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Property Inflation.
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Why is property inflation, especially housing property, considered a good thing? It's terrible for young people hoping to buy their first home, especially when so-called social or affordable housing is under attack from a government wanting to oblige local auhorities to sell off property below the market price.
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For more on marking an answer as the "Best Answer", please visit our FAQ.Not to worry...they bought in an upwardly mobile area of London with good access to the shops, services, and social life they want.
Too true jno. If she works in the office, daughter has the choice of central London...or out to the boondocks that is Windsor...about 2-3 hours a day if I'm not mistaken. If she already lived in more "affordable" areas, shed be spending much more time on the trains for the privilege.
Too true jno. If she works in the office, daughter has the choice of central London...or out to the boondocks that is Windsor...about 2-3 hours a day if I'm not mistaken. If she already lived in more "affordable" areas, shed be spending much more time on the trains for the privilege.
//the most ridic thing of course is that rents are often higher that a mortgage payment//
Why? If you own a place you have to pay for maintenance on top of the mortgage (if you have one). If you move you will be 20K down or more. Things like this are never black and white.
Personally I dont think rents are a high enough return for Landlords
anymore, we sold all ours.
Why? If you own a place you have to pay for maintenance on top of the mortgage (if you have one). If you move you will be 20K down or more. Things like this are never black and white.
Personally I dont think rents are a high enough return for Landlords
anymore, we sold all ours.
YMB; my son's mortgage repayments are now lower than when he was renting. I don't know why, it just seems to be a fact. I don't know much about mortgages, but when we had one, the repayments stayed more or less stable as the general cost of living and wages gradually rose, so that as the years went by the mortgage payments became very cheap.
Mortgage Interest rates are at an all time high. They will rise in the near future, hopefully stabilising around the 5% mark.
If you had a repayment you are paying back the money so the amount you are paying interest on drops a little each month. A way to make this quicker is to use an offset mortgage. They are brilliant especially if you are a higher rate tax payer and dont want to pay tax on savings (although this has now changed a little).
If you had a repayment you are paying back the money so the amount you are paying interest on drops a little each month. A way to make this quicker is to use an offset mortgage. They are brilliant especially if you are a higher rate tax payer and dont want to pay tax on savings (although this has now changed a little).
offset mortgage is when you have a linked savings account, and the intereste is only charged on mortgage minus amount in savings.
so if you had 100k mortgage, but 50k in the savings account, you would only get charged interest on 50k, however you savings remain available to you should you need/want them
so if you had 100k mortgage, but 50k in the savings account, you would only get charged interest on 50k, however you savings remain available to you should you need/want them
I think property inflation is marvellous.
Our house is now worth well north of a million with very little mortgage, and the appreciation because of where we live has been fantastic.
When I retire in 15 years or so, my wife and I will downsize, release a load of equity to our two kids to allow them to get on the ladder.
I couldn’t care less whether other youngsters get on the ladder, just so long as my kids can.
Selfish? You betcha. But let’s be honest, most people will think like this.
Our house is now worth well north of a million with very little mortgage, and the appreciation because of where we live has been fantastic.
When I retire in 15 years or so, my wife and I will downsize, release a load of equity to our two kids to allow them to get on the ladder.
I couldn’t care less whether other youngsters get on the ladder, just so long as my kids can.
Selfish? You betcha. But let’s be honest, most people will think like this.
Real estate inflation is beneficial for those who own several houses or plots. I agree that this is very bad for young couples who hope to buy a house for a family, children, or a future life. Unfortunately, such inflation has not led to anything good. On https:/ /timtho mas.co/ signs-o f-a-hou sing-ma rket-cr ash/ , I read that the real estate market is expecting a crash. Of course, the situation in the country is not so bad to make such terrible predictions. But people often abuse their ownership of houses and inflate the price. All this creates inflation. In addition, the current prices for building materials are forcing everyone to inflate the price of repairs, houses with fresh repairs, and so on.