The truth is nobody stays in there property for the full term of the mortgage. For example, I purchased a three bed mid terrace house for £165,000 in 2004, sold it in 2021 for £359,000. There is no way I would have been able to save the difference in money over 16 years. Left London and bought a house for under £125,000 cash. Feeling good at 48 years old and mortgage free. My advice would be to have a plan for your life before taking on a mortgage, it is not for the fate hearted.
Good on you. House prices have risen a great deal from 2004/2005. Getting a mortgage today .... I'm not so sure. Interest rates are too high. Is a property crash coming? Who knows. High risk of negative equity or repo.
Oyin, I like your balanced arguments. Whilst I agree that a mortgage is not for everyone, I can tell you from experience that obtaining a mortgage, if you can, is a better option. You have to be intentional, and three things are key- timing, location and price. If you get all these correctly, you can't go wrong with a mortgage. The problem with many people is that they rush into it without due diligence and they end up shooting themselves in the leg.
@@timothyadeyemi6628if you buy the “dip” for example with a very low interest rate,you bought at the right time. Houses down south generally appreciate faster than houses up north so a house in London, Essex, Kent etc would appreciate faster than similar property in Liverpool, Hull etc . Hope this helps
Hello @@timothyadeyemi6628 The 3 go hand in hand. For timing, there is what is called the "buyers market" and also the "sellers market". When people are ready to pay any amount to get a house, that's the sellers market. The sellers have upper hands and it makes prices go up. Example was post COVID lockdown (2021-2022) people wanted to move at all cost bcos they've been locked in for a whole year and they needed bigger spaces and to WFH. Buyers market has been since late 2022 after Liz Truss budget till date. Prices have dropped slightly or stagnated, interest rates have shot up, houses are listed for sale for months with no buyer. In this scenario, buyers can negotiate price drop to get a good bargain. Another example of buyers market was in 2009-2011 after the global credit crunch. Location of course is where you buy. Don't buy where houses are already overpriced, eg London or other major cities. Bcos if a crash happens, you may run into negative equity. Prices in major cities are almost at their peak, so surrounding cities are always good places to buy.
A house is an asset, but a mortgage is a liability. By purchasing a house with a bank loan you gain control over the house. You can choose to overpay the mortgages which will reduce your liability. Assets grant you more control and independence over your life. You can decorate and renovate the house as you like making it a home. Landlords don't always fulfil their end of the deal by fixing the issues that arises within tenancy agreement. They may do frequent house inspections to insure that his asset is being well taken care of, while restricting people with children or pets from renting his dueling. They may also evict you without any probable cause (Section 24 Notice) leaving you in a precarious situation. Or might just refuse to renew the lease. Renting makes you very vulnerable to the whims of the market.
Great video! This is a very layered topic but it needs to be discussed more. Renting in your later years is not always easy. With renting you run the risk of being booted out of the home you are renting. However, too many gloss over it the fact that a mortgage is a debt, a HUGE debt. I have noticed some of the new immigrants are not in favour of them, I think this is because where they are coming from people buy things outright. But how else does one get on the property ladder in the UK without a mortgage? Saving 100s of thousands may take a while. Sadly, a mortgage is the easiest route for the average westerner.
Let's assume I spent £300k to buy the house, and in 25 years, I ve spent £400k for both interest and maintenance, and I sold the house for £700k. How much cash do I have? Is it not £700k cash minus tax. There is no way I would have saved £700k if I were renting. The money I spent over the years has gotten back from the capital appreciate. And who says investment for your children is not investment for you?
@@ernestanonde3218 there is no way you can pay only 100k interest fees over 25years. Absolutely not possible. Put the figures in a mortgage calculator and you will have more realistic picture
400k is an additional cost of mortgage and maintenance, bringing my total spent to 700k. 300 mortgage 100k maintenance. It's possible I get more, but let's just say I got exactly what I spent over time. That is savings, my dear. It's just like saying the African way of savings money by ISUSU is not better than saying the money on your own. Think, my dear. Except you just want to make a video for content.
If you are unstable, extremely flexible, nomadic, by all means rent. If you are mature and stable, mortgage might serve you better in the long run. So, I dont see why we want to call a 'dog a bad name' for the sake of it.
In the UK both renters and home owners pay every month until they drop dead, I will own a home in a place where my property belongs to me, where I will be free from all these monthly payments once and for all. What's the point of owning a home that you still pay council tax, if you can't pay and your tax get's to some certain amount, the bailiff comes and they take the house to repay your debt...moral, in the west you don't really own anything
@@jonnynasz Yes it does. Because when you don’t know the real definition of a word, you get yourself into trouble. The property will never belong to you. You’re merely renting at different rates.
