We currently hear daily about thousands of pounds being wiped off our property's value.
However, should we worry about property price falls as much the media do? The simple answer depends on two things:- 1.
Do you own a home? 2.
Are you planning to sell your home? 3.
Are you struggling to meet your mortgage payments? If the answer to these questions is "No", then the answer is simple, don't worry about potential falls in your property's value! In fact, for those of you on tracker mortgages from 2007, thanks to the recent drop in the Bank of England's rate, your mortgage should actually end up being more affordable than ever before.
Property prices traditionally rise and fall, just like all markets.
Typically house prices grow over a ten year periods.
So for those people who's property value fell back in the 1990s, ten years later they had recovered.
While the reports of 25% price drops are scary and make us feel less well off, what the media fail to remind you is that over the last ten years, property values have risen exponentially.
In fact, if you've owned your property since 1997, all the falls mean is that your property is only worth 175% more than you bought it - not bad, considering that's all tax free additional income! So the short answer is, if you don't have to worry about affording your mortgage and are not planning to sell your home, then ignore all the 'scare mongering', sit back, relax and enjoy your home!
However, should we worry about property price falls as much the media do? The simple answer depends on two things:- 1.
Do you own a home? 2.
Are you planning to sell your home? 3.
Are you struggling to meet your mortgage payments? If the answer to these questions is "No", then the answer is simple, don't worry about potential falls in your property's value! In fact, for those of you on tracker mortgages from 2007, thanks to the recent drop in the Bank of England's rate, your mortgage should actually end up being more affordable than ever before.
Property prices traditionally rise and fall, just like all markets.
Typically house prices grow over a ten year periods.
So for those people who's property value fell back in the 1990s, ten years later they had recovered.
While the reports of 25% price drops are scary and make us feel less well off, what the media fail to remind you is that over the last ten years, property values have risen exponentially.
In fact, if you've owned your property since 1997, all the falls mean is that your property is only worth 175% more than you bought it - not bad, considering that's all tax free additional income! So the short answer is, if you don't have to worry about affording your mortgage and are not planning to sell your home, then ignore all the 'scare mongering', sit back, relax and enjoy your home!
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