Worried about a property value crash? It could be the best thing that ever happened to you. It seems the media can’t make it’s mind up about property values. A year or so ago the press was clamouring for the govenment to intervene in rocketing house prices. Now there’s doom predicted for home owners in the falling values, it’s either a crash or a soft landing depending on who you listen to. Well I say bring on a crash!
We seem addicted to rising prices without it seems much logic. The more they go up the better we feel apparently, that is unless you’re hoping to buy your first home. But what if they went down, where would that leave you on the ‘Property Ladder’?
To get on the first rung on the ladder we scrape, save and stretch ourselves to the limit with the promise of taking a step up. It might be a little flat or a run down terrace but do it up and move on and upwards. And that is the point, moving up – bigger and better.
But how do rising prices help anyone on the way up, the next property just gets proportionately more expensive. If your 150 grand two bed terrace goes up 20% that’s another thirty you made on the deal except the 250 grand semi you had your sights on just tipped 300 grand and a net twenty grand more debt, that’s if you can afford the stretch.
Remind your self why you’re doing this, if it was to make money it’s not really working is it. If its to have a nice place to live then it really would be cool if your home cost a little as possible and then you could spend all the money you had left over from a rediculously cheap mortgage to do the things you want. Work less or not even work at all!