Debate House Prices
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House ownership - Selling yourself into a lifetime of servitude
Comments
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To own a property is to effectively own a tiny piece of the Earths crust, and in all the Universe there will be no other space quite the same as your own little patch. I'd say that's a worthwhile thang.0
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debtistheft wrote: »This is my favourite piece of propaganda. You are not living rent free you have a large amount of money invested in your house and the return from that money is a roof over your head.
In economies that are not based in mortgage debt, people invest their wealth in shares and government bonds instead of a house. This money allows companies to invest in machinery, advetising, innovation which in turn creates jobs and wealth for the whole society. In economies based on home ownership a vast amount of wealth is invested in something that produces nothing.
By the time you have paid off your mortgage you will have paid down the principle sum, paid a large amount of interest, paid associated costs for buying and selling homes, paid mortgage arrangement fees, paid bank adminstration fees, etc. All this money could be invested in the economy and easily cover the rent on a similar house.
All of this supposes that you dont have any problems in that 35 years such as a job loss or illness. With all your wealth tied up in a property, how will you keep a roof over your head, how will you feed your family. A year of being jobless or ill and you could lose it all.
I think the point about share ownership being beneficial to the economy is a fair one. However there are many industries banking, insurance, utilities, maintenance, conveyancers, etc that benefit from investment in property.
Also, if you rent you are still living in a property that someone else has purchased so whats the difference?0 -
debtistheft you seem to be of religious bent.
in that case you must think we are all tenants since the earth does not belong to us.
also, if the real and eternal life is yet to come a 30 year mortgage doesn't really touch the sides of significance does it?
Whatever you believe about the after life, we are all in agreement that we dont have long on the earth. Why spend that short time ploughing your wealth into a brick cube that provides shelter.0 -
WardwarkOwner wrote: »I think the point about share ownership being beneficial to the economy is a fair one. However there are many industries banking, insurance, utilities, maintenance, conveyancers, etc that benefit from investment in property.
Also, if you rent you are still living in a property that someone else has purchased so whats the difference?
These people would still exist because we still need properties to live in, so we would stil need insurance, utilities, maintenance, etc. The difference would be that some people would invest in properties and receive a return from that property in the form of rent (and create jobs) and this income would be taxed, benefitting the wider economy.0 -
You're not following me. If i did not have my mortgage I would be paying out the same amount in rent. This would not be going in to stocks and shares. I can either have all my life paying rent, or a period of paying a mortgage, followed by a period of no rent/mortgage, at which point the money that has been used for rent can THEN be invested.
This worked just fine for my parents who bought a house at 18 years old and were mortgage and rent free by the age of 45. Their monthly outgoings are now absent a component for rent/mortgage, whereas a similar couple who had just rented, would STILL be paying rent.0 -
debtistheft wrote: »This is my favourite piece of propaganda. You are not living rent free you have a large amount of money invested in your house and the return from that money is a roof over your head.
In economies that are not based in mortgage debt, people invest their wealth in shares and government bonds instead of a house. This money allows companies to invest in machinery, advetising, innovation which in turn creates jobs and wealth for the whole society. In economies based on home ownership a vast amount of wealth is invested in something that produces nothing.
By the time you have paid off your mortgage you will have paid down the principle sum, paid a large amount of interest, paid associated costs for buying and selling homes, paid mortgage arrangement fees, paid bank adminstration fees, etc. All this money could be invested in the economy and easily cover the rent on a similar house.
All of this supposes that you dont have any problems in that 35 years such as a job loss or illness. With all your wealth tied up in a property, how will you keep a roof over your head, how will you feed your family. A year of being jobless or ill and you could lose it all.
So if my Mortgage has been less than my rent where would I have got that money from. How do you know I haven’t invested the money I saved on rent and have a larger sum in the bank than I would have had if I had invested the small amount I would have saved in the early years? I’ve manage to go 40 years with out any major problems except a divorce which put be back quite a bit anyway and I am far from unusual.0 -
debtistheft wrote: »This is my favourite piece of propaganda. You are not living rent free you have a large amount of money invested in your house and the return from that money is a roof over your head.
In economies that are not based in mortgage debt, people invest their wealth in shares and government bonds instead of a house. This money allows companies to invest in machinery, advetising, innovation which in turn creates jobs and wealth for the whole society. In economies based on home ownership a vast amount of wealth is invested in something that produces nothing.
By the time you have paid off your mortgage you will have paid down the principle sum, paid a large amount of interest, paid associated costs for buying and selling homes, paid mortgage arrangement fees, paid bank adminstration fees, etc. All this money could be invested in the economy and easily cover the rent on a similar house.
All of this supposes that you dont have any problems in that 35 years such as a job loss or illness. With all your wealth tied up in a property, how will you keep a roof over your head, how will you feed your family. A year of being jobless or ill and you could lose it all.
Well yes I AM living rent and mortgage free and as I moved only once the cost of my interest payments, the cost of buying and selling my home and the cost of getting the mortgage on my flat was way less than the equity I obtained when I sold it
Worked it out that I paid about 40k for my flat, and about 5k on buying it in the first place then selling it and buying a house which I bought for cash for £125k so thats 170k all told and as I sold my flat for 250k thats 80k pure profit - as I said I was lucky0 -
The OP implies that investing in a brick box is unGodly, yet at the same time he argues we should invest our pile in stocks and shares to become wealthy. So lets look at what God has to say about amassing money then;
Here is what God incarnate, Jesus the Christ, said about money:
“Sell your possessions and give to the poor.” (Luke 12:33)
“You cannot serve God and Money.” (Matthew 6:24)
“Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal.” (Matthew 6:19)
“It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.” (Luke 18:25)
.................
But it's ok to amass shares, huh?0 -
debtistheft wrote: »Whatever you believe about the after life, we are all in agreement that we dont have long on the earth. Why spend that short time ploughing your wealth into a brick cube that provides shelter.
true. a fairly low percentage of my monthy income goes on serving property debt and i intend to keep it that way. a lot of people in my positon would have taken out the maximum mortgage they could get to live in a big house but i live in a 1 bed in an inexpensive area of london. my dreams lie elsewhere.Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron0 -
true. a fairly low percentage of my monthy income goes on serving property debt and i intend to keep it that way. a lot of people in my positon would have taken out the maximum mortgage they could get to live in a big house but i live in a 1 bed in an inexpensive area of london. my dreams lie elsewhere.
This is nice to read. At least someone on here seems to have their priorities right. Look how defensive people get when you challenge what society consideres 'normal'. One is upset even to the point that he tries to mock my religion. Such fear.0
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