Buying a house: The disadvantages

Many people do not have the money to buy a house so they need to take out a mortgage to buy their house. This means they are repaying a debt for a long period of time, usually 25 years.

Mortgage repayment rates can be high and so you end up paying back a lot more money than you borrowed.

It can be difficult making the mortgage repayments every month. Failing to keep up with mortgage repayments may mean losing your house/home and may lead to further consequences, such as bankruptcy/arguments with family members.

The value of your house can decrease over time so if you tried to resell your house, you could lose money (as you are selling it for a lower price than you bought it). This is referred to as 'negative equity'

To keep the property up to date/pay unexpected bills you need to budget your money carefully to make sure you can pay for such emergencies/bills/improvements to the house.

Check out the CCEA GCSE Learning for Life and Work Second Edition Textbook to find out more or check out: My Revision Notes: CCEA GCSE Learning for Life and Work: Second Edition

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