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im not sure whether this is posted in the right section, please forgive me if not.
I'm part way through scripted and one thing I remember reading earlier on in the book seemed to me that it was quite negative towards mortgages and deeming them part of the script (MJ preferring to own his home outright).
I'm wondering whether it can ever be justifiable to use a mortgage to finance a home purchase?
I can of course understand the reasons behind a mortgage being part of the script, when people use it to purchase a house well beyond their means.
In the U.K. Housing market, it is often substantially cheaper to pay your monthly mortgage payment than it is to rent (although the margins get thin in hot markets such as London and arguably the maintenance cost of a home can offset cheaper costs) and you're also going to own an asset in the future, although this will take 25 years and for most will tie up a large proportion of their wealth in something which doesn't produce revenue.
Not to mention that the ROI on property investments in the UK is greatly increased by leveraging a mortgage product to purchase and reduces the barrier to entry for property rentals, but I understand that this leaves you open to exposure if interest rates change and your mortgage payments go up.
I'm part way through scripted and one thing I remember reading earlier on in the book seemed to me that it was quite negative towards mortgages and deeming them part of the script (MJ preferring to own his home outright).
I'm wondering whether it can ever be justifiable to use a mortgage to finance a home purchase?
I can of course understand the reasons behind a mortgage being part of the script, when people use it to purchase a house well beyond their means.
In the U.K. Housing market, it is often substantially cheaper to pay your monthly mortgage payment than it is to rent (although the margins get thin in hot markets such as London and arguably the maintenance cost of a home can offset cheaper costs) and you're also going to own an asset in the future, although this will take 25 years and for most will tie up a large proportion of their wealth in something which doesn't produce revenue.
Not to mention that the ROI on property investments in the UK is greatly increased by leveraging a mortgage product to purchase and reduces the barrier to entry for property rentals, but I understand that this leaves you open to exposure if interest rates change and your mortgage payments go up.
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