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Robert Reid EA in Cheshire assures us houses will always be a good investment because of the UK property shortage!

he is a thick coot.

he has no opinions other than 'nobody knows but houses are a good investment'

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Robert Reid EA in Cheshire assures us houses will always be a good investment because of the UK property shortage!

he is a thick coot.

he has no opinions other than 'nobody knows but houses are a good investment'

He seems relatively sensible, obviously hes not going to say prices will drop. "Don't buy to make money"

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The number of people that spout that rubbish is beyond belief rolleyes.gif.

Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

Would he have been better off staying at home and saving his £250 contribution to the rent?

Is he better off now that he has seen the light and moved back home? He is aware of the problems with the housing market but is determined that the next time he moves out it will be into something he will own one day - and that he won't make the mistake of paying someone else's mortgage for them.

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Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

it is not dead money in the same way that paying to rent money in order to purchase a flat is not dead money......

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Paying debt interest on a depreciating, high maintenance asset is dead money. wink.gif

If you think that over the life of a typical mortgage - 25 years - the property is likely to be worth less at the end of the mortgage term - well you really do need a reality check.

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Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

Would he have been better off staying at home and saving his £250 contribution to the rent?

Is he better off now that he has seen the light and moved back home? He is aware of the problems with the housing market but is determined that the next time he moves out it will be into something he will own one day - and that he won't make the mistake of paying someone else's mortgage for them.

It's really simple.

Everyone has to pay for a roof over their head, unless someone else, a parent for example, pays it for them.

Example 1; One pays rent to a landlord.

Example 2; One pays interest to a lender.

Example 3; One loses interest on the money one draws out of the bank to buy a house for cash.

I, for instance, choose to rent and I pay rent to my landlord for the use of his house. I actually have more than enough money in the bank to buy the house outright, but, if I did that, I would lose more money in interest received from the bank on the money withdrawn to purchase the house than I would save by not paying rent.

Can you think of any way that I can put a roof over my head without paying out money for it?

Edited by Bruce Banner

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What?

Interest on a mortgage is simply akin to paying the bank to "rent" the money so that you can buy a property. All rent (whether renting flats or renting money) is dead money, right?

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Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

Would he have been better off staying at home and saving his £250 contribution to the rent?

Is he better off now that he has seen the light and moved back home? He is aware of the problems with the housing market but is determined that the next time he moves out it will be into something he will own one day - and that he won't make the mistake of paying someone else's mortgage for them.

hello - did you ever do maths at school?

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If you think that over the life of a typical mortgage - 25 years - the property is likely to be worth less at the end of the mortgage term - well you really do need a reality check.

Germany

Japan

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Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

Would he have been better off staying at home and saving his £250 contribution to the rent?

Is he better off now that he has seen the light and moved back home? He is aware of the problems with the housing market but is determined that the next time he moves out it will be into something he will own one day - and that he won't make the mistake of paying someone else's mortgage for them.

Interest is rent on money.

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Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

Would he have been better off staying at home and saving his £250 contribution to the rent?

Is he better off now that he has seen the light and moved back home? He is aware of the problems with the housing market but is determined that the next time he moves out it will be into something he will own one day - and that he won't make the mistake of paying someone else's mortgage for them.

Many if they can, stay at home and rent (help towards the costs ) from their parents...or they share a rented place with others, more costly but should still enable savings and have fun at the same time.....it has never been easy to buy a first home, if you can't afford to save for a deposit you can't afford to buy a home, simples.....recent history has proved this with 100% mortgages....the chickens are now coming home to roost. ;)

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Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

Would he have been better off staying at home and saving his £250 contribution to the rent?

Is he better off now that he has seen the light and moved back home? He is aware of the problems with the housing market but is determined that the next time he moves out it will be into something he will own one day - and that he won't make the mistake of paying someone else's mortgage for them.

