I've never been able to understand this. When, amazingly, I found that doing what I loved made me loads of cash (taxed at 95%), I bought the small house I could afford outright (I still live there). My friends in music bought vast mansions with mortgages (big problems when the hits dried up, as they inevitably do).

I've never borrowed, never lent (I give).

perhaps my dad was your bank manager as that was his advice.

everyone I know has 'traded up' and most have frightening mortgages...not me though.

JK2006 wrote:
My friends in music bought vast mansions with mortgages (big problems when the hits dried up, as they inevitably do).

Is that a problem ?

The house will have gone up in value (or it would have done pre-loony Labour) and when you sell and move somewhere smaller you still have a profit?

Many people see a house as just another form of investment - like insurance - which will eventually mature.

Overextending oneself is not wise, of course.

But the cheapest method of borrowing funds - for any purpose - is a domestic mortgage.

The lowest interest rates apply. And, in the London/South East, appreciation is currently running at c10% pa.

Also, when you sell, Capital Gains Tax does not apply - nor any other tax.

Are you posting as GreyPower on sites ITK ?

www.telegraph.co.uk/finance/budget/10484...for-Britain-Plc.html


GreyPower
Keep it up George - make it so good it hurts.

If not the loony lefties might get back in and bugger it up as they did from 1960 to 2010.

In The Know wrote:
JK2006 wrote:
My friends in music bought vast mansions with mortgages (big problems when the hits dried up, as they inevitably do).

The house will have gone up in value (or it would have done pre-loony Labour)

So the property crash of 1989 didn't happen?

Pattaya wrote:


So the property crash of 1989 didn't happen?

JK bought his house circa 1966 - loads of increase in value since then even allowing for some glitches

Yes; buy it, don't mortgage it or you'll be in thrall and have to do work for the wrong reason - to make money.

coming to live in Oz one thing struck me that I found distasteful : everything seemed to revolve around the buying of houses and property developers were regarded as society kingpins.

the result- Sydney property prices are ludicrously inflated and more expensive than New York.

this has so many far reaching results like young people unable to buy and the mix of people in inner cities becomes artificially controlled..( the most beautiful Sydney suburb Paddington- old 'worker's' terrace houses with their French lace ironwork -once a suburb filled with artists, immigrants, musicians now is like a middle class graveyard full of bankers of stockbrokers- 2 BMWs out the front and prices similar to Belgravia)

I've watched with despair the same happen in the UK over the past 30 years.

## the newly elected mayor of New York was swept into power ran on a platform of reversing the same and by declaring he'd fight to keep the mix of New Yorkers.

That's what JK is talking about...it's not just one person 'moving up the ladder'- it's the whole of society being encouraged to do so. ..inevitably there will be a property price crash

duhhhh...have people forgotten the 2007 US sub prime mortgage collapse already ???

hedda wrote:
I've watched with despair the same happen in the UK over the past 30 years.

There is nothing wrong with bettering yourself (and your family) hedda (even though you lefties would all like to see everyone (except the politariat, of course !!!) living in nice identical little boxes, all working at the same factory, and all wearing the same uniforms !

The simple fact is, if JK had bought his house (for cash) and also bought the one next door (on mortgage) he would have paid off the mortgage many many years ago, had 25 years nice little income from it, and STILL have an asset worth many many times what he paid for it.

Beats the pittance he will now be getting on his savings.

"bettering yourself" = bigger mortgage.

strange values.

Typical Tory.

When will people get taxed on mansions ?

hedda wrote:
"bettering yourself" = bigger mortgage.

strange values.

bettering yourself (and your family / descendants) = more assets !!

JK2006 wrote:
I've never been able to understand this. When, amazingly, I found that doing what I loved made me loads of cash (taxed at 95%), I bought the small house I could afford outright (I still live there). My friends in music bought vast mansions with mortgages (big problems when the hits dried up, as they inevitably do).

I've never borrowed, never lent (I give).

Me too. It probably makes more financial sense to have a mortgage, but for me it wouldn't feel like home if I hadn't paid for it yet.
Most people don't have the choice to pay cash though.

In The Know wrote:


bettering yourself = more assets


What another most basic/ITK/silly Tory analogy?


Carrot crunchers simply ... have no education or true values....


They just get in the line.............................

Funny how a general thread quickly becomes hijacked into Left vs Right political angles. Personally I feel no political party is better than any other and will not be voting again. Democracy simply does not work. This thread was intended to illustrate that only personal, individual morality can work.

hedda wrote:
"bettering yourself" = bigger mortgage.

strange values.

I'm not alone (and most Australians agree with me), hedda !

www.dailymail.co.uk/news/article-2517699...-000-loved-ones.html

JK2006 wrote:
Funny how a general thread quickly becomes hijacked into Left vs Right political angles. Personally I feel no political party is better than any other and will not be voting again. Democracy simply does not work. This thread was intended to illustrate that only personal, individual morality can work.

life would be less complicated of people just did as I say.

JK2006 wrote:
Funny how a general thread quickly becomes hijacked into Left vs Right political angles. Personally I feel no political party is better than any other and will not be voting again. Democracy simply does not work. This thread was intended to illustrate that only personal, individual morality can work.

I have a feeling that just about any political party or system would work if only it was run by decent people.

comrade hedda wrote:
life would be less complicated if people just did as I say.


... but you speak double dutch !

on one hand you want to borrow zillions to hand out to dolers (who will never pay it back) and on the other you don't believe in mortgages (ie borrowing)

No wonder you are confused !