I bought my first home in 1983 for £29.500 with a 5% deposit.
This was a small, two bedroom, end of terrace property ideal for a single man. 25 miles outside London as I could not afford to buy any property near where I worked.
My financial adviser told me that the interest on this mortgage would be £160,000 over the 25 year mortgage term.
forward 42 years and that same property is on the market today for £360,000.
If I still lived there and intended to sell. Where could I move unless I increased the mortgage. Every other house has also gone up in value.
If you take the £160,000 from the £360,000 it appears that I would have made some £200,000 profit. At least this is what the banks and estate agents tell you. But this money is meaningless. I cannot use that money to buy a new car or have a 6 months holiday. I would have to sell my home and become homeless.
The tories namely Margaret Thatcher destroyed society but selling off all the social housing where families for generations lived successful and fulfilling lives.
Who actually benefits from buying your own home? The rich, the banks, the estate agents and money lenders.
My dad told me at the time that I would carrying a ball and chain for the rest of my life.
My son still lives at home aged 35. We worked out that to buy my first home in todays climate he would have to be earning as a basic salary £120,000 per annum. He earns about £50,000 per annum, which is double the average income in the UK, and he still cannot even afford a tiny end of terrace home for himself and any future family. He also has a £40,000 debt from his degree.
He will eventually inherit a home but if I live until I am 90 years old he will be nearly retired but that time.
The wonders of Capitalism.