@Poleeze1 I can argue that it doesn't, because when the fate of your interest rate depends on a third party influence and decisions that constantly changes beyond your control, then you will understand that the name means nothing as it doesn't change your situation...my cousin bought a house, he started with an affordable interest rate, then we had a Prime minister Rishi Sunak, now this guy and his goons got UK and EU into one big mess, the central bank had no option to increase the interest rate, my cousin's mortgage suddenly jumped . The government was borrowing more money, energy prices magically went up because the government decided they wanted to save Ukraine and topple Putin, they implemented counter productive sanctions on the energy supply from the sanctioned country and now UK and EU are paying 4x the price, now people are spending less money because of all these mess that they never asked for. Now as a home owner what does the name real estate have to do with that? I guess nothing, if my guess is right so why is the rate going up? We can coin any term just to pick people of their hard earned money at the end of the day is only a name, iPhone and android, MacBook PC tomato tomato....I hope I argued my point to the best of my knowledge?
Very insightful, as someone who intends to buy property here in the uk I’ve learnt a lot.. I’d still go ahead with my plans but now I’d consider going for a new build as it doesn’t need lots of renovations so I don’t spend the little interest I am meant to atleast gain if I decide to sell, and I’d look for cheaper aswell.
Be careful with that new build plan. Some times it has been said to not rise in value as slightly older houses due to the quality of the build. Just go for builds by building companies that build better quality structures if you know what I mean.
I call mortgage an organised scam. But then one cannot keep living in rentals for life. The earlier you get a mortgage and pay off before retirement,the better . So at least in your old age, accommodation is sorted. And you dont have to bother about paying monthly rent.
I don't understand how you think this is a scam? You pay your mortgage off on terms you knew of and you own the house outright. As someone who has lived in my own house for over 25 years, I have never needed to "pour money" into it and much of what has been stated is completely wrong and not evidence based. I live in a four bedroom house which I can choose to downsize from in a few years when it will be fully paid up or sell up and move to somewhere else in the UK where houses are cheaper . If I live for 25 years mortgage-free, there is no way that a person who has rented all their life claim to have saved more than me when they will continue to rent at much higher rates than when I got my mortgage. Definitely not a scam and elementary mathematics can demonstrate that.
The truth is that with mortgage the bank make money off you (through interest charged) and you also make money off rhe next buyer( through house appreciation). If you don't want the bank to make money off you, then you have to buy with cash as they do in Africa. Ironically , either renting or buying, we are all paying the banks - those with mortgages are paying the banks directly, while those renting are oaying their landlords who in turns are paying the banks!
@DrHunnay, My thoughts too. If someone that is not your family member decides to give you 270K (using your illustration), surely they will need something back. If not save up the 270k whilst still paying rent to buy your house in cash. I will rather pay the bank directly than pay through the landlord. Secondly, I think we are too fixated on numbers, what is the cost of peace of mind and sense of accomplishment? why do we go on holiday? why do we help people? why do we do fine dinning?
Finally someone saying what ive always thought. Mortgage works well with a balanced family. Say for example a husband and wife works and contributes towards paying off their house. Even better when rhey have children who work but still live at home. Thats something i see my asian friends do. Just sad there is this independence stuff with us blacks
Hi was great running across your video, you points are valid and balanced and I have thought about this hard. I brought a property as a joint owner at 21 and now I have some money to get my own home. I am really considering my options! but yes, born in Uk I feel like I should have acquired property to leave for my children. Many older relatives regret not taking advantage of this when properties were dirt cheap. We don't know the future and having a roof over our heads is the most important thing in this cold country. Unfortunately, this country is run on debt and seems to be the only way to have something. I thought of buying properties to rent but they are changing so much of what you can gain now and making it difficult. Anyway you have gained a new subscriber, Thanks for vid.
That means you didn’t listen properly. The interest rates? The fact that you loose your flexibility, the fact that your asset cannot be easily liquidated? All these and many more that I’ve listed in the video
I would not like to be renting in my old age 🙂 My feeling is that people need to plan for when you can no longer work because everyone needs a roof over their head, and having no mortgage when you reach old age would reduce a huge money burden that you would have if still renting at that time in your life.
The main con with a mortgage is the time value of money. No one accounts for inflation which means the value of your property in the future may actually be less. It’s easier to rent and invest the initial deposit over time in an investment account that pays higher than the inflation rate.
@@DrHunnay Dr Oyinkan didnt remember to say that something could go wrong with your S&P or stocks too...2008 may happen again...a strong threat is brewing against the dollar by some association of Countries...the stock market can crash badly like it has happened repeatedly in history...I think everything is just risk.
