Quote:
Originally Posted by steve-45
Or house prices just to increase in value at the annual rate of inflation.
The spiraling above inflation prices rises does not do you any good unless you want to sell up and live in a tent.
Example
100K house increases in price by 15% - now worth £115K
But, what I would really like is a £200K house, however that now costs £200K + 15% now equals £230K
So, 1 year ago I was £100K away from my dream house - now I am £115K away !
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Yes, speculation in property should not be viewed as a investment other than the investment in a home for your family, and as you point out increase in value makes not a jot of difference unless you wish to downsize.
Quote:
Originally Posted by macafee2
people with mortgages might not agree 
macafee2 |
It makes not one iota of difference Ian, it only matters if you plan to move house, and plan to port the mortgage along with the move.
It is unfortunate if you happen then to be trapped in a house you no longer wish to live in, but the perception of the properties worth to yourself doesn't alter because of negative equity.
I believe it to be a price worth paying so our children and their children have a reasonable chance at making a home for themselves.
Brian
