Debate House Prices
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House ownership - Selling yourself into a lifetime of servitude
Comments
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I dislike people who think in terms of a wealth status ladder, so I much admire someone who buys small and is contented.
At the same time though some of us buy a bigger property as we enjoy many and layered contentment from it such as being able to grow our own veg right outside the kitchen door or allowing our garden to become a wildlife haven.
There is more to owning a larger pad than the status some might think it infers on them.
I agree when we first decided to move to the Island we dreamed of a panoramic sea view, of course when it came down to it we couldnt afford that type of property, what we could have afforded was an ex coast guard cottage with no front or back garden with sea glimpses between the bowling alley and the chav pub, that would have taken all the money we got from our flat sale plus a lot of our saving, we also could have afforded at the same price a three bed detached with country views or a 2 bed bungalow with horses at the end of the garden
Instead we bought a victorian semi cottage with a 100ft garden with fields down the end of the road and a 20 minute walk to the beach all for 1/2 the cost of the other properties0 -
debtistheft wrote: »If you have a mortgage then the interest repayment part of that mortgage is the same as paying rent. The capital repayment part is money borrowed from the bank to invest in an asset. You will also have placed a deposit on the house in order to reduce the monthly payments; this deposit could have been inveted elsewhere.
You could very easily have rented a place for the equivalent amount you pay in interest, you could have borrowed the capital amount and invesed it in shres/bonds with your deposit. As well as increasing your own personal wealth your investment wouldhave provided money for industry which in turn creates jobs. In essence you would be investing n yourself and in your fellow man. Buying your own house is an investment in yourself.
I'm going to answer you even though you're a regular on a wind up.
The interest component of my mortgage is approx £520 p/m. To rent a flat in the part of London I live, with equivalent square footage and facilities (I have off-street parking, not exactly common) I'd be looking at £800-£850 p/m, and in fact my whole mortgage repayment is just £825 p/m. So quite frankly, it makes no difference.
My purchase of the flat created jobs on the original purchase (legal fees, surveyor fees, unfortunately estate agent fees) and continues to do so (insurance, service charges for managing agents and cleaners etc). So again your argument falls down there.0 -
I'm going to answer you even though you're a regular on a wind up.
The interest component of my mortgage is approx £520 p/m. To rent a flat in the part of London I live, with equivalent square footage and facilities (I have off-street parking, not exactly common) I'd be looking at £800-£850 p/m, and in fact my whole mortgage repayment is just £825 p/m. So quite frankly, it makes no difference..
How much money do you have invested in your house in order to have such a low mortgage rate? Is that a fixed rate for the term of your mortgage?My purchase of the flat created jobs on the original purchase (legal fees, surveyor fees, unfortunately estate agent fees) and continues to do so (insurance, service charges for managing agents and cleaners etc). So again your argument falls down there.
The legal fees and survey fees go to solicitors. They can earn an income from drawing up rental contracts and other legal work. The insurance, service charges,managing agents and cleaners will all exist whether you rented or bought the flat.0 -
Except there are thousands of people in my position and a lot less in your parents.
And the source of this pearl of widom is?
More than 50% of SMI payments go to pensioners.
http://www.dwp.gov.uk/docs/support-for-mortgage-interest.pdf
I expect that there are thousands of people each with their own story, not your story.
You are attempting to use your situation as proof for your beliefs.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
debtistheft wrote: »If you have a mortgage then the interest repayment part of that mortgage is the same as paying rent. The capital repayment part is money borrowed from the bank to invest in an asset. You will also have placed a deposit on the house in order to reduce the monthly payments; this deposit could have been inveted elsewhere.
You could very easily have rented a place for the equivalent amount you pay in interest, you could have borrowed the capital amount and invesed it in shres/bonds with your deposit. As well as increasing your own personal wealth your investment wouldhave provided money for industry which in turn creates jobs. In essence you would be investing n yourself and in your fellow man. Buying your own house is an investment in yourself.
That would be partly true if you could rent for less or same as the interest which is unlikely and if you did the chances of that remaining true for the term of mortgage is very small. Secondly if you borrowed to invest you would still have to pay interest and you would need to rent so that is nonsense all you would be able to invest is your deposit plus any fees.0 -
And the source of this pearl of widom is?
More than 50% of SMI payments go to pensioners.
http://www.dwp.gov.uk/docs/support-for-mortgage-interest.pdf
I expect that there are thousands of people each with their own story, not your story.
What percentages of people with mortgages are claiming smi even more relevant what percentage of homeowners are claiming smi.0 -
That would be partly true if you could rent for less or same as the interest which is unlikely and if you did the chances of that remaining true for the term of mortgage is very small. Secondly if you borrowed to invest you would still have to pay interest and you would need to rent so that is nonsense all you would be able to invest is your deposit plus any fees.
You are right, my apologies. You would be able to invest the equivalent of the capital repayments. The difference is that with shares or other investments, you are not compelled to keep investing even if you lose your job or are ill. With a house 'investment' you are, or you lose the greater part of your investment and your good name and status.0 -
debtistheft wrote: »How much money do you have invested in your house in order to have such a low mortgage rate? Is that a fixed rate for the term of your mortgage?
Its an 85% LTV 4.29% 2 year fix.The legal fees and survey fees go to solicitors. They can earn an income from drawing up rental contracts and other legal work. The insurance, service charges,managing agents and cleaners will all exist whether you rented or bought the flat.
Yes but does that matter? If I don't pay them the landlord would and factor that into the rent I pay.0 -
What percentages of people with mortgages are claiming smi even more relevant what percentage of homeowners are claiming smi.
I'm not trying to prove anything; note how my factual claim about SMI was actually based upon fact and not upon what I believe because things have turned out OK for me. I merely try to illustrate that your situation doesn't prove anything either.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
debtistheft wrote: »You are right, my apologies. You would be able to invest the equivalent of the capital repayments. The difference is that with shares or other investments, you are not compelled to keep investing even if you lose your job or are ill. With a house 'investment' you are, or you lose the greater part of your investment and your good name and status.
But we are not talking about investment we are talking about somewhere to live and if you did become unable to work for some reason a person renting or buying would end up in the same position.0
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