Understanding Home Ownership and Mortgages
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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Presentation Transcript
Nobody told me this when I was at school!
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
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 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
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.
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.
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
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
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?
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