The is completely wrong. The aim of buying a house is to live there thereafter so once paid off you live in it for free once it's paid off. So while it is an investment that's simply a side effect. Also, house price increases generally outpace inflation. I bought a flat in London for £50,000.
Biased for truly UK residents who have chosen UK as a homeland. Moreover, if you want to clear mortgage by overpaying (which is even cheaper) you are better off financially. The rest is just blaaa blaaa especially those who don’t like to fully integrate in UK or other related countries…be positive in life forever and bear in your mind that our kids will generally NEVER live in the country we came from. So have another investment if you plan to retire or initiate some of kids to live in our motherland.
If there's no job security, rent must also be paid and you can't live under the bridge. You still have to pay for accommodation in one form or the other.
Good points lady. Renting gives you flexibility without question. If you plan things out and invest, the money that you tie up in a mortgage and I mean the deposit and cost of repairs over it's lifetime can be invested to make great returns. Pick a few moonshot stocks or cryptos. NOT a savings account or tracking stock markets. Inflation alone kills any gains you make. You will just break even. Beat the bankers and have a plan
1. Inflation benefits property owners Debt value remains constant, while property values and salaries typically increase over time. 2. Leverage in real estate Returns on property are based on the full asset value, not just the initial deposit, often outperforming stock market gains. 3. Maintenance costs Not all maintenance is a loss-many repairs and upgrades increase the property’s value. 4. Renting has its costs Renting incurs expenses without building equity, leaving renters with no assets after 30 years. 5. Stability and security Owning a home offers stability and independence, which renting does not provide. 6. Real estate as "illiquid asset" While not quickly sold, real estate remains a stable, long-term investment.
Thanks for the advice and good info on mortgages… but I believe it depends on the individual’s circumstances and choice of lifestyle and future plans… I have a family of five people and the last thing you want about renting is being asked to pay the increment in rent payment or be ready to be evicted by the landlord(who’s also paying mortgage for that property). You need a bit of stability for the family from becoming a nomadic household which tends to affect the family one way or the other… especially nowadays it’s difficult to get a decent and affordable house to rent. 2ndly the rent payment nowadays even exceeds the mortgage payment, so why won’t you get the mortgage and get some peace of mind and stability at the same time some property appreciation over the years that could help you upscale into a better/bigger property if you choose to, or pass it on to your children as assets/investment, which renting wouldn’t give you that opportunity. So the whole mortgage situation really depends on your circumstances and your future plans I guess…😊
To be honest in my area, mortgages are more expensive than renting especially since the interest rates went up recently. Also, your mortgage can also go up when your fixed term ends so it’s almost the same as renting in that regard. Stability is the only pro for me because as I said earlier, people who talk about property appreciation don’t factor in all the interest rates, cost of maintaining the property over how ever many years it was as well as inflation over those years. At the end of the day, you would barely be breaking even. So as you’ve rightly said, the decision ultimately depends on your family and circumstances. There is no right or wrong answer
Hmm... balanced but skewed argument. your numbers aren't accurate. Especially the comparison with the stock market. Houses don't get repossessed like that...Well lots of information are missing here. Admire your good attempt to balance things up. Real estates always outperforms the stock market. Going as far as saying its a scam....Naaaaa
Thank you so much for this clarity and balanced approach. What do you think about raising 50% of the property fee and spreading the repay,ent balance for 10 years or probably buy outrightly and rent it out. I still believe in buy to rent though. I look forward to your response. Cheers
Hell, even buy classic cars with your deposit to buy and hold or get a loan to buy assets NOT a house. The hardest and most expensive thing in the world to sell I think.
That’s why am looking for a property less than 150k. So that my gbese repayment will b faster since we are already in this trap😢😢😢😢 I don’t want the flexibility that comes with renting.
My dear I think this issue has been discussed to death. You will ALWAYS be better off owning your home than renting for the simple reason that your rent has to cover the maintenance costs you talk about with regards to owning. Unless you’re on benefits. I accept this may not be the best option if you are not settled for the long term. A home shouldn’t be considered an investment though it is an asset. There are a number of fallacies in your arguments but I don’t really have time to go through each in detail. For instance the environmental issues that could affect you when selling could also affect the stock markets. JFKs father famously decided to pull his investment out of the stock market when his driver started discussing shares. Word for the wise… I have stock but I’m acutely aware that the markets are over bloated right now. I could explain the macroeconomic drivers but again no time here.
My point is not about home ownership but about mortgages. A home will always be an asset, however, a mortgage on the other hand can very easily become a liability. If you are fortunate enough to have the resources to buy your property in cash then that’s the only situation when it would be a win win situation. Otherwise, a mortgage is just an necessary “evil” for lack of better words
Let me say this again for emphasis. You can rest assured there is no landlord putting his/her hands into his/her pocket to maintain a property you are renting. If you live in the UK all you need to do is plot the increase in rents in any city.
