 Drop in house prices...
House prices dropping is NOT a bad thing...even if you are a house-owner!
The only time that the fall in house-prices becomes something important, is when you are looking to leave the market altogether - i.e. if you are looking to sell up to retire abroad.
So why does this not really matter?
Well...a couple of reasons.
First, the WHOLE market will move and a drop in prices will be a GOOD thing when you are looking to upgrade to a bigger property.
Why?
It is likely that the more expensive houses are going to suffer a larger drop than smaller ones and, as such, the gap between your house value and the one you wish to move into will decrease. As such, it makes buying a larger hiuse more affordable. This is particularly so when people in more expensive houses are keener to sell their properties - so you might be able to snap up a bargain from someone desperate to sell!
Secondly, the market is cyclical and prices will go up and down over a period of time. As such, you just need to be careful abut when you chose to buy and sell properties
Of course, there are A LOT of factors to consider...but it's not all doom and gloom!
Paul Carcone  |