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Property Worth, Money And How To Get Your Hands On It....

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Lies, deceit and card tricks..

Here is the thing..

You buy a house and you have an interest only mortgage for £180,000

Crikey... a lot of money...

But the house is yours (actually its the banks until you pay them £180,000)

The mortgage is £750 a month.

You have owned the property for two years and it has gone up £40,000 in value.. superb.

You have paid £18,000 on the mortgage, but the house is yours.. (actually its the banks until you pay them £180,000)

But what is this, £40,000 profit.. that is superb and it is yours... So you remortage and free up £20,000...

:) this is great you own a house and now it has made you £20,000 how cool is this...?

(actually its the banks until you pay them £200,000)

So the house has gone up in value by £40,000....

aren't you doing well...?

Okay.. this is a poll.

house price inflation realises profit only at point of sale. its about moving money and does not generate any itself.

Remortgaging is merely changing how much you are prepared to pay for the property.

The bank "Owns* the house, you can have it when you complete your agread payments. If the house goes up you can realise the added value at sale. if it goes down, you have to make up the difference before sale.

The house is worth exactky what the buyer pays for it.

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  • 301 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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