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BNV Managing Editor
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Posts: 3,480
Join Date: Dec 2003
Location: , ,
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imported post -
14-03-07, 02:43 PM
Le Moor wrote:
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The bottom line is banks are in the business of lending you money and they never make their criteria too difficult to obtain.
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However the issue is affordability. If houses prices have increased and wages havent followed respectively, then the gap on affordability widens.
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Le Moor makes some very valid points. I underline those two because they are often overlooked by the average punter in his/her rush to 'own' property. The net result often being that people get in over their head where evena slight change in your'regular income' circumstances (e.g. a below inflation cost of living rise, or no cost of living rise at all) can mean that you find yourself struggling to pay your 'relatively-easy-to-acquire' mortgage.
At the end of the day the mortgage company has the security of an asset that can be taken away from you and sold to recoup their money.
Companies in the business of lending have a way of making it all seem like a walk in the park to get on the 'house ownership' ladder. But for a financial commitment that ties you up for around a quarter of your life, taking a long look before you leap is advice worth following.
Respect
There are those who feel that the only way to ‘prove their own worth’ is by ‘devaluing the worth of others’. You will often find that a man who is compelled to measure his substance against the substance of another, has little of substance in the first place!
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