pension to continue paying market rents?
it seems like you get your rent paid for by the state along with council benefit etc. maybe we're best off not bothering being mortgaged until our twilight years.
http://www.thepensionservice.gov.uk/retired/money-tax/other-state.asp#eThose who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron0 -
http://news.bbc.co.uk/1/hi/magazine/8201900.stmRunning_Horse wrote: »
Wish I could find that recent article showing a league table of new property sizes in Europe.
http://www.dailymail.co.uk/news/article-1205709/Rabbit-hutch-UK-Newly-built-homes-smallest-rooms-EU.html0 -
PasturesNew wrote: »
Don't needs Jeeves when you have Pastures.0
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