Rich-Poor Divide Widening

nearlynew

Owning your own home (outright, with no mortgage) is a major step towards financial security.

Years ago people would aim to pay off their mortgage as soon as possible. More recently, however, too many people have massively extended their mortgage in order to supplement their income and buy stuff that they ordinarily wouldn't be able to afford.

The irony is, while they felt richer, they were actually poorer because of the debt they have to pay back. Many of these could be almost mortgage free now and have a much larger disposable income, but are instead in negative equity.

Harry_Powell

nearlynew wrote: »

Owning your own home (outright, with no mortgage) is a major step towards financial security.

But not if they pursue the Mortgage Free dream to the exclusion of everything else, a-la MFW board.

They spend 10 years clearing a 25 year debt and then realise they have 10 years less to build up a pension. Even worse is that many seem to pay off the mortgage and then buy another house, then start the whole process again. OK, they end up with a gorgeous home, but they have to sell it in order to fund their retirement.

ukcarper

nearlynew wrote: »

Owning your own home (outright, with no mortgage) is a major step towards financial security.

Years ago people would aim to pay off their mortgage as soon as possible. More recently, however, too many people have massively extended their mortgage in order to supplement their income and buy stuff that they ordinarily wouldn't be able to afford.

The irony is, while they felt richer, they were actually poorer because of the debt they have to pay back. Many of these could be almost mortgage free now and have a much larger disposable income, but are instead in negative equity.

How many though have you got any figures I haven’t mewed and nobody I know has mind you I am getting on a bit as are most of my friends.

ukcarper

vaporate wrote: »

Define 'the real world'.

All opinions are mere chemical reactions in the brain.

Could it be the real world referred to above where poor people are buying property?

dopester

DaddyBear wrote: »

I don't know..... with the Iraq enquiry things could get decidedly worse.

I do think that the Tories should resurrect the classic D:Ream hit from the 1992 labour campaign and use it as their own. Delicious irony as the country is in a much worse state than in 1992.

That D:REAM voting video for Labour really goes into the danger-zone of my cringe-scale.

http://www.youtube.com/watch?v=dmwqEg-06Ww

I recognised it for what is was at the time... a very crude device to manipulate channels of the very easily brainwashed, or those who genuinely believe running the country is a big easy fun time, with easy money to be gleefully redistributed. Labour.. the new rockstars. Tearing up the rulebook of what is required to run a country sensibly over the long-term.

As if the newspaper Tony Blair gets delivered to his home is The Sun. The girl walking to the voting station with TB in the video was pretty.. but there is a moment where her steely inner Labour self-interest power look shines through.

I wonder what kind of reception he would get if he made the same walk to the Voting Booth alone these days?

People in awe, cheering and clapping him.. trying to shake his hand?

Given his personal security bill he racks up each year on the taxpayers' account, continuing to add highly paid Directorships even when you might think it's insensitive to do so, he won't be making the walk alone.

Even Peter Cunnah, who in 1997 sang the New Labour anthem Things Can Only Get Better, recently told how he has given up on the party, adding that he has not decided who to support instead.

http://www.dailymail.co.uk/news/article-1246056/Politics-slipper-evasive-liars-After-years-backing-Labour-Julie-Walters-enough.html

dopester

inspector_monkfish wrote: »

how many houses have yo got mayte ?

That clip is so :rotfl:
http://www.youtube.com/watch?v=AHo2pXO_XAI

Jonbvn

marklv wrote: »

Why the hell should we compare ourselves to third world countries?

Why not, when the gaps between the "haves" and "have nots" in such countries could be the difference bewteen life and death. This puts our petty bickering about HPI/HPC etc. into perspective don't you think?

StevieJ

Generali wrote: »

Tony Blair was an ex-CND dyed in the wool Labourite. You can see that from the economic chaos he left behind.

Also the best pal of Bush :eek:

bitemebankers

abaxas wrote: »

I know plenty of poor people who own property, and plenty on rich who dont..

Really? I don't know *any* rich people who don't own a fair amount of property.

Radiantsoul

Harry_Powell wrote: »

They spend 10 years clearing a 25 year debt and then realise they have 10 years less to build up a pension. Even worse is that many seem to pay off the mortgage and then buy another house, then start the whole process again. OK, they end up with a gorgeous home, but they have to sell it in order to fund their retirement.

What is wrong with that as a lifetime investment strategey? A house isn't much use when dead so why not sell it to fund retirement.

It may be a bit Oscar Wilde, but presumably the ideal way to die is having spent everything you own and perhaps leaving a little bit of debt!