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Which House Situation Would You Prefer?

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Duhh, 60% of 250k....

1. 60% of 250k is 50k (50%) more than 100k

2. a 250k house (rather than the BTLers fav flat or terrace house) will fall less in percentage terms because it is less overvalued than the cheap tat at the bottom of the market (and you have a 50k headstart.

3. you can rent out 1,2 or 3 rooms in the 250k house, your more stuffed in a flat/small house

4. you could sell either if that is the ACTUAL value which means your going to get more money back from the 250k house, and if you REALLY want to you can buy a 100k house and pocket the 50k change, or more if you buy another house for a BMV discount as a cash buyer?

Edited by moosetea

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Despite the added 'value', I'd have to go for the 100% of 100K.

Roof over my head, and no mortgage or rent. Heaven.

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Chose one

If it's the same house. I'd prefer it to be valued at £100k and own 100% of it. Obviously your 100k would go a lot further than 60% of 250k in that scenario. :)

If we're talking about two houses where one of them is really worth 2.5 times the other under the same market conditions then I'd rather own 60% of that one.

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Assuming it wasn't a complete shithole, "Own 100% of a house valued at £100k" every time. My interest in property goes as far as "one to live in" and no further.

Edit to add...

Assuming top rate tax paid and about 6% IR on the mortgage on the outstanding amount, taking the 100% at £100k option equates to a "pay rise" of just over £14pka. That's quite good money for, erm, not having to pay a bill.

Edited by Moo

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£100k because i want the scum govt that preys off of pushing people like me from pillar to post to feck off and die. if i own its going to be alot harder for them to feck me about, not that they wont figure out a way...... evil people that they are.

only draw back is that its probably in acrappy area. but i would start with 1005 ownership, earn more equity and then trade it in for the next size up at 1005 ownership.

id like to see every person involved in the rental market homeless and begging on the street, especially the to posh to feck in thursday girls in their im a professional and have a suit skirt retarded posture like they are doing anything at all other than being owned. Glad i did a degree in molecular brain surgury so i can show people around houses. oooh look, heres the kitchen, complete with a floor and walls and even a nice ceiling.

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Even though in a 50% fall situation you'd end up with less equity with the more expensive house (£100k 50% fall= £50k, £250k 50% fall =£25k), I'd still opt for the £250k as its a better house and I've yet to see a £100k property I'd like to live in. As long as I can afford the mortgage it'll also bounce back to a stronger position than the £100k property and chances are will be more saleable as its more family orientated.

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if it had been 100% of a 600k house or 60% of a 1.5 mil one, I'd go for the 600. But at 100k, unless I had a time machine, I'm not sure I'd want to live there.

As crashingisles said, if you're talking about different values on the same house then that' a different question.

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Despite the added 'value', I'd have to go for the 100% of 100K.

Roof over my head, and no mortgage or rent. Heaven.

You still have f@ckiing council tax and water rates that you have no control over.

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You still have f@ckiing council tax and water rates that you have no control over.

theres a big difference between £80/month and £1400/month, you mathematically challenged person you.

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theres a big difference between £80/month and £1400/month, you mathematically challenged person you.

Where do you live a shed. Council tax £2300 =£230 per month water £67 per month one thing i am not it is mathematically challenged

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It's a question to do with an article I read about the war on Iceland.

Property prices are now so inflated because people thought that they were richer if they own the 60%. All that has done is put money in the pockets of bankers.

"As an example of their warped thinking, consider an attractively priced home. Would you rather own 100% of a home free of all debt with a market value of 100,000 euros if free of debt – or, would you rather own 60% of the same home at an inflated market price valued at 250,000 euros? In the second scenario you would have 50,000 euros of “surplus wealth” (60% x 250,000 = 150,000 euros, compared to 100,000 in the first example). People across the globe have been convinced that the second scenario represents “wealth creation.” What is overlooked is that the higher-priced home carries interest charges on its higher market price. This charge would amount to 6,000 euros a year, or 500 euros a month, at 6% interest. The same property is worth more, but includes a much larger debt overhead – income for the financial sector."

Full article:

http://www.globalresearch.ca/index.php?con...a&aid=13055

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