 I can't help feeling bitter about this.....? |
My advice to anyone leaving school and considering going to University is this - Do not attend University, become a drug addict instead.
I went to Uni, got an hons degree, couldn't find a ... |
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 If an apartment cost $500 monthly for rent with 2br/2bath...? |
| continue...and i find a roommate to fill the 2nd room, does that mean we now split the cost of the apartment? or will the price of the apartment increase? does that mean we both pay $500, or we split ... |
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 If your name is on a lease and you move out before the lease expires, how much rent are you liable for? |
| If you move into a house with your boyfriend and both names are on the lease, and you break up and move out before the lease expires, are you liable for rent only up till the date you move out, for a ... |
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 I make 30k a year? What kind of home loan can I expect to receive? I.E. How much? |
I live in Los Angeles, CA
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also have spouse who makes around the same per year.
not necessarily looking for a house. maybe a duplex or condo.... |
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 I listed my house and now I decided I don't want to sell? |
| I signed the contract but never actually gave it back to the agent (she doesn't have a copy). Can I take the house off the market? Do I owe it to her to reimburse her for her expenses?... |
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 How can I take legal possession of my parents home that I have maintained for over 20years with no will? |
| Both parents died in 1981 and 1983. I have maintained and paid off the home and yearly realestate taxes. I do have siblings that have refused to sign quick claim deeds. The home has never been ... |
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 Should I feel embarrassed? |
| Me and my husband just bought a house for 250K. I am in the military and he is a gov employee. This is a very high end house for what military people, more specifically the people I work with see ... |
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 Unless otherwise stated in your rental contract, is a landlord supposed to pay for toilet repair? |
| In this case, two of our toilets are not flushing at all, suddenly. I have tried to call my landlord but she is out of state. I am calling a plumber to come fix it, and will have to pick up the tab ... |
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 Questions on mortgage? |
| hi there me a my fiencee are in the process of purchesing our first home. We just started our seach today and we are meeting with the bank next week. My question is do you think he will think he will ... |
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 If I signed a 6 month lease 3 months ago, can my landlord make me resign a new 6 month lease now? |
| if i signed a 6 month only 3 months ago doesnt the first lease have to expire before he can raise the rent and demand me to resign a new contract?... |
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 Does the house seller have to tell the potential buyer if the house is haunted? |
| If someone is selling a house that is known to be haunted, the buyers are from out of state and don't know the history, does the seller have to inform the potential buyer that it is haunted?... |
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a coffee free bag of revels | Why do people think they make money from their house when actually its the bank who make the money? |
I hear people say 'my house is worth £180k now and we bought it for £140k so we've made £40k. How come people who say this never factor in the interest on their mortgage, what is it n £180k over 30 years - more then £40k? so actually they haven't made that money at all, the bank have surely? Is this mortgage house buying thing just a big scam to make them even more money but make people think they are onto a good deal? fools game if you ask me....
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So - I currently rent a lovely 1 bed flat from a housing association, guaranteed lifetime tennancy, £50 a week - so over 25 years we'll pay £75k instead of buying somewhere very similar for £200k plus what another £70k interest - so by staying in my rented flat I save £205k - so I don't own a house but so what, no children, rent guarenteed as long as I live, and I have £205k more to live my life with - means I can either choose to either a) work part time or b) travel the world or c) both. Why should I sacrifice my life in order to keep up with the Jones? |
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flyingconfused
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Maybe they don't have a mortgage! |
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simplesimon
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I get your point... but don't really agree.
In your example - you have made a £40k equity gain, no two ways about it (as long as you actually sell it for £180k). As long as you haven't remortgaged that is...
Interest is obviously a big consideration - and you are right it can really eat into any equity gains you have made. However! You are ignoring the fact that people have to live somewhere. If instead of buying your £140k house 30 years ago you rented it, you would still be renting a £180k house likely for the cost of the original mortgage now. 30 years of rent would be a lot of money.
Indeed, I don't even think your numbers are correct. Lenders expect to be repayed within 30 years. If you bought a house in 1978 for £180k, you would almost own it now. Furthermore, property prices have gone up a lot more than c. 30% you mention...
I just don't think in practice what your saying has happened. People have been, and are, largely better of buying property. |
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Prodigal Son
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The way I look at it is this, people will believe what they want to believe regardless of what the truth is. I've always worked long and hard to get where I am in this world meng, and I owe that to no one. But it's very sad that most people will never truly be financially free, yes you're right and certainly very wise from the looks of it. |
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Ivan R
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Hello,
(ANS) The major point that most people miss in my opinion is that OK! yes! the value of your home might have gone up BUT its NOT REAL MONEY!! ITS PAPER MONEY!! i.e. its NOT cash money.
