Quote:
Originally Posted by Syndrome
But if you are locked into a mortgage and the value of the house drops below what you owe then that is NOT a winning position.
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Markets go up and down, if its a short term thing then yeah, you may get screwed. But there is such thing as refinancing a loan like i did to stop the rediculous interest. In the long term things will go up. But thats if you do your reaserch. If you buy in a boom town then the boom goes away, well thats a lost bet. But if its a place you want to or intend to live in for years and years then its more of an annoyance. So its the finance im getting at here not the property value, because regardless of the property value, you still have to pay what you bought it for. Even with the slump at the moment if i sell my place the mortgage would be covered, and there would be another few hundred grand on top. Thats not a profit though. I need a house to live in so with the market growth in the past few years i might end up with a deposit and stamp duty paid, but the rest goes into getting house with the loan on top and its not going to be that much better then where im at now. If anything at all.