Leave or Remain?

John Marwood

John Marwood

I ♥ cryptic crosswords
Gramaisc said:
Inflation is 'good' for house prices - if you have a house.
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Not really

An economist writes...

If you own a house worth say £100k and house inflation is say an annual 10%

Then in 5 years you home would be valued at £164,860.84

However, you want to buy a bigger house.

A house worth £200k now would be valued at £329,721.67 in 5 years time with the same amount of inflation

So whilst you may have saved up the original gap of £100k to buy the bigger house, the price difference is now £164,860.83

You are £64,860.83p short, even though your house is worth a lot more
 
1JKz

1JKz

Well-Known Forumite
Batten down the hatches, this ship is going down!!?
...erm, how do we get off the ship when it hits the sea floor?

Those that ignore that advice (and rightly so), will be best jumping off the ship and swimming for it.
Last one to London's a loser!
 
John Marwood

John Marwood

I ♥ cryptic crosswords
1JKz said:
Batten down the hatches, this ship is going down!!?
...erm, how do we get off the ship when it hits the sea floor?

Those that ignore that advice (and rightly so), will be best jumping off the ship and swimming for it.
Last one to London's a loser!
Click to expand...

AH-7921?
 
tek-monkey

tek-monkey

wanna see my snake?
John Marwood said:
Not really

An economist writes...

If you own a house worth say £100k and house inflation is say an annual 10%

Then in 5 years you home would be valued at £164,860.84

However, you want to buy a bigger house.

A house worth £200k now would be valued at £329,721.67 in 5 years time with the same amount of inflation

So whilst you may have saved up the original gap of £100k to buy the bigger house, the price difference is now £164,860.83

You are £64,860.83p short, even though your house is worth a lot more
Click to expand...

The trick is to just stay where you are, that way house prices are irrelevant.
 
Mikinton

Mikinton

Well-Known Forumite
tek-monkey said:
The trick is to just stay where you are, that way house prices are irrelevant.
Click to expand...
Which is what we've done having moved into ours in 1984. (It must be something in the blood .... my mum's been in hers since 1954.)

Buy as big as you're going to need and cash in when you downsize when the kids have left home.
 
Gramaisc

Gramaisc

Forum O. G.
John Marwood said:
Not really

An economist writes...

If you own a house worth say £100k and house inflation is say an annual 10%

Then in 5 years you home would be valued at £164,860.84

However, you want to buy a bigger house.

A house worth £200k now would be valued at £329,721.67 in 5 years time with the same amount of inflation

So whilst you may have saved up the original gap of £100k to buy the bigger house, the price difference is now £164,860.83

You are £64,860.83p short, even though your house is worth a lot more
Click to expand...
When I said 'good', perhaps I should have said 'good for people's warped perceptions'?
 
John Marwood

John Marwood

I ♥ cryptic crosswords
Mikinton said:
Which is what we've done having moved into ours in 1984. (It must be something in the blood .... my mum's been in hers since 1954.)

Buy as big as you're going to need and ( the Government will ) cash in when you ( are incapable ) when the kids have left home, Because Mrs May is about to change the law on home ownership and care
Click to expand...
 
proactive

proactive

Enjoying a drop of red.
tek-monkey said:
Buy now, sell before retirement, blow the lot and live on benefits. If you have to sell it to fund your slow death you may as well sell it to fund your life.
Click to expand...
If you die with money in the bank you've lost. If you die owing money or living off others you've gone out ahead.
 
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