That’s true but also remember that a landlord cannot just increase your rent unreasonably because you can simply decide not to pay the difference and it would cost him a lot of money to chase you from the property or attempt to evict you especially when the location is not London! More often than not, it’s easier to negotiate and keep it moving for the peace and sanity of all involved
A successful man has an excuse for being successful and also a failure also has an excuse for failure… if you are dodging responsibilities you will only end up being a renter.. one has to be purposeful in everything one does.
The trick is to buy a house you can very much afford without breaking your back and pay off as soon as possible. Most people appraoch mortgage with the typical western credit mentality where people buy beyond their convenient means just because they can access credit
Also, when you sell the house you live in, would you live outside😂? Your house is ‘appreciating’ so is the house you want to upscale to which could still be unaffordable to you, except when you want to sell the house and downsize which is a downsize to your quality of life. I agree that understanding that mortgaging is you living in a place, it just has to make sense to your situation and not rave that mortgage is an investment. Even for your children, what if they want bigger houses, what if they can’t afford the inheritance tax on it? It is not straightforward
Wow, this was scarily inaccurate… terrible assumptions on how equity works and no understanding on how interest rates work. Strongly suggest you do more research before trying to advise.
I am not advising anyone and I literally stated that in this video! There are no assumptions about interest rates as I used a mortgage calculator for those numbers. If you have a contrary opinion then please leave it in the comments
This is why you should not do economics with feelings. What has the world come to People are so arrogantly confident to be ignorant on camera. Absolute trash. I feel sorry for anyone who listens to your advice.
@@DrHunnayGo back and listen to your own video. If you were thinking through what you were saying the video should have ended in the first 21 seconds. Where have you seen any financial adviser say a mortgage is for everyone? You say you have a contrary opinion - contrary to what? Secondly I never said you did. But my point is when I say anyone who listens to your advice I am not necessarily referring to this video BUT the fact that your reasoning methods is very flawed!
The problem is most people OVER MORTGAGE 💸 yes buy a house they can’t afford - mortgage to earnings ratio🫵🏾💯. 300k property on 30kish salary for example 30k deposit; 👀 that’s a hand to mouth situation! Buy what you can afford not this keeping up with the jones I see a lot of people doing, most suffer and why they don’t get to see a property as an investment!
The truth is nobody stays in there property for the full term of the mortgage. For example, I purchased a three bed mid terrace house for £165,000 in 2004, sold it in 2021 for £359,000. There is no way I would have been able to save the difference in money over 16 years. Left London and bought a house for under £125,000 cash. Feeling good at 48 years old and mortgage free. My advice would be to have a plan for your life before taking on a mortgage, it is not for the fate hearted.
Thank you for sharing this
However you should add all additional cost that comes together with owning the house: repairs, tax, maintenance, interest on your mortgage.
Your statement is filled with ignorance lots of people stay In their property for the full term of their mortgage. I happy you are mortgage free
@@Realist13 and all the phantom costs plus time you put into DIY. Did you account for those? Or you never paid a cent after paying 165k
Good on you. House prices have risen a great deal from 2004/2005. Getting a mortgage today .... I'm not so sure. Interest rates are too high. Is a property crash coming? Who knows. High risk of negative equity or repo.
Oyin, I like your balanced arguments. Whilst I agree that a mortgage is not for everyone, I can tell you from experience that obtaining a mortgage, if you can, is a better option. You have to be intentional, and three things are key- timing, location and price. If you get all these correctly, you can't go wrong with a mortgage. The problem with many people is that they rush into it without due diligence and they end up shooting themselves in the leg.
This is very true
Can you expantiate what you mean by timing,location and price and how these factors are key determining factors
@@timothyadeyemi6628if you buy the “dip” for example with a very low interest rate,you bought at the right time. Houses down south generally appreciate faster than houses up north so a house in London, Essex, Kent etc would appreciate faster than similar property in Liverpool, Hull etc . Hope this helps
Hello @@timothyadeyemi6628
The 3 go hand in hand. For timing, there is what is called the "buyers market" and also the "sellers market".
When people are ready to pay any amount to get a house, that's the sellers market. The sellers have upper hands and it makes prices go up. Example was post COVID lockdown (2021-2022) people wanted to move at all cost bcos they've been locked in for a whole year and they needed bigger spaces and to WFH. Buyers market has been since late 2022 after Liz Truss budget till date. Prices have dropped slightly or stagnated, interest rates have shot up, houses are listed for sale for months with no buyer. In this scenario, buyers can negotiate price drop to get a good bargain. Another example of buyers market was in 2009-2011 after the global credit crunch.
