Banks will not give you the loan if you do not make enough such that your repayments would be less than 35% of your income. But you could very well already be paying more than 35% of your income as rent. Trust me bro not everyone is renting because they feel like it. One of my friends saved a $100k deposit but didn’t have the income to get a big enough loan for a house. These people aren’t just stupid. Buying isn’t an option for them.
If the concept of someone staying in the same rental for a while and having their rent increase over time is that foreign to you then I don’t think you should be commenting on this topic.
Last year my job refused to give me an inflation adjustment, then they laid me off 6 months later because they didn’t have as much growth as they projected.
I don’t see how those reasons (strict solvency checking, rules based decision making, etc) would lock anyone out.
Banks will not give you the loan if you do not make enough such that your repayments would be less than 35% of your income. But you could very well already be paying more than 35% of your income as rent. Trust me bro not everyone is renting because they feel like it. One of my friends saved a $100k deposit but didn’t have the income to get a big enough loan for a house. These people aren’t just stupid. Buying isn’t an option for them.
The argument was that mortgage was half of rent. You won’t be paying 70% rent…
You can be if you stay in the same place and the rent keeps increasing.
And my grandma had wheels she would be a bicycle
If the concept of someone staying in the same rental for a while and having their rent increase over time is that foreign to you then I don’t think you should be commenting on this topic.
Yeah, rent doubling while income remains unchanged, not even inflation adjustment… is foreign to me.
Last year my job refused to give me an inflation adjustment, then they laid me off 6 months later because they didn’t have as much growth as they projected.
Cool anecdote, bruh.