Money Myths: You don’t own your house, the bank does! Money Tips, Tricks & Tactics #16
In today’s video we discuss the money myth, You don’t own your house, the bank does! Is it true? Or just made up?
Well in reality, there are a number of people who live in homes, some people rent, some people own their home outright, some people own their property with a mortgage, some people are in social housing and much more.
So it really depends, but the issue is mainly to do with the fact that your house is a home, not an investment, so treat it like this, then focus on acquiring a house that can pay you, not the other way around.
So what do you reckon, is it true or false?
7. IS IT TRUE?
It depends.
There's a large share of the population
who own their property outright, but
there's also a large share who own their
property with a mortgage, additionally
there's also a large share who are renting
or receiving social housing.
So it really depends?
8. 61.6% of homes owned outright
were 65+ years old
THE FACTS Did you know?
According to the department for communities
and local government, 61.5% of homes owned
outright were by people 65 or over. Whilst 1.5%
(25 - 34 yrs), 3.3% (35 - 44 yrs), 23.9% (55 - 64 yrs)
and 9.5% (45 - 54 yrs).
Meanwhile, 29.3% of homes owned with a
mortgage were by people 35 - 44 years old.
Whilst 4.4% (65 + yrs), 13.7% (55 - 64 yrs), 28.7%
(45 - 54 yrs) and 22.5% (25 - 34 yrs).
1
80.5% of homes owned with a
mortgage were 25 - 54 years old
2
1.5% of 25 - 34 year olds owned
their home outright
3
12. THE PROBLEM
Your home doesn't pay you, you pay for it.
People confuse their home for an
investment, when in reality it's a liability.
Your home doesn't pay you, you pay for it.
People confuse their home for an
investment, when in reality it's a liability.
13. WHAT NEXT
So what's the solution? How do we
turn this all around.
Well begin by doing the opposite of
the norm.
14. WHAT NEXT
Understand that you still need to
plan for your financial future
1
Although the statement is true, not all
debt is bad.
Debt, which is used to create wealth for
yourself is good.
i.e. BTL mortgage for an investment
property which generates rental income
Live in a modest home, bigger is
not always better, less is more.
1
WHAT NEXT
So what's the solution? How do we
turn this all around.
Well begin by doing the opposite of
the norm.
15. WHAT NEXT
Understand that you still need to
plan for your financial future
Understand that taking good
care of your personal finances
increases the possibility of a
better financial future.
1
2
Although the statement is true, not all
debt is bad.
Debt, which is used to create wealth for
yourself is good.
i.e. BTL mortgage for an investment
property which generates rental income
Live in a modest home, bigger is
not always better, less is more.
Rent where you live, buy what
you can rent out to others, first!
1
2
WHAT NEXT
So what's the solution? How do we
turn this all around.
Well begin by doing the opposite of
the norm.
16. WHAT NEXT
Understand that you still need to
plan for your financial future
Understand that taking good
care of your personal finances
increases the possibility of a
better financial future.
1
2
Although the statement is true, not all
debt is bad.
Debt, which is used to create wealth for
yourself is good.
i.e. BTL mortgage for an investment
property which generates rental income
Live in a modest home, bigger is
not always better, less is more.
Rent where you live, buy what
you can rent out to others, first!
1
2
Don't sink money into your
home, on unnecessary stuff.
3
WHAT NEXT
So what's the solution? How do we
turn this all around.
Well begin by doing the opposite of
the norm.
17. I know how hard it can be
to resist, but your
stronger than you think,
you can do this!
18. ACTION ITEMS Your action items for today's video are as
follows...
1
19. ACTION ITEMS Your action items for today's video are as
follows...
1
ONE
Set yourself
the goal to
own a
property,
which pays
you!
20. ACTION ITEMS Your action items for today's video are as
follows...
1
Set yourself
the goal to
own a
property,
which pays
you!
ONE TWO
Begin saving
towards that
goal, today. With
as little as £1.