Location of course is where you buy. Don't buy where houses are already overpriced, eg London or other major cities. Bcos if a crash happens, you may run into negative equity. Prices in major cities are almost at their peak, so surrounding cities are always good places to buy.
Oh Yes!
A house is an asset, but a mortgage is a liability. By purchasing a house with a bank loan you gain control over the house. You can choose to overpay the mortgages which will reduce your liability. Assets grant you more control and independence over your life. You can decorate and renovate the house as you like making it a home. Landlords don't always fulfil their end of the deal by fixing the issues that arises within tenancy agreement. They may do frequent house inspections to insure that his asset is being well taken care of, while restricting people with children or pets from renting his dueling. They may also evict you without any probable cause (Section 24 Notice) leaving you in a precarious situation. Or might just refuse to renew the lease. Renting makes you very vulnerable to the whims of the market.
This is a very balanced view
A house you bought and you live in is a liability. It is that simple.
@@Poleeze1definitely an asset.
@@Poleeze1how is that so? You save yourself from paying rent abd you could also downsize.
Great video! This is a very layered topic but it needs to be discussed more. Renting in your later years is not always easy. With renting you run the risk of being booted out of the home you are renting. However, too many gloss over it the fact that a mortgage is a debt, a HUGE debt. I have noticed some of the new immigrants are not in favour of them, I think this is because where they are coming from people buy things outright.
But how else does one get on the property ladder in the UK without a mortgage? Saving 100s of thousands may take a while. Sadly, a mortgage is the easiest route for the average westerner.
This is very true. You literally said everything exactly as it sits in my heart. Thank you for sharing
If my investment gives me 5k or mire a month and you kick me out in my old age, I can move to anywhere else in or out of the country.
Let's assume I spent £300k to buy the house, and in 25 years, I ve spent £400k for both interest and maintenance, and I sold the house for £700k. How much cash do I have? Is it not £700k cash minus tax. There is no way I would have saved £700k if I were renting. The money I spent over the years has gotten back from the capital appreciate. And who says investment for your children is not investment for you?
You're only looking at the positives, anytime could happen during the 25 years
@@ernestanonde3218 there is no way you can pay only 100k interest fees over 25years. Absolutely not possible. Put the figures in a mortgage calculator and you will have more realistic picture
@DrHunnay read what I wrote. Don't read half way and jump into conclusions. The house is 300 and I spent 700. Is that 100 difference?
@collinsmensah9380 Anything can happen to your ability to pay rent in 25 years. Even the house you rent can get burnt when you don't have a job.
400k is an additional cost of mortgage and maintenance, bringing my total spent to 700k. 300 mortgage 100k maintenance. It's possible I get more, but let's just say I got exactly what I spent over time. That is savings, my dear. It's just like saying the African way of savings money by ISUSU is not better than saying the money on your own. Think, my dear. Except you just want to make a video for content.
If you are unstable, extremely flexible, nomadic, by all means rent. If you are mature and stable, mortgage might serve you better in the long run. So, I dont see why we want to call a 'dog a bad name' for the sake of it.
Thank you for sharing
In the UK both renters and home owners pay every month until they drop dead, I will own a home in a place where my property belongs to me, where I will be free from all these monthly payments once and for all. What's the point of owning a home that you still pay council tax, if you can't pay and your tax get's to some certain amount, the bailiff comes and they take the house to repay your debt...moral, in the west you don't really own anything
Thats why its called Real estate. The Real in that word does not mean tangible.
@@Poleeze1 It still doesn't change anything
True
@@jonnynasz Yes it does. Because when you don’t know the real definition of a word, you get yourself into trouble. The property will never belong to you. You’re merely renting at different rates.
@Poleeze1 I can argue that it doesn't, because when the fate of your interest rate depends on a third party influence and decisions that constantly changes beyond your control, then you will understand that the name means nothing as it doesn't change your situation...my cousin bought a house, he started with an affordable interest rate, then we had a Prime minister Rishi Sunak, now this guy and his goons got UK and EU into one big mess, the central bank had no option to increase the interest rate, my cousin's mortgage suddenly jumped . The government was borrowing more money, energy prices magically went up because the government decided they wanted to save Ukraine and topple Putin, they implemented counter productive sanctions on the energy supply from the sanctioned country and now UK and EU are paying 4x the price, now people are spending less money because of all these mess that they never asked for. Now as a home owner what does the name real estate have to do with that? I guess nothing, if my guess is right so why is the rate going up? We can coin any term just to pick people of their hard earned money at the end of the day is only a name, iPhone and android, MacBook PC tomato tomato....I hope I argued my point to the best of my knowledge?
Dont forget that your landlord is paying a mortgage as well.
