Originally posted by d000hg
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Property ownership is a liability when it is ones primary residence. A mortgage sacrifices flexibility and mobility which are two of the value propositions that a contractor still holds has control of.
The UK has a disfunctional system that relies on a mortgage system. A mortgage system that extends term because capital gain is greater than income growth. Term is needed to increase final value
of sale.
Debt is debt. Let's stop calling it credit.
I use debt as a tool, one that becomes more powerful as interest rates increase. I buy debt cheap, spend it on assets and when it is time to settle said debt, either buy more or settle it.
But who the **** am I to talk about this. I started running cable and now own a company that dominates it's sector.
The most astute example in this thread comes from NLUK (which is often the case) who rolled 0% credit cards to buy his first apartment.
In the current climate, if I was not a drunken rambling millionaire, I would rent, if a contractor.
If I had a crystal ball that said I would stay put for a finite period of time by which my interest was paid down, a mortgage might make sense.
The steaming tulipty reality is the main reason that a mortgage is such a life goal is that the tenancy laws in the UK are so tulip, that a mortgage is the better of 2 evils.
If tenancy laws were reformed to offer a tenant dignity and stability, this construct of upward wealth creation would be a non issue.
A system where one must use debt to create a foundation for the bottom of there psychological pyramid of needs is defunct and an insult to our children.
Go and get a credit card so over time you will not have to bend over to a property owner as you have shown you can tolerate debt is a boring, dangerous distopia.
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