Desperate for debt: home ownership
Home-ownership has become an obsession in the UK with hundreds of young couples flocking to tie a financial debt around their necks well into middle age and beyond.
Some couples are taking less than two minutes to agree to a mortgage. The condition of the property, where it is situated and the potential resale value mean nothing in comparison to owning the deeds of a property. The financial situation they put themselves in and putting themselves in future risk of having to undergo serious debt solutions seem to not enter their minds.
As a result, the government have had to take drastic action by introducing home information packs to prevent underhanded investors from buying run down homes, patching them up and reselling them at huge profits to unsuspecting first-time buyers. This will avoid buyers from suffocating with debt problems soon after taking on a hefty mortgage as repair costs could escalate into thousands.
The average house price is currently sitting at £220,000 with interest rates soaring through the roof at their highest ever. APR interest is leaning towards 7% for those who have a good credit rating and 15% for those less fortunate.
As banks are prepared to lend couples up to six times their income, there will be very little change left in the kitty for improvements, a better family life or renovations unless couples risk falling even further into debt by relying on credit.
Many people seem oblivious to the fact that things have changed from thirty years ago and people will no longer want to purchase a 1940s home in 2020. Instead of older houses rising in value, they will simply decrease as they will not be equipped for modern day living.
With talk of the government initiating a huge building boom, many old houses will vanish from the market in ten or twenty years time and couples with be left with a property that will become a burden rather than an investment. Think carefully before you invest.