If everyone wants to be a renter, definitely most people would be homeless.
That’s true
That's why everyone has their priorities. Some people even buy mortgage without understanding.
I think mortgage is still better than renting on the long run if you can be mortgage free by the time you get to the pension age
Very true
Very insightful, as someone who intends to buy property here in the uk I’ve learnt a lot.. I’d still go ahead with my plans but now I’d consider going for a new build as it doesn’t need lots of renovations so I don’t spend the little interest I am meant to atleast gain if I decide to sell, and I’d look for cheaper aswell.
Glad you found a plan that works for you
Be careful with that new build plan. Some times it has been said to not rise in value as slightly older houses due to the quality of the build. Just go for builds by building companies that build better quality structures if you know what I mean.
I call mortgage an organised scam. But then one cannot keep living in rentals for life. The earlier you get a mortgage and pay off before retirement,the better . So at least in your old age, accommodation is sorted. And you dont have to bother about paying monthly rent.
That’s very true!
I don't understand how you think this is a scam? You pay your mortgage off on terms you knew of and you own the house outright. As someone who has lived in my own house for over 25 years, I have never needed to "pour money" into it and much of what has been stated is completely wrong and not evidence based. I live in a four bedroom house which I can choose to downsize from in a few years when it will be fully paid up or sell up and move to somewhere else in the UK where houses are cheaper . If I live for 25 years mortgage-free, there is no way that a person who has rented all their life claim to have saved more than me when they will continue to rent at much higher rates than when I got my mortgage. Definitely not a scam and elementary mathematics can demonstrate that.
@ good for you
The truth is that with mortgage the bank make money off you (through interest charged) and you also make money off rhe next buyer( through house appreciation). If you don't want the bank to make money off you, then you have to buy with cash as they do in Africa.
Ironically , either renting or buying, we are all paying the banks - those with mortgages are paying the banks directly, while those renting are oaying their landlords who in turns are paying the banks!
This is very true
@DrHunnay, My thoughts too. If someone that is not your family member decides to give you 270K (using your illustration), surely they will need something back. If not save up the 270k whilst still paying rent to buy your house in cash. I will rather pay the bank directly than pay through the landlord.
Secondly, I think we are too fixated on numbers, what is the cost of peace of mind and sense of accomplishment? why do we go on holiday? why do we help people? why do we do fine dinning?
Finally someone saying what ive always thought.
Mortgage works well with a balanced family. Say for example a husband and wife works and contributes towards paying off their house. Even better when rhey have children who work but still live at home.
Thats something i see my asian friends do. Just sad there is this independence stuff with us blacks
Thank you for sharing
We blacks can be toxic at times
@ unfortunately
Hi was great running across your video, you points are valid and balanced and I have thought about this hard. I brought a property as a joint owner at 21 and now I have some money to get my own home. I am really considering my options! but yes, born in Uk I feel like I should have acquired property to leave for my children. Many older relatives regret not taking advantage of this when properties were dirt cheap. We don't know the future and having a roof over our heads is the most important thing in this cold country. Unfortunately, this country is run on debt and seems to be the only way to have something. I thought of buying properties to rent but they are changing so much of what you can gain now and making it difficult. Anyway you have gained a new subscriber, Thanks for vid.
Thank you for sharing
So what made it a scam? I have been listening to see how mortgage is a scam but it doesn't make sense to me.
That means you didn’t listen properly. The interest rates? The fact that you loose your flexibility, the fact that your asset cannot be easily liquidated? All these and many more that I’ve listed in the video
@@DrHunnayyes it’s not fair how they can just hike I the prices like that
I would not like to be renting in my old age 🙂 My feeling is that people need to plan for when you can no longer work because everyone needs a roof over their head, and having no mortgage when you reach old age would reduce a huge money burden that you would have if still renting at that time in your life.
This is very true
The main con with a mortgage is the time value of money. No one accounts for inflation which means the value of your property in the future may actually be less. It’s easier to rent and invest the initial deposit over time in an investment account that pays higher than the inflation rate.
This is true
@@DrHunnay Dr Oyinkan didnt remember to say that something could go wrong with your S&P or stocks too...2008 may happen again...a strong threat is brewing against the dollar by some association of Countries...the stock market can crash badly like it has happened repeatedly in history...I think everything is just risk.
@ this is very true.
The is completely wrong. The aim of buying a house is to live there thereafter so once paid off you live in it for free once it's paid off. So while it is an investment that's simply a side effect. Also, house price increases generally outpace inflation. I bought a flat in London for £50,000.
@ before you say completely wrong read the book titled own the world by Andrew Craig. I guess whatever rocks your boat will do.
