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Housing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onward (finance.yahoo.com)

submitted 1 year ago by Blaze@discuss.tchncs.de to c/personalfinance@lemmy.ml

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[–] CustodialTeapot@lemmy.world 3 points 1 year ago (1 children)

I don't think you understand mortgages very well.

You know you can remortgage or sell your house before it's paid off, right?

If I pay in £500 a month. Likely, 20-80 of that goes to interest. I'm gaining £480 in equity each month.

Which I can gain access it at near any point with very little penalty.

You're focusing very blindly on your single point of "the deposit". Which is the hurdle everyone should focus on however possible.

[–] TunaCowboy@lemmy.world 13 points 1 year ago (1 children)

If I pay in £500 a month. Likely, 20-80 of that goes to interest. I'm gaining £480 in equity each month.

What kind of amortization schedule is this based on? This seems completely divorced from reality.

[–] Saintpaul@lemmy.world 6 points 1 year ago

It is. I bought my house two years ago with a low interest rate and it’s still another four years before I’m paying more money towards my principal than interest.