**YES! The value of your home might have gone up by £40K BUT so has everyone else's home gone up to!! So even if you now want to move home it will cost you more. i.e. The increases in value are ALL RELATIVE.
Going Up (up-sizing)
**If your moving to a bigger property it will cost you more NOT less and you will have gained capitol on your present house but will still have to find the extra funds for a large property.
Going Down (down sizing)
**If your in the position of down sizing then yes! you might be a winner in the present financial climate. You will have gained value on your large house and as your buying a lower value smaller property will presumably gain financially in the process.
**House Value & House Price is ALL relative its NOT real money and this is what most people miss and get so hung up on.
Ivan |
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Pokerfrog
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The difference between renting and buying is if you buy a £100,000 house over 25years you might pay £200,00 back to the bank, but you would have a house worth atleast £200,000 all paid for. If you rented a house for £500 a month over 25years you would pay out £150,000 but own nothing.
The £40,000 profit is actually equity which they only recieve if they sell the house.
Its not about keeping up with the Jones's but having a better quality of life, who wants to live their life in a 1bed housing association flat, i for one don't. |
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John H
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they don't actually make any money!!
simply because everyones house has gone up in price so the 'money you make on a house' is invisible and will never be realised - unless you down size!! |
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Eddy T
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If you want to own a house, go to a reliable housing broker or a lender to get a mortgage to buy the house.
Bascially, a mortgage is a legal agreement by which a bank or a mortgage company lends you money to buy a house.
As a mortgagor you have full rights to occupy the house but you do not own the house, until you have pay off the mortgage loan.
In order to sell the house to take the profit of 40kstg, you need to pay off the mortgage loan to assume ownership of the property.And sell the house for the profit.
As for renting to stay, think about this, "is'nt it better for you to pay the monthly instalments for the mortgage until you have fully repay the mortgage to be the owner. Than to pay monthly rents to the owner of the property property? |
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Butternut27
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I agree with you...its bcoz a large section of the population are financially illiterate...and the banks love this about people..it enables them to make billions every year.. |
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La Vie Boheme
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You did not factor in that most people sell their homes many years before the 30 years is over and many times, the value of a home will at least triple at the end of the 30 years if in fact the home was sold after 30 years.
Case in point, I purchased a home in 1997 for $140,000 and sold it in 2005 for $460K. I certainly made money. |
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TallPaul
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At the end of their mortgage they have a house.
If they paid the same in rent for 25 years, what would they have to show for it?
But I know what you mean. It amuses me too, because they haven't made any money until they sell their house, and then as house prices had gone up, they'd need to use that "profit" to buy somewhere else. |
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Katherine X
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Ivan R is right - it's not actually money, it means nothing until you sell. you are in a great position, I'd keep hold of the flat if I were you and not get sucked in like th rest of us, I regret putting myself in this prison and if I had my time again would do things very different..... |
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MT HEAD
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there is the point that when you buy a house and have finished paying for it it is actually some security for your old age such as if you need care then you can pay for it yourself instead of expecting someone else to pay for your care, its about having some pride to be able to support yourself as you won't always be able to work therefore i imagine you will have to rely on benefits to pay your rent. |
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Cari
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Erm, there's actually a shortage of housing association and council properties, and not all those who would like them can have them. In fact, not even all those who DESERVE them can have them. I personally wouldn't want one because I wouldn't want to have to live in that sort of an environment, but then I'm lucky enough to have a good income. I recognise that some people don't get to make that choice.
So if your choice is between renting privately or buying, then you're definitely better off buying. As an example, I live in South East London and if I were to buy a small, shitty flat, my mortgage repayments would probably be about £700 per month. If I were to rent, my rental payments would also be about £700 per month. But renting is just pissing money away, whereas paying off a mortgage means that the property will eventually be mine. Plus, in a couple of years' time, the rental payments will significantly have increased in line with the market. Mortgage payments would only slightly increase in line with interest rate changes. |
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CORY R
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Good finance question! I know of an organization that gives up to $1500 to people to help them with their rent or mortgage. It's available in most US cities, I highly suggest you check it out.
http://www.money-for-house-mortgage-rent.org
Best of Luck. |
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Deet
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Leave the banks alone! They are only out for our BEST "interest" ! haha |
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