In letter to British newspaper, man calls attempts for young people to purchase homes 'mission impossible'
excuse me Tom Gee; but I bought my first house in 1980 with Interest rates running at 15% and they are now 1.2% on a fixed term. My husband and I completely gutted it; built our own septic tank and water system (64 wheelbarrows of cement I seem to remember); tiled and fitted a bathroom and a kitchen.. It is still possible (with the advantage of youth) to start off with a small property; do it up and build on that. But; it is ridiculous that as property has increased in relative value; those who pay rental can pay double that of those who pay a mortgage for a similar property, and that is lost money. Yes; people will default, but many more are able (and have proved it because they pay exorbitant rent) to fund mortgage payments, especially in the current climate.
SO True. No dispute. In my dad's day, you purchased a home at the upper end of your income spectrum, because the mortgage would remain relatively stable as your income grew through career advancement and industriously worked overtime. I was one of the very few who REJECTED our loan ''counselor's'' overreach that we ( my wife and I ) should incoude estimated overtime in our income assessment for our mortgage. I'm like, ''What if the overtime dries up? [which it did] '' So we dragged on, got another, outside mortgage firm, and got a mortgage based on our current ability to pay. SO MANY PEOPLE DEFAULTED in the 1990s and early 2000s, due entirely to this predatory version of income assessment. But I'm a liberal with no conservative sense of economics. Just sayin'