Home Ownership and Mortgages

 
Nobody told me
this when I was at
school!
 
Today’s assembly
 
I’m going to explain to you
 
How to buy a house
Why people buy them
Why some people do not own one
 
The cost of living
 
Currently you are living with your family or carers
This means:
Food
Housing
Electricity
Clothes
Heat
…are all paid for by someone else
 
Buy or Rent?
 
Renting
 means you pay someone to live in their property.
You do not own the property
The “landlord” should make sure everything works and if something
breaks they will fix it.
 
Buying
 means you buy the house from the previous owner.
You own it and are responsible for its up keep
Most people need a loan from the bank called a mortgage
 
What is a Mortgage?
 
The bank will give you a loan to buy a house or a flat
 
This will be over a long time usually 30 years at the beginning
 
You pay back the money you have borrowed plus interest
 
Interest is the extra the bank charge for giving you the loan
 
Retail Banks
 
Usually on the high street
 
Manage money 
– Current
Account
Lend money- 
so people can
acquire goods and services
they cannot afford or cannot
wait to save for.
 
How much does it cost?
 
House price £268,000
5% Deposit £13,400
Total borrowing 254,600
30 years to pay back
 
 
Why doesn’t everyone own a house?
 
Not as easy as “people don’t earn enough”
 
Deposit needed usually 5% - 10% of the value of the house
Difficult to save up when you are paying for rent and other expenses
Hard to say no to luxuries
 
Often family support young adults whilst they save up
Relatives give you the deposit or pass away and leave an inheritance
 
The cost of living
 
Currently you are living with your family or carers
This means:
Food
Housing
Electricity
Clothes
Heat
…are all paid for by someone else
 
Assets
 
Assets are anything of value which can be sold for cash
A house is usually the biggest investment in any person’s life and is their
number one asset.
The more money you earn, the bigger the house you can afford
When you are older and want to finish work you do not need to find rent
payments meaning your pension income goes further
Wealthy people invest their money (meaning they can get it back if they sell
their asset) rather than spend it on goods which decrease or are eventually
worthless.
 
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9
 
Emily, from Bridgend, Somerset,
said: “I was never book smart as
a child and from a young age, I
knew I wasn’t intelligent enough
to go to university.
“But I knew I wanted to get out
of the poverty trap and have the
financial security of owning a
home.
At age 19, I bought my first house
and I kept on going from there,"
she explained.
 
R
o
b
b
i
e
 
F
o
w
l
e
r
 
Robert Fowler (born 9 April
1975) is an English former
professional footballer, who
played as a striker. In a playing
career between 1993 and 2012.
 
Through intelligent investing
Robbie has managed to grow his
property portfolio to over an
estimated 80 individual
properties.
 
He has a net worth of £50million
 
M
i
k
e
 
T
y
s
o
n
 
Forbes estimated Tyson's
career earnings are
around 
$685 million
, but he
was declared bankrupt in
2003.
Tyson was a lucrative spender
during his fighting days, has
been married three times and
has eight children.
He has recently taken
advantage of changes in drug
laws and has a weed farm
 
It may be many years before you will have to think about this
 
Your ability to learn, adapt and collaborate will influence your financial
future.
 
What
 can you do right now?
 
 
 
 
Don't worry about being Great
 
Be Consistently Good
 
Everything else will take care of itself
Everything else will take care of itself
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Exploring the fundamental concepts of buying a house, the cost of living, renting vs. buying, mortgages, and reasons why not everyone owns a home. The content covers essential financial aspects and practical considerations involved in homeownership, making it insightful for individuals navigating the housing market.


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  1. Nobody told me this when I was at school!

  2. Todays assembly I m going to explain to you How to buy a house Why people buy them Why some people do not own one

  3. The cost of living Currently you are living with your family or carers This means: Food Housing Electricity Clothes Heat are all paid for by someone else

  4. Buy or Rent? Renting means you pay someone to live in their property. You do not own the property The landlord should make sure everything works and if something breaks they will fix it. Buying means you buy the house from the previous owner. You own it and are responsible for its up keep Most people need a loan from the bank called a mortgage

  5. What is a Mortgage? The bank will give you a loan to buy a house or a flat This will be over a long time usually 30 years at the beginning You pay back the money you have borrowed plus interest Interest is the extra the bank charge for giving you the loan

  6. Retail Banks Usually on the high street Manage money Current Account Lend money- so people can acquire goods and services they cannot afford or cannot wait to save for.

  7. How much does it cost? House price 268,000 5% Deposit 13,400 Total borrowing 254,600 30 years to pay back

  8. Why doesnt everyone own a house? Not as easy as people don t earn enough Deposit needed usually 5% - 10% of the value of the house Difficult to save up when you are paying for rent and other expenses Hard to say no to luxuries Often family support young adults whilst they save up Relatives give you the deposit or pass away and leave an inheritance

  9. The cost of living Currently you are living with your family or carers This means: Food Housing Electricity Clothes Heat are all paid for by someone else

  10. Assets Assets are anything of value which can be sold for cash A house is usually the biggest investment in any person s life and is their number one asset. The more money you earn, the bigger the house you can afford When you are older and want to finish work you do not need to find rent payments meaning your pension income goes further Wealthy people invest their money (meaning they can get it back if they sell their asset) rather than spend it on goods which decrease or are eventually worthless.

  11. Woman, 30, owns seven houses after buying Woman, 30, owns seven houses after buying her first 160,000 home when she was 19 her first 160,000 home when she was 19 Emily, from Bridgend, Somerset, said: I was never book smart as a child and from a young age, I knew I wasn t intelligent enough to go to university. But I knew I wanted to get out of the poverty trap and have the financial security of owning a home. At age 19, I bought my first house and I kept on going from there," she explained.

  12. Robbie Fowler Robbie Fowler Robert Fowler (born 9 April 1975) is an English former professional footballer, who played as a striker. In a playing career between 1993 and 2012. Through intelligent investing Robbie has managed to grow his property portfolio to over an estimated 80 individual properties. He has a net worth of 50million

  13. Mike Tyson Mike Tyson Forbes estimated Tyson's career earnings are around $685 million, but he was declared bankrupt in 2003. Tyson was a lucrative spender during his fighting days, has been married three times and has eight children. He has recently taken advantage of changes in drug laws and has a weed farm

  14. It may be many years before you will have to think about this Your ability to learn, adapt and collaborate will influence your financial future. What can you do right now?

  15. Try your best Don't worry about being Great Calm and well mannered Be Consistently Good On time Everything else will take care of itself Look smart

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