Quote:
Originally Posted by garinda
Not necessarily. Lots of people were caught out when the housing market last crashed in the late eighties/early nineties. Unlikely it will happen again, but negative equity is always a possibility.
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The people that were caught in the equity trap borrowed dear money, interest rates are as low as they have been in my lifetime, in 1964 they were 5/6 per cent it will never get any lower. Thatcher fueled inflation by incerasing interest rates, the only danger facing us at present is the easy to obtain credit cards with ridiculous rates of interest ie apr 29 per cent, mortgage money at 7/8 per cent is cheap, but as willow said if you buy the correct type of property 'not this modern wood framed crap' it will retain it's value through thick and thin times. If you sit on your backside worrying about crashes and failures you should not join the ranks of house ownership or go into business, be a nearly man instead.