Couldn’t agree with you more… shared ownership is even worse
Interesting
Too many variables are also at play when you take a mortgage.
I agree
CAn you talk about the mortgage that you rent out?
Sure thing
Biased for truly UK residents who have chosen UK as a homeland. Moreover, if you want to clear mortgage by overpaying (which is even cheaper) you are better off financially. The rest is just blaaa blaaa especially those who don’t like to fully integrate in UK or other related countries…be positive in life forever and bear in your mind that our kids will generally NEVER live in the country we came from. So have another investment if you plan to retire or initiate some of kids to live in our motherland.
Thank you for sharing your POV
There’s no job security it’s a huge risk in this day and age
True
If there's no job security, rent must also be paid and you can't live under the bridge. You still have to pay for accommodation in one form or the other.
Also, banks front run you and make you pay mostly the interest on the loan for most of the first half of the mortgage and less of the principal.
Thank you for sharing
Do you have a mortgage?
No. I don’t
@@DrHunnay there you are. Thanks!
Good points lady. Renting gives you flexibility without question. If you plan things out and invest, the money that you tie up in a mortgage and I mean the deposit and cost of repairs over it's lifetime can be invested to make great returns. Pick a few moonshot stocks or cryptos. NOT a savings account or tracking stock markets. Inflation alone kills any gains you make. You will just break even. Beat the bankers and have a plan
Thank you for sharing
1. Inflation benefits property owners
Debt value remains constant, while property values and salaries typically increase over time.
2. Leverage in real estate
Returns on property are based on the full asset value, not just the initial deposit, often outperforming stock market gains.
3. Maintenance costs
Not all maintenance is a loss-many repairs and upgrades increase the property’s value.
4. Renting has its costs
Renting incurs expenses without building equity, leaving renters with no assets after 30 years.
5. Stability and security
Owning a home offers stability and independence, which renting does not provide.
6. Real estate as "illiquid asset"
While not quickly sold, real estate remains a stable, long-term investment.
Thank you for sharing
Thanks for the advice and good info on mortgages… but I believe it depends on the individual’s circumstances and choice of lifestyle and future plans… I have a family of five people and the last thing you want about renting is being asked to pay the increment in rent payment or be ready to be evicted by the landlord(who’s also paying mortgage for that property). You need a bit of stability for the family from becoming a nomadic household which tends to affect the family one way or the other… especially nowadays it’s difficult to get a decent and affordable house to rent. 2ndly the rent payment nowadays even exceeds the mortgage payment, so why won’t you get the mortgage and get some peace of mind and stability at the same time some property appreciation over the years that could help you upscale into a better/bigger property if you choose to, or pass it on to your children as assets/investment, which renting wouldn’t give you that opportunity. So the whole mortgage situation really depends on your circumstances and your future plans I guess…😊
To be honest in my area, mortgages are more expensive than renting especially since the interest rates went up recently. Also, your mortgage can also go up when your fixed term ends so it’s almost the same as renting in that regard. Stability is the only pro for me because as I said earlier, people who talk about property appreciation don’t factor in all the interest rates, cost of maintaining the property over how ever many years it was as well as inflation over those years. At the end of the day, you would barely be breaking even. So as you’ve rightly said, the decision ultimately depends on your family and circumstances. There is no right or wrong answer
Woow. What an education. Thank you ❤️❤️
@@collinsmensah9380 thank you for watching
Morgage is a scam.
Hmm... balanced but skewed argument. your numbers aren't accurate. Especially the comparison with the stock market. Houses don't get repossessed like that...Well lots of information are missing here. Admire your good attempt to balance things up. Real estates always outperforms the stock market. Going as far as saying its a scam....Naaaaa
Thanks for sharing
Very informative but having a mortgage or renting is same , you are loosing money but with mortgage you still getting something
@@morganbayeto2553 this is true
Thank you so much for this clarity and balanced approach. What do you think about raising 50% of the property fee and spreading the repay,ent balance for 10 years or probably buy outrightly and rent it out. I still believe in buy to rent though. I look forward to your response. Cheers
This makes a lot of sense!
Hell, even buy classic cars with your deposit to buy and hold or get a loan to buy assets NOT a house. The hardest and most expensive thing in the world to sell I think.
Thank you for sharing
Thank you for sharing the
It's deliberately complicated for a reason
True
That’s why am looking for a property less than 150k. So that my gbese repayment will b faster since we are already in this trap😢😢😢😢
I don’t want the flexibility that comes with renting.
Very valid
My dear I think this issue has been discussed to death. You will ALWAYS be better off owning your home than renting for the simple reason that your rent has to cover the maintenance costs you talk about with regards to owning. Unless you’re on benefits.
I accept this may not be the best option if you are not settled for the long term.
