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Debate House Prices
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An entire generation locked out of property ownership
Comments
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In the office I work in, there are 2 girls of a very similar age, both on the same wage - £18500 . One of them is single and has bought her own home, cost £96K and has a 40 year mortgage. She pays £500 per month for this. She had no help from parents etc and saved for the deposit herself. The other, is part of a couple and is the spender that I mentioned earlier. Although she gets plenty of financial help from her parents - they bought her a car, are paying over £18K for her wedding etc, she cannot afford to buy her own home. Her boyfriend earns slightly more than her. They are paying £500 per month in rent.
House prices do vary vastly in the north and south. You honestly wouldn't want to live in a £40K house in Mexborough. A decent starter home in South Yokshire can be got for £90K currently0 -
40 year mortgage!!!!! no thanks.
As you say there is many of us young ones who spend every penny and still expect a house, but as I say thats certainly not all of us.
I do wonder how many have tried and gave up as the mountain to climb is so big these days.Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
I do hate the difference in prices between the north and south. Has arguments coming from various angles on these boards. Some thinking "whats the problem" others thinking "are they insane". It's all relative to your local price.
40 year mortgage though....scary!!
If it continues to cost her £500 each month and doesn't change, she'll pay for the house and then pay for it again 2.5x over. At that point, renting becomes cheaper!
Or....she'll spend 13 years solid working to pay the house off. 13 years without spending a single penny elsewhere!0 -
40 year mortgage!!!!! no thanks
I imagine that most people who take out a 40 year mortgage will have plenty of opportunity to pay it off earlier. I know that when we first got a mortgage in 2003 (over a 25 year term) we couldn't afford to repay a penny extra and things were generally difficult from month to month. But as we progressed in jobs and the mortgage amount stayed the same (or even decreased) we were able to start overpaying. We hope to now be mortgage free by 2016, which I never would have believed when we took out the mortgage.
If you feel your career may take off then taking a 40 year mortgage to ensure that payments are low at the start might not be a bad plan.0 -
Graham_Devon wrote: »I do hate the difference in prices between the north and south. Has arguments coming from various angles on these boards. Some thinking "whats the problem" others thinking "are they insane". It's all relative to your local price.
40 year mortgage though....scary!!
If it continues to cost her £500 each month and doesn't change, she'll pay for the house and then pay for it again 2.5x over. At that point, renting becomes cheaper!
Or....she'll spend 13 years solid working to pay the house off. 13 years without spending a single penny elsewhere!
Depending on your age I can’t see anything wrong with a 40-year mortgage obviously better to have a shorter term, as you will pay more off each year after all how many mortgages run their full term.
After 5 years on a 100k mortgage at 5% you will still owe 95.5k this reduces to 88.5k on a 25 year, but you will have paid about 6k more in repayments so it’s cost you about £1k.0 -
Of course you can't see anything wrong with 40 year mortgages.
Neither will Hamish, Cleaver, ISTL, that ghoolie character et all.
Myself, and others preferring to see property prices fall will of course all take issues with 40 year mortgages.
It's the way of the forum
Of course, NONE of us would actively choose one.0 -
Graham_Devon wrote: »Of course you can't see anything wrong with 40 year mortgages.
Neither will Hamish, Cleaver, ISTL, that ghoolie character et all.
Myself, and others preferring to see property prices fall will of course all take issues with 40 year mortgages.
It's the way of the forum
Of course, NONE of us would actively choose one.
My first mortgage was for 35 years I had it for 7 or 8 years and I don’t see a problem with it and what has it got to do with house prices falling.0 -
On the above £100k mortgage you pay about £233k back over 40 years but £177k back over 40. So it does cost you another £56k but your repayments will be less and that £56k will have to be paid in 25 to 40 year’s time when it will effectively be less because of inflation.
The only thing I would be concerned with is making sure I paid off my mortgage before I retired.0 -
Graham_Devon wrote: »Of course you can't see anything wrong with 40 year mortgages.
Neither will Hamish, Cleaver, ISTL, that ghoolie character et all.
Myself, and others preferring to see property prices fall will of course all take issues with 40 year mortgages.
It's the way of the forum
Of course, NONE of us would actively choose one.
Graham,
Where have I ever promoted 40 year mortgages?
Indeed, my username is derived from when I saw the light by overpaying my mortgage and paying it off quicker. If anything I advocate paying mortgages off as quickly as possible to reduce the interest outlayed.
Stick to your own comments and stop trying to insinuate what others believe.
You get muddled with your own thoughts, let alone trying to comprehend others.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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