John X Posted June 8, 2011 Share Posted June 8, 2011 The value of The House never recovers to what i paid for it ? Does it matter? It's your home isn't it? And if you do need to move, presumably all similar properties will be also devalued. We moan about inflation but seem to actively encourage it with house prices. John X Link to comment Share on other sites More sharing options...
Robbie Loving Posted June 8, 2011 Share Posted June 8, 2011 And if you do need to move, presumably all similar properties will be also devalued. If he needed to move, then surely he wouldn't require a 'similar' property. Other properties may not have depreciated to the same level. He may want to sell up and not re-buy. So I'd say yes, it could matter. Link to comment Share on other sites More sharing options...
denlin Posted June 8, 2011 Share Posted June 8, 2011 Why are you worrying about something that may not happen? Even if it did you would have to deal with it the same as others in same boat have had to do Link to comment Share on other sites More sharing options...
foxy lady Posted June 8, 2011 Share Posted June 8, 2011 Does it matter? It's your home isn't it? And if you do need to move, presumably all similar properties will be also devalued. We moan about inflation but seem to actively encourage it with house prices. John X That just about sums it up, but I would add this. House prices spiralled out of control over the last decade because house building targets were missed year after year causing a shortage. Now house building has stagnated again because of the recession. When there is a recovery there will again be a massive shortage of housing and the spiral will start over again. The OP is lucky to have got a foot on the housing ladder. Providing he/she doesn't fall off it is a far better situation to be in than someone looking to buy their first property. Link to comment Share on other sites More sharing options...
John X Posted June 8, 2011 Share Posted June 8, 2011 it is a far better situation to be in than someone looking to buy their first property. And wishing a rise in house prices will only put that person looking to buy their first property in an even worse situation. John x Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted June 8, 2011 Share Posted June 8, 2011 Does it matter? It's your home isn't it? And if you do need to move, presumably all similar properties will be also devalued. We moan about inflation but seem to actively encourage it with house prices. John X It can indeed matter. It's not your home. You do not hold the deeds to the property. If you borrowed 190k to buy a house which was valued at 200K, you offered the house as collateral for the loan, house prices subsequently fell and you could only sell the house for 180k, how would you repay the lender? The lender is not obliged to give you another loan or to transfer the loan to another property. You might be required to repay the original loan and then obtain another. Link to comment Share on other sites More sharing options...
truman Posted June 8, 2011 Share Posted June 8, 2011 It can indeed matter. It's not your home. You do not hold the deeds to the property. If you borrowed 190k to buy a house which was valued at 200K, you offered the house as collateral for the loan, house prices subsequently fell and you could only sell the house for 180k, how would you repay the lender? The lender is not obliged to give you another loan or to transfer the loan to another property. You might be required to repay the original loan and then obtain another. With a repayment mortgage some of the debt will have been paid off....assuming the sale isn't right at the beginning of the mortgage. Link to comment Share on other sites More sharing options...
Tomataheeed Posted June 8, 2011 Share Posted June 8, 2011 Does it matter? It's your home isn't it? And if you do need to move, presumably all similar properties will be also devalued. We moan about inflation but seem to actively encourage it with house prices. John X This is why i believe interst rates are being kept low. in reality they should be rising to control inflation, but the gov wants a reasonably high level of inflation to allow inflation to wipe out peoples debts.....and the governments debts. Link to comment Share on other sites More sharing options...
jellybellybean Posted June 8, 2011 Share Posted June 8, 2011 You are not alone, I bought my house in 2007 at the height of the market and paid £96k for it. I borrowed £115k in total though and gutted the house. It was then valued at £120k so great!!! Unfortunately now though it will only be valued at about £95k to £100k. I'm in a fixed term mortgage until 2012 and know I will have to stay with them while ever I'm in negative equity. To top it all I've split with my partner, he no longer contributes towards the mortgage but yet his name can't be taken off it as they wouldn't give me a mortgage for that amount on my salary alone even though I'm the one who pays it month in month out! Link to comment Share on other sites More sharing options...
poppins Posted June 8, 2011 Share Posted June 8, 2011 Theres always going to be some winners & some losers no matter what happens in the houseing market, being in my house for many years I would imagine i'd make a nice profit selling , then when i think of the money that was put into it over the years it wouldn't be that much, just the pleasure of living in it for now. Link to comment Share on other sites More sharing options...
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