A home shouldn’t be considered an investment though it is an asset.
There are a number of fallacies in your arguments but I don’t really have time to go through each in detail. For instance the environmental issues that could affect you when selling could also affect the stock markets. JFKs father famously decided to pull his investment out of the stock market when his driver started discussing shares. Word for the wise… I have stock but I’m acutely aware that the markets are over bloated right now. I could explain the macroeconomic drivers but again no time here.
My point is not about home ownership but about mortgages. A home will always be an asset, however, a mortgage on the other hand can very easily become a liability. If you are fortunate enough to have the resources to buy your property in cash then that’s the only situation when it would be a win win situation. Otherwise, a mortgage is just an necessary “evil” for lack of better words
Let me say this again for emphasis. You can rest assured there is no landlord putting his/her hands into his/her pocket to maintain a property you are renting. If you live in the UK all you need to do is plot the increase in rents in any city.
That’s true but also remember that a landlord cannot just increase your rent unreasonably because you can simply decide not to pay the difference and it would cost him a lot of money to chase you from the property or attempt to evict you especially when the location is not London! More often than not, it’s easier to negotiate and keep it moving for the peace and sanity of all involved
I’m keeping open mind to watch the video to the end
Not start getting defensive from the start x
Thank you
A successful man has an excuse for being successful and also a failure also has an excuse for failure… if you are dodging responsibilities you will only end up being a renter.. one has to be purposeful in everything one does.
Thank you for sharing your thoughts
Mortgage is a good scam to me 😂😂
Haha
A mortgage is a Death Contract.
Thank you for sharing
Excellent narrative. 👍👍
Thank you kindly!
Interesting Video! Can you speak about a mortgage with respect to an investment property.
Sure thing
@@DrHunnay Okay, Looking forward to it.
Really informative
Glad you liked it
The trick is to buy a house you can very much afford without breaking your back and pay off as soon as possible. Most people appraoch mortgage with the typical western credit mentality where people buy beyond their convenient means just because they can access credit
This is very true! Going for the most expensive house you cqualify for is setting yourself up for failure!
Informative
Thank yoj
I’ve got mortgage and no regrets at all. Why would I pay someone else’s rent in the form of rent, I Dey ment ? 😂😂😂😂
Glad it’s working out for you
People in Africa have estate in UK give it to agent to run.
True
Also, when you sell the house you live in, would you live outside😂? Your house is ‘appreciating’ so is the house you want to upscale to which could still be unaffordable to you, except when you want to sell the house and downsize which is a downsize to your quality of life. I agree that understanding that mortgaging is you living in a place, it just has to make sense to your situation and not rave that mortgage is an investment. Even for your children, what if they want bigger houses, what if they can’t afford the inheritance tax on it? It is not straightforward
Exactly! There are so many layers to it
No one is being scammed. Mortgage interest rate in nigeria is higher than uk
Mortgage isn’t a common concept in Nigeria
U soft spoken and intelligent.. mo fo fun e
Thank you
Why worry about The UK and not your own country?
Cos the uk is home to me now
I think I'd rather save £30K, convert it to my country's local currency and use that money to build a house...
Glad you found what works for you
Wow, this was scarily inaccurate… terrible assumptions on how equity works and no understanding on how interest rates work.
Strongly suggest you do more research before trying to advise.
I am not advising anyone and I literally stated that in this video! There are no assumptions about interest rates as I used a mortgage calculator for those numbers. If you have a contrary opinion then please leave it in the comments
This is why you should not do economics with feelings.
What has the world come to People are so arrogantly confident to be ignorant on camera.
Absolute trash. I feel sorry for anyone who listens to your advice.
I never gave any advice
@@DrHunnayGo back and listen to your own video. If you were thinking through what you were saying the video should have ended in the first 21 seconds. Where have you seen any financial adviser say a mortgage is for everyone?
You say you have a contrary opinion - contrary to what?
Secondly I never said you did. But my point is when I say anyone who listens to your advice I am not necessarily referring to this video BUT the fact that your reasoning methods is very flawed!
@@TheIgboRenaissance okay. Thank you the great reasoner
@@TheIgboRenaissanceyou have to stop thinking with your nose….haha were ni guy yii sha😊
Where is your husband? Your lips are distracting some.
Face your front oga
The problem is most people OVER MORTGAGE 💸 yes buy a house they can’t afford - mortgage to earnings ratio🫵🏾💯. 300k property on 30kish salary for example 30k deposit; 👀 that’s a hand to mouth situation! Buy what you can afford not this keeping up with the jones I see a lot of people doing, most suffer and why they don’t get to see a property as an investment!
But you can’t qualify for a 300k mortgage with a 30k salary. You would need at least 70k or so to qualify