1. External Influences - Getting onto the property ladder

2. Step 1 – Find your dream property
Click on the image above to go to Rightmove.co.uk.
Enter the area you’d like to live, then enter the particular details (number of bedrooms etc)
If you want to live abroad, click “Overseas” on the top-right-hand side
Note: by all means take a look at the £20m mansions, but chose one under £1m or else it is difficult to find a mortgage!

3. Insert at least 3 photos below
The House
Price
Location
Number of bedrooms
Best features
Insert at least 3 photos below

4. Step 2 – Arrange a Mortgage
Click on the image above to go to a Mortgage Comparison site
Enter the price of the property and how much you wish to borrow (assume you have a 10% deposit and don’t go over £1m!)
For “Total mortgage term in years”, select 30
Choose between a Fixed or Variable Mortgage
Pick the best mortgage, taking note of the additional “set-up fees”
Make note of the “total amount payable” at the bottom of each mortgage

5. The Mortgage Introductory Interest rate (if applicable)
Interest rate after introductory offer
Fixed or Variable? Which did you choose and why?
Set-up fees
Monthly repayments
Total amount payable
Using this link, what would happen to monthly repayments and total amount payable if interest rates were 5% higher?
Monthly Repayment:
Total Amount Payable:

6. Taxes
In addition to the many other costs involved when buying a house, the largest is usually a tax called Stamp Duty.
Check the table below and work out the Stamp Duty for your property.
House Price
Rate
Amount Payable
What are the advantages and disadvantages of high and low tax rates?

7. House prices and wages
If we assume that whatever your mortgage is, you’ll pay the same in bills and utilities, what will be your total outgoings per month?
To ensure you can pay for all of this, plus have some disposable income, how much would you have to earn per year? Remember to account for income tax!
What job will give you this kind of income?

8. House Prices Over Time
Work out the percentage increase in average house prices from Q – Q1 2015
2. Apply this to your house and predict its value for 15 year’s time
3. Work out the percentage decrease from Q – Q1 2009
4. Apply this to your house and predict its value for 2 year’s time

9. House Prices & GDP
Give a fully developed reason as to why the economy is so dependent on house sales.

10. Question time
Write down at least 5 questions you have about house buying and macro-economics 1. 2. 3. 4. 5. 6. 7. 8. 9.
10.