At 21 he should be enjoying the freedom and experiences not living at home brings. For 250 quid, that aint bad at all. I shudder to think of the wasted opoortunities of my youth had I been living with my folks at that age. Hecan save the extra 250 and the associated opportunity cost in order to spend years to save a deposit, or he can have a rate old time whilst waiting for prices to fall.

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Many if they can, stay at home and rent (help towards the costs ) from their parents...or they share a rented place with others, more costly but should still enable savings and have fun at the same time.....it has never been easy to buy a first home, if you can't afford to save for a deposit you can't afford to buy a home, simples.....recent history has proved this with 100% mortgages....the chickens are now coming home to roost. wink.gif

nice post

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Guest Elephant_In_The_Room

Join us after the news for our smoking debate. We have the CEO of Benson and Hedges in the studio as well as a group of chain smokers. That's "smoking isn't bad for your health".....after the news

I heard this bilge last night in bed. Probably explains why I couldn't sleep.

Why do the Beeb persist in having Property phone-ins (with vested interests on the panel) every 2 or 3 days?

because they must keep up the brainwashing, it musn't wear off. Joe public might start thinking for himself and realise that the housing crisis boils down to one simple issue

THE PRICES ARE TOO F***ING HIGH.

We don't need more 'homes' building (of the wrong type in the wrong places)

We don't need the banks to "get lending again"

We don't need potty scheme XYZ to get young lambs "onto the ladder".

WE NEED TO WAKE UP AND ACKNOWLEDGE THAT HUGE GREY THING WITH FLAPPY EARS, STANDING IN THE CORNER

mad.gif

Edited by Elephant_In_The_Room

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If you think that over the life of a typical mortgage - 25 years - the property is likely to be worth less at the end of the mortgage term - well you really do need a reality check.

....while you are living in it it is worthless, it only costs money in upkeep....it is only worth something when you sell and by that time everything else has gone up or down relative, we all need to live somewhere...fine if you have a mortgage where you are repaying capital and interest....one day you will be debt free ie have a larger income, like a pay rise or you can if you want choose to work less.

The difference between today and yesterday.....yesterday the capital was low and interest rates high, today capital is high and interest rates low.....capital is the hardest part to pay back....think about it. ;)

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....while you are living in it it is worthless, it only costs money in upkeep....it is only worth something when you sell and by that time everything else has gone up or down relative, we all need to live somewhere...fine if you have a mortgage where you are repaying capital and interest....one day you will be debt free ie have a larger income, like a pay rise or you can if you want choose to work less.

The difference between today and yesterday.....yesterday the capital was low and interest rates high, today capital is high and interest rates low.....capital is the hardest part to pay back....think about it. ;)

Not if you extend the mortgage term to 50years

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Not if you extend the mortgage term to 50years

Now I know why they have changed the law to allow people to work beyond retirement age...it's not because they will want to, more of they will have to..... ;)

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Help me out here. When my 21 year old son signed a tenancy agreement on the dotted line last November, in what way was the £750 he and two friends were paying to a landlord not dead money?

Would he have been better off staying at home and saving his £250 contribution to the rent?

Is he better off now that he has seen the light and moved back home? He is aware of the problems with the housing market but is determined that the next time he moves out it will be into something he will own one day - and that he won't make the mistake of paying someone else's mortgage for them.

1/ £250 is not dead money if it gets you into a party zone away from parents, it is an expense for a necessity, like eating.

2/ He would have been financially better off, but emotionally, mentally? debateable.

3/ Yes and no.

4/ Depending when you buy the "one day" could be many moons away,and paying someones mortgage makes sense if 1/ is in place, 2/ = emotional/mental wellbeing > than financial pain? Taking on loads of debt to buy property is not a good idea IMO. NE is dead money, 20 years worth of rent to a bank is dead money, buy at the bottom (one just looming into focus) and don`t be an ar*se.

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There's not much point in attempting to debate with Mr "Paying someone else's mortgage for them", he just threw in a couple of provocative posts and didn't bother to return to the thread. He has now logged off :rolleyes:.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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