"Commander Kinsey" wrote in message
newsp.0me79xi6wdg98l@glass...
On Mon, 15 Jun 2020 00:17:50 +0100, Xeno wrote:

On 15/6/20 8:52 am, Clare Snyder wrote:

snipped

It was an
advantage for the folks selling our house when we bought - it had a
transferable mortgage at 6 1/4% when the going rate was 20-22%.

Wow! When was it that high? I thought mortgages had always been
3-6%.
Early 80s they peaked at about 24%

Only about 18% here for home mortgages. Business mortgages were higher.

How on earth could that work?

The rate hiked after they got the mortgage.

At under 5% people can only just afford to get one.

That depends on the property value, stupid.

We still had a mortgage on the house we moved out of too, but the
equity
in house#1 allowed us to pretty much pay cash to the existing
mortgage. We payed off that mortgage before buying a gallon of paint
to do any redecorating.

So you bought a house worth less than your old one?!

No, we sold a $50,000 house to buy a $67000 house. What equity we had

We paid $67,000 for our first house with a loan of $56,000, sold it for
$300,000 about 18 years later. Paid $365,000 for for the next and
borrowed a mere $75,000 to get into that one. Sold it for $600,000 nine
years later. Because we did a sea/tree change, this house cost less than
we sold our previous for.

Double the price in 9 years is some profit.

Some of ours did that.

Mine has almost doubled in 20 years.

Because no one is actually stupid enough to want
a house in a council sink estate like yours.

Sid you deliberately buy something you thought would be worth more later?

Virtually always true here.

And I've no idea what sea/tree means.

Leave one of the state capitals to live by the
sea or away from the sea where the trees are.

in the old house plus the existing transferable mortgate on the new
house amounted to about $3000 less than the purchace price of the new
house - and we had $3000 cash available in cashable investments. It
took us a few years to pay off the existing mortgage, by which time
the value of the house had already climbed by over 50%. 38 years later
it is worth almost 10 times what we paid for it.